After Aquired assets

ikati5

I declared myself bankrupt in March 21 on disability benefits with no assets. My total debt was £35k

in August my best friend died suddenly leaving me approx £60k in cash and a car valued at £15k

the OR will take 15% of the cash £8,250 and their fee £7990 plus the debt of £35k. The car will be auctioned and after all fees will realise around £5k perhaps less.

Is there anyway at all to avoid the OR taking £16k in fees?

Minkym00

Yes, apply to the court for the bankruptcy to be annulled once the funds have been paid to the OR as there is enough cash to pay your debts and the fees. The OR will keep their fees but pay you back the balance of funds that they have claimed. 

ikati5

Hi
I can’t afford to pay £5k for a solicitor so I need to make this application myself.

I have asked the OR office and they say I can only stop the 15% if I get the annulment before the money goes into their account. It won’t be refunded once they have  it.

Is this true?

also. What happens if a creditors don’t prove their debts? Does the OR keep the money? Send it to the creditors anyway? Or refund it to me?

Minkym00

Re the 15%, I will check this and come back to you.

You don’t need a solicitor. I’ll DM you. Is there anyone that can pay the money for you to avoid this 15%? You can, after all, show that you have funds coming. What often happens is that solicitors will front the money for you to get an annulment, but then they will charge you handsomely to do so. 

If a creditor doesn’t prove the money will be refunded to you. But the OR will place a notice in the Gazette it for 28 days once distributions are to be paid in case any other creditors crawl out of the woodwork.

ikati5

Thank you so much for this information and for your DM, I really can’t thank you enough, I had no idea how to go about it on my own.

Minkym00

No problem. I would also ask the OR if they will hold off taking the car as the cash will cover the debts and fees. 

ikati5

I did. They said they have to take stuff as it becomes available and the car is available now whereas the cash is not.

I also asked if I could appeal the decision because the cash will clear the debts in full.

they said No!

I’ve looked at the 15% again and it looks like, they will get to keep 15% of the money they need, so the £35k plus £8k fees. Plus interest.

Minkym00

So the only way to avoid the trustee fee of 15% is to get a third party to settle the debts plus the £8k fees first. You'd be better off finding a solicitor that will do this for you and pay them £5k, rather than lose all that cash paying the trustee fee. 

ikati5

I don’t have £5k.

The thing I am most upset about, is the one debt that I declared myself bankrupt for, hasn’t proved. Without that debt, none of this would have had to happen. 

Without that debt I had options.

I’ve learned a lot and my advice to anyone thinking about bankruptcy is DON’T ! The implications are huge.

Minkym00

To be fair, your circumstances are unusual. Its rare that someone finds themselves with after acquired assets and bankruptcy can be 100% the right option for many people.

Although you will lose a lot of cash, you can still annul the bankruptcy later so it need not affect you going forward and you can get on with your life debt free and without your credit record impacted.