LILA BR process

mufs2k

Hi,
Can someone tell me the LILA bankruptcy process? I've looked into it but am still unsure on some things:

1) Am I required to go to court?
2) Will anyone visit my home to check my assets etc?
3) Will I be required to make payments towards bankruptcy (after the initial £200 fee) if I am going the LILA route, have no assets and very small income?
4) I have a bank account that is in my name, but which I dont use. It is used to pay household bills with money other than mine as my parents are elderly. Will the money in this account be classed as mine even though it is not?
5)I am self employed - what will happen to my self employed bank account?
Thanks

rizla_king

Don't think many people here know what happens in Scotland?

wildheart83

mufs2k wrote: »

Hi,
Can someone tell me the LILA bankruptcy process? I've looked into it but am still unsure on some things:

1) Am I required to go to court? No you're not required to go to court, it's all done through the Accountant in Bankruptcy.
2) Will anyone visit my home to check my assets etc? No, no one will visit your home, contact is by telephone, email and letters.
3) Will I be required to make payments towards bankruptcy (after the initial £200 fee) if I am going the LILA route, have no assets and very small income? You'll be asked to complete an income and expenditure form prior to BR and at the halfway point (6 months) and also if there's a change in circumstances either way you're expected to notify AIB of this. Scottish BR is far more of an individual basis than in England and Wales AFAIK there's not the same rule of surplus over £20 per month and they take the lot, so it really will depend on your surplus.
4) I have a bank account that is in my name, but which I dont use. It is used to pay household bills with money other than mine as my parents are elderly. Will the money in this account be classed as mine even though it is not? Not sure on this one, I'd think you'd really need to be able to show it's not your cash, but I'll leave it for someone more experienced to answer.
5)I am self employed - what will happen to my self employed bank account? This is a tricky one again, you'll probably find that it'll either be closed, frozen or downgraded, it all depends who it's with. I was very lucky and got to keep my full bank account, most aren't so lucky and have any of the above happen to them. I'd open a basic account with either barclays or Co-op (without mentioning BR to Co-op) prior to going BR.


Thanks

My tuppence in red, hope this helps a little but have you spoken to any of the debt charities?

mufs2k

Hi,
Thanks for replying. I havent been to any charities. I've looked up a lot of information on it and most of the other options hinge on a disposable income. I was unemployed, then a student, then unemployed and am now self employed but making very little, so I don't have much disposable income.

wildheart83

Are you able to speak to CAB? They were excellent when I went BR, didn't judge me at all and really helped with the many questions I had

mufs2k

Hi
My local CAB has a drop in on Wednesdays so might go there this week.

Thanks for your replies, they have helped a lot