Bankruptcy advice

qwerty72

I'm on income support and won't be working in the forseeable future, i'm thinking if going bankrupt to clear my sporalling debt. just a few questions first,

1, How much does it cost? (i'm on income support)
2, Do i have to attend court?
3, Will they take my £1500 car as i live rural?
4, Does someone visit your home and remove items?
5, Can i get forms myself or do i need to get them from CCCS or C.A.B first?
6, Do i need to open basic bank account now or after?
Thanks for taking the time to read and/or answer :beer:

Dr_Hook

1. I'm not sure on the exact amounts, but being on benefits should mean you can apply to have the court fee of ~£150 waived, although you'll still need to pay the ~£300 OR's deposit. I'm sure someone else on here will know the exact figures, try posting on the bankruptcy sub-board for a better response.

2. You'll have to go along to court but it won't be a case of sitting in the dock and being 'tried' - many people never even see the judge.

3. If your car's your only means of getting around I doubt the OR would be interested. In terms of value they tend only to look at vehicles worth over £2k.

4. Nope. Unless you have a ming vase or priceless painting squirrelled away in the attic

5. Your local county court will be able to supply the forms.

6. I'd be tempted to open one now, purely because it's likely to be easier than opening one once bankrupt.

HTH

hw123

hey,
before you go bankrupt it may be a good idea to seek advivce first maybe draw up a budget with CCCS or CAB, you may be able to do a DMP or other options.
The cost of bankruptcy is £485- £335 goes to the official reciever + £150 court costs. court costs can be waived if in financial hardship - use EX160.
you also have to attend a hearing, you will get a letter with a court date after you hand in your forms and all investigations are complete by the OR! they may take your car as the value is £1500. regaurding household items if you have a top of the range TV and stero system then they would consider taking them but if you have nothing of value then no. you can get the forms your self from a local county court, but i would strongly advise to call cccs or payplan for free advice, all bank accounts are frozen while the OR investigates so opening a bank account before makes no difference there are still banks that allow you to open an account while bankrupt like barclays and CO-OP.

Hope this helps!

fermi

qwerty72 wrote: »

1, How much does it cost? (i'm on income support)

£335 if you are on IS.

2, Do i have to attend court?

Normally yes. (Unless you can't because of illness/disability).

3, Will they take my £1500 car as i live rural?

Depends whether it is essential for your work/'day to day living', and not just convenient.

The £2000 figure is about right for providing a replacement car if one of a higher value is claimed and it is deemed you need one. Cars of ANY value can be and are claimed by the OR if it's decided you don't need it.

4, Does someone visit your home and remove items?

Not unless you have the odd Rembrandt stashed. Most household items are safe.

5, Can i get forms myself or do i need to get them from CCCS or C.A.B first?

You can get the forms yourself from the court or the Insolvency Service website. It's advisable to get advice from CCCS, CAB or the other places in my signature. The court asks if you have.

6, Do i need to open basic bank account now or after?

Better if you can to open a basic account after if at all possible/practical.

See: http://forums.moneysavingexpert.com/showthread.html?t=474254

As said post on the Bankruptcy & Living With It board.