The "what do you need to know before you go bankrupt?" thread!

tigerfeet2006

Hi Chompie,

I would suggest you will get a better response if you started your own thread. Then people can offer lots of advice without it impacting on this thread.

Hope someone can help you.

ClaireLR

Hi B-a-a-b, yes I saw your thread, its brilliant and I'm so pleased for you, I also saw the thread entitled this has left a sour taste, and thought to myself how much of a kind and wonderful person you must be to show someone else so much compassion despite your own good news, I really thought that was amazing.

Thanks for the advice on the car, just a quick question if you don't mind, I'm going to get the car valued this week ( as I'm having some repairs done the weekend and I'm thinking the valuation will be slightly less if I do it beforehand, naughty I know but I have to think logically here), I was wondering if you can take the car to any garage, and do you have to pay for a valuation??

Thanks again for your help.

ClaireLR

And does anyone know the answer to my silly question about the vets?

AlanD_3

CCCS didn't advise DMP to us, just BR.

Careful with CCCS, not them, they are great, but finding them is something to watch out for. A websearch for CCCS on Google brings up at least 4 fake CCCS sites first that want to get your money. Make sure you get the right one.

allofadither

ClaireLR wrote: »

I was wondering if you can take the car to any garage, and do you have to pay for a valuation??

I got two free quotes from local garages Claire, gave the OR the lowest of course.:D

ClaireLR

Thank A-O-A-D, I shall be visiting 2 tomorrow, what do you think the best way to go about this is, tell them the truth, or make out you want to buy a car from them? And do they automatically give you a written quote or do you have to ask?

allofadither

I told them I might need an ultra quick sale to raise some dosh and could they give me a realistic valuation in present condition, in writing please.

I have to be honest, the second garage guy asked me outright what I wanted him to put as a valuation (I think he's a bit dodgy himself, or maybe he fancied me...a teeny weeny bit :rotfl: ) so we agreed a figure.

It might help if you could take along a male friend, help with the negotiations? I don't think the garage will be bothered what you tell them really.

jobby_2

Would it not be worth putting cat situation down as a debt and then if it is raised taking about it to OR?

having not included an overpayment (also known as debt but doh didn't think of it that way) we now still have a tax cedit DEBT to pay off despite being bankrupt

Just a thought

wherediditallgo

jobby wrote: »

having not included an overpayment (also known as debt but doh didn't think of it that way) we now still have a tax cedit DEBT to pay off despite being bankrupt

Just a thought

Are you sure about that? I thought that any debts accrued before going BR were covered by your BR except certain secured ones, which the OR deals with differently. If you haven't done so already, I'd discuss this with your OR.

fermi

wherediditallgo wrote: »

Are you sure about that? I thought that any debts accrued before going BR were covered by your BR except certain secured ones, which the OR deals with differently. If you haven't done so already, I'd discuss this with your OR.

Yes. If the OR is not already aware of the overpayments then tell them ASAP.

They will apparently then assess whether they can be included in your BR under these criteria.

From: http://www.insolvency.gov.uk/freedomofinformation/technical/techmanvol1/Ch73-84/Chapter77/part7/Part7.htm

77.50 Recovery of overpaid credits after a bankruptcy order is made

In certain circumstances a tax credit may be overpaid and thereafter a recovery may be sought by HMRC. That recovery may be achieved by deductions made from ongoing awards of tax credits or by direct collection where there is no ongoing award of tax credits or where the ongoing award has ceased.

Where tax credits have been overpaid and a bankruptcy order is subsequently made against the claimant, whether or not the overpayment is a provable debt in the bankruptcy depends on the circumstances of the case as follows:

Final award notice (of repayment) issued before the date of the bankruptcy order.

• If the recovery is made, or would have been made, by direct collection (in cases where there is no ongoing award of tax credits), HMRC will submit a proof of debt in the bankruptcy, considering the debt to be a provable one.

• If the recovery is made, or would propose to have been made, by deductions from ongoing awards of tax credits, HMRC will not submit a proof of debt in the bankruptcy but will continue to make the collections from the ongoing award of tax credits until the bankrupt’s discharge from bankruptcy. Thereafter the balance of the debt will be written off. This action, of continuing to recover the debt post bankruptcy, follows the decision in the case of R v Secretary of State for Social Security, Ex Parte Taylor and Chapman [note 1]which provided that where a bankrupt was indebted to the Secretary of State for Social Security in respect of debts arising from earlier receipts of social security benefits, he/she was entitled to deduct sums from future benefits to be received thereafter in reduction of that indebtedness. Should any bankrupt object to the taking of the ongoing recovery action by HMRC in this way, they should be referred to that Department without further comment by the official receiver.
  
  In all cases where a final award notice (of repayment) has been issued by HMRC before the date of the bankruptcy order, the debt should be added to the list of creditors and HMRC treated by the official receiver as a creditor in the usual way.

Final award notice (of repayment) issued after the date of the bankruptcy order.

• Where a final award notice (of repayment) is issued by HMRC after the date of a bankruptcy order, whether the recovery action be considered by direct collection or from the ongoing award of tax credits, the bankrupt will be pursued by HMRC in the usual way even though the over-paid tax credits arose before the date of the bankruptcy order. This follows the decision in R (on the application of David William Steele) v Secretary of State for Work and Pensions [note 2]. In these circumstances the debt will not be included in the list of creditors. See also Chapter 40 Part 6 - Creditors and liabilities.

Should the official receiver require information on how HMRC intends to treat tax credit overpayments in individual voluntary arrangements, the official receiver should contact Technical Section directly for this information.

77. 51 Set-off and joint claimants

Where appropriate, HMRC will claim set-off in respect of monies it owes to the bankrupt to reduce or extinguish the indebtedness for overpaid tax credits [note 3].

Where tax credits have been claimed by two persons, HMRC will pursue the non-bankrupt person, if any, to recover the overpayment and if the intended recovery procedure is direct collection, it will also submit a proof of debt in the bankruptcy (as appropriate) (see paragraph 77.50), but it will not recover more than 100p in the £ of its debt (from both sources). Where the intended recovery action is deductions from ongoing tax credits, that will continue as far as the non-bankrupt claimant is concerned but a proof of debt will not be submitted in the bankruptcy. This follows an operational decision made by HMRC.