Bankruptcy and Inheritance

elsien

Get Whoever it is, you are referring to to come on here and do a proper statement of affairs. 

If he has a shortfall his income without the debts he needs to address that, otherwise he will be back here again once the inheritance has gone.

sourcrates

I don`t understand why you assume the nuclear option is the only option.

Unsecured debts are non priority, and you cannot go bankrupt unless the debt is in excess of 5k anyway.

And nobody declares bankruptcy for a paltry 5k, if your going to go bankrupt, you go bankrupt with 100k of debt, not 5.

PurpleMouse5

People don't go bankrupt automatically, they have to apply (very rarely a creditor will do it, but that won't happen here). Lots of people have debts where they can't pay the minimum payment and don't go bankrupt, but sometimes it is the right option. 
In this case it doesn't sound like it is the right option at all. They might want to look at making token payments until the situation improves, or a debt management plan. They can post on the debt free wannabe board to get some advice or contact one of the debt charities. 

RAS

What income does the "friend" have? Enough to keep the roof over their head, pay CT and keep food on the table? If not have they checked benefits?

Get a new basic bank account, do not use the switching mechanism. Move all income to that account, move housing and CT and then utilities. Check the dates by which new income and DDs need to be set up.  Once the income is moved also set up the essential DDs only.

Ignore the consumer debt and overdraft.

Ditto on the SOA.

maxmycardagain

sourcrates said:

I don`t understand why you assume the nuclear option is the only option.

Unsecured debts are non priority, and you cannot go bankrupt unless the debt is in excess of 5k anyway.

And nobody declares bankruptcy for a paltry 5k, if your going to go bankrupt, you go bankrupt with 100k of debt, not 5.

OK, a DRO then, but insolvent is insolvent, the amount isnt the issue, but surely his creditors will send the baillifs in for any amount overdue?

He might have to spend more on his CC to qualify 

Thanks for the suggestion.....lol

QrizB

maxmycardagain said:

sourcrates said:

I don`t understand why you assume the nuclear option is the only option.

Unsecured debts are non priority, and you cannot go bankrupt unless the debt is in excess of 5k anyway.

And nobody declares bankruptcy for a paltry 5k, if your going to go bankrupt, you go bankrupt with 100k of debt, not 5.

OK, a DRO then, but insolvent is insolvent, the amount isnt the issue, but surely his creditors will send the baillifs in for any amount overdue?

You've been a forum member for 18 years. How often have you heard of credit card companies obtaining CCJs and sending bailiffs?

This is your friend's problem. Get them to create an account here, complete a SoA and start a thread on Debt Free Wannabe. They'll get the help they need.

elsien

maxmycardagain said:

sourcrates said:

I don`t understand why you assume the nuclear option is the only option.

Unsecured debts are non priority, and you cannot go bankrupt unless the debt is in excess of 5k anyway.

And nobody declares bankruptcy for a paltry 5k, if your going to go bankrupt, you go bankrupt with 100k of debt, not 5.

OK, a DRO then, but insolvent is insolvent, the amount isnt the issue, but surely his creditors will send the baillifs in for any amount overdue?

He might have to spend more on his CC to qualify 

Thanks for the suggestion.....lol

The amount is the issue, as is his income and expenditure, and the overall picture. Running up more debt to try and get people to get a CCJ would just be silly. There are people on here who owe far larger amounts who have not needed to go bankrupt.

maxmycardagain

Told him not to worry, spend spend spend, go down drunk lol

He is full time on a narrowboat, no one can find him anyway, if they do he can be away/up anchor

RAS

So, get a new basic bank account, and stop paying unsecured debt.

Just please avoid HMRC debt, or I assume anything to the CRT. Also make sure he pays anyone who works on the boat? My guess is the community is sufficiently close that people will refuse to work for anyone they know has not paid others?

Ordinary_Yet_Unique

maxmycardagain said:

Told him not to worry, spend spend spend, go down drunk lol

He is full time on a narrowboat, no one can find him anyway, if they do he can be away/up anchor

Not exactly a helpful comment or way to proceed.