im going bankrupt in scotland new law out April 2008

loulou88

A LETTER ARRIVES.

SATURDAY a letter arrived from the AIB. It is a "Statuory Declaration" for me to fill in. I have 21 days to fill it in and return it or my bankruptcy will be refused and they would keep my fee. Guess what it will be in post in Monday morning.
The part for me to fill in seams to be uneccessarry paperwork as i have answered these questions on the br application form.
This form is to check im entitled to apply for the low income low assets route.(lila)
This is what is on my form

BOXES TO TICK
1. IAM IN RECEIPT OF INCOME SUPPORT, INCOME-BASED JOBSEEKERS' ALLOWANCE, WORKING TAX CREDIT, HOUSING BENEFIT, OR COUNCIL TAX BENEFIT.

2.MY WEEKLY INCOME BEFORE TAX DOES NOT EXCEED THE STANDARD NATIONAL MINIMUM WAGE FOR A 40 HOUR WORKING WEEK (CURRENTLY £220.80)

3. I DO NOT HAVE ANY NON-EXEMPT ASSETS WORTH MORE THAN £1,000

4. THE TOTAL VALUE OF MY NON_EXEMPT ASSETS IS NOT MORE THAN £10,000

5. I DO NOT OWN OR JOINTLY OWN A HOUSE OR ANY OTHER HERITABLE PROPERTY.

I am able to tick all these boxes, I hope, my bankruptcy will be straight forward.
There is a warning it is a criminal offence to make a false declaration puishment is £5000 or prison or both:eek: i wouldnt dare

well this does seem to be taking a long time but im getting there one step at a time,
I have stopped worrying about it so much, as however slowly things are progressing at least there is light at the end of the tunnel.
I hope this information helps put some of you scottish peoples mind at rest and hope it is interesting to the rest ot you.so im waiting still to be bakrupt and will keep you all informed

Eternal_Optimist

Thanks for the update, Lou:T At least your application is making progress now, I expect the delay is due to it being a new law and loads of people applying for this route into bankruptcy. Hope once you send forms in on Monday and they receive them the process might speed up:T

dalip

Yes bet they are inundated and there are bound to be a few teething problems.

Thanks for telling us all this as for those who offer advice it's a invaluable info. Hope it goes through soon.Dx

Merry_Gentry

loulou88 wrote: »

A little note for all thoses thinking of bankruptcy or going through it remember they can take your possesions but they can take your self respect so hold your chin up high and be proud to be sorting your debts out.

Abso-ruddy-lutely!! :j:j:beer:

loulou88

thanks everyone its great to have your support !:beer: :beer: :beer:

loulou88

well on monday i posted out the form i was sent to fill in stating i was entiteled to use the LILA route to bankruptcy
this was a form 17 for anyone going through the new scottish system I will keep you up to dats as it happens

LadyT_4

Hi loulou88 (and everyone else!)

I am officially bankrupt as of 14th May (such a relief). I'm in Scotland too, and the process so far as been this...

1) Filled in the initial forms.

2) Got a response saying to phone and arrange a telephone interview.

3) Did the telephone interview (about an hour, just to go over all the stuff in the forums)

4) Got a copy of my interview to sign and was asked to provide more stuff (proof of tax credits, lease agreement for my flat, creditor letters, tax return and business accounts as I am self-employed)

The actual date of bankruptcy happened after I filled in the initial forms. The next step is apparently for the Accountant in Bankruptcy to contact my creditors and pass all my other stuff (self-employment info etc) to the assets department to go through.

I wrote a letter explaining that my car is a necessity and not a convenience (required for my work and my husband's work, as well as for day-to-day tasks - I have M.E. so need my car as I'm not the most mobile person in the world without it). My wee car is a 1998 Toyota Starlet, worth about £850 according to Parkers, so I'm hoping that I'll be allowed to keep it. All common sense says that I will, but I'm scared to take anything for granted.

I'd love to hear from any other self-employed people out there. When I submitted my accounts, I gave the a profit & loss for the last tax year as well as profit & loss for each month - does anyone know if this is enough or if they'll ask for more details? I'm curious because the request for accounts was vague.

I have my personal and business accounts with RBS and have never been in debt to them (no overdraft or anything). The AIB said that RBS aren't known for freezing accounts, but said that it wouldn't do any harm to go to my branch with my bankruptcy confirmation letter and talk to someone there, just to pre-empt any issues. Again, it'd be great to hear from anyone else with an RBS account to see what your experiences were.

The whole process so far has been alright, apart from having to do my tax return way sooner than I was planning and having to prepare a year's worth of business accounts (that stuff makes my head explode).

The AIB people have been absolutely wonderful, extremely helpful and surprisingly nice! LILA has just about saved my sanity (the last few months have been a mess of panic attacks, severe depression and other horrible things because of my financial situation). It's such a relief to be able to go bankrupt voluntarily rather than wait for a creditor to take me to court, which may or may not have happened any time soon.

The only unfortunate thing about the experience has been the serious lack of info about bankruptcy in Scotland on the web compared with bankruptcy info for the rest of the UK.

loulou88

Hello,
It is great for some one on here to have gone through this process a little ahead of me everything seams to take so long i,m waiting and waiting and waiting well that is what it feels like. A great big thanks you :beer: :beer: :beer: for your post.
I'm sure it helps others as much as me, ever better because you don't waffle like me.
Good luck and I am sure they will let you keep the car.
:T :T :T

daddybear_2

hi every one .
a need advice ,was thinking of declaring myself bankrupt using the LOW INCOME LOW ASSETTS route bur not sure if i would be allowed ,currently owe £20 000 nearly and thats including the car that i have but stopped paying for , because im owe nearly 900 pounds to the local council and 1000 to electric and would rather have a roof over my head for me ,the wife and baby ,must stop babbling ,back to the first first bit i work 44hrs a week and the time the tax man takes his share at the end of every week ,i come out with £245 so would i be able to use the LOW INCOME LOW ASSETTS route ,was thinking of declaring myself bankrupt 2 years ago , went to the sherrif court got the forms but got told back then someone has to take you to court ,,, so any help would be helpfull ,

Miss_Poohs

Very interesting reading through this.

We are currently going down the DAS route (Debt Arrangement Scheme), with help from Welfare Rights and I have to say they have been very helpful, our case worker is a lovely guy.

Our DAS has been approve but apparently the AiB has been completely snowed under and all the paper work is taking an age to go through.

This is a fantastic site - loads of smashing advice, and I thank you all very much.

I'm not daft enough to think our troubles are over but at least we have a handle on things now.

Ohh and although the debts is my husbands and not mine - can I join the long haulers club?

I'm his driving force *winks*