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Nat
Junior Member
367 Posts |
 Posted - 19 August 2008 : 13:24:44
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Hi
I'm seriously thinking of going BR, I am currently in an IVA which isn't working out and i spoke to my IP yesterday and all they kept pushing me to do was DMP which, as informed by debtline (contacted them yesterday as well) could mean that one of my creditors could make me BR and would more than likely have all the interest starting up again.
Anyway, i wasn't woried about my bank as i don't owe them anything and debtline had said that that shouldn't be a problem. But, reading some of the entries on here i'm not sure that's the case it seems to me that my account would be frozen. Is that for definite?
Also i had a compensation pay out for an accident that i was in. It didn't affect my IVA as it was for an injury and not for loss of earnings. I'm not sure if this would be used in BR?
Any advice very welcome.
Thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 19 August 2008 : 14:45:51
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Hi Nat
each of the high street banks seem too have their own policy when considering the freezing of accounts.
Certainly if there are funds in the account the bank WILL freeze it and contact the Official Receiver. If the OR advises the bank that he has no interest in the account then the bank can, often do, but are not obliged to reopen the account.
Your compensation payout for personal injury would be safe in BR.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Nat
Junior Member
367 Posts |
Posted - 19 August 2008 : 15:04:40
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Thanks for your reply, good to know that my compensation payout is safe, not that there's a huge amount left of that as had to use it to subsidise things.
Another question, probably going to have loads more as well. Is it best then to empty my bank account before going bankrupt or speak to my bank. Also my wages and tax credits etc, are paid into the one account and these can't always be changed overnight so if my account does get frozen and say my wages still go in how do i go about sorting that one out???
Getting more worried as well as I haven't yet missed any payments on my IVA and just read on another thread that 3 payments have to be missed before applying for BR,i feel a huge headache coming on!!!! |
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John
New Member
United Kingdom
73 Posts |
Posted - 19 August 2008 : 15:17:00
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Hi Nat
the only way to have your IVA fail, if you're sure BR is right for you, is to stop paying.
After 3 missed payments apply to your IP for your Certificate of Termination.
The bank account is about timing.
Get paid today, remove all funds today, go BR tomorrow, get new basic account day 3 to day 10.
Day 11 contact all the DD companies and give them your new bank details and advise your new bank of the same.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Nat
Junior Member
367 Posts |
Posted - 19 August 2008 : 15:28:04
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Hi john
Thanks again. I didn't expect to have to wait so long to apply for the bankruptcy but what has to be has to be i guess. I've done nothing but think about this for ages!! My outgoings were not calculated properly just wish i'd discovered this site 7 months ago and could probably had saved a bit of stress. I owe a big thanks to my fella who found it yesterday after i finally told him everything about my IVA, he is a little star!!
I suppose the next step is dealing with the fall out of not paying the IVA, i'm guessing that the creditors will start contacting me again.
Thanks again for the info so far, really helpful. |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 19 August 2008 : 15:31:49
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Hi Nat
I don't think your creditors will start contacting you until the three months of your IVA is up. I was in an IVA, failed for three months, then went bankrupt and they only started contacting me again two weeks after the date of termination.
Maizie |
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Nat
Junior Member
367 Posts |
Posted - 19 August 2008 : 16:46:52
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Hi maizie
That's good to know. It's been bad enough that one of my creditors ( a catalogue) have been contacting me and trying to hit me for charges and interest even though my IVA was approved last May. I haven't heard from them for 2 weeks and although my IP says he's contacted them i really have my doubts. Up until yesterday he's always sounded very vague when i've spoken to him. He soon perked up yesterday when i informed him that it isn't working out and he was dead against BR and was very pushy for a DMP as i can always get another IVA further down the line, all i can think is that the debt will just get higher and higher.
I suppose the only bonus to waiting is that one of my creditors will file a BR order against me which will mean i won't have to pay the fees.
This really is hard and if i had listened to my solicitor 2 years ago this would have all been done and dusted now but i really thought that i could cope and my ex said he'd pay towards the debt, only lasted a couple of months surprise, surprise and then the interest started moounting and here i am now.
Somehow i'll manage to smile if only for my kids sakes!!
Nat |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 19 August 2008 : 16:55:07
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I know the feeling! I was in an IVA for just over a year and wish I went bankrupt in the first place!
It may be a while before one of your creditors files for bankruptcy and before that happens (after the IVA has failed) you probably will get lots and lots of calls so my best advice would be to use these next three months to use the money you would have used for your IVA to fund your bankruptcy fees, thats what I did.
Maizie |
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Nat
Junior Member
367 Posts |
Posted - 19 August 2008 : 17:01:17
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Hi Maizie
That sounds like a good plan to be going on with for now.
I already feel a bit better knowing that there are people on here who atually know what it's like and the some of the processes. If i had acted yesterday and filled in forms and gone to the court as the advisor on debtline had suggested i could do i would have wasted a whole load of money that i couldn't afford to.
Thanks everyone!!! |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 19 August 2008 : 17:03:24
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No problem... this site has been an amazing help to me. Still got my OR interview to go but the people on this site have kept me going.
Maizie |
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Nat
Junior Member
367 Posts |
Posted - 19 August 2008 : 17:08:41
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Hope it all goes well for you with your OR interview.
Just another thought, a few hundred more to follow i'm sure!! Could i set up to have my incomings and outgoings to go out from another account if someone was prepared to hold the account in their name for me? I'm just trying to think of ways to keep the stress levels down a bit but want to keep everything above board as well, don't want to over complicate things any further
Thanks |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 19 August 2008 : 17:12:53
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Thanks!
Im not quite sure on that one, I think you would still need to declare it on your bankruptcy forms.
I got paid, emptied my account (enough for living expenses etc.), think I had about £6.00 left in there the day before I went bankrupt, removed all my direct debits etc, went bankrupt then went to the Co-operative Bank, opened a bank account (cash minder) which gives you a cash card but you can still use internet banking and direct debits and that won't be frozen because they are aware that Im bankrupt. All my wages and direct debits will now be set up ready for next pay day.
Maizie |
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Nat
Junior Member
367 Posts |
Posted - 19 August 2008 : 17:17:15
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| Do they freeze the account after the OR interview then? I thought that it might be when the court approved the BR??? |
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John
New Member
United Kingdom
73 Posts |
Posted - 19 August 2008 : 17:47:22
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Hi Nat
you could use a 3rd party account temporarily if you wish.
You don't need to put it on your SoA as it's not your account but you would have to explain where your income is paid into and how you deal with your DD's at the interview stage.
But it would buy you some time until you had a post bankruptcy account set up and working.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Nat
Junior Member
367 Posts |
Posted - 19 August 2008 : 17:58:52
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Thanks John, i can't say enough how grateful i am for all the info when i think how i was feeling yesterday i feel much better today, not brilliant mind but in a place where i feel that i can get things sorted once and for all.
Thanks again everyone |
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nicki
Junior Member
180 Posts |
Posted - 19 August 2008 : 19:52:58
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| hi im in the same boat.i was in an iva.my mum paid for a solicitor for me and she advised to go bankrupt as she said the iva would fail eventually.ive booked my court day for next thursday but get paid on friday morning.my problem is that im borrowing half the bankruptcy fee off my best friend for that one day but now im worried that my account will be frozen and ill be unable to pay her back.is the account frozen on the bankruptcy day or the official reciever day? how long in between are the 2 interviews? very worried and stressed out.thanks for this site its great to know there are people who know how i feel.xx |
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Bank account
