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| T O P I C R E V I E W |
| lhdp |
Posted - 11 August 2009 : 14:47:18
I have been trying to find a list of what are classed as reasonable living expenses by the courts when filing for bankruptcy, i was wondering if you could point me in the right direction?
Things like how much is acceptable to spend on food, clothing etc.
I am also trying to confirm something i heard from a friend who had gone through bankruptcy a while ago... She had a mobile phone contract of 18 months and was around 7-8 months in. She kept the contract, and had to make the payments to this out of her disposable income... i am confused by this as i didnt believe that there would be enough funds remaining each month to allow her to do this? |
| 6 L A T E S T R E P L I E S (Newest First) |
| Niobe |
Posted - 13 August 2009 : 18:38:14
As regards a DRO, it's not just the CAB who can deal with them.
Blair Endersby do as well. It might be as well to call them as CAB seem to be particularly busy at the moment.
The glimmer gets brighter all the time
Jan
xx |
| gettingoutofdebt |
Posted - 11 August 2009 : 16:37:57
With those figures you may qualify for a DRO (Debt Relief Order), which only costs £90:
# The debtor’s total unsecured liabilities must not exceed £15,000;
# The debtor’s total gross assets must not exceed £300 (except a car which can be up to £1000);
# The debtor’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.
If you meet these criteria then you should speak to the CAB as they have more information about DROs. In any case you will need to have sought professional advice regarding your situation as this is something that the judge will want to check when you declare BR so contact the CAB and they will let you know if you are applicable for a DRO and whether BR is a better option than a DMP. Ultimately the decision whether to go for a DRO/BR rather than a DMP is yours but it's always good to get some advice.
For BR you can find your local court at http://www.hmcourts-service.gov.uk/HMCSCourtFinder/CourtList.do. You should contact them and find out the procedure for declaring BR. Some have an appointment system and others just let you turn up on the day. If it is an appointment system then it can take 4 weeks for your appointment.
The forms are located at http://www.insolvency.gov.uk/forms/englandwalesforms.htm. You need forms 6.27 and 6.28 and there is a guidance form as well for more information.
It's probably easier to complete the forms online - http://www.insolvency.gov.uk/doitonline/doitonlinemenu.htm and then just print them off once you have completed them.
You will need 3 copies of the 6.27 and 6.28 forms to declare BR except at the High Court where you only need one copy. Don't sign the forms before you go to court as they need to be signed in front of the bankruptcy clerk. |
| lhdp |
Posted - 11 August 2009 : 16:15:49
Could you point me to some forms by any chance then i can see what i am taking on?
Some people think that bankruptcy isnt the right option for me and that i should consider a DMP. The problem with this is that i have done one myself where no third party is taking their cut and have been unsuccessful in maintaining the plan and keeping up with the payments and i dont feel it is worth paying a company 25% of my monthly payment.
Is bankruptcy for me?
Around 12k debt,
Income of £650 pcm
Living Cost of £400 pcm (not inc, food, clothes, phone, travel etc)
I dont feel that on this wage i would be able to uphold a DMP.
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| gettingoutofdebt |
Posted - 11 August 2009 : 15:48:48
Unless you have a complex situation involving multiple properties or a business BR then I would say it really isn't worth using a 3rd party. The forms are pretty easy to complete and there is plenty of help available on this forum.
I think fees for completing the forms are about £300 or so and you would need to find £510 for the BR fees as well.
Some people do decide to use a 3rd party company and if you decide to then Reviva UK (http://www.revivauk.com/) who post on this board are highly recommended. A few people on this board have used them to assist with declaring BR and have nothing but praise for them. |
| lhdp |
Posted - 11 August 2009 : 15:33:27
Thanks for the info.
Would it be best for me to use a third party company to assist in the bankruptcy paperwork or are their fee's unjustified? Obviously fees will vary, do you have any information on acceptable average fees which i could consider when looking at third party companies?
In a perfect world i would do this myself to save money but i am concerned that i may not have the knowledge i need to do it so easily on my own?
Dave.
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| gettingoutofdebt |
Posted - 11 August 2009 : 15:13:52
Hi,
The guidelines for some of the expenses are shown on www.insolvency.gov.uk/DocumentLibrary/Policy/Excel/Household%20Expenditur.xls
When you are declared BR you go through your expenses with the OR during an interview. You are allowed a certain amount for rent, clothing, food, etc. as well as mobile phones.
Any money left over from your income after these expenses is your disposable income (DI). If your DI is more than £99 then you pay an IPA (Income Payment Agreement), which is between 50% and 70% of your DI so quite a few people have a small amount of money left over after your expenses and you can spend this on whatever you want. |
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