Being made bankrupt

fiveyearplan

I am getting anxious that someone is going to petition for my (and husband's) bankruptcy. I have been thinking of going BR for a couple of months and wondered what the difference is and the benefits of either. My husband is totally against BR but all his knowledge of it comes from a friend who was BR over 25 years ago. Now it has come to a situation where we may have no choice.

Conor_3

Well if someone petitions you both, you'll save just short of £1000 in fees.

Richard_S

fiveyearplan wrote: »

I am getting anxious that someone is going to petition for my (and husband's) bankruptcy. I have been thinking of going BR for a couple of months and wondered what the difference is and the benefits of either. My husband is totally against BR but all his knowledge of it comes from a friend who was BR over 25 years ago. Now it has come to a situation where we may have no choice.

Hi fyp,

We worked like slaves to try and meet our monthly debt repayments and probably would be still if a friendly creditor hadn't petitioned for our bankruptcy.:eek: :eek: As Conor points out, big saving in fees for you.:D

I wouldn't say we've had an easy time but I've no real regrets at the way it's turned out; certainly better than both of us working 60-70 hour weeks just to stand still.

Regards

Richard

rog2

My bankruptcy was a 'creditor petition' too, fyp.
Whilst yes, I do agree with both Richard and Conor, you will save the up-front fees, I still feel that I have been less in control of the situation than if I had petitioned for my own bankruptcy (debtor petition).
Of course it depends on your personal circumstances, and I had been assured, by the OR, that there would be 'No Difference' in the way that MY case was being handled whether I was a 'DEBTOR' or a 'CREDITOR' petitioned bankrupt.
I'm not so sure on this, and certainly there have been other examples of posters who feel the same way.
It is almost inevitable that your OR meeting will be conducted in the OR office rather than by telephone. In itself, this should not pose any real problem although, judging by the posts on the subject, and my own experience, this can be pretty harrowing as they tend to delve into the minutest of detail, plus the fact that the interview went on for three hours - I was physically exhausted after mine.
If you have assetts, it is likely that a 'Trustee' will be appointed to deal with (sell) them. As a creditor petitioned bankrupt I was given no choice over the appointment of a trustee - the right to choose was given to my largest creditor - HMRC (and I really am finding it difficult to deal with the trustee).
All that said - I DID receive an unexpected Early Discharge, after 6 months, although this does NOT affect my dealings with the trustee, to whom I am still answerable.
So, fyp, PLEASE do not take my post as negative - I am, simply, telling you what I think, based on my experience. It's NOT all negative, by any means, and I did NOT have the cash available to petition for my own bankruptcy, which I would have done as I had NO other way available to me.
Hopefully you'll get some advice from both sides and you will be able to make the right decision for your circumstances.

Good luck

fiveyearplan

My main worry is my house. I think that is the only asset I have. My mortgage is £279,000 and house is worth probably £300-£315 (last valued at £330 for mortgage purpose but none have sold in this area for that. If I sell before Dec 2008 I have £18,000 redemption penalty. What do you think the chances are they will want to sell my home?

rog2

fiveyearplan wrote: »

My main worry is my house. I think that is the only asset I have. My mortgage is £279,000 and house is worth probably £300-£315 (last valued at £330 for mortgage purpose but none have sold in this area for that. If I sell before Dec 2008 I have £18,000 redemption penalty. What do you think the chances are they will want to sell my home?

They will CERTAINLY attempt to realise any BENEFICIAL INTEREST in your property, ie 'equity' which in your case would be, subject to valuation, probably around £35 - 50K. They don't necessarily force you to sell, and will offer you or a relative the opportunity to 'buy back' the OR/Trustee's vested interest in the house. Only as a final resort would they 'force' a sale through the courts.
BI is a difficult one and is, to be honest, causing me the biggest problem at the moment, and I can't see an 'easy way out'.