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Bodacea
Starting Member
United Kingdom
6 Posts |
 Posted - 31 January 2011 : 02:51:37
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Hello all. I'm new here. I've decided to go bankrupt in the next few months. I've thought long and hard about it and it's a decision I don't take lightly, but the other options don't seem too favourable.
I have the usual concerns but a few I've never really seen any clear answers to:
1. Does my accountant need to know and can he assist in the process? Or will he wipe his hands of me? (I don't have a business, I'm self-employed as a sole trader and my debt is from personal loans moved onto credit cards mainly).
2. Is there a way I can somehow convince the OR or court to let me keep my select account at Lloyds? (I've never been in any debt with my bank and have run my account excellently). I just want to keep my visa/debit and internet banking. Do you think this can be negotiated?
3. My car is worth about £3000-4000 and I do shift work where I need it. Is this enough to let me keep it?
4. Will my payments definitely be less than %100 of my Disposable income? Or can they order a %100 order?
5. Can I use a Trading As name next to my self employed own name? I work in the film industry and would eventually like to own a Limited company to make my films. In the mean time I was hoping to use a Trading as production name.
6. Will they definitely monitor the outgoings of my bank account?
I’m finding myself with no money at the end of the month to have some kind of life. After paying my minimum payments and interest and unsecured loans; I have about £300 left...anytime I get a bill, like gas, car maintenance...it all goes and I go back to having nothing for months. These last few months have been the worst for me and I've sunk into depression. It makes me so stressed trying to figure out how I can save and live, or will I just be busting my soul to find ways to make more money above my debts.
But I'm so afraid that the OR will leave me with nothing after my expenses. This would make me feel even worse.
Hope someone on this good forum can help. |
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moodybluetwo
Junior Member
156 Posts |
Posted - 31 January 2011 : 09:49:04
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Hi Bodacea and welcome to the site. Firstly although I’m going through bankruptcy at the moment I’m not expert enough to give you advice on many of your questions....others will. I think you may have to change banks...its not up to the OR..they just inform your bank that you are BR... but you probably will loose the car as its over the £2000 threshold..but you may be able to buy a cheaper car. The OR doesn’t monitor my bank account..but if they did they would find nothing wrong as I run it just the way it appears on my SOA`s and that should be the same for you. At this time the IS is taking everything above £20 a month of your surplus after all your expenses .
For me BR was a final solution to many years of debts leaving my depressed and lacking any motivation. Its not easy by any means and there will be dark days for sure but the thought of being debt free keeps me going....and from what I read in your posting you have a lot to look forward to.
MB2 |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 31 January 2011 : 10:15:27
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Hi bodecea
the OR will want up to date accounts, some accountants are able to offer guidance, some have compnaies that can assist with your problem
LLoyds are not BR friendly, consider COOP cashminder with debit card and internet banking
you are going to struggle to keep 4K car .
£20 less.
are you in own property ? amount of equity ?
what is level of debt ?
amount paid to creditors each month ?
speak to one of the experts to see if they have other options
Richard |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 31 January 2011 : 12:07:18
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I was able to keep my account with Lloyds when I went BR, so it might be worth checking with them. If you can't keep the account Barclays and the Co-op Cashminder are both BR friendly.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Bodacea
Starting Member
United Kingdom
6 Posts |
Posted - 31 January 2011 : 13:50:30
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Hi everyone, thanks for the replies. Every answer seems so different. I guess everybody's BR is a unique case.
I have £16000 debt; this includes one unsecured loan I needed for a 2nd hand car so I could get to work and back. (I finish at 2am so I need it). It also includes my a personal loan I got almost 12 yrs ago when I went to film school. The interest was so ridiculous that I paid thousands to them along with my poor parents who tried to help; only to find that they would add the compounding interest on top at the end of the year and bring it back to where I started. It was soul destroying. So I transferred it to a 0% balance t/f credit card. I was so happy seeing that I paid off £3000 and it was actually going down! Then unfortunately I had a run of bad luck; my job shift pattern changed so that it was almost impossible to do overtime (which is what I was living off after expenses); I couldn't get freelance work because the pattern was so difficult to offer my services in between. And despite trying to find another job, very few companies in the tv/film industry employ on a full time basis. I can't afford anything less. So my wages for the year have been seriously cut and suddenly I found myself using my credit card to pay for large unexpected bills. Finally, in the last 6 months I got down to nothing and had to wait patiently for my next pay packet, which goes all on rent,bills,living expenses and a good £400 goes onto the credit cards as minimum payments. I was trying to do the old credit card shuffle for the best part of 10 yrs, but it's collapsing in on itself now. I haven't been able to find a credit card with a decent enough credit limit to transfer to and am starting to get rejected for applications. I came to the realisation that all I've done for 10 years is worry about trying to get my debt gone and fighting a losing battle with the interest. I don't have an extravagant life, I live comfortably but I see my friends going on holidays and buying the things they want because they have no debt and aren't paying all their disposable income onto credit cards and loans. Then I realise that unless I win a lump sum of money, I won't pay off my debts for another 5 years at least and I'll be depressed and struggling for all that time. I don't have a life and have contemplated suicide. So now I want this over with. I just hope that when I go BR that I'll have some income left over to live and not put all of it onto the payments.
So sorry for writing such a long boring post, but I needed to get it off my chest. |
Edited by - Bodacea on 31 January 2011 13:52:24 |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 31 January 2011 : 14:05:43
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Hi Bodacea,
Everyone on the forum is here for you so please keep posting. Don't even think about ending it all, debt can be sorted, there is a way out. Your life is much more important than paying debts.
Please speak to someone, either CAB or an expert on here.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 31 January 2011 : 14:44:24
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Hi Bodacea
first of all it is only money, i know the creditors will give you hastle but the priority is you and your well being.
many of us have been close to frustration, your story is not uncommon.
i see options that could be considered but if you have been fighting an uphill battle for many years going BR may be appropriate.
speak to Viki or one of the other experts, see if they have any other options available or any personal hints to help proceed with BR.
regards Richard |
Edited by - Richard P on 31 January 2011 14:44:52 |
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glafy
forum expert
436 Posts |
Posted - 31 January 2011 : 16:44:59
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Hi Bodacea
You've come to the right place for support & advice that will help you move forward.
Everyone on here is so supportive & no one is judged. As you have probably seen when reading through all the posts, we are all different & are on here for a huge variety of reasons.
Stick with us & we will support you all the way.
It REALLY does get easier so keep on posting if you need advice or a good old moan!!
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Bodacea
Starting Member
United Kingdom
6 Posts |
Posted - 31 January 2011 : 23:43:23
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Thank you all so much for your understanding. I'm still too afraid to go BR just yet. One thing I know is that I do not want an IVA or anything where I'm paying fees to a company to manage my debts. I don't want something that will deal with my creditors and yet I still struggle while paying off whatever arrangement they've made.
Has anyone had dealings with the CCCS? I've got a friend who said I should try them first: "When you talk with them they will send you a pack and form to fill out, then they talk to all your creditors and arrange a repayment scheme that is suitable for you AND they get all interest and charges frozen. The amount you pay back will be a great deal less than an IVA where you're paying a large amount on a greatly reduced rate over a short period. With CCCS you set the terms of repayment over a longer period..."
So it sounds like if I go with them I'll be making payments for years to come but it will be free and it will go down?
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Sarah.12
New Member
United Kingdom
58 Posts |
Posted - 01 February 2011 : 00:46:19
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Hi Bodacea, My sis was on a dmp with cccs, she paid in for 3 years and then took the bankruptcy route... I work for a company and my department deals with all the debt management agencies, I'm not sure how other companies work but we do not freeze interest unless there is a non asset payment being made, with us it's got to be under 20% of the original installment. Charges are frozen but not always the interest, although the interest is pro-rata'd to the offer of payment.
Hope this helps :)
Sarah |
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glafy
forum expert
436 Posts |
Posted - 01 February 2011 : 08:52:37
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We paid into Debt Management Plan (DMP) for 4 years. It was a huge financial struggle but we wanted to pay back as much of our debt as we could. Then our financial situation hit rock bottom due to a change of income & we could no longer manage.
Looking back I really don't know how we coped. We made ourselves worse off in the end as we relied on family & some damned good friends to keep us afloat for all those years. Finally we realised that BR was the only option.
Every case is different so you are wise to look at every option before making your decision.
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jay81
Starting Member
United Kingdom
5 Posts |
Posted - 01 February 2011 : 11:05:54
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Hi,we were in the same posistion as Glafy and many others on this forum,you have to keep positive and there is light at the end of the tunnel.Trust me i was at total rock bottom and could barely manage to support my family ,at the time i couldnt see a way out or an end to all the worry but with all the help and support i received off the lovely people on the forum i managed and i can now see a bright future for us.
things will get better,just take each day as it comes.
Be positive nothing is ever as bad as it seems xxxquote]Originally posted by glafy
We paid into Debt Management Plan (DMP) for 4 years. It was a huge financial struggle but we wanted to pay back as much of our debt as we could. Then our financial situation hit rock bottom due to a change of income & we could no longer manage.
Looking back I really don't know how we coped. We made ourselves worse off in the end as we relied on family & some damned good friends to keep us afloat for all those years. Finally we realised that BR was the only option.
Every case is different so you are wise to look at every option before making your decision.
[/quote] |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 01 February 2011 : 18:42:12
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Hi all
a DMP is a great tool to buy you time to look at your situation and keep creditors at bay.
it is not a formal agreement like IVA so has advantages and disadvantages
I think hundreds of years to repay a DMP is closer to the mark ! !
with a DMP you may still have a huge capital repayment so question to consider is what is your vehicle to pay back the money ?
another question to ask yourself whilst considering a dmp,are on a dmp because it sounds sweeter than BR if that is the case you could be throwing away good money !
Not knocking DMP as i was on one for over two years, it purchased me time (Job, property rental, family needs etc) but it was part of a bigger plan.
i was on a Reviva Plan, it worked for me
Richard |
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Blair
Starting Member
27 Posts |
Posted - 01 February 2011 : 19:19:57
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| What is the reviva plan please Richard? |
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Bodacea
Starting Member
United Kingdom
6 Posts |
Posted - 01 February 2011 : 20:16:03
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Yes this seems to be the gist of what I'm hearing. A lot of people lose more money going on DMP's and IVA's and then still eventually go BR.
Hmmm.
Something else that's bothering me greatly is; will they go into my bank account and order me to pay over every last pound over my living expenses as soon as I'm BR? If I get a good pay packet will that be taken off me?
I have a friend who recently went BR and he said the OR didn't even look at his income and outgoings; they just informed his bank that he was BR. The bank (HSBC I think), allowed him to stay there but gave him a basic account. The OR has never asked to see his payslips. Is this a normal scenario?
God I guess you guys get these questions all the time. It wouldn't be so scary if everyone said more or less the same thing, but there's too many different stories. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 01 February 2011 : 20:23:15
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As you said in an earlier post everyone's BR is unique, which makes it hard to give specific advice sometimes.
When you go BR the OR will go through your I & E, and if you have more than £20 surplus (after your essential outgoings) per month you will get an Income Payment Agreement (IPA). This will last 36 months, and if your circumstances change during this time you must inform the OR.
I'm surprised that your friend's I & E wasn't checked, and even more surprised that he was able to keep an account with HSBC. They aren't BR or IVA friendly, and I would recommend a Co-op Cashminder account.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Introducing my problems
