Considering bankruptcy

Stoney1

Hi all.
I've been considering voluntary bankruptcy for some time now. My wife and I owe over £100,000 to around 27 creditors, all of whom are being managed by an agreement to pay £1.00 per month through a debt management company.
The debts were generated by a series of failed business ventures where we spent our time robbing 'Peter to pay Paul'. I closed all my businesses, perhaps with hindsight, prematurely as I got scared.
Non of my creditors has been willing to make me bankrupt, besides which, all the debts have been sold on, several times over the years.
I'm 57 years old and my wife is past retirement age and is in fact, retired. I earn £20k a year. y wife gets a state pension.
All of the debts are older than eight years. Each time one creditor sells a debt, we get a glut of demand letters from the new creditor for a few months. We haven't got a pot to p*ss in between us. The sum total of a lifetime of hard work is that my wife owns a small car. That's all of it.
I'm not after any sympathy, just some guidance as I'm at a stage where I no longer trust my own judgement and couldn't face making yet another flawed decision.
So, Questions:-
1. What would it cost to petition myself and my wife for bankruptcy?
2. What are the likely affects for us if we go ahead?

I would certainly appreciate some expert advice.

Thankyou in anticipation.

luvchocolate

Hi and welcome, just to make you aware its pretty quiet on here at the weekend so you may not get much response.
bankruptcy costs £700 each...its not joint each one is separate.

I would suggest you read all the links on the board and the insolvency service site, read everything you can, its all about research and planning to make it easier for you.

Also phone one of the debt charities I used stepchange but there are others debtline, cab.

You are not alone plenty of advice and support on here
.

TheGardener

Hi Stoney1 - as luvchocolate says - it can be quiet on this board at weekend. First thing - have you sought any advice about BR from one of the debt charities? They are free - no need for a DMC if you go BR. I agree with luvchocolate - call stepchange and use their online debt remedy tool.

Although you would need individual BR's (assuming the debts are in joint names?) there are some options to get the fees reduced if you are on a low income - they are £750 each. Read all the stickes at the top of the main board.

The impact will depend on your assets and income, do you own a property and if so how much equity (if any) is in it?

BR is not half as scary and stressfull as living your lives burdened with debts you know you will never pay. The effect other than financially will probably be one of huge relief.
Take advice and read everything you can on here and come back here for support anytime

alastairq

hi..do you have a mortgage?

Or do you rent the home you live in?

For your wife to petition BR, if her car is valued [auction of part-ex] at more than around £1000, then the OR would likely include that as an asset, and it would be taken & disposed of. [Unless there is a possibility your wife cold claim it is exempt as an asset? See the rules in the stickies above?]

toomuch2

Stoney1

I feel for you , I am also in my fifties, so I know the feeling you describe. I am also looking at what insolvency route to take.

Were any of your businesses limited companies? Along with the other great advice provided here you should give the Business Debt Line a call, they specialise in business related debt. They maybe able to offer some advice. They have been incredibly helpful to me.

Best of luck, and keep posting the advice you get here is brilliant and will help you ask the right questions. I have found just the act of getting stuff down on paper helps my thinking.

jayjayuk

Good Luck,

I am also looking at the same process as well. Keep us updated!

Stoney1

Thankyou to those who've replied so far. I was encouraged and calmed by your responses. My wife and I have had a long chat about it today and are going to do it, as soon as we can raise the funds.
We have no assets except my wifes car which I'll need for work. Should we transfer ownership? Its worth about £1000
We rent our bungalow, have the usual furniture and a telly and that really is all of it.
Thanks again for your advice

alastairq

Sounds like you are both...more-or-less, in an excellent position to benefit from bankruptcy?

The car may create an issue, however.

It currently is your wife's asset.

But, being retired, it is doubtful she could present sufficient argument for it to be 'exempted-as-an-asset'...so the OR would seek to realsie its value for her BR estate.

Yes, changing ownership would indeed secure it, as you yourself may be able to have it exempted, on the basis you need it to get to work.

However, to change ownership, you need to establish an audit trail.[if you alone petition BR, the car would be untouched, as it is your wife's asset].

Currently, did your wife actually pay for the car herself, showing an audit trail from her own money?

Or, did you in reality buy it together....simply placing your wife's name on the V5c? {which, in itself, does no prove or define ownership]

longtermplanner

What you have said sounds like a clear cut case for bankruptcy as you have no chance of paying that much money off. There are various places where you may be able to get some help the bankruptcy fees, see http://debtcamel.co.uk/help-with-bankruptcy-fees/ and go to your local Citizens Advice Bureau as they may know of any local charities.

Stoney1

Hi Alastairq.
My wife paid for the car from her own money. I don't own a car but will soon be reliant on borrowing hers for me to travel to my new job which I start within the next six weeks. It's going to be a forty mile round trip.
I'm guessing that a transfer of ownership from her to me via V5 is going look extremely dodgy having been done shortly before BR.
Is the OR likely to accept that It's our family car and needed for my work?

I have a further question about court fee remissions that I can't see an answer to.
It looks like we'll qualify for a partial remission based on our joint income, which the form asks for. But our fees are payable as individuals. I can't see to who's fee the reduction is applied. There are, after all, two fees of £750.00

Again, many many thanks

alastairq

I'm guessing that a transfer of ownership from her to me via V5 is going look extremely dodgy having been done shortly before

As I said above, the car's V5c simply states who the registered keeper is.

It is not a proof of ownership [as it clearly states on hte front of the V5c?}

WHoever is named in the V5c is irrelevant.

You can 'buy' the car off your wife...as long as you can show the purchase price was 'market value'. An audit trail for the purchase price should show you paying your wife the market value. Then 'ownership' transfers to you.
Silly, I know..but it would obviate the possibility of the OR insisting claiming the car as an asset in your wife's BR?