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

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By Lann
#4163 Hi all - just wanted to say, as I hadn't posted on the Intro bit of this site, how useful and relaxing everyones' help has been - its such a relief to have found this forum!

I think (unsure as not getting much sleep with 2 wk old daughter!) I read somewhere (Sunday Times?) recently that creditors/ OR have the ability to claim against any property you own for up to 3 yrs after you've been discharged. Is this right?

Also, as a cheeky Part II to the question: I owe a couple of hundred on the phone line. Can we transfer this into my wife's name before the B happens, or do you have to clear the debt first?

Part III: If an old debt may have been written off but you're not sure (and are too chicken to ring up and ask) should you declare it anyway and let the OR sort it out?

Many thanks,
L. [/i]
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By Nicky
#4166 Hi Lann

The 3 years is from when you are first registered bankrupt. Also, if you are required to pay a monthly fee into your bankruptcy (normally if you have a surplus income) this will be for 3 years as well.

As far as changing the names with the phone company, I wouldn't of thought you would have been able to do this whilst there are still arrears on the account, otherwise, I wouldn't of thought there would be a problem with this.

Old debts can be made live again at anytime, so it would still need to be included. Any account which you owe money to needs to be included infact, so the general rule would be, if in doubt, declare it.

Hope that helps and a belated welcome to the forum. :wink:
By Lann
#4168 Thanks Nicky - does that mean you shouldn't buy a house for 3 yrs because it could be claimed as an asset? If you have no surplus income for the 6 or 12 mths of B and then you get promoted at work and your pay increases within the 3 yr period following, the OR can than start to apply a fee?
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By Nicky
#4174 As far as I am aware, any assets you obtain once you are discharged are generally yours. If someone else can say otherwise then please do, otherwise I will find out for sure tomorrow.
By Lann
#4175 Does this : The 3 years is from when you are first registered bankrupt contradict this: any assets you obtain once you are discharged are generally yours in the last few posts or am I being really slow? (sorry - don't know how to quote seperate selections)
Thanks,
L
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By Nicky
#4176 No, its not contradictory :wink:

If you already own a property when you are officially declared bankrupt, then the Official Reciever can take up to 3 years to claim on that asset. This could be to give time for equity to increase for example. If the Official Reciever makes no claim during that time, the asset is reverted back to the bankrupt.

Generally, the 3 years applies to assets you own during the one year of your bankruptcy restriction order (or longer if you have extention on your bankruptcy order)

Assets obtained AFTER your discharge are "normally" yours. However, I will need to get this confirmed regarding properties to be sure which I can find out tomorrow unless someone who knows for sure can come along and confirm.
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By Nicky
#4177 Just to save confusion, the "Restrictions" placed on a bankrupt are lifted after one year, however, the Official receiver still has claim to "assets" for up to 3 years from when you were registered bankrupt.
By Lann
#4179 Ok - that makes sense now :) I don't have any assets right now and no surplus income, but I just wanted to make sure that if a reversal in fortunes occurred after the discharge I wouldn't then still be chased! Thanks for clearing that up Nicky.