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

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ByJaneClack
#472844 Hello Butts.

There is indeed a new Standard Financial Statement but we can access the figures only by licence and it is made very clear that they should not be given to clients. This is because they are not what people should be spending but an average - so anything above these figures would need to be justified and anything too far below should be questioned as it would not be sustainable.

Smoking and alcohol do appear in the Food and Housekeeping section which is one of the flexible costs which have trigger figures. Therefore smoking and alcohol - unless you do not eat very much - is likely to push the costs over the figures. It is not a more generous budget than the previous ones but sorts things into more realistic things for today's circumstances - so there are communications and leisure and personal costs also as sections in flexible costs.

Put down what you spend!
ByButts
#472845 Hi Jane,

I have accessed an online Gov UK Bankruptcy form and done a "dummy run" to check I am in posession of everything I will need when I do it for real in Late September/ Early October. It seems quite straightforward.

Fortunately I am not having to take the "nuclear option" of packing my job up and going on the dole to try and avoid an IPA. I have managed to reduce my earnings to a level where income and expenditure will just about break even with an IPA being unlikely.

With regard to Payplan what would be the correct procedure to follow as my review is due. Shall I just ring them and explain my proposed course of action rather than go through a review. I have made my August Payment which will probably be the last as I will be unable to afford it when my first new pay cheque arrives in August for Julys work.

By the time I go BR I will have been earning at my new level for three months (July,Aug and Sept) so will this be ok with the OR with regard to a credible I&E when it comes to an IPA calculation. Ongoing the income will remain at the new lower level.

I pride myself that this will be a purely credit card/ loan BR as I am and will remain up to date with my Rent, Utilities etc. Does this make any difference to the OR ?
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ByJaneClack
#472846 No it makes no difference to the OR - but if for example you had private rented housing arrears although the arrears would go into the bankruptcy the landlord could still evict you for non payment of rent so it is good you are up to date.

If you don't own a property - because if you do have any beneficial interest in bankruptcy the OR would take it - but as you have not, if your total level of debt is under £20,000 you could then look at a DRO. You have probably taken this into account but I thought I should just mention it.

If you are unable to make payments after your August payment I would suggest you let them know as if your disposable income had dropped then you would not be able to continue with a DMP anyway.

Good luck., Butts.
ByButts
#472847 Thanks Sara, I will let you know how I get on.
ByButts
#472863 Hi Sarah/Jane,

Just thought I would share with you my disappointment at the way Payplan treated my informing them I was intending to go Bankrupt after 10 years as a client.

They closed my Payplan Plus Account sent me a huge wad of printouts relating to my payments and creditors and that was it.

At no stage did anyone ask me if I needed any help or guidance. It was almost as though they couldn't wait to get rid of me.

Fortunately I had accessed all the information I would need prior to telling them - creditor addresses account numbers etc.

Is this normal ?
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ByJaneClack
#472865 No, but if it was your best advice then they would not try to change your mind. However, they cannot do the bankruptcy for you.

If you email me jane.clack@payplan.com with your details I'll check for you as I am unhappy at the thought you got no support. However, your Payplan Plus account would have had to be closed as you were no longer in the plan.
ByButts
#472868 It's okay Jane I am well versed in the procedures and ready to go on the 2nd after all my Direct Debits have gone out.

As I only have a basic Bank Account with Yorkshire Bank (held for nearly 10 years) I am hoping this will not be frozen.

The general consensus seems to be that the OR will have no interest in it and it will continue to be available to me post-bankruptcy. It only has the money for me to live on and pay my bills. Any surplus cash I have on the 2nd will be cleared out leaving only an amount to honour my remaining DD's until my next payday. This will be for groceries and transport etc just in case.

A couple of areas I am unsure about are with regard to Council and Income Tax.

With regard to Council Tax this is completely up to date and will continue to be paid out of my income. I take it this will preclude the situation whereby people are including arrears in their bankruptcy and the OR takes the lot.

I am not expecting an NT Tax Code as I am only paying £30 odd pounds per month now my earnings have reduced resulting in a deficit between my income and expenditure of around £100 per month. Also no IPA either. :mrgreen:
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ByJaneClack
#472869 If you are running at a deficit then you will not get an income payments arrangement but you know that.

You cannot guarantee that your bank account will not be frozen - it is the bank's decision, not the Official Receiver's but as you have no debt with them, they may not.

If you are not paying tax then you will not get an nil tax IPA if you are even if only £30 , then you will.

You can continue to pay your council tax as there are no arrears to be included.

Good luck Butts.
ByButts
#472870 Hi Jane,

Do you think it would be a good idea to ring Yorkshire Bank up to find out what they normally do in my circumstances - ie a Basic Bank Account holder goes bankrupt not owing them any money ?

With regard to the Income Tax it says on the Government Website that a fee of £150 will be charged for setting up an IPA which is taken out of you first payment. Unless they don't charge for an "income tax only" IPA they will barely if at all accumulate this total between November and the end of the tax year. Will they really bother to do this. As I understand it it is the only the tax I pay after my bankruptcy till the end of the tax year and not that before that is taken into consideration / up for grabs.
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ByJaneClack
#472871 I cannot comment on the second question as that will be up to the OR in your specific area as the bankruptcy will initially be approved (or not but that is unlikely) by the adjudicator as it is done online.

You could ask the bank hypothetically what they would do - they cannot deny you the money in your account anyway but it is better to be forewarned so that you could open another account afterwards if they did. Banks have their own policies but if it has never been overdrawn it looks unlikely that they would but there are no promises from here :)
ByButts
#472872 Hi Sara Jane,

Submitted my application Sunday Afternoon (yesterday) and it was approved in less than 24 hours as I heard back this afternoon that the order had been made today - how's that for service !!

It says an Official Receiver attached to the County Court is appointed trustee of my estate.
ByButts
#472874 You are not going to believe this but I had a call from the OR's Office whilst I was in the Cinema this afternoon. I have arranged for what I think is my interview t'rrow at 2pm. (it may be to arrange the date but she didn't say that !!!)

So that could have been Applied Sunday, Bankrupted Monday and Interviewed Tuesday - have you ever known them act so fast? I'm slightly annoyed if it is the Interview that I was not at home as it could have been a "world record" :mrgreen:

May be laughing on the other side after the interview - perhaps they are softening me up before "the kill"

Strangely I don't feel anything by way of emotion - however if I come out of the interview with no IPA it will be "mission accomplished. I'm only sorry I had to leave Scotland to do it.
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ByJaneClack
#472875 No, they move quite quickly. It looks as if it is simple then so let us know! There's nothing to stop you moving back you know - once you are bankrupt as long as you keep them informed you could move back when you want!
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