Bankruptcy help please - desperate

Mollymoo45

It was sent solutions, he has no assets he was doing it to save his sanity and his marriage, this has made everything worse. Could he cancel the bankruptcy? Maybe IVA etc? He’s at the end of his tether with it all. Bankruptcy has made it so much worse

cymruchris

Has the bankruptcy actually happened yet? I’m a bit confused..

Mollymoo45

Yes, he did the bankruptcy online, had the call with the insolvency people and then this IPA call. He is looking into an annulment? 

cymruchris

If it’s already happened then you can’t just change your mind and cancel it - there are some ways to do it - but would likely mean paying his debts in full in one go. Does he have the support of his husband to be able to do this? 

Minkym00

He can annul the bankruptcy by 1) agreeing an IVA with his creditors or 2) paying his debts in full. Either way he would also have to pay the OR's fees of £8,000 in addition to his debts. 

In my view, if he cannot pay what the OR is asking for, then he should refuse to sign the agreement and let the OR take him to court. It would then be the OR's job to argue that what they are asking for is reasonable, and your friend has the opportunity to put his case to the judge. The judge then decides what he should pay. It's always less than the OR wants.

ManyWays

What were StepChange allowing for expenses that the OR is not? Surely not £100 a week for alcohol...

carrot42

Minkym00 said:

He can annul the bankruptcy by 1) agreeing an IVA with his creditors or 2) paying his debts in full. Either way he would also have to pay the OR's fees of £8,000 in addition to his debts. 

In my view, if he cannot pay what the OR is asking for, then he should refuse to sign the agreement and let the OR take him to court. It would then be the OR's job to argue that what they are asking for is reasonable, and your friend has the opportunity to put his case to the judge. The judge then decides what he should pay. It's always less than the OR wants.

That is super interesting. Can you please elaborate/explain why you wrote that judge always on bankrupts side when it comes on how much he will need to pay? Also, is there a fee/extra charge which later will need to be repaid for bringing everything to court? Thanks

sammyjammy

What happened to the money from the loan the husband took out?  Or were the debts even higher?  

KeepOnKnitting

@Mollymoo45  I'm just looking at his financial situation above, and I am not surprised that some adjustments needed to be made. £600 a month on "looking smart"? He has an income of £2500 a month, and fixed household costs in the region of £400. £175 a month on his mobile phone. Maybe I sound harsh, that isn't my intention. I'm just suggesting he needs to be a little more realistic with his income and expenditure. £2,500 income isn't a champagne income, so he can't have a champagne expenditure. This sounds like an opportunity to look at his priorities and work out what is important to him. Even with a bankruptcy, if he carries on spending this way he will end up back in financial trouble, making his mental health situation even worse.

Borders2017

Sorry but your friend is living on another (and very entitled) planet. Dry cleaning (wash them or wear items that are washable), cigarettes and alcohol (give up HE CANNOT afford it) , these are NOT essential items. He really needs to take a full re-assessment of his lifestyle.. There are also plenty of opportunities for teachers to earn more money form more responsibilities and holiday cubs etc. If he really values his marriage he needs to start SERIOUSLY living within his means, he cant expect to have the same lifestyle as before. Maybe he needs some counselling for other issues.