Questions you have before making a decision to go Bankrupt and the Bankruptcy process

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By mt
#7991 Hi all, I'm trying to fill in my bankruptcy form and have a couple of questions. Under assets, what should and shouldn't I put down. For example, I have a computer which is essential to what I do, it has a low(ish) second hand value. If I put this down will they take it away? Also, what about things like books, DVDs, CDs, CD walkman, clothes, etc? I've heard somewhere that if I put anything down they'll take them. Anybody with first hand experience please? Thanks!
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By Nicky
#7992 The things you have just mentioned will be of no interest to your Official Receiver.

Just because you put something on the form, does not at all mean they will take them. They are only interested in things that have auction value. Things for work purposes are considered as necessities.

You kind of have to think of it a way of what is worth the hassle for the OR to take to auction to sell, unless there is considerable value on something, it really isnt worth their time. Good news for you! :D
By mt
#7994 Thanks. That's a weight off my mind.

What about "Cash in hand"? I assume that if I withdraw funds from my a/c for living expenses before the BR day, I have to declare it on the form? And I assume they'd let me keep it?

Which brings me to another question. I really have no disposable income to live on at the moment. Between now and my BR appointment, I'd have to either max out my overdraft limit or live on credit cards. Will the court see this as being reckless (ie increasing debts I know I can't pay back) and will it be counted against me?

Sorry if these questions seem stupid. Really want to get everything right on the form.
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By Nicky
#7998 No questions are stupid :wink:

Your OR will know about withdrawals from your account anyway because they will look into the history of your accounts. Dont panic about this, its just to make sure everything is above board.

Are you saying you have no disposable income because you have all your bills to pay, including your creditors?
By mt
#7999 Yes my repayments to creditors amount to about £700 a month, and as I'm not working at the moment, my overdraft is going up and up. This is why I am finally going the BR route, because I am running of of overdraft.
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By Nicky
#8001 OK, the first thing to do is stop paying your normal monthly payments to your creditors. You can't afford to do this. You currently robbing Peter to pay Paul, which is a common thing people do.

You need to cancel your direct debits, put a letter together for your creditors to explain your current situation and offer a token payment, if after working out your priority payments, such as rent/mortgage, council tax, household bills, food, travel etc, all you are left with is to give your creds £5 each, then that is what you should be doing. What you shouldnt be doing is paying your creds first before anything - creditors are last priority (although they wouldn't be too chuffed about it, but its realistic).

Offering token payments to your creditors whilst you are trying to sort things out is an act of good gesture, dont panic about having to do it, at the end of the day, its a realistic way of doing things. Creditors have facilities for things like this.

If you are not comfortable with doing this yourself, then go down your local CAB and they will help you. Or call National debtline or FCL, they can do this on your behalf as well.

Does that make sense?
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By Nicky
#8002 Just to add, (Im saying all this yet I dont know if you have already done or doing this) but if you have an income going into a bank account and you owe monies to your bank, such as loans/credit cards, it would be wise to either move your income, or keep up the payments to them because otherwise they could take money from your account to pay what you owe them.
By mt
#8003 Hi Nicky. Thanks for that. Yes it all makes perfect sense. However, my repayments go out from my current a/c at the beginning of the month. So the payments for June have already gone out. I have only just recently decided to go BR (in the last 10 days or so). My BR appointment is on the 27th of this month. Do you feel there is still a necessity for me to offer my creditors token payments etc at this point, or shall I just let the bankruptcy order deal with things, as the BR appointment is before the next lot of repayments at the beginning of July.

I think there may be a point in cancelling the standing orders, which I can do easily through online banking.

Thanks for your input. It's very much appreciated.
By Mel_Odious
#8005
mt wrote:Hi Nicky. Thanks for that. Yes it all makes perfect sense. However, my repayments go out from my current a/c at the beginning of the month. So the payments for June have already gone out. I have only just recently decided to go BR (in the last 10 days or so). My BR appointment is on the 27th of this month. Do you feel there is still a necessity for me to offer my creditors token payments etc at this point, or shall I just let the bankruptcy order deal with things, as the BR appointment is before the next lot of repayments at the beginning of July.

I think there may be a point in cancelling the standing orders, which I can do easily through online banking.

Thanks for your input. It's very much appreciated.


I'll just jump on Nicky's toes for a minute if you and Nicky don't mind. There is no point in paying any more to your creditors. You are aware your Bank Account is likely to be frozen?
Mel
By mt
#8008 Hi Mel. Yes that's my point precisely. That if the bankruptcy order is made on the 27th June, my bank accounts will be frozen, so my creditors won't be able to get any money from me after that. So I don't think it's necessary at this point to write to them and offer token payments? Or have I missed something important?

At the moment the only income going into my current a/c is my child benefit. I don't know how I can avoid having that paid into that account because any other account I open now will be frozen. Unless the child benefit can be issued in cheques?
By Mel_Odious
#8009
mt wrote:Hi Mel. Yes that's my point precisely. That if the bankruptcy order is made on the 27th June, my bank accounts will be frozen, so my creditors won't be able to get any money from me after that. So I don't think it's necessary at this point to write to them and offer token payments? Or have I missed something important?

At the moment the only income going into my current a/c is my child benefit. I don't know how I can avoid having that paid into that account because any other account I open now will be frozen. Unless the child benefit can be issued in cheques?

Yes, I don't think Nicky was aware of the dates. I wouldn't worry about paying anymore. You must wait until after you are made bankrupt before opening a new bank account. You could try asking for the child benefit to be paid by cheque for the one month but doubt they would go for it. You could try telling them to hold payment for this month as you are in the process of changing your bank account and it is taking longer than you thought. Ask them to hold payment until next month when you can give them details and have two months paid together. That may work.
Otherwise it's a question of asking the OR to claim the money out of your frozen account for you, which again won't be easy.

Mel
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By Nicky
#8016 Yeh, sorry, I didnt realise what stage you were at, I was thinking you were contemplating things rather than actually had dates arranged e.t.c. :wink:
By mt
#8017 Okay, all makes sense now :wink:
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By steveo
#8026
mt wrote:Hi Mel. Yes that's my point precisely. That if the bankruptcy order is made on the 27th June, my bank accounts will be frozen, so my creditors won't be able to get any money from me after that. So I don't think it's necessary at this point to write to them and offer token payments? Or have I missed something important?

At the moment the only income going into my current a/c is my child benefit. I don't know how I can avoid having that paid into that account because any other account I open now will be frozen. Unless the child benefit can be issued in cheques?


forget paying them, even token payments. a bit late now but you could haved saved a lot of money by stopping pay for a few months now. dont even bother ringing them or writing. the OR will sort all this for you.
By sunshine
#8039 hiya...

I am having to rearrange my form outgoings because someone is giving me a washing machine so I will not be paying 22.00 pound a month direct debit....

I left out clothes and travel money so if I divide this between them both it will be okay....by the way how much is allowed a month for clothes...?

Another thing do I have to list everything in my home...bar stools...coffee table...printers computer...though both second hand....microwave...etc....

Also would the OR decide that I should not have the internet and say I can pay my debts out of that bill....

Sunshine