Going bankrupt - just need a bit of clarification

RAM29

Hello,

New person here, but long time viewer of the boards!

I've been in a bad situation for around a year now, and it's got to the point whereby after a lot of meetings with the CAB that bankruptcy is the only option for me, however I was wondering if anyone could just clarify one point (as it's the one thing that worries me the most).

In all of the guides to bankruptcy it says that if you're declared bankrupt, the bailiffs will come round to sell of any of your assets to pay some/all of your debts - I thought that the bailiffs only came around to do this if you DID NOT comply with the payments to the OR - the latter is what my caseworker said so I'm a bit confused now?

I live in rented accommodation and do not own a car.

fermi

RAM29 wrote: »

In all of the guides to bankruptcy it says that if you're declared bankrupt, the bailiffs will come round to sell of any of your assets to pay some/all of your debts - I thought that the bailiffs only came around to do this if you DID NOT comply with the payments to the OR - the latter is what my caseworker said so I'm a bit confused now?

You have obviously been reading the wrong guides, and your advice from CAB is correct.

You should declare any assets of 'value' on your debtors petition (statement of affairs). You do not need to declare normal household goods, and other items of low value are of no interest to the OR since it would cost more to collect and auction than would ever be realised. On a practical level this means that unless you have items such as valuable antiques, jewellery, painting etc you should not even record normal items on the forms.

I have never heard of the OR sending anyone to your property except to collect known valuables, or to investigate if major hiding of valuable assets is suspected.

RAM29

Fermi,

Thanks for your advice - I had visions of coming home to an empty house! (I know that cant happen but doesnt stop paranoia!).

We certainly dont have any antiquies, jewellry or paintings - we do have 2 pc's but assume they would be under household items which I wouldnt list.

fermi

RAM29 wrote: »

We certainly dont have any antiquies, jewellry or paintings - we do have 2 pc's but assume they would be under household items which I wouldnt list.

Unless they are pretty much brand new and top spec then they will be worth so little at auction that you can just forget about them. The OR is looking to realise assets/money to pay some of your debts, not make you a martyr.

Do remember that if you have recently bought any high value items, that these transactions may show up on bank/CC statements and the OR can ask for an explanation when they inspect your accounts. Just be prepared for the question.

And yes, most people going BR have been worrying for so long that the paranoia is hard to avoid or dispel.

rog2

There really are too many references to 'sending in the bailffs' once someone is declared bankrupt, when, in reality, this simply does not happen.
Bailiffs MAY be used, for example when a 'business owner' does a runner, and the OR needs to gain access to his registered premises.
In my case, I had to sign a request, at my OR meeting, asking for my furniture and personal effects to be excluded from my estate in bankruptcy.
The process of bankruptcy is, generally, quite civilised.

RAM29

fermi wrote: »

Do remember that if you have recently bought any high value items, that these transactions may show up on bank/CC statements and the OR can ask for an explanation when they inspect your accounts. Just be prepared for the question.

We certainly havent been able to buy any high value items on the cards for a year for sure, as it was around this time last year that I told my creditors I was having problems with meeting their minumum payments - so I know for the past year it's a definete no - not sure how far back from June 06 we might have - to be honest I dont think we did as it got to the stage where we were actually using the credit/store cards to buy our food - which is a really bad point - so we wouldnt have had the funds avaliable to buy other things

fermi

RAM29 wrote: »

We certainly havent been able to buy any high value items on the cards for a year for sure, as it was around this time last year that I told my creditors I was having problems with meeting their minumum payments - so I know for the past year it's a definete no - not sure how far back from June 06 we might have - to be honest I dont think we did as it got to the stage where we were actually using the credit/store cards to buy our food - which is a really bad point - so we wouldnt have had the funds avaliable to buy other things

You will be just fine then.:D

RAM29

The only thing the OR will probably want to know is why in my account it will show a large sum of money going from my account to my husbands - basically he wasnt paid - so I transferred money to his account to cover things (whilst still covering mine).

Plus we have been trying to get used to not just putting things on card, by using cash. We've been withdrawing a sum of money and (very sad I know) giving it to my mum, so when we want to do shopping, we get the money off of her - so no doubt I'll have to explain why a months worth of shopping money goes out of my account.