Bankruptcy order - 27th October

homersimpson316

Never expected to be back here again after so many years! 

I went bankrupt in 2008 after losing my house during a difficult period in my life when me and my partner split up.

Anyways..... here i am again for a different reason

7 years ago i set up a company and it went from strength to strength until Covid happened, demand dropping off, materials and supply increases etc.

To help fulfill contracts and payments i took a guarantor loan out hoping i could swing things back around but it wasn't to be and the buisness had to close leaving me with personal debts which has now turned to a bankruptcy order being made against me next Monday.

When i applied for personal bankruptcy (2008) i filled in all forms for bank accounts, debts, incoming and out going bills and my account was frozen immediately.

Just wondering if anyone has been made bankrupt by a debtor and what the process is and how soon my bank account will be frozen etc, i haven't filled any forms out or been asked to do anything as of yet, just a court date.

Regards
Homer Simpson (again) 😔

sourcrates

Uncertain if the process differs from personal bankruptcy or not, I do know it costs the creditor much more in regard to fee`s than a personal bankruptcy does.

I would suggest you prepare by taking sensible precautions such as withdrawing as much cash as possible to tide you over for a week or two, do a big shop if you can beforehand, fuel in the car etc etc.

fatbelly

The difference is that the courts are not involved with personal bankruptcy these days but still are when there's a statutory demand.

If the judge agrees that you are insolvent then a file is passed to the Official Receiver.

If your main bank account is not overdrawn and only has a small balance to get you through a month then you may be allowed to keep it. Your bank will make that decision.

I agree with the above though

homersimpson316

Thanks for the replies.

Its been two days since the court date to make me bankrupt, I've had no calls, letters or emails and still have access to all my existing bank accounts.

I assume they will be in touch at some point soon!

homersimpson316

I have received a letter from the court today saying i am adjudged bankrupt and the court is satisfied EC regulation doesn't apply (what ever that means)

At the bottom of the letter it says to ring the official receiver.

Any idea what questions i will be asked when i ring them? Just want to be prepared thats all

sourcrates

Its just a formality to log the events leading up to your bankruptcy, the purpose is to ascertain the facts, not to apportion blame.

They may want you to complete an income/expenditure form, and they may require you to do that over the phone.

So you might want to prepare something that you can live with, the allowances in bankruptcy are quite high, but keep in mind any disposable income over around £20 and you`ll be expected to pay into an IPA for 3 years.

ManyWays

You also need as good a list of your debts as possible, including any arrears on bills, any old debts no longer showing on your credit reports, tax debts, benefit overpayments, debts to tradespeople etc. If you have not been paying any debts because the creditor could not produce the CCA agreement, list those too.

Bankruptcy clears them all, but it helps if the lenders are told that you have gone bankrupt by the OR.

Ask the OR, but I would expect that you should stop making any payments to these debts. Only pay secured debts and ongoing bills, not arrears.

3Commando

How did you go on with this?