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

Moderators: TalbotWoods, JaneClack

By DCG
#3072 Hi, I am considering Bankruptcy, and need some help/information.

Who are the best people to speak to?

Thanks
ByDavidc
#3076
DCG wrote:Hi, I am considering Bankruptcy, and need some help/information.

Who are the best people to speak to?

Thanks

Depends what you want....
Advice from people who have personal experiance
i.e that that is in the main offered hear
Or professional advice
Not the same
Mix and match
David
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By JaneClack
#3078 Yes, David, we do give general professional advice too. But we also encourage research and the free debt advice agencies!
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By Nicky
#3082 You can download the forms you need for bankruptcy from here.

http://www.insolvency.gov.uk/forms/forms.htm

Scoll near the bottom of the page, and you need 6.27 and 6.28.

You dont "have" to inform your creditors because the Official Receiver will do that anyway, but if it makes you feel better to let them know.........

There are quite a few folk on here who have posted their personal experiences of the day of the petition, which is very useful, so if you havnt already, have a look at those. :wink:
By DCG
#3091 Thanks,
I'm afraid I need rather basic practical advice.

What do I need do do re:banks/bills etc before petitioning.

What will happen re:joint account, tax credit, child benefit payments etc.

I really don't know where to start. I've tried contacting my local CAB but can't get through.
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By JaneClack
#3094 Right. First of all you need to ensure rent and other household utilities are up to date as you do not want them being included in a petition after which you might end up having to pre-pay for everything and BT would not allow you a new phone line. So do not include it!

Secondly the bank account is going to be frozen so take as much out as you can. If your husband is going to petition too it will need to go elsewhere - another family member's bank account perhaps. You will be able to open a new bank account with someone like the Nationwide the following day. You will have to inform benefits providers ie.CB and tax credits to transfer money to this other account. It takes time but it is worth it to get rid of the debt. Some people petition for bankruptcy the day after pay day - getting out all they can in cash and then petitioning. That joint account is very much at risk as I said before.

Filling in the forms themselves is not rocket science but the thought is frightening I know. Phone one of the free debt advice agencies - NDL, FCL/Payplan or CCCS and ask them about it - they can all send you booklets but do download those leaflets from the website. Unfortunately we cannot fill the forms in for you but keep trying the CAB as they are experts in this field. They are also VERY busy so keep trying.
BySonic
#3096 Hi DCG

I can only offer 'advice' through personal experience, but here goes:

- You are right in seeking professional advice; I don't know your circumstances but you need to be sure whether bankruptcy is in fact the best or only option for you? And if you do petition for bankruptcy you will be asked whether you have taken advice.

- Keep trying with the CAB - I know its hard to get through but you'll get there eventually. When you do get through though, make sure you get an appointment with a money advisor or debt case worker, as I and several others I know were given bad or inaccurate advice by well-meaning but ill-informed volunteers.
I would also strongly recommend calling National Debtline - again it might take a while to get through but they offer very good impartial advice.

- with regard to bank accounts - if you have a joint bank account but don't want your partner involved in any way with your bankruptcy you need to get your name taken off, which may only be possible if the account is not overdrawn

- general recommended 'procedure' (if it could be called that) before going ahead: get paid, make sure essential bills are paid, empty bank account, petition, open new basic bank account day after petitioning.

Hope this helps

S

- with regards to bills - you need to ensure or your essential bills (eg rent, gas, leccy, phone) are paid before you petition, otherwise these would have to be included in your bankruptcy, which could cause problems. Once they're up to date, probably best to get your phone line put in someone else's name.
By DCG
#3099 Thanks S

I am in the process of changing utilities to my partner's name.
Our account is overdrawn, so I am thinking he should move his money and direct debits to another account in his own name. Is this right?
Would the joint overdraft then be included in the bankruptcy?

Our rent agreement is in my name, should I change that over to him too?

Also my loan payment comes out of the joint account. As there will be no money going in, should I inform them I am preparing to petition, or just let them take their money and increase the overdraft?

Sorry for all the QQQQ's but no-one will answer the phone to speak to me!

TIA
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By JaneClack
#3100 You have to keep trying - try NDL, FCL/Payplan and CCCS too!

Aanyway you do not have to change the rental agreement over. You have no income so it is obviously being paid by someone else. As long as it is up to date there is no problem. Yes, your husband should change his bank account straight away if he is not going to follow the bankruptcy route. In an IVA he wouldn't be able to keep it anyway. The overdraft would go into his IVA and your bankruptcy so you won't be paying anything more to them.

You can tell them you are going to petition but you do not have to. The Official Receiver will let them know and it will just increase the overdraft if they take it out or they will take it out, bounce it and charge you £30 or so for the privilege. All this is now immaterial though as it will be included in the bankruptcy.

Good luck.
By DCG
#3101 Thanks Sarah,

After speaking to the IP who was setting up the IVA, my partner has decided to do a DMP with Payplan. If I am bankrupt, he doesn't have to account for my debts and can afford to pay his debts in full in approx 4 years. He wants to try this first.
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By JaneClack
#3103 Sounds very sensible to me and have you discussed the bankruptcy with Payplan because I am sure they could send you some information?
By DCG
#3106 Yes they're sending me some information in tonight's post. Also spoke to CAB, although there wasn't a money advisor to speak to, the woman was very helpful, and was unaware, to her knowledge, of any other option available to me. I can't find any reason not to go bankrupt othere than I'm scared, but I'll just have to get over it! I just have to find the money!

Thankyou so much. I'm much more relaxed now than I was this morning.

I thought I had no way out.
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By JaneClack
#3110 I am pleased to hear it and once it is over the relief is indescribable I am told. No more worrying about the telephone calls and only liking Sunday because there is no post. You will be fine!
ByDavidc
#3112
Sarah wrote:Yes, David, we do give general professional advice too. But we also encourage research and the free debt advice agencies!

Wish I had kept my mouth shut
By DCG
#3113 No David your input is much appreciated!