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lyng
Junior Member
United Kingdom
175 Posts |
 Posted - 26 May 2008 : 23:08:43
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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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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 26 May 2008 : 23:17:05
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| Hey lyng, welcome to the forum, an expert will be along shortly to answer your questions. I'm so sorry that your IVA didn't work out, I can't answer your questions I just wanted to wish you good luck. Viki X |
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lyng
Junior Member
United Kingdom
175 Posts |
Posted - 27 May 2008 : 13:46:20
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Thanks Viki
This is an absolute minefield and I want to be sure to get it right. Good luck to everybody going through bankruptcy or IVA. It's not an easy decision but you're not alone.
Lyn |
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lyng
Junior Member
United Kingdom
175 Posts |
Posted - 27 May 2008 : 13:50:17
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Also, just wanted to say, I put my details into the bankruptcy wizard and it said my best option was an unsecured consolidation loan but who'd touch me with my credit history?
Lyn |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 27 May 2008 : 14:16:57
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| Don't think too much about what the wizard says lyng, it's just a guideline. I'm sure if you hang on an expert will be along to answer your question. Viki X |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 27 May 2008 : 15:12:44
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Hi Lyng
I have recently been through BR so can help you with some of your questions, a BR expert will be online soon to answer them fully.
I will let them explain the best way to list your incomings/outgoings as a couple.
The car and motorbike are well under the limit as far as assets go so the OR won't be interested in them!
There are a few banks that are BR friendly. You may find once you have gone BR, and even when the OR informs your bank they have no interest in the account, that the bank closes it anyway.
I have a co-op cashminder account -basic but does everything I need to pay in wages and pay bills and has a maestro debit card.
I opened it the day after BR no problems.
I am not sure if nationwide are BR friendly - got a feeling they aren't - would be worth asking them and then having a co-op account ready and waiting so you aren't stuck for wages and access to money after BR.
Speak to the court and ask about copying the forms - some do - some don't. Mine said not to bother as they like to write all the ref numbers on one form and then copy it themselves.
I took a mountain of bills etc with me on the day but only spoke to the OR over the phone! Again check with the court because some have the OR there.
I had my OR interview over the phone and had to post in statements etc before the interview.
Hope this helps a little - an expert will fill in the gaps soon.
Good luck
Vicki x |
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emmalou
Junior Member
175 Posts |
Posted - 27 May 2008 : 19:26:42
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| hi there we were declared bankrupt on friday .the best thing to do is sort all your papers out and take them to court with you ,there are people at the court famiy services i thik they are called they will help you fill all your forms out and you really need to get them right as there is alot of red tape.they will help you work out all the figures and get it all right,our OR contacts us by phone aswell.good luck. |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 27 May 2008 : 19:34:36
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Hi - that service isn't available in our court, the forms had to be completed and ready for the Judge to see so it would be worth checking with your court. Some you just turn up on the day - others need an appointment making.
I managed to fill in my forms with the support of Brett England (expert on this forum) and other forum members - and lots and lots and lots of questions!!!!
Vicki x |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 28 May 2008 : 08:00:15
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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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lyng
Junior Member
United Kingdom
175 Posts |
Posted - 08 June 2008 : 06:11:24
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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 :-) |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 08 June 2008 : 12:03:00
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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 |
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lyng
Junior Member
United Kingdom
175 Posts |
Posted - 19 June 2008 : 17:26:27
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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 :-) |
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debtfreesusie67
Junior Member
256 Posts |
Posted - 19 June 2008 : 17:41:59
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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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Edited by - debtfreesusie67 on 19 June 2008 17:42:49 |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 19 June 2008 : 19:23:37
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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 |
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lyng
Junior Member
United Kingdom
175 Posts |
Posted - 20 June 2008 : 06:24:35
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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 :-) |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 20 June 2008 : 12:00:08
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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 |
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