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darkdays
Starting Member
8 Posts |
 Posted - 19 June 2010 : 10:47:43
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We are currently 1 year into an IVA and are seriously considering bankruptcy, due to rising payments and husbands business suffering, we just cant afford the payments. I'm worried about a couple of things and wondered if you could answer them?
I work for a Local Authority, not with finance, would they find out about the BR and do you think my job would be affected?
I have a Lloyds current account at present with cheque book and debit card - would I be allowed to keep this? Will they be informed of the bankruptcy?
Thanks a lot.
Mandi |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 19 June 2010 : 11:19:55
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Hi darkdays,
As far as I can see, depending on your contract of employment, BR may not affect your employment for a LA.
If, of course, you are in a sensitive position that involves finance/audit, that may be a different matter.
I have known a number of people who are in LA employment and they are nor affected. Look at your contract and maybe an "off the record" or annonymous call to your HR team.
As to the account with Lloyds, you are probably only going to be able to have a basic account - Cashminder for example at the Coop - do o/d, no cheque book, etc. Your bank may become a creditor in your BR - if you have a loan or o/d with them
Talk to one of the Insolvency experts - we are all on the side of the page (left). I cannot give you direct advice on failing the IVA on a one to one, but others can.
Good luck, Richard
"There are no problems - only solutions" |
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darkdays
Starting Member
8 Posts |
Posted - 19 June 2010 : 15:54:52
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Thanks for your reply. The Lloyds account is the account we opened at the start of the IVA, they aren't one of our creditors. will they be informed of our BR? Also will my employer be sent a letter informing them.
Thanks. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 20 June 2010 : 11:55:05
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Your employer won't be contacted directly however when you declare BR you will get a NT tax code as the OR will claim the income tax you would normally pay to HMRC and pay this to your credits so your HR Dept will receive this notification. They shouldn't query this with you or even mention it to anyone as they only deduct the amount of income tax from your wage that HMRC tell them to.
All bank accounts you have and creditors will be informed by the OR once you are BR. The BR is published in the London Gazette and this is something that the financial institutions monitor so the Lloyds bank account will more than likely be closed. If you want to keep it open then you should contact them and let them know you are declaring BR and see if they will let you keep the account open. The OR will only allow you a basic bank account so if the Lloyds account isn't a basic account then it will definitely be closed. There is also a small chance that the account may be frozen for up to 5 days even if it is left open so make sure you plan for this i.e. have enough cash to last the 5 days, no DDs due to come out for these days, etc.
I would really recommend you open a Co-op Cashminder account and transfer your wages, DDs, etc. to that account a few weeks before you declare BR. Most people on this board have the Co-op account as they are very BR friendly and the ORs always allow the accounts to remain open. It doesn't matter if there isn't a branch nearby as you can pay money in at any Post Office and withdraw at most cash machines. |
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darkdays
Starting Member
8 Posts |
Posted - 20 June 2010 : 16:10:42
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Thank you so much for this reply, everything is becoming much more clearer. I'm really reluctant to go BR and am thinking of asking for a variation mtg to see if we can reduce out IVA payments, probably by half! Then if this isn't possible then at least i've exhausted every avenue and feel i've tried my best to pay back my creditors.
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in IVA and seriously considering bankruptcy
