Going bankrupt on Friday a few questions on form

mrmarsupial

Hi my friend has decided he is going bankrupt on Friday. I am helping him with the online form and just have a few questions.

When you are declaring your debts do u put what the full repayment figure is or what the settlement figure is i.e. on his credit file one debt is shown as current balance £16899 but obviously if he phoned for a settlement figure today it would be a lot less. What do you put down as the actual debt in the statement of affairs?

Is there any chance they will refuse bankrupcy? (he owes 40 - 50K has no assets and each month he is getting more and more in debt BUT he has never ever missed a payment)

Also section section.6.3 What is your average monthly take-home pay ? now his average pay has per month has been £2000 but from now on his pay will be £1200 as overtime has stopped and he isnt willing to work it anymore. Should we put what it has been of his payslips or what it is going to be?

When declaring your outgoings what are reasonable amounts to put down for spending money for food, clothes, doctors etc etc because he doesnt have a clue he has never had a budget and doesnt keep track.

Thanks a lot!

mrmarsupial

Found out the answers from the insolvency helpline if anyone is interested.

When declaring your debts you put down the current settlement figure.

Its his decision to declare bankrupt and as his debts are over 40K and he has no assets and is struggling with repayments the judge cannot force any of the other options.

He has to put down what he has been earning including overtime, the OR will factor in any decrease in wage when deciding if he should issue an IPA/IPO.

Obviously they cant give advice on declaring outgoings but I’m going to get him to put down as much as is reasonable, the OR will either accept it or lower it when deciding if an IPA/IPO is appropriate.

Thought I might as well put the answers in case anyone else is interested!

Richard_S

Hi mrmarsupial,

Thanks for that, I was just looking for a link to give you some idea of what is likely to be acceptable in an Income & Expenditure Budget. How many of you are there?

Regards

Richard

tigerfeet2006

mrmarsupial wrote: »

Hi my friend has decided he is going bankrupt on Friday. I am helping him with the online form and just have a few questions.

When you are declaring your debts do u put what the full repayment figure is or what the settlement figure is i.e. on his credit file one debt is shown as current balance £16899 but obviously if he phoned for a settlement figure today it would be a lot less. What do you put down as the actual debt in the statement of affairs? You put down what he actually owes

Is there any chance they will refuse bankrupcy? (he owes 40 - 50K has no assets and each month he is getting more and more in debt BUT he has never ever missed a payment) I don't see him getting refused

Also section section.6.3 What is your average monthly take-home pay ? now his average pay has per month has been £2000 but from now on his pay will be £1200 as overtime has stopped and he isnt willing to work it anymore. Should we put what it has been of his payslips or what it is going to be? You put what he is going to be earning the day he goes BR if it £1200 then put that. You will be able to explain to the OR there is now no overtime available.

When declaring your outgoings what are reasonable amounts to put down for spending money for food, clothes, doctors etc etc because he doesnt have a clue he has never had a budget and doesnt keep track.
Put up his i&E as you have it and we will have a look for you. Thanks a lot!

Has he taken professional advice from one of the debt charities? If not I strongly advise he rings National Debtline today. The judge could refuse BR on this point as they like to know people are aware of all the implications of BR.

tigerfeet2006

crossed posts!!

mrmarsupial

Just 2 adults in the house.

tigerfeet2006

check out these links to get you going on the soa

http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM800120.htm

IPAs Assessment of real disposable income.

mrmarsupial

Thanks that link is really helpful.

tigerfeet2006

How's the form filling goimg Mrs M?