Bankruptcy Advice

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Minkym00 said:

With £700 a month, yes you will be forced into an IPA. I would probably be looked into a month or so into your bankruptcy.

You also need to consider your car on HP. HP companies can often terminate a contract when someone is made bankrupt and collect the car. Check the Ts and Cs of the agreement, or give them a call.

It may be a scare tactic but some lenders (I’m thinking of Funding Circle in particular) have a policy of always pursuing to bankruptcy. 

Thanks for your replies. 

It would be a real shame for me if I end up being tied into a IPA for 3 years. 

I have just checked my lease agreement and you are right, there is a clause that states the car can be taken if I have a bankruptcy petition against me. 

It is not funding circle but they are one of the many that I have CCJ's from and I have heard how harsh they can be.

sourcrates said:

Just to clarify, a CCJ drops off your file after 6 years regardless of what you or anyone else does.

CCJ`s never become statute barred, however, should a creditor choose to pursue a debt with a judgement attached, older than 6 years, they would need permission from the court to do so, this may or may not be granted, it would be circumstance dependant, so for example, if you had been living in open view, and were easily contactable, its likely permission would be refused.

The selling of such an account in no way alters the above scenario one bit, the same rules apply.

But, if you go Bankrupt all the unsecured debts that you owe including any CCJs are included.
Judgments that have been issued against you for unsecured debts are overturned, and are no longer collectable.

Thanks. I have a few CCJ's on my name so I would hope that they wouldn't extend beyond 6 years. 

If they do pursue this bankruptcy at least I will be free from the stress of debt collectors. 

I guess my options would be to continue giving my father in law £1200 for rent as opposed to £600. However, the OR would likely question this so it is probably better to keep the rent at £600 PCM as per my agreement with my father in law. 

Furthermore, if I were to hand my notice in on my second job I would lose £300 income a month. Therefore, there is no point in working harder to give it to the OR?

I need a car for my main job. My only option would be to take a company car - I hope bankruptcy won't affect me doing this or my job in any way. This will reduce my pay by £400 a month because of benefit in kind tax. 

Overall I would lose around £700 by leaving my second job and taking a company car but would the OR look at my pay from next month when this would all take affect?

Many thanks in advance.