Bankcruptcy question

sourcrates

I have moved your thread to the DFW board, so more people can comment on it, as i think your problem may be one of poor budgeting rather than the need for bankrupcy, your grocery bill, for example, can easily be cut in half, your mobile bill can also be drastically reduced assuming your out of contract.


Nursary fee`s are a killer.

Gaz1990

Hi i have already decided that bankcrupcy is the best bet.
Food wise we live with parents so very cramped so we get on the go food more.
Plus nappies food for work etc.
We are hopefully going to be renting a place of our own soon and its going to add more cost i assume
I think bankcrupcy is the best option .

Gaz1990

Would we have a ipa in place with the soa posted
Thank you again👍

fatbelly

Quick answer to your question is probably not. In bankruptcy it's your income and your share of the expenses that counts and that's probably near net zero even taking into account that the phones and groceries spend is high.

However, if the car is deemed nonessential that would be different.

What flags up to me is that the all-inclusive rent looks odd, and it is being paid to people you have possibly treated with a preference, and you are thinking of moving into private rented accommodation soon.

I think you might be better doing that now, while your credit file looks OK, then defaulting on your debts and then looking at bankruptcy.

Bankruptcy is going to be your route to stopping enforcement action - you are currently many months, probably years, from that. So what's the rush?

The truth is that you have probably been insolvent for some time. Remember one definition is that your liabilities exceed your assets.

Oh,, you will definitely need a new bank account not connected to those loans and the card

Gaz1990

Thank you for your reply.
700 a month is what i pay my parents
Which is fair considering we are 2 adults with a child living in a 3 bedroom house
Supose its cheaper then renting.
Mobiles are contracted 1 year left
I have done alot of wreckless spending
Ive been severely depressed been in q dark place and had no care about nothing.
Still going through counciling to help.
I just want a fresh start tbh
Im not bothered about bad credit we plan to never purchase nothing on finance for rest of our lifes.

fatbelly

My point is that if you are moving into the private rented sector (rather than living with your folks) then a letting agency will want to run a credit check and at the moment that would look ok. It soon will not look so good as you are going to get late payment markers and then defaults.

I understand about a fresh start - it's just the timing of that fresh start.

Once you are in your new place, you can get benefits to help with the rent but will also have to pay your own water, elec, gas, council tax. You will have a tenancy agreement on the rent. That might be a better time to declare bankruptcy.

The OR is going to be suspicious that you sold an asset, gave 6.5k to your parents and continue to give them £700 a month but want to avoid an IPA.

A bit of time and different circumstances would help you and them.

Gaz1990

Thank you fat belly
Makes perfect sense leaving till i have found somewhere.
Regarding the rent a don't no more a could say other than its what i pay, bearing mind my mum does everything for us irons washes cooks and sky etc
The 10k i borrowed was to pay overdraft and a car. i sold the car gave them the money 6month later bought a cheap car instead and give them there money.
At the time i have never missed payments or nothing was 6months ago.
Its my parents money at the end of the day
I did not think i would be in this situation 6months down the line.
This is my biggest fear with all this is having my parents be dragged into it.

Minkym00

"at the time I was completely solvent "


This is important. For a misconduct allegation the OR will look at two things:


* were you asset / liability insolvent at the date of the transfer
* were you income / expenditure insolvent at the date of the transfer


So when you say you were completely solvent do you just mean your were earning enough to pay your debt commitments AND had assets enough (car, property, jewellery, anything..) that could have been sold to pay them off? Or were you just making the repayments?

Gaz1990

Err i was making the payments but i was just trying to reduce bills at the time and have a cheaper car

fatbelly

Hi Gaz

Minky just gave the two definitions of insolvency. It's the same point that I made in post #15 - that you were insolvent under definition 1 at the time of the transfer.

I think it would help if you went to token offers on the debts for a bit and got your budgeting sorted (even if those figures you gave earlier would do fine on the bankruptcy application and on your letter to creditors)

https://www.nationaldebtline.org/EW/sampleletters/Pages/Token-payments-or-no-offer-of-payment-%28sole-name%29.aspx

https://debtcamel.co.uk/token-payment-debt/