On Going Problem

Useless_With_Money_3

Hi,

I've been dealing with my debts for the last 6 months now, got all my creditors to agree to lower payments, owe £26999 to 7 different places, i've been struggling along paying, but now the 6 months are up i've got to go through all the payments again. In the meantime my rents gone up, and fuel is a killer as i do a round trip of 40 miles a day.

I've managed to reduce my outgoings like stopped paying pension, no mobile etc.. so i can get the payment roughly the same as last time.

My biggest problem is if i carry on the way i'm going it will take 18/20 years to pay it all off. I have been advised to go BR, even by one of the creditors.

My main concerns are:

One day would like to start up my own business (only small mobile mechanic), but ive read that you can't ever be a MD/owner if bankrupt, is this true?

I have read when going bankrupt they sell your car? i need my car for work!! Also i have a car registered in my name that i use but is not mine/i do not own (was done for ease at time), what would happen with this? I have also down graded my car to a knackered diesel van to save money, would this get take from me as its worth about £300 and i wont ever get another one so cheap (bought with blown engine,i did work to replace free).

I am married with 5 children, we live in a council place with no rent arrears, so i dont have to worry about roof over our heads (atm).

Now if i did decide to go bankrupt would it be just me? or would my wifes finances be taken into account (shes doesnt work but has catalogues etc..) as she want to pay hers off herself.

I understand ALL income comes into it, does this include childs credits that my wife receives as i dont see any of that? or is BR just ME.

I've been good for the last 6 months after sorting it out last time, but its now getting me down again, 1 creditor isn't helping, must say the others are though atm.

Also what about non essentials being frowned apon? ie internet - my children need this for example for school, i've got rid of mobile phone (well got a free one for incoming calls), also i rent a garage which they could say park on the road but i need for storing all my tools.

Where are these SOV??SOA forms i could look at? is there a tick list to bankruptcy anyway?

So many questions sorry.

Thanks For Your Time/Effort

Waspeze

Hi and welcome

Just out of curiousity (sp.) who have you spoken to for advice?

I'll answer what I know below!

Useless_With_Money wrote: »

My main concerns are:

One day would like to start up my own business (only small mobile mechanic), but ive read that you can't ever be a MD/owner if bankrupt, is this true?

I have read when going bankrupt they sell your car? i need my car for work!! Also i have a car registered in my name that i use but is not mine/i do not own (was done for ease at time), what would happen with this? I have also down graded my car to a knackered diesel van to save money, would this get take from me as its worth about £300 and i wont ever get another one so cheap (bought with blown engine,i did work to replace free). You will need to prove to the OR that your car is necessary for work, not just a convenience. e.g. if public transport is good then is it a viable alternative?
Bit confused as to how many vehicles you have or use? The OR might say you have use of another one so don't need yours? (just an example of what might be said)

I am married with 5 children, we live in a council place with no rent arrears, so i dont have to worry about roof over our heads (atm).

Now if i did decide to go bankrupt would it be just me? or would my wifes finances be taken into account (shes doesnt work but has catalogues etc..) as she want to pay hers off herself. Bankruptcy is an individual thing. Have you got any joint debts? if so these will pass to your wife. Her finances will only be taken into account when working out your SoA with rergards to what she contributes to the household.

I understand ALL income comes into it, does this include childs credits that my wife receives as i dont see any of that? or is BR just ME.

I've been good for the last 6 months after sorting it out last time, but its now getting me down again, 1 creditor isn't helping, must say the others are though atm.

Also what about non essentials being frowned apon? ie internet - my children need this for example for school, i've got rid of mobile phone (well got a free one for incoming calls), also i rent a garage which they could say park on the road but i need for storing all my tools. Anything that the OR doesn't allow will expected to be paid for out of any surplus. Again you have to prove the necessity of having things like a garage?

Where are these SOV??SOA forms i could look at? is there a tick list to bankruptcy anyway? SoA = Statement of affairs .. basically a list of income and expenditure. Search for posts using SOA as your search criteria and you'll see other peoples.
Pop yours up and we can comment on it for you

So many questions sorry. No problem .. always feel free to post questions you don'[t know the answer too

Thanks For Your Time/Effort

Hope that helps a bit

skylight

Useless_With_Money wrote: »

My main concerns are:

One day would like to start up my own business (only small mobile mechanic), but ive read that you can't ever be a MD/owner if bankrupt, is this true? Total Rubbish, so don't worry! There is a list on the BR board of famous people who have been BR. Take a peek - you'll be surprised!

I have read when going bankrupt they sell your car? i need my car for work!! Also i have a car registered in my name that i use but is not mine/i do not own (was done for ease at time), what would happen with this? I have also down graded my car to a knackered diesel van to save money, would this get take from me as its worth about £300 and i wont ever get another one so cheap (bought with blown engine,i did work to replace free). Technically the car registered in your name could be classed as yours by the OR. You need to prove its not yours. Does the owner have the receipt that they have paid for it? Your £300 value for the second car is unlikely to be of interest to the OR especially as you need it for work (no transport, no work etc) but you must still declare both cars on the forms. One as yours and one that you have use of. Explain too about the first car not being yours.

I am married with 5 children, we live in a council place with no rent arrears, so i dont have to worry about roof over our heads (atm). Councils are not interested in BR's. As long as your rent is up to date and on time, social housing is yours for as long as you need it.

Now if i did decide to go bankrupt would it be just me? or would my wifes finances be taken into account (shes doesnt work but has catalogues etc..) as she want to pay hers off herself. BR is individual. You can go BR on your own, or your wife could too. That would mean two lots of fees/forms etc as there is no such thing as a joint petition. Bear in mind that ANY debts that are in joint names, will legally and automatically fall to your wife.

I understand ALL income comes into it, does this include childs credits that my wife receives as i dont see any of that? or is BR just ME. All income does not necessarily come into it. Child Benefit and tax credits are not included in calculations but you MUST still ist them. With your wife not working, on your list of income/expenses, include everything as CB and CTC will not be included in any calculations anyway. If your wife was working, you would simply add her "contribution" to the household. This normally has to be 50%

I've been good for the last 6 months after sorting it out last time, but its now getting me down again, 1 creditor isn't helping, must say the others are though atm. Stuff em'. If you are going bankrupt (for definate) you mut stop paying all creditors. This will help you save the fees and you are not allowed to show any preferential treatment to any creditor anyway. Paying them if you are going BR is a waste of money. I changed my phone numbers about a year before BR and this helped a lot with creditors leaving me alone!

Also what about non essentials being frowned apon? ie internet - my children need this for example for school, i've got rid of mobile phone (well got a free one for incoming calls), also i rent a garage which they could say park on the road but i need for storing all my tools. Renting a garage reduces your insurance premiums thus saving you money. Mobiles are allowed, but normally only PAYG ones. Try to include the internet into your phone on the SOA. You can always argue it later if necessary. If the OR does not allow it, then you can still keep it, the cost though must come out of your surplus income.

Where are these SOV??SOA forms i could look at? is there a tick list to bankruptcy anyway? SOA - Statement of Affairs. And there is no tick list!! Best place to fill in forms is online at the Insoolvency website. There you need to confirm each section before they accept it and its a bit easier to follow.

So many questions sorry.

Thanks For Your Time/Effort

Have you spoken to CCCS or Payplan for some free advice? You do need to have taken professional advice for the judge to allow your petition to go through.
Best of Luck!!!!

Useless_With_Money_3

Thanks for the help peeps, good advise received.

I have spoken to payplan in the past but tbh i didnt think they were much help with what they told me. Now situation has changed i might ask again.

Yes, other car owner has full receipts etc.. (retired accountant, so still keeps all records of EVERYTHING bought, wish i could be that good).

interesting about the "Councils are not interested in BR's. As long as your rent is up to date and on time, social housing is yours for as long as you need it." thought they might be the worst??

again cheers, as you can see with time online, no a good nite for sleeping,lol.

tigerfeet2006

Hi and welcome to the board.

Free and impartial advise can be got from any of the debt charities in my signature.

My HA was not intrested if I was BR or not and it seems to be the same with most of them, as long as you are up to date with the rent. You may have problems if you want tomove to a house under a new HA though.

skylight

With regards to social housing, as long as you are up to date with your rent, then they cannot evict you. *If* they did, then you would be homeless and they would be forced to find you alternative accomodation as you did not make yourself intentionally homeless (intentionally homeless is like you not paying the rent or walking out etc..) - so its not going to happen as they are not in a better position.

Its the whole point of social housing - its there for those that need it or are vulnerable etc. (And thats us right now!!)

As Tigerfeet mentioned, I believe that they still make a note on your file (if you tell them....) and could be an issue for transfers etc before your discharge. However, I also understand this policy is not adopted by all councils (not mine for example).