Bankruptcy questions

LittleAoife

Is it better to do this on your own or through a physical person that can help you with forms etc.
I am dyslexic and I'm going to apply to go bankrupt so is it best to go through with it via an agency etc so I get help with the forms etc??, I need a clean slate as hubby has left me with debts that are both mine and joint, I can't carry this at the moment.
I have made the decision that this is what is best for me and the kids and maybe one day I'll be free entirely but that's another story.
I have no assets but I'm saving at the moment to pay bankruptcy fees and will need a small car ( just a cheap banger) so I can drop the kids to nursery and get to work on time. Currently I use the free bus to work but from April I will be in the community as a student nurse so I'll need a wee car.
I'm planning on having £500 for the car and £700 to go bankrupt unless anyone can suggest a way I can get either of these costs down??
As I am currently a student nurse I cave a very small student income but I qualify in august 2015 so will this affect the way that my bankruptcy is managed??
Many thanks

banksshouldworry

You can get free support with debt advice and form filling from charities such as Step Change, stepchange.org, (0800) 138 1111.

I used Step Change for my BR and they were fantastic. National Debtline or Citizens Advice Bureau are other options.

The Insolvency Service also have a helpline for how to fill in the forms correctly.

Heres an example of how to fill in forms 6.28 and 6.27;

http://nedcab.cabmoney.org.uk/bankruptcy628.asp

http://nedcab.cabmoney.org.uk/bankruptcy627.asp

The £700 bankruptcy fee consists of £525 to pay the Official Receiver and £175 to pay the court fee. If you're on a low income you may be able to apply for a full or partial remission of the £175 court fee:

http://www.justice.gov.uk/downloads/forms/hmcts-fees/ex160a-eng-upto-6.pdf

Hang in there - it will get better.

You can always pop on here and ask your questions too.

longtermplanner

Can I just check that you owe more than £15,000? because if you owe less, then a Debt Relief Order would probably be more suitable and it has much lower fees.

I agree with banksshouldworry - don't pay anyone for help with the bankruptcy forms, go to charities (or here!) where you can get help for free.

If you go to your local CAB they may be able to suggest if there are any charities that could help you with the £525 fee (you won't have to pay the court fee on a low income.)

If your income goes up a lot in August 2015, it is possible that you might have an IPA set, which would mean that you have to make monthly payments to the OR for 3 years. If you can go bankrupt before August 2014 that would be good, because you will be discharged from bankruptcy in 12 months and an IPA can't be set after you are discharged.

LittleAoife

longtermplanner wrote: »

Can I just check that you owe more than £15,000? because if you owe less, then a Debt Relief Order would probably be more suitable and it has much lower fees.

I agree with banksshouldworry - don't pay anyone for help with the bankruptcy forms, go to charities (or here!) where you can get help for free.

If you go to your local CAB they may be able to suggest if there are any charities that could help you with the £525 fee (you won't have to pay the court fee on a low income.)

If your income goes up a lot in August 2015, it is possible that you might have an IPA set, which would mean that you have to make monthly payments to the OR for 3 years. If you can go bankrupt before August 2014 that would be good, because you will be discharged from bankruptcy in 12 months and an IPA can't be set after you are discharged.

I am planning to go bankrupt ASAP.

LittleAoife

longtermplanner wrote: »

Can I just check that you owe more than £15,000? because if you owe less, then a Debt Relief Order would probably be more suitable and it has much lower fees.

I agree with banksshouldworry - don't pay anyone for help with the bankruptcy forms, go to charities (or here!) where you can get help for free.

If you go to your local CAB they may be able to suggest if there are any charities that could help you with the £525 fee (you won't have to pay the court fee on a low income.)

If your income goes up a lot in August 2015, it is possible that you might have an IPA set, which would mean that you have to make monthly payments to the OR for 3 years. If you can go bankrupt before August 2014 that would be good, because you will be discharged from bankruptcy in 12 months and an IPA can't be set after you are discharged.

I was going to go for a DRO but I the total debts are just over the £15,000 and to be honest it is effectively the same thing, it's just bankruptcy under £15,000, I believe it is not long before you will have to declare a DRO in the same way as bankruptcy and I believe then they will be view the same from a future creditors perspective etc.
I'm not bothere about going bankrupt, I spent the few weeks after new year upset and crying at the thought of going br but now I'm ok and just looking to the future when it will all be over and I can get on with my life and just focus on making the kids happy.
The sad thing is these debts were origionaly around £8,000 and it's purely interest and charges that have made them this high. I just need the letters and phone calls to stop and hopefully this will be the end of it for me.
I will pray that I get the outcome I need to be sain!

tigerfeet2006

Please do make sure you take the proper advice on BR as your petition may be refused if you haven't.

Have you set up your new bank account yet with Barclays or Co-op?

longtermplanner

LittleAoife wrote: »

I was going to go for a DRO but I the total debts are just over the £15,000 and to be honest it is effectively the same thing, it's just bankruptcy under £15,000, I believe it is not long before you will have to declare a DRO in the same way as bankruptcy and I believe then they will be view the same from a future creditors perspective etc.

I think that is a very sensible approach.

The only reason I mentioned a DRO is because the fees are so much lower. From what you wrote it seems important to go bankrupt before August this year. But as you say you wiil be going bankrupt ASAP, getting the fees saved up isn't going to be a problem.

re "taking proper advice". You will be asked by the judge if you have had advice on bankruptcy. I suggest you call National Debtline on the phone http://www.nationaldebtline.co.uk/england_wales/ . You can then tell the judge you have spoken to them.

LittleAoife

tigerfeet2006 wrote: »

Please do make sure you take the proper advice on BR as your petition may be refused if you haven't.

Have you set up your new bank account yet with Barclays or Co-op?

I already have a basic co op account and have done for almost a year now, I hope they let me keep it.