A few questions....

jojopo000

Hi
I hope someone can help me please. I am considering going bankrupt later this year for reasons I wont go into just yet but I have a few questions that I cannot seem to find the answer for on the web so I thought I would ask you guys as you all seem very knowledgable.
My first question is, I have a car on finance, I need a car to get to work and back and also having 3 kids the car is greatly needed. Where do I stand with this? Would i be able to keep it and still pay for it or would they take the car and add it to the BR amount (I cannot go out unless in the car on my own due to depression stuff)?

Next question is, do the OR come to my house and do a "stock check" of what I own?

Would i be able to still have things like a home phone and broadband with Virgin?

I owe money to my father-in-law that we pay monthly and there is no way he can pay this for us (this ends around august time), what would happen about that if I go BR before August?

Does BR take all of my debts?

I only work part-time and my o/h doesnt work or claim any benefits for not working as he looks after the children as only one is of school age, my money that comes in doesnt have any spare and thats without paying the bills so how would a IPA work with that?

Regarding Bank account, I only have a basic account with just a cash card with nationwide, would i loose this account? As through work and tax credits and for the help for the rent with housing benefit I need this account to get this money. I had tried to open another account but everywhere says no and o/h doesnt have a account.

Sorry for all the questions but it is a big thing to do and i would like to know all the facts before I go down this route.

Many thanks for any help you can give me.

fiveyearplan

Hi Jojo, You will lose the Nationwide account but can open a Barclays or Coop basic account (I personally chose Coop).

Cars are a bit tricky so can't answer that one.

They will not do come to your house to do a check. Someone else will be along to answer your other questions.

Richard_S

Hi jojopo,

It depends on the amount and number of payments left to pay on your car. If there's only say 6 payments left and they're £120 / month then that would probably be acceptable to the O.R because it would be a cheaper option than having to buy another vehicle. If the outstanding amount runs into £0,000's then probably not. With having a young family and needing a car for work you would almost certainly be able to demonstrate that a car is a necessity.

You are allowed to include a reasonable amount in your I&E account for a telephone and mobile, and internet if you need it for work or studying. You can still have broadband even if it can't be included in your I&E a/c; it will come out of your surplus income.

Nobody will come round to your house unless they suspect that you're hiding valuable assets.

Your FIL would be classed as one of your creditors and you wouldn't be allowed to make a special case for paying him as opposed to other creditors. Whether you choose to pay him out of your surplus income, of course, is a decision for you.

If you only have a basic account with Nationwide you should be able to keep it. It may be frozen briefly by your bank until they've been contacted by the O.R, but that is usually done very quickly so that you have access to a bank account.

If anything else occurs to you then please post again.

Regards

Richard

jojopo000

Thank you both for your replies and help.
Another worry I have is will the children go without, they are 8, 3 and under a year.
Do you get a living allowance as such?

what helpful people you all are.

Richard_S

jojopo000 wrote: »

Thank you both for your replies and help.
Another worry I have is will the children go without, they are 8, 3 and under a year.
Do you get a living allowance as such?

what helpful people you all are.

Hi jojo,

The allowance you'll get for children is quite generous; the O.R won't want to see you living in poverty. From your brief income summary it's unlikely that you'll be expected to pay an IPA anyway; benefits are not classed as income when claculating an IPA.

Richard

jojopo000

Thanks Richard,
is one good thing that the kids wont go without, dont care about me and oh, just want to ensure the kids are ok in all this as isnt their fault.
What happens with the BR if I dont have to a IPA and also what happens if I do do one?
And also if the car goes will the OR giveme or let me have a allowance or something to get another cheaper car or do I need to have to try to put the money put aside for when the car goes?
Sorry for all the questions.
Your help is much appricaited.

Richard_S

Hi jojo,

You'll only get an IPA if the surplus income in your I&E A/C, that you agree with the O.R, is over £99. E.G if you have a surplus of £100 per month then you'd pay 50% (I think) of that £100 to the O.R and you get to keep the other 50%. It's based on a sliding scale, so the bigger surplus, the bigger %age you pay. The scale is on here somewhere; somebody will have a link to it if I can't find it.

It doesn't affect your bankruptcy at all; your debts are still included in your estate and they share whatever is left after the O.R has taken their fees; which generally leaves nothing.

How many payments have you got left on your car? Cars are always something of a grey area and it's impossible to say for certain how any individual O.R will interpret the regulations.

No need to apologise for the questions; it's far more rewarding than my job.:D

Richard

jojopo000

I have way too many payments left on my car, I am on a reduced payment rate at present. So is it worth trying (trying being the ultimate word) to save some money to buy another car with?
You say they dont use benefits so does that mean that they wont include tax credits inc working tax credits, child benfit and housing benefit?
I only earn £750 a month from my job and we have to pay council tax a large chunk of the rent etc and that without including clothing the kids etc.
We also rent privately, so do i have to tell the landlady as the lease is in mine and OH name? or does the OR tell her? We dont owe her any money and always pay the rent early.
And do i need to explain how I got into this situation? A combination of things inc PND wa***rs for ex's.
Thank you so much for your help, luckily i am on maternity leave at the moment so dont have endure the joys of work.

Richard_S

Hi jojo,

Any money you can save towards a car would be a good precaution to take. Have you consulted one of the debt charities yet? They will be able to advise whether bankruptcy is your best course of action. The Judge will ask you this question, and if you decide that you're going to declare bankruptcy then you should stop paying all creditors, with the exception of priority debts. That should enable you to save for the bankruptcy fees, and hopefully put towards a car.

I'm not too sure about tax credits, but tigerfeet, fermi and debt doctor have got all the relevant information to hand. If they haven't posted by this evening send them a PM and ask if they'll have a look at your Thread. You should be able find the information on the Insolveny Service web site too.

Usually, the O.R won't notify your landlord, unless you owe money. If you have a lease agreement so the O.R can confirm the terms of your lease then there would be no reason for them to make contact.

You'll have to give an explanation as to how you reached the point of bankruptcy, but the O.R will already have heard the same reasons numerous times and don't make judgements about broken relationships, impulsive spending and being caught in the ubiquitous debt trap.

Excessive gambling and taking out loans just before declaring bankruptcy can result in a BRO/U but these are only a small percentage of all bankruptcies.

You'll be able to do lots of research then if you're not at work.:D

Richard

jojopo000

Unfortunately I cannot afford to gamble. The last loan I had was taken out in november 07. Am not planning on doing the BR thing until august at the earliest. So maybe stopping paying what I can would be better in June? Am already scared of the postman, dont wanna be petrified of him.
I did try to get advise but due to my lack of income and someone being very judgemental I cannot aproach these people again. (I have a fear of confrontation and can have a panic attack just thinking about it)
Whats a BRO/U?.
Thanks so much for your help.

Richard_S

jojopo000 wrote: »

Unfortunately I cannot afford to gamble. The last loan I had was taken out in november 07. Am not planning on doing the BR thing until august at the earliest. So maybe stopping paying what I can would be better in June? Am already scared of the postman, dont wanna be petrified of him.
I did try to get advise but due to my lack of income and someone being very judgemental I cannot aproach these people again. (I have a fear of confrontation and can have a panic attack just thinking about it)
Whats a BRO/U?.
Thanks so much for your help.

Hi jojo,

If you're continuing to pay your debts and didn't envisage having problems at the time you took out the loan,;) it's unlikely to be a probelm; unless it's a six figure sum of course.:D If your situation worsens between now and August and you decide to declare bankruptcy then you'll only be doing the right thing by acknowledging that you've got a problem.

You don't need any income to speak to one of the Debt Charities, but probably best to leave that until later if you're not considering bankruptcy at the moment.

A Bankruptcy Restriction Order or Undertaking extends the restrictions of bankruptcy beyond the current 12 month period. It's generally imposed as the result of fraud or reckless borrowing; I've been posting on here since August 2006 and I can't remember anybody saying they'd had one imposed.

Bankruptcy isn't a pleasant experience but it most cases it's certainly not confrontational. The O.R's staff are professional and courteous, and the Court staff and Judges are almost always helpful and sympathetic.

Richard