Hi, I've been in DMP for a couple of months but am finding it more difficult to afford this due to rent increases, etc and have been told with a debt of £45k I would not be suited to an IVA with disposable income of £100. I have looked into bankruptcy and was hoping someone would be able to help me with a few queries: 1. I have a HP on my car and realise I may lose this but how long does this process take? 2. The court rep advised I can submit the statement of affairs in the morning and become bankrupt by the end of the day - is this true? 3. I've recently asked for a property I co-own as a buy to let to be transferred into my Dad's name - the property has negative equity and I can't afford to pay the service charge and ground rents, etc. This is still being processed - should I wait to apply for bankruptcy or continue even though this hasn't been finalised? 4. Also, I sold two properties last year (both in my name) to pay off debts and keep me going - my aim was to use the money to keep paying my creditors (my salary is £1600 but my outgoings were £2200) and then be able to apply for a loan to consolidate my debts. This didn't work out and I ran into more debt and used up all the money - I feel the courts will not see me using this money to help my situation but as I never intended to become bankrupt is this going to make my application difficult? Any advice much appreciated.
With this level of disposable income the advice you have been given is quite correct Bankruptcy does appear to be the ideal route for you.
As to your queries:
1. This would depend on the finance company, may I suggest you contact them and enquire as to their policy with regards to this situation and see if payments are maintained whether they would be happy for the vehicle to be kept. It will then be the OR's decision as to your keeping the vehicle based on the level of monthly payment, your need for the vehicle and the value of the vehicle against the outstanding finance.
2.Yes this is true.
3 & 4. You need to be honest with the OR explain all of the points with regard to the properties and provide him with all information in relation to any transactions or sales that have taken place. the more information with regard to the spending of any monies received the better. If you used the sale proceeds to meet monthly expenditure and monthly repayments towards your debts then this should not be an issue and will show that you were contributing towards your debts.
Need advice before submitting statement of affairs
Posted - 04 April 2008 : 11:20:29
