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

Moderators: TalbotWoods, JaneClack

By Collie
#2445 I am filing for bankruptcy, I have paid my debts through payplan now for about a year and a half and I feel like I am getting no where.

My ex husband left me with a huge amount of debt, stupidly alot of it was in my name, but we were married for a short period of time and I was left to carry the can.

I am remarrying in May next year. I cant plan to have a family at the moment, i need to work as every penny of my wage goes to pay off debt. I am not in arrears but I am depressed because even though I work very hard in sales I never have a penny left once all my outgoings have left my account a few days later.

I have a car that I need for work, it is a Honda civic 1.4, I contacted Honda as I couldnt afford to lose my car and they said because I have never defaulted on a payment they wont recall the car even if I become bankrupt providing that I keep up the payments, is this the norm? I heard that as long as you are not driving around in a luxury car you can keep them if you need it for work, is this true?

I have contacted a building society about a non credit basic account so I can still make standing order and direct payments and get my money out of the wall.

I have no assets, my husband to be has no debt and solely owns the house we live in and I pay him rent as a tenant, I cannot get credit now because I am with payplan and I have no intention of ever wanting another credit card or loan again. We desparately want a baby and I cannot have a family in my current financial state. Do you think bankruptcy is the way forward? Advice Please.
User avatar
By Nicky
#2446 Hi Collie

As you have no assets and nothing to loose, bankruptcy may be an option for you. You should be aware however, that you will still be required to pay your available surplus to the Official Receiver, it will mean that you wont have to pay for the period that you might have to if you are in a debt mangement plan.

It is something you can discuss with your case officer. Even tho you are currently in a Debt Management Plan, they will still give you sound advice regarding bankruptcy and if it is suitable for you.

Its difficult to say without knowing the figures, what the best option for you is, but if you feel it is something you would prefer to do, speak to your case officer about it as they will have a better idea knowing what you owe and how much you pay back each month.
By Collie
#2449 I owe a total of about £40,000+ including my car and student loans. I earn about £1300 a month, so you can see my prediciment.

I pay £300 in rent, £250 car, £64.00 insurance £500.00 pay plan, £90 student loans and £60 petrol. so as you can see I am in negative equity every month, plus I am perminantly getting chased by MBNA who will not accept my payplan payment.

I used to earn a lot more money, but I had to change my job because my husband worked at the same company and the woman he had an affair did too, all very depressing.
User avatar
By Nicky
#2450 £300 rent? Does that include food, bills, clothing, shoes, laundry, telephone e.t.c? It sounds like the £500 you pay could be reduced to account for the above.

I wouldnt have thought you would have been able to declare yourself bankrupt with an available surplus of £500 per month. Have you looked into doing an IVA?

MBNA. Dont worry about them not accepting your proposed repayment. They will eventually pass the debt on to a collection agency who will probably accept the reduced payment. They can only keep an account that is in default for a certain period of time before they have to pass it on.
By Collie
#2451 No £300 is to payplan sorry and £200 is to a loan that cannot be included in payplan because the company will not allow it.

My £300 a month rent just includes bills.

Are you saying that I will not be able to go bankrupt, even though I have worked my A*s off trying to pay two peoples debt, is bankruptcy only available to people who just refuse to pay?
ByDavidc
#2452
Collie wrote:No £300 is to payplan sorry and £200 is to a loan that cannot be included in payplan because the company will not allow it.

My £300 a month rent just includes bills.

Are you saying that I will not be able to go bankrupt, even though I have worked my A*s off trying to pay two peoples debt, is bankruptcy only available to people who just refuse to pay?

Not at all. It is just that from what you say the figures add up to the fact that even after you pay £500 a month to payplan you have £36.00 a month left over.
With this available surplus. it may not be best advice to go bankrupt. if you do you may loose the car and have to buy a cheap runaround. I can't see an or allowing you £250 a month to pay to keep up the payments and if it is paid within three years and becomes yours clear title, it may become an asset that the Official reciever may have an interest in selling to realize the funds.
David
Last edited by Davidc on Mon Dec 13, 2004 4:45 pm, edited 1 time in total.
By Collie
#2453 Its not suplus though, I cannot afford to pay it, I have been borrowing money from Family and friends to live.

Its not as though I am driving around in a Porsche 911 its a Honda Civic, I travel in my job up and down the country I have done 40000 miles in 2 years. I cannot afford to have a little run around as I cant afford an unreliable car that ends up costing more in break downs and upkeep. I have slogged my guts out for two years to pay for that car and because of a complete idiot who cannot keep it in his pants I am living a miserable existence and I want out.

So bankruptcy isnt for me then, because I work I get not a jot I have to pay his debt off no matter what.... great. I am sorry if I appear a little frustrated but I feel as though you think because I actually pay off my debt that I am in a fortunate position.
ByDavidc
#2454
Collie wrote:
Are you saying that I will not be able to go bankrupt, even though I have worked my A*s off trying to pay two peoples debt, is bankruptcy only available to people who just refuse to pay?


I also think that you are under a misapprehension.
Bankrupcy is NOT a way out for people who refuse to pay, but for those who cannot pay........their income and assets will be subject to the scrutany of the official reciever and a percentage of any surplus over agreed living expences will be used to repay thier creditors for the next three years.. niether does that include keeping cars with a value of more than £1000 at the most and even then if it is essential for you to work, not just to get there.
David
ByDavidc
#2455
Collie wrote:Its not suplus though, I cannot afford to pay it, I have been borrowing money from Family and friends to live.

Its not as though I am driving around in a Porsche 911 its a Honda Civic, I travel in my job up and down the country I have done 40000 miles in 2 years. I cannot afford to have a little run around as I cant afford an unreliable car that ends up costing more in break downs and upkeep. I have slogged my guts out for two years to pay for that car and because of a complete idiot who cannot keep it in his pants I am living a miserable existence and I want out.

So bankruptcy isnt for me then, because I work I get not a jot I have to pay his debt off no matter what.... great. I am sorry if I appear a little frustrated but I feel as though you think because I actually pay off my debt that I am in a fortunate position.

I don't see your point neither I nor the official reciever are or will be interested in what you think of your husband.......Your only sticking point I think is that you are adamant in your belief that you are going to keep the car.......... Accept the fact that in petitioning you will put this at risk....call it a price for becoming debt free...if you are not prepared to pay the price then it is not for you.
David
By Collie
#2456 I assure you that I am fully aware of what Bankruptcy involves, but what I do not understand is why they would take a tool that allows me to complete my job off me. If I cannot get to work and travel then i cannot pay anyone anything.

If i have an unrelaible car I cannot get to work I cannot earn money, If I cannot get out to see my customers I lose clients and I do not get paid.

I am not proud of the debt I have most of it was run up when i was trying to keep up mortgage repayments on my house when my husband left me refusing to pay, I paid his car off with a loan that he took when we divorced. I am an idiot I know what your probably thinking stupid woman serves herself right. However, when I got married I thought we were going to be married for life. I trusted him and now I want out of this hell of debt so I can get on with my new life.

I am fully prepared to pay what I have to for the next 3 years, but as my car is worth half of what i paid for it and I owe more on it than its worth I don't understand how it is an asset.
User avatar
By Nicky
#2457 Collie

If you are still having to borrow money each month to pay everything off, then your Payplan arrangement currently isnt working for you. I think you need to reassess your finances. Payplan is there to help you so that you are not struggling each month but paying your creditors what you can afford. If this is not currently happening, then the figures that are being worked around cannot be right. Its easy to say I will pay this and I will pay that, and I dont need to include that, but, we need to be as realistic as possible when it comes to situations like that.

Bankruptcy is not for people who wont pay, but people who can't pay, who generally have no available surplus to offer their creditors each month. It seems you do currently have a substantial amount to offer your creds, however, this could only appear like that because your figures of what you need to spend could have changed. I would seriously think about taking a hard look at your income and expenditure again and discussing it with your case officer to see what you can come up with, because you should most definately NOT be borrowing money to meet your monthly expenditure.

Payplan will help you, but remember, they can only go by the figures you give them.
By Collie
#2458 when I set up Payplan I was earning a lot more, but I had to change jobs and now I earn a lot less.
User avatar
By Nicky
#2459 Did you inform Payplan regarding your reduced income?
By Jackie
#2460 Hi Collie
I was just reading your posting and I can sympathise with you,I to was left with a lot of debt from a ex boyfriend who actually committed fraud £50.000 worth but is know where to be found anyway I'm really scared confused as you can read in my posting for IVA which I'm going to do !! I have a new partner and he is very supportive and also frustrated with the whole situation
Take your time seek good advice and talk it over with your partner don't be in a hurry
Good Luck
Jackie
By Collie
#2461 David,

Thank you for pointing out the obvious about the official reciever not being interested in my personal issues with my ex husband, however, whether you are interested or not really doesnt bother me in the slightest, I came to this forum to voice my concerns get answers and find out if bankruptcy is for me.

Unfortunately the response from your self has been somewhat condescending and argumentative I know nothing about you and you know nothing about me however, I seem to have really got up your nose. I have been paying my debts with payplan for the last 2 years I have tried to manage my debt and I cant, so I have agonised for months about my future and whether I can live the next 20 years paying the min payments. Not being able to leave work to have a family because I can not afford it.

My car is not a status symbol, I do not want to keep it because it makes me look like somebody I arent. I am broke skint and the car is the only thing that allows me to make my money. Thats why its the only reason I want to keep it.