Bankruptcy Questions

Johnsmith2016

Hello, first post. Bit ot back ground info. Filing for bankcruptsy very soon, citizens advice are completing my forms as we speak.
Had previously excellent credit, but got into a mess.
66k debt, no job, living with parents, no assets or children, so felt this was my best option,its all CC debt.
Did experian report currently at zero, so cant go any worse.

Few questions regarding the proces:

Citizens advice have said mine is a simple case and as such there could be a possibility of an early discharge like 6 months? Anyone acheived this?

On the day when I take my papers to court do i need to take all my credit cards? Anything else?

Advised me to take a low paying job for 12 months to avoid the IPO.

Some accounts say delinquent - is this as bad as a defualt or ccj ? Whats the difference? Ive been late a few months since losing job.

When i speak to OR what will they likely want me to have available? So i can prepare?

I used last of cc limit to get cash to pay court fees is this ok?

Should i open a basic bank account now? Or after. Citizens advice said they normally ask you which account you want to keep, and the bank decide to either keep and downgrade to basic or close.

Once discharged, is it best to get a mobile phone, cc cards paid in full to rebuild credit? Which lender for a mortgage has the least wait time after bankcruptcy regardless of depsoit?

When i file the creditors stop calling ? Are they also not allowed to send you letters? Should i call them on the day i file to stop this?

Done my SOA which citizens said is solid and good reasons, is there anything you can add to these that you reccomend i include?

any help appreciated

fermi

Citizens advice have said mine is a simple case and as such there could be a possibility of an early discharge like 6 months? Anyone acheived this?

Your CAB must be a bit out of date. Early discharge was abolished a couple of years ago. You have to go the full 12 months now I'm afraid.

On the day when I take my papers to court do i need to take all my credit cards? Anything else?

No, you don't need to take your cards.

The forms, fees, and proof of ID is all you need.

Advised me to take a low paying job for 12 months to avoid the IPO.

Fair enough if that is a valid option for you.

Some accounts say delinquent - is this as bad as a defualt or ccj ? Whats the difference? Ive been late a few months since losing job.

All should be recorded as a default once you go BR, which makes sure they all come off after 6 years. There is a cleanup thread to sort that out once you are discharged, so at this point don't worry about that.

When i speak to OR what will they likely want me to have available? So i can prepare?

Copy of your forms/I&E. Any records you have that they hadn't asked to be sent them yet. In the end though, if there are things you don't have which they need, then they can get copies from banks et. In simple cases they probably won't even bother.

I used last of cc limit to get cash to pay court fees is this ok?

A lot of people have to do that. OR can tut tut a bit on that sometimes, but generally tends to turn a blind eye if it was your only way..

Once discharged, is it best to get a mobile phone, cc cards paid in full to rebuild credit? Which lender for a mortgage has the least wait time after bankruptcy regardless of depsoit?

Sub-prime CCs paid off every month IN FULL and a phone contract, yes. If you can manage it. Mortgages, I'll leave to other people.

When i file the creditors stop calling ? Are they also not allowed to send you letters? Should i call them on the day i file to stop this?

Will probably continue for a bit. You can inform them if you want as can take a long while for the OR to do it. Also inform the OR and pass them on to them if you keep getting hassle.

Done my SOA which citizens said is solid and good reasons, is there anything you can add to these that you reccomend i include

Don't leave yourself short basically, as you won't have access to credit to bridge gaps for some time. Post your budget up if you want opinions. http://www.stoozing.com/calculator/soa.php Format for MSE.

elljay

Citizens Advice is an amazing organisation and their advisors know a lot about a lot of things. However they don't know everything about everything, and can't possibly.

You really should speak to one of the specialist organisations such as Stepchange or National who will be able to give you tailored advice. For example, no-one these days is discharged after 6 months. CAB are quoting a years old ruling which is no longer in force. Everyone is discharged after 1 year unless there is a really good reason why not, a really tiny minority. And in those cases discharge is longer. But it's never shorter.

The general process is that you go to court with your forms and the judge approves the bankruptcy. There is usually a 5 min phone call following that, mine was within an hour, just to confirm a couple of basic details, such as which bank account you use for everyday. Then a few weeks later a further, longer call with the OR's office, which you have time to prepare for, and any amendments to your forms/expenditure/outogings are made. Then a few weeks after that your IPA starts. You are then automatically discharged exactly one year after the order was made.

So give Stepchange a ring, and they will answer all of your other questions too. In terms of a job, that's an ok solution if you are to avoid an IPA, however you sound young so in terms of your future career it might not be such a good move.

If you also post your SOA up here, others who have been there and done it, will be able to advise you.

EJ

eta, sorry, I see that fermi, a real expert, has already answered. Oops and so has debt doctor, both real experts in this process!

debt_doctor

Johnsmith2016 wrote: »

Hello, first post. Bit ot back ground info. Filing for bankcruptsy very soon, citizens advice are completing my forms as we speak.
Had previously excellent credit, but got into a mess.
66k debt, no job, living with parents, no assets or children, so felt this was my best option,its all CC debt.
Did experian report currently at zero, so cant go any worse.

Few questions regarding the proces:

Citizens advice have said mine is a simple case and as such there could be a possibility of an early discharge like 6 months? Anyone acheived this? No, this is out of date information, all bankruptcies run for the full 12 months.

On the day when I take my papers to court do i need to take all my credit cards? Anything else? BR paperwork, (some courts require copies) the fees, possibly a tenancy agreement.

Advised me to take a low paying job for 12 months to avoid the IPO. That's up to you, it's certainly one way to avoid the IPA/O.

Some accounts say delinquent - is this as bad as a defualt or ccj ? Whats the difference? Ive been late a few months since losing job. Doesn't really matter at this point.

When i speak to OR what will they likely want me to have available? So i can prepare? They will inform you.

I used last of cc limit to get cash to pay court fees is this ok? Should be fine.

Should i open a basic bank account now? Or after. Citizens advice said they normally ask you which account you want to keep, and the bank decide to either keep and downgrade to basic or close. I think it is better to open a new account prior to BR. a basic account only.

Once discharged, is it best to get a mobile phone, cc cards paid in full to rebuild credit? Which lender for a mortgage has the least wait time after bankcruptcy regardless of depsoit?

When i file the creditors stop calling ? Are they also not allowed to send you letters? Should i call them on the day i file to stop this? It's up to you, the IS will write to all of your creditors and they are not allowed to contact you.

Done my SOA which citizens said is solid and good reasons, is there anything you can add to these that you reccomend i include? Have you posted an SOA?

any help appreciated

Hi, hope that helps to start you off.
DD

debt_doctor

elljay wrote: »

Citizens Advice is an amazing organisation and their advisors know a lot about a lot of things. However they don't know everything about everything, and can't possibly.
You really should speak to one of the specialist organisations such as Stepchange

The standard / level of debt advice does indeed vary across the CAB network. Some have none or few specialist debt workers, some like mine have many. Sadly I have seen some advice 'howlers' delivered by CABx.


However, I certainly wouldn't hold Step change in any higher regard, as I have to correct their advice and omissions on a regular basis. The court referred two such clients to me last week, both with potential large IPA's who had taken their papers to court to file and neither had been informed of the existence of such a thing as an IPA by Step change. Neither filed for bankruptcy in the end.


I have not had such issues with National Debtline.
DD

fraggle45

CAB were no good in my case - couldn't answer some questions I had which I felt weren't too in depth for someone who should know. I was advised to tell my landlord because 'the OR ALWAYS tells landlords' absolutely untrue and I'm glad I waited until I had my interview as there was no interest in my tenancy - I could have potentially lost my home on that piece of advice!

This forum is really helpful for questions and people's experiences so you are able to judge for yourself.

Johnsmith2016

Thanks all, very good advice and much appreciated.

If I get a basic account now, will i not have
To declare it on my paper work? Heard conflicting info to get before or afterwards not sure what to do.

Johnsmith2016

Also, i think its a toss up between the barclays and nationwide accounts. Is it better to go with a bank v building soceity and also thinking long term of who i would most like get a mortgage from could help ne decide, so if nationwide will consider ex bankcrupt after say 4 years ill be best getting an account with them ? Or is it good to open a couple so i get more ticks on my credit file to help repair it?

Johnsmith2016

Nationwide seems offer more facilities.

elljay

Stepchange (and Business Debtline, but not relevant for you) were great for me, but it's always recommended on here that you try both of the free debt agencies. The more fully informed you are the better armed you are to take important decisions.

I opened a Cashminder account with the Co-op. It's fine with online and phone banking unlike some of the others. However a lot more basic accounts have come on stream since then. Co-op wouldn't let me open a savings account oddly, but I went with the local Credit Union instead which is hugely better (also online so I can transfer in and out when I want). Co-op's loss!

If you're thinking of a mortgage, you're a long way off being able to apply for one. I should get the short term sorted for now, there's enough to think about as it is.

Johnsmith2016

I spoke with step change, who said this was my best option, due to being single no assets living with parents and all credit cards. Also recently lost job.

Referered me to local citizens advice as struggling to fill in papers, they were brilliant, and are doing it for me with info i have provided.