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

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Bygerry
#8471 Hi

Has anyone heard of this??

The cost to go Bankrupt can be included in your petition is that true ?? does anyone know?

Husband and I both going Brpt on 28/6 cost £ 310 plus £150 total EACH £ 460.

I have read that the court costs could be waived if you can prove hardship - but because we both work i suppose that rules us out.

No kids both work full time owe £100k we are going to really stuggle paying this fee as it wont leave us much to live on until we get paid again in July.

Live in council - up to date with rent - own car old one 1995 106k on clock need for work worth about £500 if lucky.

I can confirm that we pay all our utilities by DD and the ones for June will have gone through before the BRPTY before our accounts get frozen.

Cant put the BRPT off have done this once and the creditors are getting really frisky now so June is the month.

Any advise would be good

Gerry
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ByJoannec
#8472 Why not wait until you next get paid? Its only a couple of weeks away. I am! :lol:
Bygerry
#8473 Hi Joanne

Thanks for your thought but.......

Cant wait i am afraid we both get paid on the 21st of the month have already put it off in May - cant keep putting it off - we have got to go June like it or not!!

Does anyone know about the fees as my previous post??

Any advise would be good

Gerry
ByMel_Odious
#8474 I had read 3 years ago that yes, the cost of petitioning could be added to your debts. This may have changed but if you have that amount available on credit cards, I would take a chance and draw the money out. I have seen one case recently where a woman convinced the Court that the fee would cause hardship and they waived the £150 Court Fee but it is only usually applied if you can show you draw benefits. You should ask the Court.

I don't think anyone here will say "Yes, go for it" because there maybe hidden consequences that we are not aware of and each case is individual, so the decision has to be yours. You seem to have looked thoroughly into bankruptcy and if that is your choice, then it certainly is a viable option.

Mel
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ByJoannec
#8477 I'm going to argue hardship as I've waited for two months and not been able to afford the full figure.

Re adding cost to bankruptcy, I did read a post from someone recently to had maxed out their overdraft to get the fee and the OR was happy with this. This is how the sum was included, you still have to go down with the cash but I think its okay to be a little bit naughty to get the cash! :wink: As long as your honest.
Bygerry
#8479 Thanks Mel - odious

We have no credit cards at all so no way of getting our hands on any money at all.

We have been in this awful debt for about 6 years realised we had a big problem in 1999 and from 1999 until Feb 2005 was paying nominal amounts through a debt councilor to our creditors.

Our councilor approched us early this year suggesting Bankruptcy as we were not really making a dent in our debt in fact it was getting worse.

We were at one point borrowing approx £1200 per month using those shops that let you have money on a cheque before you get paid!!

I have managed to sort all that out - dont owe them anything now.

Its just this bloomin fee as I said earlier once we have paid all esstential bills - not creditors we wont have much left till we get paid in July.

The only debt I cant put on our statment of affairs is National Health Dentist - both hubby and I in middle of NHS treatment not due to complete until Sept 05 - not cosmetic or anything and we owe about £400 between the two of us.

What should we do??

Not put it into our statement of affairs?

Need to have a NHS dentist

Or mention it the OR at the time of our interview - I would be more than willing to show him teh reciepts for the work so he/she knows we are not pulling ( sorry about the pun) a fast one.

What do you think??

thanks

G
ByMel_Odious
#8484 How were you thinking of getting hold of £920 then? Yes it may be able to be added to your bankruptcy debts but you still have to borrow it in the first place.


Who was this Debt Counsellor? Why were the debts getting higher? Were they charging you a fee or could they not get interest stopped? As you are both working you should be able to get into a viable FREE DMP with CCCS or Payplan who have a very good record of getting interest frozen eventually and would not charge you a fee. Taking a DMP initially may give you some time to save for the bankruptcy fees or you may prefer to carry on with the DMP.

Mel
Bygerry
#8487 Hi Mel

We havent paid any creditors or the debt councilor from Feb 05.
In the menatime I worked on sorting this cheques for cash shop out so we wouldnt owe that.

The £920 will be from the total of my hubby & mines salary on the 21/6 after we have paid all critical bills Rent, Gas etc.

However it wont leave us much to live on...

Choosing Bankruptcy as teh best means as we owe so much have no assetts and need to get a fresh start without the fear anymore.

The OR may put on a payment plan for three years but at least we will be sorted then.

do you get where I am coming from??

Thanks

G
ByMel_Odious
#8492
gerry wrote:
do you get where I am coming from??

Thanks

G

Exactly Gerry,
I am always very wary of telling anyone to go bankrupt as it is impossible to know every little detail that may be affected and if something should go wrong then I would hate to be responsible.

It does seem that you have got everything covered though and appear to know exactly what you are doing. I went bankrupt 3 years ago, it was 3 years for bankruptcy then and not the one year as now. It was the best thing I could have done with a load of debt, the CSA baying at my heels, no throat and having no assets and no-one else to worry about. I am much happier now with my salary and pension being all mine and I can at last save a little for when I eventually retire, probably when I'm seventy in five years time.
All that remains is to wish you luck and hope all goes well which I am sure it will.

Mel x
Bygerry
#8495 Thanks for the best wishes Mel

Like you say its the peace of mind ( I hope) I will likley lose it..

My hubby is 12 years older than me at 59 and we felt we wouldent have a life near to his retirement. Not only that I was concerned that they could have snatched back any lump sum pension.

So the big B for us next week..

I will let you know how we got on.

Thanks again

G
ByMel_Odious
#8498
gerry wrote:Thanks for the best wishes Mel

Like you say its the peace of mind ( I hope) I will likley lose it..

My hubby is 12 years older than me at 59 and we felt we wouldent have a life near to his retirement. Not only that I was concerned that they could have snatched back any lump sum pension.

So the big B for us next week..

I will let you know how we got on.

Thanks again

G


In which case, yes it is definitely the right thing. I was aware that there was no way I was ever going to get out of debt in this lifetime so did the deed which was a saviour for me as I'm sure it will be for you both.

Mel x
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ByJoannec
#8499 Just a note, the chappie at the CAB (who was not brilliant, see my earlier posts!) told me that the OR would probably want my pension. This is bo**ocks as I have £5k in a pension and I'm 33 so can't touch it till at least I'm 50.

But your OH is legally of the age where he can draw on his pension. If it has accrued a value, I think there may be a risk of the OR taking it.
ByMel_Odious
#8501 I don't know for sure but there is a leaflet on the Insolvency site entitled "What will happen to my Pension" TG they haven't touched my State Pension or I would be in poop land.

Mel
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ByJoannec
#8502 Told you the chap from the CAB wasn't brilliant.

He told me they would definitely want my pension - no question.

:roll:

Complete waste of an hour and a half of my time!
ByMel_Odious
#8504
Joannec wrote:Told you the chap from the CAB wasn't brilliant.

He told me they would definitely want my pension - no question.

:roll:

Complete waste of an hour and a half of my time!

I have seen so many cases (mainly at that other place jo) where the CAB have given out wrong information. We should not really castigate them because they do an excellent job in a field where there is so little available help, but.................
It is so very important that you make an appointment, not easy I know, to have a face to face interview with a specialist debt advisor. Most CABx have one attached to their branch. The trouble is that normally you only get to see a volunteer, who may be well trained in some law but is not up to scratch with debt advice which is a specialist subject.

Mel
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