In order to file bankruptcy does one already have to be behind on payments or can the income to debt ratio be considered? My payments are up to date but it's not going to remain that way within the next month. Too many bills for my income and I just started a new job with a higher income but I'm still drowning. I also have to start repaying my students loans (300.00/month for 60,000 loan) in a few months.
It would be helpful if you could list out your income and specific debts so we can advise re the position.
In theory you don't have to be in any arrears at all to declare br, but you need to demostrate that it is unlikely that you will be able to repay the debts.
i have had several clients that have effectively declared this way and one of the benefits is that there is no opportunity for creditor pressure / telephone calls etc.
It would be worth confirming that an IVA is not a viable option and also that the repayments to date have been met by debt consolidation & one account paying another.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
To qualify for bankruptcy, you need to be unable to pay your debts as they fall due - so that means if you cannot pay all of the required monthly repayments then you are insolvent and can petition.
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
As the other experts have said so long as you can demonstrate that you will not be able to afford the monthly payments then you will be able to petition for Bankruptcy.
One thing to point out is that your student loan will be excluded from Bankruptcy so payments for this will need to be maintained, however on this basis the £300 per month installments for this will be an allowable expenditure in Bankruptcy.
As Paul points out it would be good to get an idea of your disposable income to see whether the alternative of an IVA could be viable for your circumstances.
Too many bills for my income
Posted - 19 May 2008 : 22:44:47
