Bankruptcy scares the life out of us

scaredwitless32

Hi,
I have only just joined this morning, I have been reading the boards for about 3 days now trying to get to grips with the BR procedure, and would just like someone to maybe put in into simple steps , for me a 'simpleton':o

My partner and I have around £16,000 in debts, they are not joint, and my partners debt in the majority of that sum, so it would be him that is made BR. I would have to obtain an 'administration order' for mine, (both these actions have been advised by cccs.co.uk)
My partner is really against becoming bankrupt because of the 'stigma' but I see no other way as we only have a couple of £'s left over each month after paying the standard utility, council tax, rent, and petrol and living expenses now, we have no money left for the unsecured loan, cc, and overdraft, and the last two months we have gone over the overdraft limit so we have had to pay charges on top of that as well. He was paid 2 days ago and we only have £300 for the rest of the month! :eek:

As I say, I have been reading some of the posts here and have a few worries about what will happen.

1 we have a cheap break booked for November (it was a 9.50 hol from the sun newspaper) it was to give us a break from a very stressful couple of years. We have NEVER had a holiday before in the 20 years we have been toagether, will we still be allowed to go?

2 My partner only passed his driving test last oct/nov and this is our first car, valued at probably £500, her brought it £100..........will this get taken away? He used to ride a motorcycle, which he still has, will they take the car away and make him use his bike?

3 And someone posted a thread about an OR suggesting or telling someone that they should make there 18yr son pay £75 a week in housekeeping. Both my children and starting college in sept and will be claiming EMA can the OR take this? Also my 18yr son works parttime , moderating on a well known forum, will they make him pay anything from that?

4 And if someone could please just clarify........I see that some people are 'dismissed' before the year is up, what does this mean is term of any IPA/IPO? This is dismissed also, or do you have to pay for the full 3 yr term? I am soooo confused
Please, please can someone set me straight on the above.

Thank you all so much for making this situation just that little bit more bearable, its a comfort to know that we are not alone! Its comforting to read that so many of you feel a great sense of relief and are able to get your lives back in order.
And thankyou for taking the time to read this long post written by a complete thickie!

Regards

Kj123_2

Firstly, you are not a thickie. Making errors of judgement with money does not mean you are thick. It just means you're not vey good with cash. There is a big difference.

Secondly, well done for seeking advice and help. It's not easy to take that step, I know.

Thirdly, if you are 'discharged' early from your BR then that just means the OR has finished investigating your financial affairs and that they are happy they have reached a full conclusion. If you were subject to an IPA or IPO then this would still last for the full 3 years.

Finally, other people on here have far more knowledge than me and will answer you questions soon. Hang on in there.

Conor_3

I'm glad that it scares the living hell out of you. It means you're doing it for the right reasons, not just seeing it as an easy out. It's refreshing to see someone say that - doesn't seem to be happening much lately.

Anyhow
1) Yes you can still go. It'd be nice if you managed to get the BR and OR interview out of the way - give you even more chance to relax.
2) Extremely unlikely - even more so if it's needed such as to get to work. Average threshold seems to be £1500 sale value.
3) The OR was acting beyond their remit and it is unreasonable for them to even suggest that - it's the first time I've ever seen it posted here. The OR has no claim on anything of anyone other than the bankrupt.
4) The IPA lasts until it's finished.

Get the forms filled and filed as soon as possible as there's a backlog building up in some areas. If you don't claim any of the benefits that qualify you for the court fee waiving, complete the income/expenses form on the claim form and you may get them waived due to low income. Also, there's some charities that can help with the BR fee.

Good luck and as long as you're careful post banking, you should have a money worries free life after. The relief felt when you walk out of the court is unbelievable.

Posthinking

Welcome and stop worrying. It's a long post and I'm off to work so the others will be along soon. Arguing isn't going to help, you need to stick together

Kj123_2

Posthinking wrote: »

Arguing isn't going to help, you need to stick together

Couldn't agree more with that statement.

One of our biggest strengths is sticking together and tackling everything head on.

wherediditallgo

Hi scaredwitless,

You're not thick. There are people on here with all manner of qualifications & education behind them, including in Maths & Economics, but they're still in debt - I can't ever remember being taught money management at school, & I bet most of us weren't taught it either.

You've spoken to the CCCS already, which is a great step - it's very important to have professional advice. I think your OH will be allowed to keep the car - at that value, it would cost more for the OR to take it & try to sell it. If he can show a need for it (eg for work), it shouldn't be a problem.

Don't worry about your children's EMAs either. It's their money, not yours, & at the rate they get they wouldn't be expected to contribute to the household from it. If you want your son to contribute from his part-time earnings, that's for you & him to discuss, not for the OR to legislate on. The case you've mentioned seems to be one of an OR getting extremely heavy-handed with one particular person, & I suspect a challenge to the comment that was made would result in it being withdrawn.

An IPA is for 3 years. I've got one, & whether I get an early discharge at 6 months or thereabouts or an automatic discharge at the end of 12 months, I'll still have to make the IPA payments until the 3 years ends.

In terms of you & your partner, it's often the case that one person tries to pretend it's all not happening while the other has to take charge so to speak & deal with the actual practicalities of the paperwork, phone calls etc. Try not to argue amongst yourselves - there's no point any of us telling you it's not a stressful situation because it is, but there is a light at the end of the tunnel as long as you take each step being well-informed along the way. Whether they like it or not, you do need to work together on this - the debt isn't going to go away by pretending it's not there, & the stigma of bankruptcy isn't what it was. You're both frightened of the unknown, which is understandable, but don't let it impact on your relationship, which you'll have long after the bankruptcy is over.

staffssandra

Hi,

Don`t worry about it all. My advice get down to your local Citizen Advice Bureau they will help you with all of this. Some employe specialist debt advisors, but all of us volunteers are trained in debt, housing benefits etc. They are charitable organisation so all the advice they give you is free impartial confidential. Before you make any decisions about going bankrupt, it really is worthwhile talking to them as they can talk to creditors, negotiate, write letters, make phone calls and it will cost you is your time.

Really hope you get yourself sorted

rog2

Hi sw - I have to admit that bankruptcy scared the hell out of me - it still does and although I was discharged in April I am still dealing with the consequences - in my case I had equity in my house and whilst I did not get an IPO/IPA I still need to raise a mortgage to 'buy back' my beneficial interest in my house from my trustee.
However, that has been more than compensated for by the lack of harassment from creditors and debt collectors. I have received a lot of help and support from this forum, and am happy to relate my own experiences in the hope that they will help people like yourself.
I don't think that you have much to worry about: The OR is most unlikely to take your car - the motor-bike may be questioned, dependent on its value, but there are several posters who have managed to keep both.
Your partner is only likely to get an IPO/IPA if he has surplus disposable income - there will be plenty of time to discuss this as the process develops.
There is, in reality, very little stigma attached to bankruptcy these days. Yes your name (along with many others) will be published in the local paper, but I doubt whether many people will actually see it. In any case this will soon be forgotten.
You will have restrictions over bank accounts and credit facilities, but I can assure you that life will only get better for you.
I'm glad that CCCS have been giving you good advice - stick with them, but ask here if there is ANYTHING that you need to know.

owetoomuch

SW I too was terrified at the thought of going BR, but the CCCS advised it was the best thing for me to do and to do it sooner rather than later. You will get a lot of support on here if and when your partner does decide to go BR. This forum helped me through it. I asked loads of questions on here and got loads of help. I still lurk and ask questions so even when the deed is done you may still need the support of the people on here.

scaredwitless32

Kj123 wrote: »

Firstly, you are not a thickie. Making errors of judgement with money does not mean you are thick. It just means you're not vey good with cash. There is a big difference.

Secondly, well done for seeking advice and help. It's not easy to take that step, I know.

Thirdly, if you are 'discharged' early from your BR then that just means the OR has finished investigating your financial affairs and that they are happy they have reached a full conclusion. If you were subject to an IPA or IPO then this would still last for the full 3 years.

Finally, other people on here have far more knowledge than me and will answer you questions soon. Hang on in there.

Thank you all so much for your kind welcome and comforting words of wisdom and advice, I really do appreciate every bit of it:T it has helped to calm the fears that I have , just a weeny bit lol, I really cant get over the enormity of making the decision:eek:, even tho its not my decision to make IYSWIM.

Can I just ask what happens to the IPA/IPO after he has been discharged, I presume all changes in income during the 3 years, have to be reported, it goes without saying I should think but I just want to be clear

Thanks again, and when it happens I shall keep you informed of how things go.......and no doubt I will need to ask yet more questions, and Im sure you will be sick of the sight of me in no time at all.
Just the fact that I have posted here on the forum, has given me a 'lift', does that sound stupid? Well it did and Im very grateful


Regards
scaredwitless32

rog2

Once he has been discharged, he will no longer have to report changes in income/circumstances to the OR. He will, however, have to continue to pay the IPA/IPO, if one was given, for the balance of the three year period.