So many questions...

Jane21_3

Hi there,
This is my first time posting and I would be really grateful for any help. Both my partner and I are soon to go bankrupt, we have taken advise from one of the debt charities and they have advised it as our best option. We have debts of about 13K. My questions are:
My OH is currently on IB as is long term ill, we also get CTC and child benefit. Our income is not huge so how much will we be likely to pay after going bankrupt?
Can Housing benefit overpayment or CTC overpayment be included in bankruptcy? Debt charity said no to CTC overpayment, but just wanted to confirm that.
When I applied for house insurance recently was asked if I had ever been bankrupt, can this be a problem when trying to get insurance in the future?
My sister regularly drives me over 70 miles round trip to see my Mum who is terminally ill, can I include petrol money I give her in my expenses (only about £10-15 a month)? She too is on a low income so feel I need to give her something.
Are books and magazines for my husband etc allowed in expenses?
Am I allowed to include money for tumble tots and swimming for my toddler?
Will I have trouble in the future if I want to change utility companies due to bad credit rating caused by bankruptcy, my credit rating is shot now but have never had trouble changing utilities etc before?
What do I do about the direct debits I have? If I call them and explain I am changing bank account, will they let me pay another way until I can re-set this up?
Does my statement of affairs have to be exact of just approx of what I spend as it tends to vary slightly month by month?
Sorry, for the waffling on and the amount of questions that I have! I am finding this all such a minefield but am grateful to have found this site as it is so helpful.

skylight

Hey - lots of questions is good!!

If you are on benefits, you will not be expected to pay over the course of your bankruptcy - this will possibly change if you were to find employment during BR and had enough surplus income.

Housing benefit overpayment can now be included (is something I am fighting my council on) and apparently CTC see http://www.debtquestions.co.uk/debt_forum/viewtopic.php?f=14&t=22745 for an explaination (Kindly originally supplied by FERMI)

Yes to House Ins. You will find this for all sorts of insurance for the rest of your life. Some insurers ask if you are BR and some ask if you have ever been BR. Obviously even in 30 years time you must answer honestly as we all know insurers wont pay out for the slightest thing!

I would include this amount in general housekeeping budget if you do not have your own cars. It would not be allowed on its own so make a small adjustment to your housekeeping.

Depends on the books/mags and why? If they are work related or he belongs to a professional body then yes. Just for interest then probably no.

Although a small amount for the kids activities are allowed!

I am not aware of any issues with utilities and transfering. I will be transfering soon! Technically, they could ask for a deposit I suppose.

Depends on the companies you have direct debits set up with as each will have their own policies. Set up a basic bank account now with somewhere like Natwest or Nationwide. You may or may not be allowed to keep these if you go BR, but you definately wont be allowed to keep one with an overdraft on it - so its best to change before and hope all is AOK with your OR. If you only have benefits paid in (like me) then your OR will probably let you keep it going. If not, get one straight after BR with the CO-OP as they are BR friendly!

Your SOA needs to be honest. They want to know what you spend so that you are left solvent and have enough to cover your expenditure. Dont try and put £50 down for TV licence for example when they know its not right! Or £700 a month for housekeeping for a family of 4 with babies - they know its not right!

JCS1

Jane21 wrote: »

My sister regularly drives me over 70 miles round trip to see my Mum who is terminally ill, can I include petrol money I give her in my expenses (only about £10-15 a month)? She too is on a low income so feel I need to give her something.

Given the situation with your Mum, it would be a very harsh OR who wouldn't allow this. And if you're only in receipt of benefits, then you won't get an IPA anyway.

Jane21_3

Thank you Skylight and JCS1 for your responses, they are much appreciated.

Do I understand correctly that if you are on benefits you don't pay back anything at all?! We get incapacity benefit and other benefits but also get Child Tax Credit is this a benefit?

What do people do then that have been bankrupt, do they have to go without insurance?!?

I will be honest in my SOA, what I meant was some months when nappies etc are on special offer I might spend a fiver or so less a week on shopping so how accurate does it have to be?

Grateful for your help

skylight

CTC is regarded as a benefit. I am in IS and get CTC - so am not paying an IPA at present (unless of course my job-searching results in me getting £silly wages!)

Insurance is just more difficult to find. Some insurers ask about being BR, others if you have ever been BR. Some will quote at normal rates, some with a bit added and some not at all. Come to think of it, perhaps we should get a thread going about where BR's can go. It just takes a bit of searching. I do not believe it affects current insurance (I could be wrong on this as its wishful thinking!).

I would over estimate slightly on your I&E. As you are not going to get an IPA, then this can be slightly more relaxed!

Jane21_3

Sorry about this, the q's just keep coming...!

With regards to what I put on the SOA, I understand from what you're saying that I won't have to pay an IPA. Does this mean though regardless, that the OR still has control over what I can/can't spend money on? Can he/she categorically tell me not to pay my sister any petrol money (if I were to put it down seperately)?

JCS1

Jane21 wrote: »

Sorry about this, the q's just keep coming...!

With regards to what I put on the SOA, I understand from what you're saying that I won't have to pay an IPA. Does this mean though regardless, that the OR still has control over what I can/can't spend money on? Can he/she categorically tell me not to pay my sister any petrol money (if I were to put it down seperately)?

The OR can not tell you what to do with your money, as you are only in receipt of benefits there will be no IPA and the money will be yours to do what you want with.

If you were employed, then they would take more of an interest in your outgoings to see if there was a surplus for an IPA, but I'd suggest they will only briefly glance at your ougtoings and are unlikely to comment on them.

Jane21_3

JCS1 wrote: »

The OR can not tell you what to do with your money, as you are only in receipt of benefits there will be no IPA and the money will be yours to do what you want with.

If you were employed, then they would take more of an interest in your outgoings to see if there was a surplus for an IPA, but I'd suggest they will only briefly glance at your ougtoings and are unlikely to comment on them.

Thanks for clarifying that for me. Your advice is much appreciated.