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

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Byagesofelegance
#4534 Hi
I have a bankruptcy hearing next week and need to ask a couple of questions.
Firtsly some background
I am self employed and became ill in 2003 with a number of clients, all but one were ok. I managed to deliver orders but some were a little late due to the illness. One chap decided after I had struggled to finish that he no longer wanted and we went to dispute. he claims I wasn't ill, lying etc and the courts have agreed.

As i was then on benefits I offered repayments but was turned down. i offered to sell teh items to give him the money back but he held on to them for 7 months before I got them back (after he'd sent the bailiffs around) and he refused anyway

He has now issued a statutory demand and we have a hearing next week. My bill to him is £1200 + £500 court costs as he stayed in the most expensve hotels for 2 nights for each hearing. My other debts come to approx £14,000 so he is doing me a favour as I have been struggling, paying toward them each month so will ahev more money to spend. I am still on benefits (DWTC, HB &CT) as I have a long term illness which is not yet controlled enough to let me work full time, and I live in a council flat. I really cannot see what he hopes to gain by this except to teach me lesson

Firstly how long after the hearing will the bailiffs come round, do I have to let them in, do they have to have an appointment. my car is worth about £250 and as I now have difficulty walking will they take it and how likely are they to be difficult in taking things of little value just becasue they can. Will they search lofts and basements etc in case I ahev things hidden
The only real assets I have are the books I need for work and fabrics which I squirrel away when I find bargains that I know I will need one day, as well as the usual amount of LP's and dvd's which I need for work, can these be taken, I need my PC for work.
Will my bank account be frozen straightaway and how soon/easy is it to reopen a new one or have it unfrozen (only a basic online anyway

Any help greatfully appreciated

Helen
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ByNicky
#4536 Hi Helen, in my little knowledge of these things, if you are going bankrupt, you wont see any bailiffs. Once you go bankrupt, the responsibility of your assets are handed over to the Official Receiver and he will decide if you have anything they want to take, and from what you have just said, it is unliikely they will be taking anything.

If you have no surplus, no assets and there is no risk to employment, then going bankrupt would be a good option for you. This person who has refused any offer you have made will have basically shot himself in the foot, because if you go bankrupt, its unlikely he will get anything, well, thats his fault for being such an stubbon fool for when you were trying to negotiate with him.
Byagesofelegance
#4538 thanks that helps
He is an idiot really as I can sell his stuff now and he won't get anything. He was even told by the judge at teh Statutory demand hearing it would eb punic and he has now spent more than I owe him doing this, but having met him and his wife I don't think this is about teh money but about teaching me a lesson
Byagesofelegance
#4539 also as I'm not the one taking this out what paperwork will I need to take
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ByNicky
#4543 He is still the one with egg on his face. You know you are not in a position to pay what you owe to your creditors, so going bankrupt will give you a fresh start. Your situation was due to unforseen circumstances, you didnt ask to be ill, it just happened!

I'm guessing the paperwork you will need is anything relating to any agreements you made re: the trade. Are you actually making a petition, or are they? Or havn't you got that far yet?
Byagesofelegance
#4554 thanks that's really helpful.
I'm assuming the petition is happening on monday as I was served teh papers last month. They have actually been trying to serve for ages but there was a fire in teh downstairs flat which caused damage to mine so I was away most of december, but neighbours reported people banging on my door and looking for me. I got a letter at teh beginning of january from teh court to tell me there had been a meeting with a judge and the hearing date had been put back to march as it was originally scheduled for january. They never actually sent me a letter re this meeting though and I was picking up post.
The courts have all teh paperwork re the actual contract with him. His valkyire of a wife filled 4 binders with 'evidence' against me, so much so that the judges couldn't be bothered to look through it and I couldn't carry it. the box made a fab coffee table during the summer. the binders will come in handy.
I was going to send a final letter objecting to teh bankrutpcy on teh grounds he wouldn't get any money and having my final say as it were but I couldn't be bothered wasting a stamp in the end.
For paperwork I was just thinking of taking my I&E forms and the list of other creditors plus some info about my illness. Do I need to take all my bank details, credit cards etc. I am assuming as he is the one doing this that I won't have to take money to pay for it
Helen
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ByNicky
#4559
agesofelegance wrote:the box made a fab coffee table during the summer. the binders will come in handy.


:mrgreen:

Yes, I see what your asking now. I&E e.t.c. yes, take that and info Re: creditors, bank cards and statements. Anything you can basically. I dont know if you will need it on that day, but at least you have them if necessary.

He is making the petition, so its up to him to pay the costs.
Byagesofelegance
#4561 ta
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ByJaneClack
#4571 ....and if you cannot find some documents, just tell the OR. They will be writing to creditors anyway.

This chap has done you a favour really!
Byagesofelegance
#4581 I have been trying to get myaccounts up to date as I fell behind when at my worst so will hopefully have the whole lot for them by the time I get teh interview.
Yes I must thank him ;-) as no doubt he will be ther to gloat at my 'downfall'
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ByJaneClack
#4582 What downfall!

It has cost him an arm and a leg, saved you the bankruptcy fee and doesn't stop you working as a self-employed person. You will probably be out of bankruptcy in 6 months during which time you will spend a lot of time doing research and marketing as you would not want to earn too much so avoiding an IPA.

Are you sure he is not a guardian angel in disguise?
Byagesofelegance
#4594 I'm sure he thinks it will eb my downfall and I doubt he would think he is my guardain angel lol
most of my time atm on DWTC is either finishing work, that was put on hold when I became ill, for nice clients or catchign up on paperwork to fill teh 16hrs pw I need to do. I've taken on a couple of small jobs to pay off some bills so will complete them and then don't need to worry for a while as there will be less to pay each month, just develop a new line and plan the marketing campaign :-)
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