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| T O P I C R E V I E W |
| lyng |
Posted - 26 May 2008 : 23:08:43
Hi
I wondered whether you may be able to answer a few questions for me.
After applying for an IVA about 18 months ago, in which we were told that we would need to pay more a month than we were paying for our debts, we decided to go down the bankruptcy route instead.
It has taken us until now to get the cash together to do this but we are all set to go later this week. We took advice from a CAB debt adviser last May, but have forgotten most of what we were told. Also, our circumstances have changed since then.
My husband andmyself are both declaring ourselves bankrupt as we have individual debts as well as joint ones. We have 2 sons, a 12 year old, in school full time and a 19 year old, who works full time.
Firstly, my husband's wages are £576.90 per week before tax, but with overtime, he cabsometimes double that. His gross pay for last tax year was £38000, including overtime. As the overtime is not guaranteed, what figure will the OR use to determine his income? Also, I started a job in January and earn around £750 a month after tax. I need to know what income figure to put on the form. I also have £75.20 child benefit per month and £10.45 child tax credit per week, plus £30 per week board from my older son.
Also, what itmes are taken into account on the expenses side. I have Rent, Council Tax, Gas, Electricity, Water, Telephone, Housekeeping, Travel expenses, Clothing, TV licence, Contents insurance, Car tax, Car maintenance, Opticians, Dentsis, Prescriptions, Hairdressing and Holidays. Can I include my mobile phone, cable TV and pet insurance and grooming? Is there anything I may have missed as I don't want to rmember it after my forms have been submitted and find out that after the PO, I have not got enough left to pay everything.
We live in a privately rented house but have a car (worth about £500 and a motorbike (not running) worth about £400). Will we be allowed to keep both vehicles? Apart from these, we have no assets.
I realise that I will probably have to close my Barclays current account but I have a Nationwide Flex account which my salary, Child Benefit and Child Tax credit are paid into. Will I be able to keep this account, and should I arrange for my husband's wages to be paid into it plus change all my direct debits to this account too?
Do I need to take 2 copies of each of the forms to the court. Also, do I need to take all the paperwork concerning my bills/debts?
I would appreciate your help in this as all the information I have read so far has just confused me.
Regards
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| 15 L A T E S T R E P L I E S (Newest First) |
| 369 |
Posted - 01 August 2008 : 15:17:59
Hey Josilverplayboybunny,
I was really sceptical about going bankrupt as well, as I am sure most other people on this forum were.
I had split up with my partner, had to move house, had to get a new job, and went bankrupt - i was always just sitting there surrounded by my bills and my credit cards and crying, i tried to pay them all back for over 2 years and was just getting deeper and deeper into debt...... I went Bankrupt on the 2nd Nov 07...and it was the best thing I could have ever done..... I am now seeing someone new, have an awesome house I am renting with friends and a brilliant job - and actually a tiny bit of money spare each month.
Just plough on through and you will get there in the end.....
369 |
| s.f |
Posted - 01 August 2008 : 14:53:22
What a nightmare some debt collection agencies are. I have spent years and years trying to deal with them, offering £1 a week etc and not getting anywhere.
I even had them turning up at my door and refusing to leave until I opened it and then trying to force me into setting up a totally ridiculous payment scheme. My latest problem is with a company called Telogram also known as Capquest. They are really bad and they kept on ringing my home phone so much I had the number changed. |
| JulianDonnelly |
Posted - 07 July 2008 : 13:05:11
Hi Jo,
This may sound silly, but in a rather perverse way, BR is actually the best thing that has ever happened to me. It's a really positive life-changing experience!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 06 July 2008 : 18:03:40
Don't worry about going bankrupt - it might help you if you read a few of the blogs on this site from people who have already been through the process. Any shortfall following the sale of your property would be a debt captured under the bankruptcy.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Needafriend |
Posted - 06 July 2008 : 15:46:43
Hi thanks Melanie for your reply. I will be honest with the creditors and also put the whole truth on the form for why its happened.
Also one more thing we mortgage our home and have about 9000 in equity in it, when we go BK they will no doubt take the house to sell, but any shortfall from the sell ie auction probably, will mean there may be an amount owing on it of about 25 to 30 thous will we still have to pay this even if we have been declared bk and how will that work as we will end up with another debt which is what we dont want because then wee will have nothing to show for it.
Im really scared about going BK and to be honest kind of releived too I need to get closure on so many bad things that have happened and my kids need stability and days out not me trying to find money to pay peter and paul and not enjoy life. Whilst i know the debts are own doing I know now that without going BK we will not be able to get on with life and i want to be a family, I dont want to be stigmatised by this either, i have not taken this lightly its been just over 2 years coming to this decision and now i need that release from the pressure in my marriage and in my head.
maybe when this is all done i can go back to my training if they will have me and get a better career.
Jo |
| melanie_giles |
Posted - 06 July 2008 : 15:40:09
Hi there and welcome to the forum
Just tell your creditors the truth if they call you - that you cannot pay them and are waiting for a bankrutpcy hearing date.
Regarding the causes of bankruptcy, just explain why you find that you cannot pay your creditors any more - be it redundancy, illness, drop in salary, rising living costs, and living beyond means.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Needafriend |
Posted - 06 July 2008 : 15:37:37
Hi i am about to declare bankruptcy along with my husband as our debts have become out of control, wages have dropped, cost of living gone up and now we dont have any available income to offer our creditors.
I wondered what i should do about the creditors and how i should try and keep them at bay until the 4th of aug which is hopefully when we can go bankrupt.
Also what do i need to put down for causes of bankruptcy. I need to get the forms right as i dont want it delayed anymore. The creditors are sending default notices and now have our home number and I really want to say we are applying for bk but i am also worried that by saying that they will come and take goods to the value of the debts and send in DCAs to take goods to try and get there monies back before i can get the BK done. Like most people im trying to get the fee together as its both of us but i have written to each of them following any notices and asked for time until 1st sept to try and get the issue sorted out.
What else can i do, i was paying a taken payment up until last month and now i need every penny to pay the court fees.
Thanks
Jo |
| JulianDonnelly |
Posted - 20 June 2008 : 12:00:08
Hi Lyng,
The CCCS are a registered charity, so it's unlikely they'll be on commission! It is unfortunately standard practice for DCA's to employ bully-boy tactics to extract payment. From your post, it sounds like this guy is sailing close to the wind. If he continues, remind him that his behaviour will be deemed as harrassment which is a criminal offence under section 40 of the Administration of Justice Act, 1970.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| lyng |
Posted - 20 June 2008 : 06:24:35
Thanks Sue and Vicky,
That's just what I thought. I phoned the HO of the company myself, not to discuss the account but to warn them that their staff were threatening people. The man I spoke to was extremely rude and after quite a heated couple of minutes he said "I suggest your son-in-law contacts..." to which I butted in and said "the police to prosecute you for harrassment and threatening behaviour. Thank you and Goodbye". He got me so wound up, so I can understand how my duaghter and partner must be feeling.
I will look into BR and benefits. He's on quite a low wage so they get quite a high amount in Child and Family Tax Credits. I think this will be the way to go for them.
Thanks to everyone on this site for their help. It's great to know you don't have to go through these things on your own.
Take care.
Lyn :-) |
| m and v |
Posted - 19 June 2008 : 19:23:37
Hi Lyn
I reckon James is the one on commission!
Your daughter has done exactly what other people do to try and keep creditors at bay whilst they find the money for BR.
Next time James calls your daughter could tell him they are going BR, if he wants to do it sooner and save her the £495 fees then he can!
If they are seriously going BR then James should know they can't give preferential treatment to one creditor by paying him.
What a load of rubbish about haircuts and internet - you can have both of these, you may need to pay for the internet out of disposable income but clearly he is wrong or I would'nt be replying to you! I have a £10 hair allowance each month as well!
They will certainly not be laughed out of court!
Please tell your daughter not to be bullied by him.
Tell him, politely, that as soon as they go BR they will hear from the OR and they can not give him preferential treatment.
Hope you are all ok
Vicki x |
| debtfreesusie67 |
Posted - 19 June 2008 : 17:41:59
Hi Lyn I'm sorry your daughter and her boyfriend have had to deal with this person he sounds like a right bully. I had to deal with a few before I went BR. Is your daughter on any sort of benefits because the BR fee can be lower if she is.
Hugs
Sue
The only way is up
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| lyng |
Posted - 19 June 2008 : 17:26:27
Another question that you may be able to help me with.
This one is not for me but my daughter and her boyfriend.
They were considering BR but couldn't afford the fees. On my advice, they phoned CCCS and spoke to a really helpful lady who suggested that they contact their creditors and enclose Income and Expenditure sheets with an offer of £1 per month, which they did.
Since then, they have received threatening phone calls from a company called Global Debt Recovery. The man who phones, James, has told them that they will be laughed out of court, that they are not as hard up as they claim, that the court will not allow them to carry on puttin money into their children's trust funds (government backed), they are not entitled to pay for haircuts or have internet access. He is insisting they pay £50 per month, which they really can't afford, until it got to the point where my son-in-law gave James his debit card number so they could take this payment, just to get him off their backs.
I have advised him to contact his bank and ask them to cancel his card and send him a new one, so that this payment can't be taken.
Is there anything they can do about this. James claims that thy have been misinformed by CCCS, who say that they will try anything as they are paid on commission. Is James correct or just using bullying tactics to try to get his money?
Can anybody tell me what else they can do about this. My daughter is very distressed and has got to the point where she is scared to answer her phone.
Thanks all.
Lyn :-) |
| JulianDonnelly |
Posted - 08 June 2008 : 12:03:00
Hi Lyn,
Regarding the gas bill, I would make the OR aware that this fugure has indeed changed and you shouldn't have any problems.
If any debts emerga epost BR, just let the OR know and they can include it in your BR.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| lyng |
Posted - 08 June 2008 : 06:11:24
Thanks everyone for your help.
Now for an update.
Declared BR as we said, on Friday 30th at Croydon County Court. Had previously sorted the paperwork, so the woman at the counter checked them over and then told us to wait in the Judge's Chambers waiting room. Waited for about an hour, then we were called in together, which surprised me. The judge looked over our papers, told us that it seemed as though we had been victims of circumstance, said that bankruptcy carries a stigma but in our case, we should look upon it as a line under the past, which I thought was really nice, and then declared us bankrupt.
We went back to the counter where we had handed in our papers and the lady told us to come back in an hour for our certificates, so we went and got a coffee. When we went back, we picked the certifictaes up and were told that the OR would be in touch within 48 hours. In total, excluding travelling (we live quite a way away from Croydon), it took 2 hours! Very quick and very painless.
We had our calls from the OR last Monday and she made appointments for phone interviews tomorrow. Hopefully, it will not be too long before we know how much we have to pay, then we can work out a budget and get on with our lives.
So, for anybody who is scared at what is in store for them, don't be! Just remember that in today's economic climate, there are more and more people that are, or will be, in the same boat.
Just one question that somebody may be able to answer for me.
When we filled in our SoA, we put £20 a month for Gas, which is what our payment was. I had a letter from EDF on Tuesday, saying that I wasn't paying enough and they wanted to increse the patment to £80 a month. I was annoyed as they were the ones who set the £20 payment in the first place but the man on the phone said my usage was £42 a month. I managed to haggle it down to £66 a month but that was as low as I could get it. Can anyone tell me, if I have a word with the OR, whether this figure would be able to be changed? What about if any further debts emerge post-bankruptcy?
Many thanks for all your help and support.
Lyn :-) |
| JulianDonnelly |
Posted - 28 May 2008 : 08:00:15
Hi Lyng,
Welcome to the forum and sorry for the delay I had an extended weekend break.
Firstly as Vicki mentions your vehicles are well below the limit of £2500.
Having looked at your list of items for expenditure you have covered allowable expenditure items.
Unfortunately cable TV or sky is not an allowable expenditure, however you will only be made to pay across a percentage of your disposable income in the event you get an IPO/IPA therefore you will be able to pay for these.
The expenditure for your pets will be ok as long as it is not excessive.
Your husbands wage will be calculated on an average over the last three months and the OR will request pay slips from your husband to calculate this.
If your Nationwide account is just a basic account then the OR will more than likely have no interest in this account, however it is ultimately the banks decision so once the OR has given permission for the account to remain open you will need to talk to Nationwide.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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