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Sindy
Starting Member
23 Posts |
 Posted - 27 March 2009 : 07:38:20
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Hi, I am currently in around £35,000 in debt and have no income, I am considering the bamruptcy route.
My debt was previously around £45,000, with the help of friends and family I have been able to pay £10,000 off. I managed to get myself into financial difficulty due to being in a relationship with an extremely controlling partner who took the loan money from me.
Some of th loans were obtained using an inflated income, what is the likelyhood that this will come up in the bankruptcy process, and also given that I have made a serious effort to repay my creditors and never benefited from the money, is there at all any possibility the bankruptcy would last less then the usual 12 months?
Thank you in advance |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 March 2009 : 08:33:00
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Hi
it's possible if your case is straightforward enough that discharge could come before the 12 months are up. The decision is with the OR.
The fact that you have managed to reduce your debt recently, with the help of friends and family, whilst on the one hand is commendable, is, in fact, not allowed and can be reclaimed from the creditor(s) by the OR as preferential payments. Unless you have repaid these monies pro rata to all creditors that is.
This makes little difference to you but may obviously affect those creditors in receipt of the £10K you have repaid.
I doubt any investigation into your borrowings will cause the inflated income claims to backfire.
John White
England Jackman & Spacey |
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Sindy
Starting Member
23 Posts |
Posted - 27 March 2009 : 09:50:50
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Thank you so much for your advice John, you have put my mind at rest!! The inflated income was the only thing that was holding me back as I was under the impression that this could be viewed as fraud!
If I was to file for bankruptcy, would I still be able to study after/during bankruptcy as this is what I wish to do? Would this be viewed negatively, and also if I was to obain student grants/loans, would these be viewed as an income by the OR and would he therefore take a chunk of these and pay my creditors with them??
Thanks once again John, you've been a great help! |
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Sindy
Starting Member
23 Posts |
Posted - 27 March 2009 : 10:01:43
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Hi I forgot to address the issue of the 10k, this was not a part of my pro rata agreements with creditors, rather it was lump sum payments to severall creditors who offered me a reduced settlement figure, if the OR was to claim this money back, would he distribute it equally amongst my creditors? Also I own a property which I don't live in, however, it has no equity in it whatsoever, infact it is in negative equity, it is rented out, however, once again I do not make any income on the rent rather I pay extra out of my pocket to maintain monthly payments, please could you advise me what would happen with the property, as I do intend on living in it.
Thank you |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 March 2009 : 10:04:18
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Hi
yes you will still be able to study both during and after bankruptcy and no this would not be viewed in any negative way.
The student grants and loans may be viewed as income in addition to any earned income you declare and certain benefits you may be in receipt of.
However, the sudent loans and grants proportion can be offset to a large degree, if not in full, by expenditure claims during the bankruptcy for any fees and equipment / books that are mandatory in order to complete your course.
Having made these allowances, and those required for you to meet your essential expenditure, should there be a surplus, or disposable income, in excess of £100 per month then you will be required to make a monthly contribution to your creditors for a maximum 3 years.
If you are having to make a contribution (Income Payment Agreement) and your income and or expenditure changes for the better, or worse, at any time during that 3 year period then your IPA contribution can be reviewed and if appropriate be terminated.
John White
England Jackman & Spacey |
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John
New Member
United Kingdom
73 Posts |
Posted - 27 March 2009 : 10:08:12
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Hi again
please see the thread entitled "can anybody help" posted by Imelda which explains your position in respect of the property.
John White
England Jackman & Spacey |
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Sindy
Starting Member
23 Posts |
Posted - 27 March 2009 : 10:13:14
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| Thanks John, your advice is much apprecaited, I feel so relieved at just what you have told me!! |
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Hi, I am currently in around £35,000 in debt
