Urgent Help Needed I've Gone Bankrupt…But

jason909

Went bankrupt 4 day's ago and today I received the letter from the Insolvency Service. My heart sank when I read the letters, they have informed me they want to conduct a telephone interview (I was expecting this anyway) in a few weeks on my landline phone even though I provided I mobile they obviously assume I'm at home on a typical work day. I need to call them and confirm within 48 hours that I received forms etc - I might just take day from work as it maybe easier to conduct the interview - It did say 30 mins potentially longer…Whats the average interview time?

My Income and Expenditure shows I have around £50 left over each month, but I've just been awarded PIP a few days before my hearing I didn't include it as I was waiting for the confirmation letter to arrive, also I have been awarded working tax credit (disability based) this was awarded the day after my hearing. I'm absolutely gutted to think i may now potentially lose my working tax credit/PIP.

My Income and Expenditure which has now been sent to the Insolvency Service as follows: Can anyone offer advice or guidance please I'm desperate to add potential things I may have missed to cover my PIP and Tax credit when I get called for the phone interview?

Does the Insolvency Service contact the bank & ask why and how the debts occurred i.e if you owe Lloyds £15k will they contact them to check?

Is the Insolvency Service similar to debt collectors on the phone? Do they actually turn up to your property?

I stil owe around £8k to student loans I've been told I cannot include this in my bankruptcy will i need to carry on paying during my bankruptcy directly from my wages?

Does my tax code change and if so is the tax code more than the current main tax code?

Can anyone please list the exact organisations that the Insolvency would contact as a matter of course regarding my bankruptcy for example my employer, HMRC, Banks, Landlord etc?


(PER MONTH)
Rent £413
Housekeeping - Food/Cleaning £222
Gas/Electric £50
Water £26
Phone/Mobile/Internet £55
Travelling to/from work £190 (London Travel)
Clothing £31
Council Tax £70
Other Essential £251 (This includes TV Licence £6, Dental £25, Contingency £12, Pet Food £30, Meals at work £36, Sports/Hobbies £20, Hairdressing £12, Smoking £60, Student Loan £50) Please note doctors advice with smoking/sports due to current medical issues was advised to put on.

Total £1308

Take Home Pay £1353
+ PIP £87 PM and £200 tax credit PM

Also I have a holiday booked in September which was suggested by doctor, I've paid for it but need money for spending, can anything be done for this?

On my letter from the Insolvency Service they have instructed Barclays to release £320 from my account - although this has now been spent on rent. I have my wages going in on Tuesday will my money be held in the bank or account frozen which is different to what the Insolvency Service think I have, my balance changes several times per day?

Honestly I cannot cope with this anymore my personal situation is continuously changing now I'm going to get quizzed on so many things during my interview and quite frankly I can't remember the majority of my debts let alone what they had been spent on or when etc.

I'm only just coping in my new job which I do enjoy but its a stuggle due to severe depression and mental health issues, but I do wonder if I'm just better off on benefits with this.

Any advice would be most grateful. Thanks.

owlet

jason909 wrote: »

Went bankrupt 4 day's ago and today I received the letter from the Insolvency Service. My heart sank when I read the letters, they have informed me they want to conduct a telephone interview (I was expecting this anyway) in a few weeks on my landline phone even though I provided I mobile they obviously assume I'm at home on a typical work day. I need to call them and confirm within 48 hours that I received forms etc - I might just take day from work as it maybe easier to conduct the interview - It did say 30 mins potentially longer…Whats the average interview time?

The interview can last anywhere from 10 min (as mine was) up to an hour or so. It depends on your circumstances. As you are worried and will need to discuss things, I think you are better to be at home if you can.


My Income and Expenditure shows I have around £50 left over each month, but I've just been awarded PIP a few days before my hearing I didn't include it as I was waiting for the confirmation letter to arrive, also I have been awarded working tax credit (disability based) this was awarded the day after my hearing. I'm absolutely gutted to think i may now potentially lose my working tax credit/PIP.

You won't lose your benefits, the OR can't take them. Be prepared with costings for your care needs in case the OR wants to discuss it

My Income and Expenditure which has now been sent to the Insolvency Service as follows: Can anyone offer advice or guidance please I'm desperate to add potential things I may have missed to cover my PIP and Tax credit when I get called for the phone interview?

You can add things to cover your PIP & Tax credit at the interview. If it were me, I would phone the OR & say that you need to revise your SOA due to being awarded PIP & tax credits after your BR hearing. See if they will delay the interview a few days to let you get this done & sent to the OR.

Does the Insolvency Service contact the bank & ask why and how the debts occurred i.e if you owe Lloyds £15k will they contact them to check?

The OR will contact who they need to but don't go into why & how. It doesn't make any difference to you. You are still BR. Don't worry about it

Is the Insolvency Service similar to debt collectors on the phone? Do they actually turn up to your property?

No. They will contact you in writing or by phone if they need.

I stil owe around £8k to student loans I've been told I cannot include this in my bankruptcy will i need to carry on paying during my bankruptcy directly from my wages?

Don't know, sorry.

Does my tax code change and if so is the tax code more than the current main tax code?

Your tax code might change to a NT code, which means you don't pay tax but you do have to keep the tax portion to pay to the OR via a collecting company. This only applies if the OR says & it only applies to this current tax year.

Can anyone please list the exact organisations that the Insolvency would contact as a matter of course regarding my bankruptcy for example my employer, HMRC, Banks, Landlord etc?



HMRC Yes
Banks you hold accounts/debts with
Sometimes landlord, sometimes not.

(PER MONTH)
Rent £413
Housekeeping - Food/Cleaning £222
Gas/Electric £50
Water £26
Phone/Mobile/Internet £55
Travelling to/from work £190 (London Travel)
Clothing £31
Council Tax £70
Other Essential £251 (This includes TV Licence £6, Dental £25, Contingency £12, Pet Food £30, Meals at work £36, Sports/Hobbies £20, Hairdressing £12, Smoking £60, Student Loan £50) Please note doctors advice with smoking/sports due to current medical issues was advised to put on.

Total £1308

Take Home Pay £1353
+ PIP £87 PM and £200 tax credit PM

Also I have a holiday booked in September which was suggested by doctor, I've paid for it but need money for spending, can anything be done for this?

You will have to cut back on some areas of your spending to budget for this. It won't be an allowable expense on your SOA. The OR doesn't keep check on your budget once the figures have been agreed, so it's up to you how you save for it.

On my letter from the Insolvency Service they have instructed Barclays to release £320 from my account - although this has now been spent on rent. I have my wages going in on Tuesday will my money be held in the bank or account frozen which is different to what the Insolvency Service think I have, my balance changes several times per day?

Did you open basic bank accounts before you went BR or are you using mainstream accounts?
If you are using basic account, it will be fine. If mainstream account, the bank will more than likely freeze it but the OR can get the money released to you. You need a basic account - read the sticky on this board.


Honestly I cannot cope with this anymore my personal situation is continuously changing now I'm going to get quizzed on so many things during my interview and quite frankly I can't remember the majority of my debts let alone what they had been spent on or when etc.

Don't panic, they won't expect you to remember. Just answer as best you can.

I'm only just coping in my new job which I do enjoy but its a stuggle due to severe depression and mental health issues, but I do wonder if I'm just better off on benefits with this.

You will be fine. You've done the hardest part. The interview is nothing to worry about. Relax & breathe!!

Any advice would be most grateful. Thanks.

I've replied to most of your queries above but the text colour hasn't changed & I'm too tired now to try and work it out. I'll look tomorrow.
I hope you can see what I've written.

Edit: Have sorted the colour issue!

Flyright

The Official Receiver will ask you during the interview how you incurred your debts. You need to answer truthfully as the OR will be contacting your creditors to obtain statements and application forms as necessary.

fermi

jason909 wrote: »

Whats the average interview time?

20 mins - 30 mins - rarely longer unless complicated.

My Income and Expenditure shows I have around £50 left over each month, but I've just been awarded PIP a few days before my hearing I didn't include it as I was waiting for the confirmation letter to arrive, also I have been awarded working tax credit (disability based) this was awarded the day after my hearing. I'm absolutely gutted to think i may now potentially lose my working tax credit/PIP.

Benefits can't be taken. May alter what if any surplus of earned income there is that might be claimed, but benefits are safe.

Does the Insolvency Service contact the bank & ask why and how the debts occurred i.e if you owe Lloyds £15k will they contact them to check?

Not in normal cases, unless there is a particular/exceptional reason to do so. They simply don't have the time or the need to do that with everyone.

Is the Insolvency Service similar to debt collectors on the phone? Do they actually turn up to your property?

No.

I stil owe around £8k to student loans I've been told I cannot include this in my bankruptcy will i need to carry on paying during my bankruptcy directly from my wages?

Yes, assuming government student loans

Does my tax code change and if so is the tax code more than the current main tax code?

Should go to a Nil Tax code until start of next tax year then return to normal. Can take a few weeks or months for HMRC to do so though. The extra collected by the OR-agent.

Can anyone please list the exact organisations that the Insolvency would contact as a matter of course regarding my bankruptcy for example my employer, HMRC, Banks, Landlord etc?

employer = not normally
HMRC = yes
Banks = yes, quickly for bank accounts or within 8 weeks for other bank debts to notify them of the bankruptcy.
Landlord = sometimes

On my letter from the Insolvency Service they have instructed Barclays to release £320 from my account - although this has now been spent on rent. I have my wages going in on Tuesday will my money be held in the bank or account frozen which is different to what the Insolvency Service think I have, my balance changes several times per day?

Depends on the status and type of account. A basic account the OR has stated they have no interest in would be fine, but it's not clear here what you have and why they thought they needed to write to release funds. You should not lose the funds, but could conceivably have another delay if not a basic account opened for BR.

Honestly I cannot cope with this anymore my personal situation is continuously changing now I'm going to get quizzed on so many things during my interview and quite frankly I can't remember the majority of my debts let alone what they had been spent on or when etc.

They are used to people being stressed out by BR and not recalling every detail. They see it all the time. You will get through it fine.

I'm only just coping in my new job which I do enjoy but its a stuggle due to severe depression and mental health issues, but I do wonder if I'm just better off on benefits with this.

Any advice would be most grateful. Thanks.

That is a lot of questions that I would say someone who advised you to go BR should have already gone through you with.

Not that we mind , but it's a little concerning that whoever it was didn't go through it more with you.

owlet

For help with your SOA, use this form

http://www.stoozing.com/calculator/soa.php

and format for MSE.

Then we can take a proper look at it.

jason909

owlet wrote: »

I've replied to most of your queries above but the text colour hasn't changed & I'm too tired now to try and work it out. I'll look tomorrow.
I hope you can see what I've written.

Edit: Have sorted the colour issue!

Thank you very much for the advice it really helped. I did call the Insolvency service today and told them I'm also now receiving benefits on top of my wage. They emailed my officer who will be conducting my the phone interview next week and advised him about the changes. They didn't seem too bothered when I told them it was for my disabilities.

I need to have a better understanding of what I say that I use my benefits on for my disability I know in terms of my bad days I'm unable to use public transport and instead I would get a taxi to work and sometimes from work. I need to visit my family once or twice a month for care reasons for myself thats around £90 on the train, I also buy specialist tablets such as Omega Tablets to help with my memory issues. My main problems have been attempted suicides, severe depression, stress and anxiety. I just cannot think of other stuff, I know i do have other requirements but I can't think straight right now. Any suggestions of typical things people suffering with depression and anxiety need to buy so i can have it ready for my interview. I can't have them taking more money from me because I have these benefits coming in.

I know this is going to sound pretty bad as I'm now bankrupt but I need things to look forward to in my life, I can't just sit at home because that makes me worse, so I do have lots of little trips away and a holiday once a year so I also need to get £500 of foreign currency, but without these things i will go downhill and will end up seriously ill and not able to work.