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hammy0107
Junior Member
399 Posts |
 Posted - 19 May 2008 : 09:45:39
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| I am very soon going to be petioning for voluntary BR and i keep reading about BRU & BRO. What is really worrying me is meeting with the OR and trying to explain where all the money went. Hand on heart i cannot remember, i know the intention when taking out loans was to consolidate other loans but the situation i am now in tells me it didn't work. I must of wasted the money as i am worse off than ever but where it went i really don't know. I have been paying into a DMP for 3 years and fully believe i have learned to live without borrowing, i have learned my lesson but i don't think it is going to look like that to the OR. If i can't tell him / her where the money went i am going to look like i am hiding something which i am not. I see BR as a new start but if i am going to get a BRO / BRU and it is for a long time then it doesn't seem like a fresh start really. I think i am going to be able to pay around £8 to £10k into the BR and if my I&E's are agreed i will probably have about £150 excess cash each month so i am trying to give them something back. I also had an lump sum IVA rejected where they would have received 25p in the pound. Do you think the fact i am trying to pay them something will go in my favour and possibly counteract the fact i have been stupid with money for a few years? I really don't want a BRO /BRU. Thoughts please. |
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melanie_giles
Senior Member
1191 Posts |
Posted - 19 May 2008 : 10:23:31
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I am sure that you will not get either a BRU or a BRO - and at the end of the day these restrictions are relatively toothless unless you want to borrow more money in the future.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 19 May 2008 : 10:36:33
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Hi Hammy - I think you will be fine as well.
I had eight credit cards on my SOA and although I could remember a couple of large purchases I didn't have a clue what each debt was made up of. I did put against each card that towards the end they were all used for day to day living expenses, used to pay of other cards and that I was paying just the minimum payment for months - that for most the interest they put back on was more than the minimum I was paying each month.
I had two debt consolidation loans as well.
My examiner was really understanding of how easy debt spirals - so don't worry - just tell them what happened.
Vicki x |
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hammy0107
Junior Member
399 Posts |
Posted - 19 May 2008 : 10:52:36
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| Hand on heart if i can get a fresh start from this then i wouldn't dream of looking for loans, credit cards again. However there will be a time i want to get another mortgage, maybe even car finance. I will also be giving up a directorship of a business by going BR and i wouldn't want it to be too long before i could be appointed as a director again. |
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hammy0107
Junior Member
399 Posts |
Posted - 19 May 2008 : 10:57:53
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| What i forgot to mention was that my debt is in the region of £110k, i feel embarrassed admitting that, is that going to make a BRO / BRU more likely? |
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melanie_giles
Senior Member
1191 Posts |
Posted - 19 May 2008 : 11:00:29
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It is difficult to say, and at the end of the day down to the discretion of the examiner, OR and ultimately the Court.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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hammy0107
Junior Member
399 Posts |
Posted - 19 May 2008 : 11:18:41
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| I wish i hadn't asked now lol, i am now really really really worried. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 19 May 2008 : 11:47:39
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Hi Hammy,
We usually find that the debts are higher when the debtor has been involved in running a business and your level of debt unfortunately is not uncommon.
The timescales will be important to your examiner, if the debt was incurred over years of consolidations, supporting income etc then this will not necessarily be classed as bad conduct whereas incurring this level of debt over a period of six to twelve months would likely show bad conduct so the amount is not the key here it is what the funds incurred were spent on and over what period of time.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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hammy0107
Junior Member
399 Posts |
Posted - 19 May 2008 : 12:07:18
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| This debt is not connected to a business it is purely personal debt. The debt has been built up over the last 7 years. Until early 2005 i made full payments each month but when my wife became pregnant i knew i wouldn't be able to make the payments without my wifes wages. I contacted a debt company and from May 2005 until February 2008 i paid into a DMP each month. In addition to the DMP i continued to pay full payments on a N.Rock loan which i believed to be secured (i have since found it not be), a car loan which i was told was HP (i have since found it to be a personal loan) and a small loan (£1000) from my bank and a credit card £3500. The only credit i have obtained since entering the DMP is using the credit card, but i never missed a payment. Yes i have behaved irresponsibly by borrowing so much but i can honestly say i have never borrowed money not believing i could repay it. I have been stupid but never dishonest, it is just the size of the debt which worries me. My employers will wait 12 months tio have me back on the board of directors, they will not wait any longer as in their eyes the business will have moved considerably in that time. This is why i am so worried of a BRO /BRU as it will have such a long term effect on my employment and my future. |
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tom
Junior Member
181 Posts |
Posted - 19 May 2008 : 13:02:10
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| Hi Hammy, I thought you could ask the OR for permission to become a director under special circumstances. Ask the expert to see if this is correct. regards |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 19 May 2008 : 14:16:39
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Hi Hammy,
Without knowing the full details of your case I could not really comment, but from what you have mentioned I can not see a clear example of bad conduct that would warrant a BRO/BRU.
You mention the directorship did you or have you any shares in the business?
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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hammy0107
Junior Member
399 Posts |
Posted - 19 May 2008 : 16:31:17
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| I have a small shareholding. I am currently getting my shares valued professionally, i will then sell my shares to my co directors and put the proceeds towards the BR. This is what is so frustrating about the lump sum IVA being rejected. With me performing the duties of a director my shares are worth more than if i am not directing the business. In IVA my ceditors would have got 25p / £1, in BR they will probably get less than 10p / £1. Doesn't make sense to me but they are allegedly the experts. |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 19 May 2008 : 17:36:03
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Yes I struggle to understand why they reject an IVA knowing full well that your only other route is BR. Maybe your creditors get paid out by their own insurance cover and BR is an easier way for them than IVA? Or they feel it is a bigger rap on the knuckles than an IVA!!
Vicki x |
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melanie_giles
Senior Member
1191 Posts |
Posted - 19 May 2008 : 21:21:36
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Have you thought about representing the IVA with another firm? Just a thought.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 20 May 2008 : 09:03:51
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Hi Hammy,
As Brett points out there is nothing in the information you have given which suggests you would get an IPA/IPO, but as Melanie mentions the decision is ultimately down to the Trustee and the Court, therefore if this would effect your career as a Director then I would suggest another shot at the IVA, perhaps if you contact Melanie she can advice you on your options.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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hammy0107
Junior Member
399 Posts |
Posted - 20 May 2008 : 11:44:05
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| To be honest i have just paid out to an IP and got nowhere and don't really want to be risking more money i haven't got. Besides i am at the point where i just want to get my debt sorted one way or another. Also the company who rejected the IVA (representing 4 creditors) need to realise they cannot dictate how IVA's are implemented. I want these creditors to see that in BR they are now going to get minimal return and that is down to the idiots they are entrusting their best interest with. Maybe, just maybe if they keep losing out like they potentially will with me then less creditors will give business to this company. My proposal was to make a one off payment of £25k against £100k debt, even NR accepted this. The 25k was to be paid within 6 months. This company were insistant on me entering a 5 year IVA even though my surplus cash meant they would get roughly £15k over 5 years. Their gamble was that my property would have gone up in the region of 15 - 20% in the next 5 years. Absolute madness yet creditors are still allowing these idiots to look after their interests. I just wish their was a way of paying the 'decent' creditors and telling the others to get lost. |
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Really worried
