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Ask a StepChange debt advisor a bankruptcy question
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Hi there, I have just gotten my approval for my DRO, I was out of work a while and then started working for myself so that is what my expenditure was based on to apply for the DRO, thing is it is a basic +/- of income vs expenses which leaves me in the sub £75 spare per month category.
I am now a few months into keeping check on income and expenses but am worried about the fact my budget did not include the tax I will be having to pay next year, at a likely total profit of £16800 for the year that equates to roughly £70 per month that I should be setting aside in my view, will my DRO be affected if I manage to earn extra to set aside money for next years tax, ie add that as expense per month as it is not profit?0 -
SirFrancisBacon said:Hi there, I have just gotten my approval for my DRO, I was out of work a while and then started working for myself so that is what my expenditure was based on to apply for the DRO, thing is it is a basic +/- of income vs expenses which leaves me in the sub £75 spare per month category.
I am now a few months into keeping check on income and expenses but am worried about the fact my budget did not include the tax I will be having to pay next year, at a likely total profit of £16800 for the year that equates to roughly £70 per month that I should be setting aside in my view, will my DRO be affected if I manage to earn extra to set aside money for next years tax, ie add that as expense per month as it is not profit?
Thank you for getting in touch and sharing your situation.
It's great to hear you've been approved for a Debt Relief Order (DRO) if your circumstances or income change while you're in the 'moratorium' for your DRO there is a risk it can be revoked or cancelled.
The most important next step would be to discuss this with your Official Receiver, they would be able to confirm whether it's an allowable expense in your budget.
You can find out more about changes to circumstances in DRO's here.
I hope this helps.
Patience0 -
Hi,
I would like to apply for a bankruptcy but I do not live in the UK anymore. I meet the criteria as I have been a UK resident in the past three years.
Could you help me with understanding how the process would look like for someone applying from abroad? Would official receiver want to see my wage slips and bank accounts from my new country of residence? If so would I have to get them translated etc?
Kind regards0 -
pedrosa666 said:Hi,
I would like to apply for a bankruptcy but I do not live in the UK anymore. I meet the criteria as I have been a UK resident in the past three years.
Could you help me with understanding how the process would look like for someone applying from abroad? Would official receiver want to see my wage slips and bank accounts from my new country of residence? If so would I have to get them translated etc?
Kind regards
Thank you for getting in touch.
You can find out here what documents are useful to have when applying for bankruptcy, they are going to ask for wage slips, your outgoings and debts. If these are in a different language it would be worth speaking to the Official Receiver before the interview to check whether they would need these translating.
However, it may be worth getting a translated version anyway.
You can find out more about the process here on the guide to Bankruptcy from the GOV.UK website, as you're abroad you may need to also check whether you could have a telephone interview rather than a face to face one.
It's worth considering that Bankruptcy may not be recognised in your new country of residence.
I hope this helps.
Patience
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Hi
I am almost bankrupt, and I have lost all my money, my single bike, which has an approximate value of 4000$. Now, what should I do now?0 -
vseoarena said:Hi
I am almost bankrupt, and I have lost all my money, my single bike, which has an approximate value of 4000$. Now, what should I do now?Hi,
I’m sorry to hear what you’ve been going through.
As you’ve given the value of your bike in dollars, I’m assuming that you live outside the UK. If that’s the case, I’d recommend seeking out help from an advice agency in your country, who will be able to talk you through debt solutions that are available where you live.
If you are in the UK we can help, but we would first need to create a budget and list of your debts to fully understand your situation. If you’d like to do this through StepChange you can use the online tool on our website or give us a call to speak with us.
Regards,
Aidan0 -
Aidan I have a similar question to the poster above. My son has been advised to go for sequestration (Scotland) but the big problem is that his only asset is his bike, which is worth around £4000. He would rather lose his soul than his bike - but on the practical side, it's his only means of transport. Currently unemployed but having transport makes getting a job easier. Would you know if they are flexible on value of vehicles or is it a strict £3000 limit? The bike is the absolute only thing he owns, the house is rented furnished.
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MingVase said:Aidan I have a similar question to the poster above. My son has been advised to go for sequestration (Scotland) but the big problem is that his only asset is his bike, which is worth around £4000. He would rather lose his soul than his bike - but on the practical side, it's his only means of transport. Currently unemployed but having transport makes getting a job easier. Would you know if they are flexible on value of vehicles or is it a strict £3000 limit? The bike is the absolute only thing he owns, the house is rented furnished.
Thank you for getting in touch and sharing your sons situation.
With debt solutions such as Sequestration, they usually have a set criteria as it's a formal solution.
As you mentioned and with this type of solution you can usually keep a vehicle if it’s essential and worth less than £3,000. There is the option if the vehicle of £3,000 plus can be sold, he may be allowed to buy cheaper replacement from proceeds if it's still essential.
If he's worried about the impact this solution may have on his bike or any 'assets' he has, then it may be worth him seeing if there are any other options available to support him. If he would like to go through this with StepChange, he can use our online tool to get started building a budget to show us his circumstances.
I hope this helps.
Patience
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Thanks Patience. The CAB told him this was his only way out, but I might get him to call Stepchange and check.
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I am a self employed decorator and seem to permanently be in my £3000 overdraft I have just been issued with a bill for £15000 from HMRC as well as other debts totalling towards 35000 I have no hope of paying these debts and seem to be spiralling into Bankruptcy and suggestions for help would be most appreciated0
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