I wanted to know if there is anyone to give me info on bankruptcy. I am current in an IVA but things are very tight and thought i should look into bankruptcy. I know nothing about it and wantd to know if anyone can give me kind of an A to Z of what you have to do to get bankrupt. what will happen during the 3 months that I have to miss IVA payments in order for it to fail. We currently have 22,000 of debt and both want to go bankrupt. is this possible? any help wil be greatly appreciated.
If you are considering failing the IVA then you should really speak to your IP about the reasons for this as it may be that something could be worked out. This is especially important if you have been in the IVA for a couple of years otherwise you would have gone through the whole IVA process, and the stress associated with it, for nothing.
During the 3 months that you would stop repayments for the IVA your IP would probably inform the creditors and they would then start up with the telephone calls and letters chasing their money.
For BR you can find your local court at http://www.hmcourts-service.gov.uk/HMCSCourtFinder/CourtList.do You should contact them and find out the procedure for declaring BR. Some have an appointment system and others just let you turn up on the day. If it is an appointment system then it can take 4 weeks for your appointment. Some courts also need the IVA failure certificate so this is worth checking.
You will need 3 copies of the 6.27 and 6.28 forms to declare BR except at the High Court where you only need one copy. Don't sign the forms before you go to court as they need to be signed in front of the bankruptcy clerk.
Some things to consider when declaring BR that don't affect you in an IVA are:
- Some jobs won't let you continue to work there if you are BR so you should check your contracts. - If you have a property that has equity the OR would look to release this by selling the property. - If you have a car worth more than £2k this would be taken by the OR and the profits given to the creditors. The OR would give you £2k back to buy a new car IF they deemed you needed a car. - Regardless of the value of a car, if the OR deemed that you didn't need it for work or other essential journeys they would take it. - If you are renting a property you should check your rental agreement as some have a BR clause.
When you are BR the OR has complete control over your finances and there are other issues (renting, some employers, etc.) that need to be considered before deciding whether it is the right option for you.
You should consider your reasons for wanting to fail the IVA and declare BR and then speak to your current IP.