General questions and worries for bankruptcy..

MyWorldIsOver

Hi there,
I'll be going bankrupt later this month after discussions with Business debtline etc, but I won't lie - I'm absolutely terrified of going bankrupt and what's to come with it to the point I am crying 24/7, on meds to try and help, not eating so I've lost over 3 stone in a couple of months..

I've spent months upon months reading every post I can on here, and I can see how talking to others can help but for some reason I'm so nervous to reach out.

I'm worried I'll be in line for a BRU/BRO or worse as there's a large tax/VAT debt due to my mental health over the past few years, but I know it's something I have to face up to.

For those of you who have gone bankrupt.. what is it truely like?

I'm worried I'll lose my rental property, my car, I'm self employed so customers will find out and judge me, what is even classed as assets to put on the form as there seems to be so many different opinions on what you list.. you name it, I'm worrying over it!

What are the OR meetings like as well? Will I get absolutely grilled for everything I've done? I've been seeing mental health help and I've discussed bankruptcy with them but obviously they can only help me with the mental side of it, not the actual process.


I'm sorry if this is wasting anyone's time.. I just feel really alone right now and I don't know where to turn as I know no one who's gone through this

Brie

I've never been bankrupt but have struggled with debt over the years and know what a strain it can be.  I'm glad that you've reached out and hopefully someone will come along with some practical advice and support for you.  I didn't want you to think that you were being ignored. 

Wishing you the best of luck with it all and that you can find yourself in a better state of mind soon.

MyWorldIsOver

Brie said:

I've never been bankrupt but have struggled with debt over the years and know what a strain it can be.  I'm glad that you've reached out and hopefully someone will come along with some practical advice and support for you.  I didn't want you to think that you were being ignored. 

Wishing you the best of luck with it all and that you can find yourself in a better state of mind soon.

Thank you so much for your kind message, it means so much x

RAS

There's unlikely to be a meeting, they've been done on the phone for ages. 

There is a form that you can ask your GP or mental health practitioner to complete. I doubt there will be much more beyond that, unless the OR wants to clarify some details. 

BROs and BRUs are very rare. There's another recent anxious thread about them. The three folk who've each been on MSE for 15+years, two of whom work in debt advice, each knew of two cases.

The most recent about which I knew was by someone who'd gone BR years ago, failed to co-operate with the OR at all, disappeared and resurfaced a year or so ago. He was a bit shocked to find out he wasn't discharged. 

There may be a few questions about your budget if you have something unusual, but just answer honestly and you'll be OK. 

fatbelly

I've helped a lot of people in the past to go bankrupt. A lot fewer since DROs came in. And of course these days it's just an online process. Pay £680 and press the button.

To pick off some more questions, how much is your car worth (check Parkers Guide) and can you make a case for needing it? If so, it can be worth up to 4k

How is your rent situation? Any arrears, problems with the landlord? If no, then you'll have no problem.

You will appear on a register. No-one searches it unless you are a debt adviser checking on a client

In terms of assets, they are looking for antique stock or a portfolio of art, not tvs and laptops.

ManyWays

Assets - for non business assets, only list things you own which are currently worth over £500. That is what you can sell them for, not what they originally cost.

Business Debtline should be able to advise about which business assets to list.

Are your tax affairs in reasonable order? If you are unsure, talk to Business Debtline as it may be a good idea to do this first before going bankrupt.

Your landlord is not normally informed unless you have rent arrears, see https://www.gov.uk/guidance/technical-guidance-for-official-receivers/3-bankruptcy-orders-initial-action

3.123 Landlord – assured shorthold tenancies

Where the bankrupt resides in premises under an assured shorthold tenancy agreement, or in premises otherwise exempt, e.g. a tenancy with a local authority or registered social landlord, the agreement does not form part of their estate1. For more information on assured shorthold tenancies see chapter 24. Where the official receiver is satisfied that the rent is paid up to date, and the landlord is not a creditor in the proceedings, it is not necessary to send notice (NTL) to the landlord. Where the landlord is a creditor the official receiver should send the form NTL to them.

Callum1510

fatbelly said:

I've helped a lot of people in the past to go bankrupt. A lot fewer since DROs came in. And of course these days it's just an online process. Pay £680 and press the button.

To pick off some more questions, how much is your car worth (check Parkers Guide) and can you make a case for needing it? If so, it can be worth up to 4k

How is your rent situation? Any arrears, problems with the landlord? If no, then you'll have no problem.

You will appear on a register. No-one searches it unless you are a debt adviser checking on a client

In terms of assets, they are looking for antique stock or a portfolio of art, not tvs and laptops.

Hey, I have a query wonder if you can help. I am struggling with debt around 35k and thinking of bankruptcy although I have spoken to step change and they are putting me off this. They said I may have a beneficial interest in my partners home which may result in issue during bankruptcy. 

I have 35k debt, have no assets, don’t own car or house. I live with partner in her house where I have been paying her rent for several years and only she is on mortgage. Do you for see an issue if I go bankrupt? I do not want to drag her into this and she end up having to lose the house. 

Thanks in advance 

wilowalks

I to am in a similar situation to you and having already looked into every detail i can find about bankruptcy and chosen to proceed with the application I'm starting to feel scared for the process to actually start. My main worry is the potential money I will be left with, how do they proceed when you don't get much income to begin with? I'm a single mother to 3 kids I work but don't earn enough so recieve universal credit also, do they take into consideration of Christmases birthdays and other unforeseeable circumstances? Does the OR constantly look into your bank to see what your using money on and track your every incoming and outgoings? Or will they just allow me to live off what I receive in income. 

Thanks 

RAS

If your debts are below £50k, you do not own anything, including a car over £4k and your surplus income is below £75 per month, have you considered a Debt Relief Order? The budgets for bankruptcy and DRO are more generous then for IVAs. DRO are discharged after 1 year and may fail if you get an inheritance or a large increase in salary.

I'd be surprised if many people who receive UC would have a larger surplus. Both budgets include small allowances for presents, a holiday, medical and dental, and it would be wise to stop paying your current debts and try and build saving up to £2k before you sign up

sourcrates

To the OP, and for those also jumping on this thread, bankruptcy these days is a pretty straightforward affair.

It`s applied for online, pay your money, press the button, and as long as no property or fraud is involved or suspected, its job done basically.

The OR`s interview is a phone call, they are not there to trip you up, they require a basic statement of the facts that led to the point you`re at now, and that's about it really, all a bit underwhelming to be truthful.

The budget allowance in bankruptcy is quite generous, you should perhaps over estimate it, just to be certain, anything the OR considers excessive, they will ask you about.

Anyone who may have a beneficial interest in a property should perhaps consider a DRO instead of bankruptcy, as it may be more suitable.

As for assets, unless you have a couple of Picasso`s hanging on the wall, or a new Rolls Royce tucked away in the garage, I would leave that list blank.

Once the phone call/interview is over, you won`t hear from the OR again, unless you may be subject to a 3 year income payment arrangement, if you have sufficient disposable income, otherwise, there are no further checks, you are not monitored, and in 12 months time you will be dis-charged to start your new debt free life.

Bankruptcy in the vast majority of cases is no where near as bad as people imagine, in fact in most cases its the easier of the statutory debt solutions to manage.

Callum1510

I’ve been advised by payplan that an IVA is the way forward but I’ve looked at their reviews for IVA online and they are shocking can anyone point me in the right direction of a good company to do an IVA? not sure why they don’t seem to think I’m elegible for DRO as I have less than 75 pound left after everything. Also no house or assets and I live in my partners house. Can anyone help me with what’s best for me to do? Thanks