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

Moderators: TalbotWoods, JaneClack

ByMorgana
#3526 Hi, me again!

Just wondering if I go for bankruptcy and have a surplus (so Payplan say but I'm borrowing from Peter to pay Paul) of £300, how much of that would I have to pay if the judge makes me pay? Would it be all of the £300??

Thanks in advance..there are so many things I need to know about this!!!

M
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ByJaneClack
#3527 If you were originally assessed as having a surplus of £300 there must have been a change in circumstances which means you can no longer afford this. I do know that both Payplan and CCCS use the common financial statement and this - if all the facts are given correctly - leaves the surplus that is deemed suitable for each individual.

Have you not contacted your case officer in Payplan as if not it is important that you do so. If you are not earning as much they will be able to revise your budget accordingly or advise on bankruptcy if your income is not going to increase in the short to medium term.

If you are not earning - as you stated in your earlier thread - then you would not have a surplus of £300 to offer the Official Receiver. He would go through a budget sheet with you and you should put down what you spend. He will, of course, want to see payslips, rent books or letter from Mum confirming your rent and other utility bills but if you are on SSP and pension there will be nothing to pay.

Let us know how you get on.
ByMorgana
#3528 Hi Sarah,

Thanks for replying. Yes my wages have been reduced and I am now receiving nearly £400 less a month due to being off work sick but I am now due to go back to work next week. Payplan have been very lax at contacting my creditors and have not really provided me with much information regarding whether or not the payplan agreement was accepted. Two of my major creditors have not frozen interest, are charging me large fees on top of interest and payments and are bombarding me with letters regarding this. Despite contacting payplan to ask them to get in touch with them they have not. I am suffering from ill health and really do not need the stress of handling letters and telephone calls.

I already owe over £25k and the amount is rising and rising constantly. I feel that I will never be debt free whilst I have this payplan arrangement and feel that bankruptcy is my only answer. If I do decide to go for bankruptcy and I do have the surplus of £300 what happens then?? My main priority is to free myself of this worry as it is affecting my health far too much.

Thanks for your help

M
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ByJaneClack
#3529 If you have a surplus of £300 then you will be asked for between 50 and 80% of it. No-one can say exactly how much. As you are living at home with your mother it is almost certain you would have an income payments arrangement as you would have a surplus income.

Again I say contact your case officer and explain the position. Put it in writing - via email so you can be sure of getting a response.
BySonic
#3537 Hi Morgana

You may well find if you went bankrupt that the OR would be a lot more generous with your expenditure that Payplan.

Of course every case is different so you can never predict what an OR would decide, but in my case he calculated my surplus income to be about 200 quid less than Payplan calculated....

S
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ByJaneClack
#3541 The OR is definitely more generous than the common financial statement is - which is what the non fee-charging DMPs work on.
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