Bankruptcy?

humphrey96

Took your advice and spoke to an advisor. We went through the plan and changed a few details. He said that bankruptcy was an option but as everyone has said there is a lot of planning! Their bankruptcy team should be in touch in the next 24 hours - such relief!! have also ordered application packs for the co op bank accounts, start getting things in order.


Many Thanks

egrescrimp

Glad you've spoken to them, in the meantime whilst waiting to hear back from them generate your state of affairs using this tool http://www.stoozing.com/calculator/soa.php

Post the results here too and we can see if you are under or over budgeting

TheGardener

Great start! I know if sounds bizarre but planning for BR was the first positive financial planning I'd done in years and I began to feel as though I was actually taking back control of my life rather then letting the banks and debts run it for me.
If you go with the co-op remember DO NOT tell them you are planning BR - they will not close the accounts of existing customers who go BR but will not allow you to open the account once you are BR. Also remember you need 'basic' cash minder accounts - not current accounts. If they ask why you want to open them - just say they are for domestic budgeting or for use with ebay or something

humphrey96

Thanks feeling more positive today feel like we can see the light at the end of the tunnel. Just curious, how many people made bankrupt had to enter into an ipa? What were the circumstances?

thanks

alastairq

Just curious, how many people made bankrupt had to enter into an ipa? What were the circumstances?

The statistics for the above aren't readily available.

The circumstances for an IPA being sought [and agreed]...are simple......being, if a surplus of income has been identified from the BR's SOA.
[At the moment, the BR is allowed up to £20 surplus income, from the SOA. Should there be a greater surplus of income, then the whole surplus becomes the basis of an IPA]

An IPA is an agreement,between the OR and the BR.

If no agreement can be arrived at, then the OR goes to Court to seek an Order [IPO], whereby the Court looks at both arguments, and makes a binding decision.

An IPA has to be agreed before the date of Automatic Discharge. [An IPO has to be lodged at the Court before AD].

[There are exceptional differences to the above, however]

If an IPA is agreed, this will run for 3 years from date-of-agreement.

The payment [monthly] will consist of the amount of surplus income identified.

This payment can , subsequently, be varied up, down, or go to zero , should the BR's circumstances change [financially]...

[unlike a debt repayment, for example]

The BR is obliged to inform the OR of any material changes to income within 21 days of the event.

An IPA is not a 'debt' repayment....simply a realisation of monetary assets, for the BR estate.

[For the purposes of an IPA, any income which forms part of a Benefit, is not counted.]

humphrey96

Hi all,

thankyou so much for all your help and advice. Step change have been amazing, they have given advice on sources for funding the bankruptcy (retail hub) and have really put our minds at ease. In the process of setting up bank accounts and sorting living arrangements, plan plan plan!!

Thanks