A few questions....

jojopo000

Hi

Having read a lot more on this forum, what amazing supportive helpful people you all are.
I am wondering about the tax and NI thing. whats it all about?

And am hoping someone can help re my tax credits and child benefit question that I asked above.
Sorry to bring this back up again when there are more people who require more urgent help and advice then me.
I am really grateful for any replies and also once again say many thanks to Richard who helped me in great depth above.

Addicted2Chocolate

see bits i have added in bold

jojopo000 wrote: »

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)? If the car is on HP it will be up to the HP company whetehr to continue the agreement. The OR has to notify the HP company.

Next question is, do the OR come to my house and do a "stock check" of what I own? No, we used to do home visits fro every bankrupt in the 70's but thigns have moved on, thank goodness

Would i be able to still have things like a home phone and broadband with Virgin? yes, if you owe money to them it woudl be a bankruptcy debt, so they may cut you off. If you are up to date its fine.

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? Any money you owe to friends or family as of the date of bankruptcy order must be included and you cannot repay them after BO.

Does BR take all of my debts? No, some debts like student loans, fines issued by a court, some overpayments of benefits cannot be included.

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? If you dont have any spare then you wont pay an IPA

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. If on the statement of affairs you have a bank account, which is in credit, and you tick box that you use for receipt of income, OR will write to bank saying it can be kept open. It is up to the bank. But you shoudln be fine with a basic nationwide 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.

jojopo000

Thank you so much for your reply.

One other question, do Tax Credits, Child Benefit and Housing Benefit go towards it all? As even though I work a lot of my income is through these benefits.

Once again sorry to be a pain but I am really grateful for all your help.

tight_jock

Child Benefit is not classed as income. I don`t think housing benefit is either.

Tax credits are not benefits as such though so may be included as income.

fermi

tight_jock wrote: »

Tax credits are not benefits as such though so may be included as income.

See the thread: Child tax credits not counted in IPA's / IPO's

WTC's do count though.

tight_jock

fermi wrote: »

See the thread: Child tax credits not counted in IPA's / IPO's

WTC's do count though.

Thanks fermi...have bumped it to front page
:beer:

jojopo000

Final question, I promise.
How long does it take from going BR to bank account being frozen and then the OR informing the bank and them unfreezing the account and is Nationwide likely to unfreeze the account?
I only have a basic Nationwide account, no credit or debit cards and no overdraft facilities.
Just worried about being left with no access to any money and having kids who need feeding, nappies etc.

fermi

Impossible to say exactly.

The OR should notify the bank that they have no interest in the account ASAP, but sometimes it can be a little delayed.

It also depends on how the bank find out about the BR. If the first thing they hear about about it is from the OR with the "no interest letter" then it might not be frozen at all.
If they find out from another source before they hear from the OR then it could be a few days. But most OR's seem happy to fax the bank straight away (on request) if this happens.

The final point is that although Nationwide should be fine with the BR, their attitude towards BR's has changed recently. New BR's are having trouble opening accounts, but I haven't heard of any problems with accounts that have been open for some time. However I would not like to guarantee no problems.

It might be wise to have a fallback.

jojopo000

What happens if I cannot open another account anywhere else once I have been made BR as I have applied to Co-op in the past and have been turned down due to dreadful credit rating and that was for a basic no thrills account.

fermi

jojopo000 wrote: »

What happens if I cannot open another account anywhere else once I have been made BR as I have applied to Co-op in the past and have been turned down due to dreadful credit rating and that was for a basic no thrills account.

Was that for the Cashminder?

http://www.co-operativebank.co.uk/servlet/Satellite?c=Page&cid=1170748471957&pagename=CB%2FPage%2FtplStandard&loc=l

You can't get much worse than bankruptcy on your credit rating, and they will give an account to a BR.

Was there another issue? Were you on the Electoral Role?

It might be worth trying again, and if it is declined ask why. State that you are going bankrupt and want the appropriate account.

There is also the Barclays Cashcard account.