Between us we have £63K of Un secured debt, We have been advised by CCCS that Bankcrupcy is our best option.
Details about us then some questions
I'm on DLA and Incap Benifit and my partner works and earns £30k a year. We have 2 cars although I have phoned the BMW to come and take the one on credit back as we can't afford to run it either. We have a daughter that is 16.
Shall we go bancrupt at the same time or shall we do it sperate ?
Will the OR let you have some money to purchase a car before you make payments to them ?
Will they take most things in the house, like TV's Ps3 Guitars etc ?
We have a £151K mortgage and a house that is worth about £139-£142Max
Is there anything that we need to do before we go bankcrupt let get anything in place etc ?
Shall we go bancrupt at the same time or shall we do it sperate ?
There's no reason why you shouldn't declare BR together. If one of your went BR and there were joint loans/credit then the other person would be liable for the complete debt and would be chased by creditors for payment.
quote:Will the OR let you have some money to purchase a car before you make payments to them ?
You will be allowed a car up to about £2k. Any more than that and the OR would take the car to sell it and give you £2k to buy another one. This will be the case with your existing car so if it is worth more than £2k you may want to sell it and buy another one now. The OR would expect and excess over £2k to be used to pay creditors.
The IPA (Income Payment Agreement) normally starts 2-3 months after you declare BR so you could save some money during this period to purchase another car.
quote:Will they take most things in the house, like TV's Ps3 Guitars etc ?
No, they should be fine unless they are luxury goods like plasma TV's but even then the OR will not come to your house to check what you have there.
quote:We have a £151K mortgage and a house that is worth about £139-£142Max
You will be able to purchase the house back from the OR for £211 + £1 +£1 fee i.e. a £1 fee for each of you.
quote:Is there anything that we need to do before we go bankcrupt let get anything in place etc ?
Don't rush into bankruptcy. Get the cars sorted out first or all. Hassle BMW until they come and pick up the car and maybe even take it back to them if they don't pick it up soon. If the other car is worth more than £2k then you should sell it and purchase a cheaper one before you declare BR. The OR will expect any excess to be paid either to her or pro-rata to the creditors.
Some people do use their credit cards or an overdraft to pay for their BR. It isn't ideal but it is the only way that some people can pay for their BR fees however most people stop paying their creditors a couple of months prior to declaring BR and use this money to pay for their fees.
If you can't save the fees any other way then use the overdraft but the OR won't be overly impressed with it.
What to Expect
Posted - 20 July 2009 : 13:44:39
