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FingersCrossed
Starting Member
United Kingdom
13 Posts |
 Posted - 06 March 2009 : 15:51:30
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Well, I've finally run out of ways to try and pay my debts, so, after speaking with Tina from melaniegiles.com I've decided to file for bankruptcy. I've got the date set (long wait, it's not till May =/) and have been busy filling in the forms.
I've just got a few questions about certain things.
- I have a car on hire purchase (Ford Options). Its 6 months old, and there's still 30 months on the contract. I need the car for work, but I can't really afford it any more. I have the option to take a company car, however it means losing about £300 of my take home pay/month, although I will still end up far better financially. What are the chances of me being able to (or forced to) return the car as it is, and end the agreement? This would be the best option financially, but is it likely?
- My rental agreement has a clause where the landlord is allowed terminate the agreement if I become bankrupt. What is the likelihood of this happening? Bearing in mind I have never missed a rent payment, and I will be more able to pay it if I do go through with the bankruptcy than if I'm struggling with other debts. I'm guessing it's advisable to have a chat with them about it and explain all this?
- Personal stuff: I've just been filling in the bankruptcy forms, and it says in the notes I should state everything that I possess.
Now other than the fact I have a few hundred different possessions and I'm not entirely sure how to put this down on the form. What are the chances of losing all my Clothes, DVDs, books, CDs, video games etc. It's probably several thousand pounds of stuff new, but only worth a few hundred if it was sold now(~50 games, ~30 DVDs, ~50 CDs, ~50 books, a couple of old games consoles and some odds and ends)
I'll probably update this post if I have any more questions.
Thanks for your attention! |
Edited by - FingersCrossed on 06 March 2009 15:52:33 |
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xmas baby
Average Member
537 Posts |
Posted - 06 March 2009 : 16:21:01
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Hi Fingers Crossed,
I have only just declared bankruptcy, so I may not be the best person to answer your questions, however hopefully I can help in some of them. I also rent and I did look at my rental agreement before bankruptcy and I was lucky there was no clause relating to bankruptcy. However I rent privately and not through a letting agency. I did speak to my landlord to let him know I was petitioning for bankruptcy and he didn't have a problem. In fact he was very supportive. I suppose, at the end of the day, as long as he gets his rent on time, he doesn't care really.
As far as I'm aware, your personal possesions are safe (tv, dvd, cd, bed, etc). The only exceptions might be if you have a really expensive plasma television which costs £1000's or anything else which might be seen as a valuable asset (antiques, paintings, etc). Normal possessions, which are not highly valued would be safe, regardless of how many items you have.
I can't imagine the OR setting up a stall at the car boot sales trying to sell off your dvd/video games, can you?
I know its really worrying at first when you're trying to find out what's 'safe' and what's at risk, but believe me, when I first went down the road to bankruptcy I too thought they would take everything I had. That's just not true and its only things of real value they are interested in, like houses, cars that sort of thing. I don't think you would have any worries.
Hope this helps!
xmas baby |
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Sparkle83
Junior Member
258 Posts |
Posted - 06 March 2009 : 16:32:07
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| I did mine on tuesda, and didnt put any of my possesions, inc comps etc as none of it is worth anything |
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FingersCrossed
Starting Member
United Kingdom
13 Posts |
Posted - 07 March 2009 : 01:47:23
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A couple of other questions I've just thought of:
Do I need to declare expenses incurred during work?
I.E. I get my business mileage, parking, and various other things paid for monthly. I'm not sure how to mention this though, as obviously it can vary wildly from month to month.
Another question is regarding my partner: She's currently a full time student, and I've been supporting her financially for the last 6 months or so (she lost her job last year, and has been struggling to find one since - one of the main reasons for my situation, along with, I'm ashamed to admit it, some very bad decisions on my part). I've been told that this will be looked on poorly by the OR, but I'm not sure what I can do about it.
Anyway, the question is, if she does find a job, I'm guessing I will need to inform the OR of the contributions she is making to living costs? Also, she gets a student loan, although most of this goes towards her travel to college and materials for her course but some is for personal items. Do I need to declare this, since it's not really anything to do with me?
Final question (for now!)
What should I be doing with my credit card, loan etc. repayments for the next 2 months? Struggle to pay them, or make sure I have enough money for rent, bills, food and fuel for getting to work?
Also, the only way I'm going to be able to afford the fee for the court is to miss a couple of payments on my car, is this going to reflect badly?
Thanks!! |
Edited by - FingersCrossed on 07 March 2009 02:50:11 |
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FingersCrossed
Starting Member
United Kingdom
13 Posts |
Posted - 08 March 2009 : 19:12:18
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Oh dear, yet more questions =/
I pay all the bills for our house, and then my housemate pays me his share, should I put this down seperately as outgoings and then income, or should I take his share off and put my share down as the outgoings? |
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John
New Member
United Kingdom
73 Posts |
Posted - 08 March 2009 : 19:34:42
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Hi
you should not include work related expenses if you are recompensed in full by your employer. You should also be sure that repayments for those expenses are not included in your net income figure.
If your partner is a full time student there's nothing to be done really. You will not be permitted to claim expenditure allowances in respect of the funding or her studies but if you pay all domestic costs because of the absence of an income from her that's ok.
You would need to either adjust your expenditure figures down if your partner begins to make a contribution to the household in the future or declare the amount she contributes (not necessarily all of net income as she may have some personal commitments as well). There is no need to mention the student loan.
If you have decided that bankruptcy is the right choice and understand the car on HP has to go back then stop paying the car and the card debts immediately and get the fees together. This will certainly not be frowned upon and to continue is almost throwing money away. Another couple of months interest on what you owe already is relatively insignificant.
So as not to complicate matters list expenditure as that share which is paid by you on behalf of yourself and your partner and your net income figure without the housemate's contribution.
They only serve to cancel each other out anyway.
Finally, make sure you include any potential shortfall figure between the amount owed and the likely sale price of the car in section 4 unsecured so that the shortfall, when established after the car is sold at auction, is included in your bankruptcy. If at the time of your hearing you do not know the shortfall figure just enter £1.
John White
England Jackman & Spacey |
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FingersCrossed
Starting Member
United Kingdom
13 Posts |
Posted - 08 March 2009 : 20:51:38
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Thanks for your answers! 
quote:
Originally posted by John
Finally, make sure you include any potential shortfall figure between the amount owed and the likely sale price of the car in section 4 unsecured so that the shortfall, when established after the car is sold at auction, is included in your bankruptcy. If at the time of your hearing you do not know the shortfall figure just enter £1.
Regarding this part, would I use the amount owed as the settlement figure, or the total of the 30 payments I still need to make? The car is currently worth around £10k, settlement is £15k, total of payments left to make is about £12k
Thanks. |
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John
New Member
United Kingdom
73 Posts |
Posted - 08 March 2009 : 22:11:31
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Hi FC
unless the car is sold before you declare bankruptcy and after handing it back you cannot know what the shortfall would be so any figure entered as amount owed would be speculative.
That's why I suggested you enter £1 as the examiner will pick up on the fact that it is still an unknown figure from that and you should also enter "potential shortfall" in the reason for debt column.
John White
England Jackman & Spacey |
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FingersCrossed
Starting Member
United Kingdom
13 Posts |
Posted - 08 March 2009 : 22:20:48
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Ok, that makes sense =)
Thanks very much! |
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Going bankrupt - A few questions
