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

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By lisaprew
#2402 Me and my husband have a young family and are £27,000 in debt and this has spiralled out of control. We are paying £1 a month at the moment as I am on jobseekers and have been advised by a debt company to go bankrupt. What happens with assets on bankruptcy - ie what can they take? This is really frightening me. As we are on such a low income there is no prospect of ever paying these debts off and we are still finding ourselves borrowing money to survive. What will happen with payment of my husband's wages on bankrupcy if we do not have a bank account?
ByDavidc
#2403
lisaprew wrote:Me and my husband have a young family and are £27,000 in debt and this has spiralled out of control. We are paying £1 a month at the moment as I am on jobseekers and have been advised by a debt company to go bankrupt. What happens with assets on bankruptcy - ie what can they take? This is really frightening me. As we are on such a low income there is no prospect of ever paying these debts off and we are still finding ourselves borrowing money to survive. What will happen with payment of my husband's wages on bankrupcy if we do not have a bank account?

What you regard as assetts are possibly not what the OR will be interested in. first of all before I forget I will answer the bank account question. first of all you have to time the presenting of your petition to be after your husband is paid......before he petitions he should withdraw the funds as this account and any others he has will be frozen and then closed. Then the day after he has petitioned he can open a new bank account....realistically there are only three ones currently that will be of any use to him. They are;
The Nationwide flexaccount. Excellent online banking and cheque ordering facility and opened on the spot. Downside cash card only.
Co-op cashmiinder. Again excellent internet banking and an electron visa debit card. downside 6-8 weeks to open.
Woolwich cardsaver. Again opened on the spot. Basically an interest bearing account with an electron debit card. No internet access but again opened on the spot.
I have all three.
Now assets;
Car. if your husband needs this for work and is less than around 1000 it will be left alone. More than that it will probably go and you will be allowed to buy a cheaper runaround to get buy.
with regard to houshold effects....You are asked to produce your houshold insurance documents. If you have nothing listed as being of special value here you have nothing the official reciever will be interested in....Remember that any insurance policies in your husbands name with a cash in value will be forfiet as will any premium bonds....My advice cash them in and have a good christmas or a holiday before you petition...I did........
David
ByDavidc
#2404
lisaprew wrote:Me and my husband have a young family and are £27,000 in debt and this has spiralled out of control. We are paying £1 a month at the moment as I am on jobseekers and have been advised by a debt company to go bankrupt. What happens with assets on bankruptcy - ie what can they take? This is really frightening me. As we are on such a low income there is no prospect of ever paying these debts off and we are still finding ourselves borrowing money to survive. What will happen with payment of my husband's wages on bankrupcy if we do not have a bank account?

What you regard as assetts are possibly not what the OR will be interested in. first of all before I forget I will answer the bank account question. first of all you have to time the presenting of your petition to be after your husband is paid......before he petitions he should withdraw the funds as this account and any others he has will be frozen and then closed. Then the day after he has petitioned he can open a new bank account....realistically there are only three ones currently that will be of any use to him. They are;
The Nationwide flexaccount. Excellent online banking and cheque ordering facility and opened on the spot. Downside cash card only.
Co-op cashmiinder. Again excellent internet banking and an electron visa debit card. downside 6-8 weeks to open.
Woolwich cardsaver. Again opened on the spot. Basically an interest bearing account with an electron debit card. No internet access but again opened on the spot.
I have all three.
Now assets;
Car. if your husband needs this for work and is less than around 1000 it will be left alone. More than that it will probably go and you will be allowed to buy a cheaper runaround to get buy.
with regard to houshold effects....You are asked to produce your houshold insurance documents. If you have nothing listed as being of special value here you have nothing the official reciever will be interested in....Remember that any insurance policies in your husbands name with a cash in value will be forfiet as will any premium bonds....My advice cash them in and have a good christmas or a holiday before you petition...I did........
David