So many questions!

utterly_ashamed

Hi - I posted on the DFW thread yesterday explaining my situation and bankruptcy has been suggested as a possible option. I just wondered if anyone would be able to answer a few questions for me?

1. What happens as regards an emergency? I’m assuming any emergency fund I may have (which I don’t right now) would be taken.

2. What happens with my current mobile phone contract? Will this then be cancelled as it’s a creditor? I’m assuming the handset would need to be returned. And no more contract phones for quite some time...

3. Electric and water bills? I currently pay quarterly. What would happen with that?

4. What would happen with council tax? I pay in instalments and it’s all up to date.

5. Contents insurance - I rent and pay contents insurance monthly. Would this be cancelled? What happens about insuring possessions and goods?

Thank you so much in advance!

National_Debtline

utterly_ashamed wrote: »

Hi - I posted on the DFW thread yesterday explaining my situation and bankruptcy has been suggested as a possible option. I just wondered if anyone would be able to answer a few questions for me?

1. What happens as regards an emergency? I’m assuming any emergency fund I may have (which I don’t right now) would be taken.


You could try putting a small amount of money aside for emergencies in your budget, but it will be down to the OR whether they allow you to do this. If the OR decides you can afford an IPA but an unexpected expense comes up, you can also try asking them if you can miss a payment on the IPA in order to cover the cost of the emergency, e.g. if your washing machine breaks down.

2. What happens with my current mobile phone contract? Will this then be cancelled as it’s a creditor? I’m assuming the handset would need to be returned. And no more contract phones for quite some time...


Your mobile phone is usually seen as an essential outgoing, unless you have a particularly expensive monthly payment. If you had a separate loan agreement to pay for the handset this will be included as a debt in your bankruptcy. The handset would be yours, unless it was a hire purchase agreement.

3. Electric and water bills? I currently pay quarterly. What would happen with that?


You will remain liable for your on going gas and electricity usage and you can choose to continue to pay quarterly, although some suppliers may want you to have a pre payment meter if they become aware of your bankruptcy. It can be an option to have the bill changed into the name of someone else living in the household.

4. What would happen with council tax? I pay in instalments and it’s all up to date.


The remaining council tax for the financial year that the bankruptcy order is made in is included in your bankruptcy, even if you are not in arrears.

5. Contents insurance - I rent and pay contents insurance monthly. Would this be cancelled? What happens about insuring possessions and goods?


Contents insurance is also usually seen as an essential outgoing, however if you had a credit agreement in order to pay by monthly instalments this would have to be included in the bankruptcy. The OR should allow you to budget for a policy to replace this if necessary. I'd recommend you check the terms and conditions of your insurance policy.

Thank you so much in advance!

Hi there


I hope the information above helps. As bankruptcy is a big decision it's a good idea to talk it through in detail with one of the free debt advice agencies. Good luck with it all.


Susie
@natdebtline