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| dr_kitten |
Posted - 14 September 2008 : 22:09:57
We are considering BR and emigrating to NZ.
Would a BR in the UK affect us in NZ? would we even have to declare it?
If we asked our parents to alter their wills so that any inheritance was held in trust for us until after the BR and any IPA/BRU were finished, is this allowed?
We have 2 children (both <5y); if they were to receive a significant inheritance from grandparents would this be seized as they are minors?
Reason for debt: Husband bought house then went bankrupt; lived on credit while job hunting; met me; I took out loans to help and things spiralled over the course of about 5 years. We used consolidation loans, 0% transfers etc and spent money on food, mortgage and living expenses, no luxuries. We lived on credit because his hobby was turning into a very profitable business which looked like it might pay back everything and then some - and then it capsized on him. We honestly intended to pay it back initially but now we can't - and it might be difficult to prove that. Is this counted as reckless and are we likely to get a BRO? |
| 6 L A T E S T R E P L I E S (Newest First) |
| 369 |
Posted - 17 September 2008 : 10:17:46
Hello Dr Kitten,
I went Bankrupt in Nov 07, and due for discharge in Nov 08, it was also the best thing I could have done. I had been struggling for about 4 years trying to pay everyone back, I looked into the IVA route as well, but it would have left me with about £50 a month to live on, as John rightly says their allowances (food, bills etc) aren't as generous as the BR ones.
I have a bank account still, I have my mobile phone contract still - there are ways of keeping these.
I am also thinking about going to NZ to work for a year or so in January 09 - did you find out if they have any problems with Bankrupts? From the forms I have looked at they do not ask any questions about your credit history.
Thanks |
| Needafriend |
Posted - 15 September 2008 : 19:45:25
Hi Dr kitten
I took the BR route after looking at an IVA but did not have enough DI to pay them per month, then we did our own DMP which we did for 18 months but the debts never really got any smaller and ruled our lives.
BR for us was our last option and myself and my other half went BR on the 4th of August and to be honest it was the best thing we ever did, i am so much happier now, my head is clearer and i know i made the right choice not only for me but for my children too.
Yes we will lose our home, yes my car went but they are material things family come first and when you have them then nothing else matters.
Good luck
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
For links to help with Bankruptcy, useful web pages and also a run down of my new debt free life, both before and after Bankruptcy, then please visit my blog:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| John |
Posted - 15 September 2008 : 19:38:56
Hi dr kitten
it depends on how you would consider the repercussions of bankruptcy would impact compared to IVA.
The benefits of BR are obvious. By your own calculation you would save £33K against an IVA.
In IVA, after your reasonable expenses are allowed for, you pay 100% of the agreed disposable income for 5 years, in BR you pay a maximum 70% for 3 years AND the expense allowances are generally considered more generous than in IVA. Is 5 years with no spare cash sustainable, not just for you but for anyone? Who knows what will happen during the next 5 years. Bankruptcy is the one debt solution which is an absolute.If you get an IPA in BR and your circumstances change such that you can no longer pay, it ends there. Not, I fear, in IVA.
How have you calculated your IPA repayment? as mentioned above the allowances are more generous in BR.
Worried about future credit? Firstly do you really want it having gone through this experience but if you do secured loans such as mortgages are not likely for 5 years in IVA. Although not the lowest interest rates you can get a mortgage after 3 years in BR.
Worried about the Insolvency register or credit history? The impact is the same, IVA's go onto the Insolvency register too.
If you are in a profession where BR is not permitted or you cannot stand the thought of your name in the local paper then fair enough, otherwise BR wins every time for me. I've seen too many IVA's fail in years 2,3 and 4 and the client ends up BR anyway. Pay into an IVA for 4 years then it fails then you get a 3 year IPA - far too risky in the current climate in my view.
But as always you must do what feels right for you.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| dr_kitten |
Posted - 15 September 2008 : 16:55:57
Thanks for replies.
We've been looking a little further and we may be able to get an IVA. However I am not guaranteed work after about a year (although it will probably be OK) so we may have to go BR then anyway. In which case it seems to make more sense to do it now and get it over with!
What are the real long term effects? I know we won't get credit for 6 years (including monthly mobile phone contracts, utilities etc) but once the 6 years are up, is it still an issue?
Trying to decide if 5 years of serious budgeting and no spare cash (to repay 53k of an 83k debt) *but* not having the irreversibility of BR is better than going BR now and coping for 6 years then starting fresh. We'd have to pay around £20k with an IPA (assuming my salary stays the same) over the 3 years.
For everyone who has gone BR... if there was another alternative, no matter how hard - would you have taken it? If not, why not?
Just want to do what's best for my 2 children now (2 and 8 months, I don't want to see them suffering over the next god knows how long over some bad luck and errors of judgement of their parents). |
| JulianDonnelly |
Posted - 15 September 2008 : 04:50:27
Hi Dr Kitten,
Just to add to John's reply, I would suggest talking to the embassy to see if BR will have any impact on your visa application.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| John |
Posted - 14 September 2008 : 23:47:00
Hi
whether BR in the UK has any effect on your emigrating to NZ I'm afraid I can't say.
It's perfectly acceptable for the wills to be changed in the way you suggest.
If your children inherit at any time the monies are safe.
Based just on the brief details you have posted there would not appear to be any reason for a BRU/BRO.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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