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

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By agesofelegance
#4537 Hi
I have a bankruptcy hearing next week and need to ask a couple of questions.
Firstly 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, who pays the costs of the bankrutpcy, me or him
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, as well as some decent i8thc style china and some costumes which I also use for lecture purposes.
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
ByVanessa
#4545 Hi there. You need to stop worrying - it is highly unlikely, nay unheard of, for them to take any goods that belong to you unless there is considerale financial gain in doing so - your personal posessions ( bed, tv, pc, all that sort of stuff ) will be exempt and the 'tools of your trade' will also be exempt so concentrate on looking forward to the future rather than worrying about 'what ifs'

Your bank account will not be frozen immediately you are made B as banks simply don't work that fast although any funds in it will 'vest' in the OR once the order is made.....make sure it's a nil balance when you go to court - you will need to get yourself there and back and eat, pay rent etc until you have a new account sorted. We went out for lunch while we were waiting for the Judge ( also a creds petition) and I was terrified after that we would be hung drawn and quartered for this flagrant recklessness. It wasn't a problem - and it was a nice lunch !

You will not be expected to make ANY payments if you are living on benefits so please don't worry - this is the point of bankruptcy. It sounds as if your situation is personally as well as financially motivated - if the creditor continues to be a pain after the order is made, apply to have him bound over by the court for harassmenr so that he cant bother you.
By agesofelegance
#4555 Thanks
I'm not really worried anymore. I told some one last summer he would do this and I like to eb proved right ;-).
Once i sat and looked at my financial situation I realised I would eb much better off. Most of my benefits go on paying off debts so it will eb nice to eb able to afford the supplements and massages I need to help me walk properly again.
The worst bit was telling my parents when they already so worried and I had, had to borrow off them this last year to keep going anyway so they are my main creditors. I have also just realised as they ahev recently bought me a car and taxed it for me, even though it is in my name I should be ok exempting it. My clapped out old banger is in teh drive and they can have that
teh bank accounts will be emptied this week I have just paid off my rent arrears and council tax to be on teh safe side. the CC's are also to the hilt as I can't buy things any otehr way and am feeling a bit guilty about that

I am tempted to serve a harrassment order on him anyway as he has been sending me emails over the year in different names asking if I can do certain jobs and if items on my website are for sale. I always know by teh style which emails are his and reply accordingly to see how far he will go. He has said that I ahev £6000 of assets listed for sale on my website which is what he is basing all this on, but in reality this isn't true and if I ahd I would have sold months ago and they still wouldn't clear all teh debts anyway. I was also told by the bailiff he sent round during the summer (when he still ahd the goods) that eh could take everything and just leave me wiht one roll of fabric and a reel of thread and this would eb legal as I would still eb able to work. is this true. I also suspect eh may ahve hacked into my paypal account (what will happen to this btw, it is also in a different company name due to set up problems

It is of course always possibel teh judge will see it as too small an amount and not do it anyway so either way i win
Helen