Planning on Going Bankrupt

jayjayuk

Hi Everyone,

After a few tough years and lots of debt I am planning on going Bankrupt,

I have about 30k+ of unsecured debt, and 17k on 2x pcp finance cars, no ccj's yet, but one that i ow 5k too is planning to take me to court to give me a ccj, Is it possible I could claim to go bankrupt then?

The reason I ask is because its £500 to go bankrupt, which i dont have since i lost my job due to the company going into administration where i had worked for the last 3 years and I have no income now.

I have a meeting with Barclays Tuesday to set up an account, but i am currently planning on getting my jsa paid into my mums account and using that for now.

I currently have a contract with EE will this be ok? its £11 a month?
I live in rented commendation with a flat mate all up to date.
My Mum has a car worth about £900 which I am insured on as I am trying to send back the financed cars.

I have a meeting with CAB on the 4th Of Feb, but I really don't think I can wait that long. I really want to tackle my debts after years of burring my head in the sand.

alastairq

Hi...you really need to study the stickies at the top of this forum, to get a much clearer idea of what Bankruptcy is, its effects, and how to go about it!

I suggest doing your homework first.

Plus, keep that appointment with CAB. [essential prior to BR petition anyway.....the judge will want to know if you have received proper advice first]

There should be no rush whatsoever to petition bankruptcy...since, once granted, bankruptcy will trump all prior unsecured debts, including previous CCJs!

BTW, BAnkruptcy is a personal petition, and only the Bankrupt's assets are considered.

Nobody else's.

jayjayuk

Hi,

Thanks for the reply. I was previously thinking of going bankrupt some time ago. However due to me being in full time employment, i feared I may have lost my job and I also hopped my Job may have gotten better and had more money to clear the debts.

Now I am unemployed as the company i worked for went into liquidation and Ideally i would Like to go self employed in april. I have been advised by an accountant to sort out my personal finances first.

I really feel that bankruptcy is the only way forward for me. I have suffered with debt for the last 5 years getting no where with more and more interest piled on.

I know Bankruptcy will only effect my assets of which I have none. I only advised about my mums car, because I am insured on it and it asks in the forms...... just checking it will be ok.

does anyone know about keeping a t-mobile sim only contract when going bankrupt?

luvchocolate

kept my t mobile sim only no problem...I had no debt with them

longtermplanner

jayjayuk wrote: »

Now I am unemployed as the company i worked for went into liquidation and Ideally i would Like to go self employed in april. I have been advised by an accountant to sort out my personal finances first.

that sounds like sensible advice

I know Bankruptcy will only effect my assets of which I have none. I only advised about my mums car, because I am insured on it and it asks in the forms...... just checking it will be ok.

if the car is not in your name, then it is not your asset and it will not be affected by your bankruptcy. (I am ignoring here the silly stuff where you bought your mum an expensive car!)

jayjayuk

Hi everyone,

Just a quick update, Opened my Barclay account today even though I had debt with Barclaycard which did show up.

Must say this account looks great!

So one step closer now. Just getting together the £500 required and too see CAB next week.

jayjayuk

Hi all,

Been to CAB and got my date for next week.

so nervous.... have to fill in the forms and have the money ready.

National_Debtline

Hi JayjayUK,

I can appreciate how you must feel. I've spoken to thousands of people over the years who have needed to consider bankruptcy due to a change in their circumstances. Once you know how bankruptcy works, it's not as scary as you might think. The court hearing should be a relatively painless excercise, and it's likely that you'll only ever peak to the Official Reciever over the telephone.

If you find work whilst you are undischarged (generally for the first year after the bankruptcy order date) you may get asked to pay any disposable income in to the bankruptcy. This is called an 'income payments agreement'. We've a useful fact sheet which you can find here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

Best wishes,

David @ NDL.

jayjayuk

Hi all

Not long to go now.

Just really nervous.
Need to fill in all the forms today and get the money ready.

1) will all unsecured debt be written off even if not in arrears?
Sounds silly even thou I have been to cab but just checking.

2) will I need to check all insurance policy's now when made bankrupt? House contents, motor insurance as I can use my mums car?

3) will the or have access to all my accounts on what I have bought?

4) as I lost my job in dec I thought I wouldn't have to pay the 175 court costs, but looks like I might as I have only been job sealing for just over 2 months.

alastairq

[1]....yes, all unsecured debt regardless.....except those types of debt specifically excluded [see the stickies..refers to things like Student loans, etc]...

[2].....usually affect home insurance...check for questions like ''has anybody living in the house ever been BR?', and so on. Can affect claims....

Most insurances for cars are ok....

[3] Yes.

[4] Check with the Court first?

There is no rush to petition......the important part of BR is...making the decision which way to jump in hte first place. Once that decision is made, the timing really doesn't matter...get all appropriate bank accounts sorted first...putting yourself into the best possible position to 'survive' bankruptcy.

downhillfast

You mention that you'd like to go self employed in April? Depending on what line of work you are in you should bear in mind that you'll be very limited regarding obtaining credit accounts from suppliers etc. some businesses rely on lines of credit with suppliers as you can't generally ask customers for money up front for most things.

My BR is well and truly in the past now and I really don't know what I'd have done had I not been able to leave my money pit of a pub and move on. The pub has now been flattened after at least 6 other tenants failed to make it work! Good luck!