Will my petition for Bankruptcy be refused and what are the chances of IPA?

stevepro1982

Hi There

I have around 20k of debt. A chunk from recent CCJs from lost court cases, some from old debts and some from more recent things.

The recent CCJs are looking likely to peruse with high court enforcement and this really scares me, aside from the fact I feel they are a complete injustice. My attempts to set them aside failed.

After speaking to various advice centres it was suggested that as I have no assets, a terrible credit rating etc Bankruptcy might be an option.

I have prepared the paperwork and made the appointment but there are a couple of questions really bugging me.

My income is around 50k a year. I am the sole earner in my family and our outgoings are quite high with rent etc. But seeing as the proportion of the debt seems relatively low to my supposedly high income (taxed to death too) will I be refused bankruptcy by the judge?

I've worked out my income and expenditure and I pretty much account all my income towards reasonable living costs. I pay child maintenance so this takes a chunk of my wage. Anyhow, I've worked out I would need £600 a month for travel expenses. This may sound high but my child from a former relationship lives 70 miles away and I have her stay every weekend and I visit her once during the week too so that's 6 x 70 miles per week! Plus we live in a rural location and my place of work is 18 miles away. But would the OR except these reasons??

My flat rate salary pays me £2400 every 4 weeks, however Sundays are extra and I automatically work one Sunday a month bumping it up to £2750. Which figure should I use?

Thanks in advance for you help on this matter.

alastairq

Hi......

My income is around 50k a year. I am the sole earner in my family and our outgoings are quite high with rent etc. But seeing as the proportion of the debt seems relatively low to my supposedly high income (taxed to death too) will I be refused bankruptcy by the judge?

The term 'insolvency' means, being unable to meet your debts as they fall due.

The Judge doesn't consider whether you could have met your debts, or not. Merely to be certain you understand what Bankruptcy means, and its duties. The Judge isn't an accountant or financial expert. The Judge employs an Officer of the Court to do that. That officer is the Official Receiver.

Actual level of income, if any, is irrelevant to the petition.

With regards to your travel expenditure?

Documentary evidence to support your claim for the amount per month...and also to support your claim to have a car 'exempted-as-an-asset''...is important.

Whether the OR would accept your argument or not, would depend largely on your strength of evidence.

Regarding pay?

If you regularly work overtime, this would be included...

The final page of your paperwork is for you to explain things like this, for the OR to consider.....although don't forget to link your explanations back to the relevant section.

stevepro1982

Thanks for your reply that makes a lot of sense.

So the judge will declare me bankrupt so long as I understand the implications. But can the OR cancel it if they believe there is no case for it then?

I am going through waves of different feelings with regard to whether or not I should do it.

I could potentially amend the judgements I have looming over me to include a repayment plan but this would probably last longer than the Bankruptcy itself. At least I get a chance to try and start a fresh after discharge. The way I see it the CCJs will stay on my record the same length as a Bankruptcy.

silvercar

What is your car worth? If it is much over £1000 the OR is likely to take your car and give you £1000 to buy a cheaper model.

I've worked out my income and expenditure and I pretty much account all my income towards reasonable living costs. I pay child maintenance so this takes a chunk of my wage. Anyhow, I've worked out I would need £600 a month for travel expenses. This may sound high but my child from a former relationship lives 70 miles away and I have her stay every weekend and I visit her once during the week too so that's 6 x 70 miles per week! Plus we live in a rural location and my place of work is 18 miles away. But would the OR except these reasons??

I don't know if the OR has the power to suggest you have less visits or suggest that you meet at your ex's location so you don't have 2 return journeys. If you weren't working the Sunday overtime, could you visit for longer instead of the midweek visit?

longtermplanner

stevepro1982 wrote: »

So the judge will declare me bankrupt so long as I understand the implications. But can the OR cancel it if they believe there is no case for it then?[/QUOTE}

Absolutely not. It is your right to go bankrupt if you owe more than you can repay immediately.

BUT obviously millions of people owe more than they can immediately repay and for most of them, bankruptcy is not a sensible option. So the fact that your are "allowed" to go bankrupt isn't any help in making your decision.

I could potentially amend the judgements I have looming over me to include a repayment plan but this would probably last longer than the Bankruptcy itself. At least I get a chance to try and start a fresh after discharge. The way I see it the CCJs will stay on my record the same length as a Bankruptcy.

I think you should sit down and look at a debt management plan and see how long that would last. If a DMP will see you clear in 5 years, then going bankrupt is probably not a good option for you. If a DMP would take 10 years, then bankruptcy would be sensible. If your income is dependable, then you could also consider an IVA.

I am not sure the OR would allow all your travel expenses. The ones to work, certainly. But if you go bankrupt you might have to look for ways to reduce the distance traveled to pick up / drop off your child.

Don't jump into bankruptcy. Do some research on all the different alternatives (this is a good place to start : http://debtcamel.co.uk/debt-options/) and then think about discussing your situation with someone that will give you independent advice, such as National Debtline: https://www.nationaldebtline.org/EW/Pages/default.aspx

stevepro1982

My car is on finance and will probably be taken away.

A friend in a similar situation managed to justify that level of expense and they asked for postcodes etc to verify. However I know each case is different and I can't compare.

Some of my other debts should be statute barred but scumbags at Lowell collections managed to re-age the debts and put them back on my file.

I'm feel so robbed with the CCJs too. I was just starting to build a half decent credit file when all this started to happen. It's so unfair that some crazy person can take me to court over a car sold via eBay auction, win it ( despite when then court ordered the repairs be carried out, it was found only to need an oil change!! Long story......) then seriously damage my credit further with the ccj on my file now for six years for what is not a credit matter!

I wanted to buy a house once I was straight, but the simple fact is there will be no mortgage products available to me while I have an IVA or DMP yet if I do go Bankrupt I will be discharged after a year in theory and mortgage products are available right from day one albeit at a high rate, but I've heard after year 3 there are high street lenders who will provide a competitive mortgage with a 10% deposit. Seems mad but true.

Brock_and_Roll

Surely if you have ambitions to get a mortgage, you will have been planning to save up the 10% deposit you will need. So on that basis surely you could have settled the CCJ debts?

There is a contradiction that whilst on the one hand you say here and elsewhere that you have no hope of satisfying the CCJs but on the other you are worried about mortgage rates with a 10% deposit.

stevepro1982

This seems to have gone off on a tangent. The CCJs are due immediately, I do not have the money immediately. And the claimant is trying to enforce them with high court action, so I'd rather file for bankruptcy than have a visit from the sherif. There are mortgage products for discharges bankrupts, there aren't for people with terrible credit. No mention of any rate?

longtermplanner

I repeat what I said before - do not rush into bankruptcy because you are feeling pressured by CCJs. Look at all the options, for example see if the CCJs can be varied so you can make monthly payments. Ring National Debtline, they are experts on everything to do with court action and enforcement and can help you work through what your alternatives are.