Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

Byplainzer0
#314613 Hi There

I am about to send my application away for Bankruptcy. I know most of the cons regarding becoming Bankrupt. I just was looking for some advice regarding life after Bankruptcy.

Is there anyone who has managed to rebuild their credit history after the six year period? This is my biggest concern. Although I have no intention of borrowing in the future, I would like to have the option (future mortgage etc).

Does anyone know if after the six year period I struggled to gain credit, I could turn to the high APR Borrowing Company's just temporarily to help rebuild my credit history.

Thanks
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ByTalbotWoods
#314893 Hi plainzer0

I was hoping a few others may have jumped in here, but also they were to busy congratulating Chandrey on another post for reaching a 1000 posts! So.....

There are very few people who have not bounced back, many have gone on to own property, run very successful business, turned their lives around, completely.

Yes a few regret it but they tend to be the ones who either lost the most (millionaires) or those who are in the hardest financial positions, where they take a long time to earn enough to even survive, and used credit to live a basic life.

One thing I missed when I went under, was the nice conversations with the creditors <Hangs head in shame.....NOT>

I was chatting to a self employed person who went under 9 years ago, owing an obscene amount, he now owns two houses (one is a biggy), has a business employing 6 people, drives a very very nice car (not envious honest ......Grumph) and if he wants something he goes and buys it .....WITH CASH. His secret, was he went under, got off his butt, worked hard and didn't assume that all would be the same unless he put into it. He admits at times it was hard, but does he regret it now, nope not one little bit.

If you look around the post bankruptcy section, you will see a full range of responses, all are what people have been through. OK once all is done and dusted yes you do have to still watch what you are doing, such as making sure you sort your CRFs, etc.
Byplainzer0
#314913 A truly inspiring story. I guess it all comes down to recognizing your mistakes and working very hard to ensure the way you work/handle money and like you said, do something about it. Again thanks for your help, any help makes me feel slightly better about the situation I'm in.

I have one more small question. Regards to LILA Bankruptcy, can you confirm if I was to be discharged after one year, it isn't possible after discharge for an IPA to be in place? This can only happen before discharge, am I correct?

Thanks!
User avatar
ByTalbotWoods
#314933 Yep

Must be in place BEFORE discharges
Runs for a MAXIMUM 3 years/36 payments
Can be varied or suspended.

But I dont know anyone who ash gone the LILA route be given an IPA.

Don't forget to go the LILA route you weekly income for the equivalent 40 hour week must not exceed ££237.20 per week, which is the equivalent to the nation minimum wage.

Any pensions or maintenance payments that you receive are also counted in with your income.

If you receive income support, income-based jobseekers' allowance or working tax credits you will be treated as meeting the low income test, even if your actual income is more than £237.20 a week.

When calculating your income no account will be taken of other social security benefits or tax credits you receive or any income paid to another member of your family. However, your income, pensions, maintenance payments, benefits, tax credits and the income of other family members may be taken into account when considering whether you should pay a contribution while you are bankrupt.

Low assets means that you have no single asset worth more than £1,000 and your total assets are not worth more than £10,000. In addition, it means that you must not own or jointly own a house or any other property or land. (Note: If the value of your vehicle is less than £3000 and you can prove a reasonable need to use it, you may keep it.)
Byplainzer0
#314943 Regarding the "40 hour week must not exceed ££237.20 per week, which is the equivalent to the nation minimum wage."

Is this when an IPA would be put in place if I was earning more than this during Bankruptcy?

Currently I am staying in a property where I do not have to pay rent or household bills so say I was working part time and earning £600 per month after tax, I realize this is less than the statement above however as I'm not paying rent, could an IPA be set up?

Or does it have to be more than 40 hours of national minimum wage?

Thanks again!
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