Considering bankruptcy for the 2nd time

BigBoss

I am considering going bankrupt again for the second time and would like to know how this would affect me again going forward.

I declared bankruptcy in 2011 and was discharged in 2012.

Thanks

alltaken

Have you had advice on an insolvency solution yet?

I'm reading some information online but I'm sure DebtDoctor or someone with far more experience than I can clarify the likelihood of any restriction order, face to face interview.

http://www.bankruptcyclinic.co.uk/blog/going-bankrupt-for-the-second-time/

"Bankruptcy No 1 vs. Bankruptcy No 2

There are no limitations how many times you can declare bankruptcy. However, this does not mean that you should try your luck or test the legal limitations including the patience of your creditors. The analogy with the criminal law is definitely inappropriate, but very illustrative for this purpose. You are already guessing what is happening with the people who are appearing for the second time at the court of law, not to mention the hypothetical third time. In the second time bankruptcy even the sound of it is troubling enough.

One thing is more than certain, your situation will be treated more rigorously. All around you will look at you with different eyes. The second bankruptcy by default implies prejudicial intentional element in your bankruptcy. The first time can always count on the “it can happen to anyone” or “unfortunate event type of excuse”. This also includes some practical consequences. For your first bankruptcy the Official Receiver could have performed the initial inquiry by the phone. You can be more than sure that for the second time you will be obliged to meet personally with the Official Receiver. The same can be applied to your creditors. It is more than certain that they will be much less ready to compromise on certain things with you having in mind that you have been stigmatized for the second time for the terrible financial sin of bankruptcy. Bankruptcy restriction orders will be applied for the second time definitely as a rule. You can expect that this “financial vengeance” will have very little consideration to your situation and circumstances which lead to it."

BigBoss

Thank you for your answer.

I'm not concerned with the more rigorous approach, I have nothing to take and I only spend money on my debts and my living costs, there's no exuberance or extravagance.

Would a DRO be possible? The National Debt Helpline seems to think so.

alltaken

In any case you would hope that restriction orders are not placed, not that they can have a massive impact anyway.

My point of asking about the advice you may have sought, was to clarify if bankruptcy is your only option. NDL, Stepchange CAB etc are all best placed to offer that advice, that said, post up your statement of affairs and many experienced posters on these boards (including representatives from those charities) can give advice.

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

BigBoss

Thanks again.

On the SOA calculator, it mentions my partner's income. Why is this, given that the NDL specifically stated that my partner has nothing to do with the debt?

Any idea?

alltaken

It's to get an idea of the overall income and what you contribute to the household bills. Don't worry about that part, just put in your income and contribution to any bills etc.

BigBoss

I withdrew from my professional pension this year, would it be prudent (if going BR) to re-enter it, or are they able to stop that themselves?

fatbelly

alltaken wrote: »

There are no limitations how many times you can declare bankruptcy. However, this does not mean that you should try your luck or test the legal limitations including the patience of your creditors. The analogy with the criminal law is definitely inappropriate, but very illustrative for this purpose. You are already guessing what is happening with the people who are appearing for the second time at the court of law, not to mention the hypothetical third time. In the second time bankruptcy even the sound of it is troubling enough.

One thing is more than certain, your situation will be treated more rigorously. All around you will look at you with different eyes. The second bankruptcy by default implies prejudicial intentional element in your bankruptcy. The first time can always count on the “it can happen to anyone” or “unfortunate event type of excuse”. This also includes some practical consequences. For your first bankruptcy the Official Receiver could have performed the initial inquiry by the phone. You can be more than sure that for the second time you will be obliged to meet personally with the Official Receiver. The same can be applied to your creditors. It is more than certain that they will be much less ready to compromise on certain things with you having in mind that you have been stigmatized for the second time for the terrible financial sin of bankruptcy. Bankruptcy restriction orders will be applied for the second time definitely as a rule. You can expect that this “financial vengeance” will have very little consideration to your situation and circumstances which lead to it."[/B]

I don't do a lot of bankruptcies in my work at the CAB (far more DROs where the 6-year gap between them is part of the rules).

But on the basis of the few repeat bankruptcies I've seen I'd say that most of this is hogwash.

I've had a quick look at their website and both the process and fees for bankruptcy are incorrect, and the DRO info is woefully out of date. I agree that NDL, Stepchange and CAB are better sources of info

BigBoss -it's OK to make 'reasonable' contributions to a pension scheme. You qualify for a DRO if you meet the criteria:

Must not be a homeowner,

Debts less than £20,000,

Can have a car worth up to £1000,

No other assets of more than £1000,

Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

Cannot have had a DRO in last 6 years.

ToxtethO'Grady

They may ask you to have it at the lowest percentage you can pay so check how much it is with your employer and how low it can go.


But they take into account your age and how near retirement you are so may allow a higher payment. It's all done on an individual basis so they wouldn't expect a 21 year old to be paying the top rate of their pension allowed but a 61 year old may be allowed to do that dependant on their pension pot.


If you are 51 or over check your pension drawdown details for when you get to 55, the OR can class it as an asset so get some independent pension advice through pension wise

pcoventry

'Bankruptcy restriction orders will be applied for the second time definitely as a rule"

I know this thread is a few years old but I feel this is relevant

I am days away from my Second Bankruptcy discharge ( the reasons are not relevant) but no BRO was ever placed on me - and I hear from the OR no more or less than I did back in 2011.

fatbelly

pcoventry wrote: »

'Bankruptcy restriction orders will be applied for the second time definitely as a rule"

I know this thread is a few years old but I feel this is relevant

I am days away from my Second Bankruptcy discharge ( the reasons are not relevant) but no BRO was ever placed on me - and I hear from the OR no more or less than I did back in 2011.

I don't know where you got that quote from but it is not correct.

OK, just spotted it in that mass of nonsense in the second post.

Might be best if this thread is locked now.