Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By seashell
#471830 Thank you! This site and your advice has been a real God send. Hope other worriers find it and can take as much reassurance from it as I have. Thank you again :)
By seashell
#472200 Hello :) so I'm 4 months in now and things have been ok. I still haven't had my nil tax code applied but am sending copies of payslips each month to prove it. I got my pay rise in my end of jan pay which was backdated to September. It works out about £100 a month before tax but I now also need to tell tax credits as I think they will reduce my award. I've kept the back dated money incase I have to pay it to the OR who I've emailed this week. Really hoping I don't have to change my IPA but will see.
I have to renew my car insurance this month and my quote to renew with my current provider direct line is a lot higher than others. However, I am anxious that other insurers won't touch me with the bankruptcy. Should I tell direct line or just let the policy renew? Worried if I tell then they will cancel but if I don't it will make policy void?
Thanks as always for any advice
User avatar
By JaneClack
#472203 If they ask you the question, on a form or anything else then you must tell them.

If your car insurance is going to cost more than £500 for the year and you want to pay in instalment s then you must also tell them as it is one of the restrictions of bankruptcy that you cannot apply for credit of more than £500 without informing the lender that you are an undischarged bankrupt.

There are hundreds of undischarged bankrupts driving cars so do not be unduly worried.
By ZF1
#472341 Hi,

Possibly too late, but hope this helps you in relation to car insurance -

Have you actually looked for a quote elsewhere yet? I found that looking for quotes with pay monthly has massively increased the loading as they've obviously credit scored and seen bankruptcy. Previous awful credit still gave reasonable monthly quotes, but the Bankruptcy has tipped it over the edge. I know legally too you're supposed to phone up and actually tell them - but they clearly already know judging by the prices (and 'installments unavailable' at some sites).

You say it's quite a lot more, so presuming you have compared. The ones that won't touch you because of bankruptcy do state it - but most will.

The problem you will probably face is the loading for monthly installments (if you choose to do that). My insurance is ~£900 for the year because I'm young. Paying monthly would cost £2800.

If you're paying in full, then it shouldn't make much difference. Some jokers may claim you're more of a risk, but I've had no problems finding a competitive quote for advanced payment (and I've crashed since last year). If you pay in full, you don't need to tell them you're bankrupt if they don't ask.... (do carefully check the 'assumptions' though - don't want them wriggling out of any claim).

Also (previously worked in banking) don't be tempted to chance it if a declaration does mention bankruptcy - if they find out and void your insurance, subsequent policies will cost more for life (there's always a question of '...have you EVER had insurance voided'). I'd always tell them, if they then hike the price, look elsewhere. It's not worth the risk of higher prices (& some places won't touch you with a barge pole if you've had previous ones voided) - I know that may seem OTT, but I've experienced people who have unwittingly had it happen to them!

Interesting your tax code hasn't been updated. I went bankrupt before you, and mine still hasn't been changed (as at 28th Feb). They clearly aren't in a hurry to change it!

I'm assuming if NT it's not changed in March payslip then that's the end of it - they won't change it in April for the 5 days surely!?
By seashell
#472518 Hi there,
I'm now 10 months into my bankruptcy and it's all been really straightforward. Today I received a letter from 'DMS' capital recoveries stating GE have transferred my debt to them and asking for payment. Should I contact them and give details of my bankruptcy or just ignore it? Anxious they will turn up but not sure the best thing to do?
Thanks, as always for your time and advice.
By sally1
#472520 Hi Seashell,
As you are not yet discharged from bankruptcy, I would inform the Official Receiver and ask what s/he advises. However, the debt will have been proven in the bankruptcy so DMS cannot recover it from you. You can write and inform them that a bankruptcy order was made against you on whatever date it was but I would still advise the OR.
Hope that's helpful