Going Bankrupt

Mykidsrcool

Hi, firstly let me apologise if there is already a thread on this, but i am so stressed out I can not even see straight.

I have a court date for hopefully going bankrupt, but this is the day before my salary is paid into my bank account. I would normally transfer most of this money out to my partners bank account for the bills to be paid, i.e. rent, gas, water, council tax etc.

My bank accounts are the most basic Barclays accounts with no overdraft, cheque book or credit facilities and i have had these for a number of years with no issues. The bank is aware that i am going bankrupt and have confirmed that they have no problem me keeping the accounts as they are Basic accounts.

My problem is to do with going to court the day before pay day and the ability to transfer money out for bills to my partners account, where do i stand with this?

Thanks,

fermi

The account should not be frozen, and even if for a very very odd reason it should be then it would never happen that quickly.

Regards actually transferring out, if the funds are wages earmarked for genuine need such as bills and livings costs etc, then it is OK to use and transfer them.

dancingfairy

It is not normally the OR that freezes your account. It's normally the banks themselves who don't like bankrupts. If you have a basic account though you should be fine.
df

Mykidsrcool

Thanks fermi, this has been going round and round in my head for a while now as the court appointment had to be booked 8 weeks in advance

One other question i have is regarding my car that is on HPI. I have spoken to the HP providers and they have no problem with me keeping the car and continuing to pay for it and will not request it back.

I have two children that i travel 70 miles each way every other weekend to collect on a Friday and drop off on a Sunday and i also have to commute 30 miles to work every day. I have looked at the cost of public transport just to collect and drop the children off in a month and this on its own is more than i pay per month on the car HP, then there is the commute to work.

Due to having to save really hard to make the £705 up for the Bankruptcy i do not have any way to even save another £500 to get a car that might be reliable, or even safe for me to have my children in.

What are the chances of the OR allowing me to keep and continue to pay for the car, or is that simply a no go?

dancingfairy

If you look on the sticky here: https://forums.moneysavingexpert.com/discussion/1056083 part way down there is a section that refers to cars and a factsheet from the Insolvency service on how they would deal with it.
df

Mykidsrcool

Thank you dancingfairy, going to read that in detail now.

fermi

Basically the OR will not force a sale unless they would get money out of it.

Assuming they won't and the company is happy for your to keep it, then it is just a matter of you justifying the payments and running costs against any alternatives. They can't forbid you from paying it or running it, but may not allow the costs in any income payment calculations that is all. Where they draw the line is very hard to say, but if you feel they are being unfair then you can refuse to sign any agreement they want to put in place, and they would have to decide if a judge would see it as fair. If it's not fair they would not want to risk that.

Mykidsrcool

Fermi,

I do not own the vehicle and am about 18 months into a 60 month hire purchase.

In the event that the OR and HP company decide that the car is going to be returned and there is no value in it and i have no assets that can be sold to raise funds for a vehicle, would the OR assist in providing funds for a car? I have been reading the link dancingfairy posted and it says that they may transfer funds.

fermi

No. That part about funding if I recall is where there is a vehicle sold by the OR as it has worth to them, so enabling them to return enough to you to buy a cheaper replacement. OR will not fund alternatives out of their own pot.

Mykidsrcool

Thanks Fermi. Got to say you and dancingfairy have helped some of my fears this morning.

Mykidsrcool

I have also had my budget checked by CCCS but am not sure what the allocation on food/housekeeping & clothes should be. I have put down actual figures of what is spent. I live with my partner, but pay my own way with regards to food and housekeeping. I have my children every other weekend and when they are with me i have to let them eat and also get new clothes for them as they are growing quickly.

Does £230 per month of Housekeeping and £25 per month of clothing seem fair for myself and my two children?

I really dont know how much they scrutinise the paperwork