Rent Deposit = Asset? (and 2more questions)

Summerboy

Dear all!

Three short questions, hope you can help

Iam on filling the online application.

1. Is a rent deposit what is protected in a secured deposit scheme an asset?
If yes, where do i have to list it on the application?

2. Some companies i have debts with, have instructed collection services to get there money.
What should i put in as creditor? The real creditor or the collection service?

3. There is a question since when i know i can't pay my debts.
This question brings me to struggling, because there is no specific point.
A long time i made new debts to paying older ones and so on.
What shall i put in there?

Thank you for help!

Summerboy

tacpot12

What application are filling in?

Summerboy

Bankruptcy

mwarby

For point 1 take a look at https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter30/Part%204/Part%204.htm

30.98h Rent deposits, and 30.98i below it.

Not 100% if an asset or not, but it's not something the OR will be interested in. I'd thinking you put it down as an asset but note it's the rent deposit for property your living in held in deposit scheme, would be fine - I'd also think if not mentioned it'd be fine too

Guy-Brush

1. As per mwarby's link, the OR will not want to take your rent deposit if you are still living in the property and will not take it if you were to leave and it would cause you problems finding money for a deposit for a new place. If your landlord is listed as a creditor (e.g. you are behind on your rent) then the LL would probably be after this anyway and it would be your money no more.

Either way, I personally wouldn't even list it as an asset. It is technically your money.... but on the day you go bankrupt, the only right you have to it is to get it back some day in the future, providing the landlord is happy with the condition of the property etc. We will all probably be owed money 'one day' which we don't have right now (from inheritance or pensions etc) so I don't think listing this is necessary. If the OR asks you about it in your interview, explain it then. You aren't doing anything naughty, it's a rent deposit, quite simple.

2. I believe the collection service who is currently taking action against you should be the creditor.

3. The date you 'knew you couldn't pay your debts' is an interesting one and I'm not sure if the question there is to catch people out or not. I wouldn't go a long way back because that will beg the question, why did you continue to get (I assume) more into debt, and why did you continue to borrow money (if you did)? You don't want fraud to be suspected. If you made genuine attempts to consolidate, spread out, put off debt payments etc to ease the burden then that isn't technically knowing you couldn't pay your debts. You were aware there was a problem and were making positive attempts at sorting it out but probably had no idea you were insolvent.

The date you definitely knew you could never pay them back I assume will be fairly recent since it is now that you are going for bankruptcy which is usually seen as the last resort.

alltaken

Guy-Brush and mwarby offer up excellent advice, only thing to add is that my realisation of not being able to pay my debts (clear to the point of insolvency being the answer), was at the point of seeking professional advice from a debt charity, or two. This was a month or so prior to declaring bankruptcy and I took their advice on maintaining/disregarding debt payments.

The interview allowed me to explain that I had struggled, juggled, borrowed and borrowed and dug a hole for quite some time, but didn't realise that I was 'insolvent' until that point of seeking out more help. My examiner seemed to find this satisfactory at interview (they inevitably ask about your history of accumulating debt if you're interviewed), and I'm sure coupled with my bank statements it showed a history of continual struggle, not extravagance followed by more extravagance which is something alongside gambling etc that might be viewed differently and restrictions then placed.

Don't let the question stop you proceeding - you clearly are struggling and if you have been advised to declare bankruptcy, then face the question with honesty.

Summerboy

Thank you all!
Great help!