Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By seashell
#471637 Hi :)
This is the 1st time I've posted so sorry if I ask questions that have been answered before.
So... I went bankrupt a week ago and was contacted by the OR the same day who asked me a few questions, let me know I would get a letter and told me to prepare for my car going. A week on my car has been taken but I was given enough (£1500) to replace it. I have received the letter and I have been asked to provide 12 months worth of bank and credit card statements and 3 payslips.
Is this usual?
Can anyone tell me what happens now?
When will I know if they are going to take money off me each month?
She did say my tax code would go to zero but I don't know when.
Also some of my debt was joint with a very aggressive ex husband who will be furious if he finds out I've gone bankrupt. Will the OR tell him?

All very stressful, feel like a total failure really.
Thanks for any advice
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By TalbotWoods
#471638 Hi and Welcome

Please please do not feel you are a failure, if fact you are the complete opposite. A total failure would bury their head in the sand and let all hell break loose; you have done the opposite, you have taken complete control, you have dealt with this that now means you are debt free. So don't feel like a total failure, stand tall knowing that you have looked at the devil (OK out of control debts) eye, and YOU had kicked him right where it hurts, and excuse the pun, but that take footballs, and that ain't the sign of a failure!

OK moving on a bit.

Not Tax IPA, will come into play when and if HMRC reduce your tax code to NT, happens for a lot of people, doesn't happen for a lot. This aspect is something for the OR to chase not you.

When it does happen let the OR know, DO NO SPEND IT, as you will need to pay it to the OR.

The bank statements. If you have them yes let the OR have them, if not cheekily tell the OR the bank wont release duplicates as the account is frozen! Believe me it is often easier for the OR to get them than you.

Don't worry about them having them, it will help them to try and work out why you became insolvent, EVERYONE is asked for them, also credit card statements, store card statements, loan agreements, ect. The more paperwork he has the easier it is for them, and the quicker they can conclude your case.

Yes he will want to see the payslips, remember you told him your income was £xxx a month, he needs to see the proof of that.

Don't worry if there is an abundance of overtime on them, just be honest as to why. It is not unknown for people to work all hours under the sun (and moon) to get the funds to pay for the bankruptcy, and keep up some payments to the debts in the meantime, and then drop back to basic hours when the deed is done. So if you have overtime, and that is going to stop, tell them, it wont raise any alarm bells, as so many people do.

As to a income IPA, that will be calculated when the OR has seen your payslips, any statement you may make about hours, and checks your expenditure. They they will say how much.

If you disagree with his calculations tell them, if you think he has been overly hard on your expenditure, challenge them. It is all part of their job, most people who think they have been overly hard done by, if they can show a reason why, then the OR can be reasonable.

A little surprised they only allowed you £1500, most ORs allow up to £2000 for cars.

As to your joint debts, the OR wont tell your ex, but the creditors will chase him for the full amount, and they may tell him. So be prepared for some sharp words. ect.

If they can track him down, that is!

Once the IPAs are agreed, then that is it, you may be contact by the OR again, most are not, you may get the odd letter from them, many don't, many hope the OR will write them a letter saying they are discharged at the end of the year, Hmmmm No one gets a letter. Pretty much this is the exciting part, when things happen, to be honest for most people the rest is a well, Hmmm, errrr a total let down of nothingness.

And don't worry as the weeks move on you will actually find you have a lot more 'little' questions, please feel free to ask away

Oh by the way, congratulations on being debt free, probably one of the best decisions you will have ever made, but it just quite feel like that yet!

By seashell
#471643 Thank you so much, I guess with time I'll pick myself back up :)
My pay is always the same so it should be pretty straight forward and I was lucky enough to get help from the citizens advice people when I completed all my budget forms for the application. Hoping I can print off my bank statements tomorrow as I don't think my account has been frozen yet ( wonder how long that takes?) and then I can get it sent off Monday.

When I got divorced my ex would only agree to the financial consent order if it was included that 'in principle' we should each pay one half of any debts incurred from the repossession of the house. That's why he is going to be angry and he can be very vengeful. I guess I'll find out soon enough. I wonder if I should tell the OR?
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By TalbotWoods
#471645 Yes tell the OR about the divorce and what he is like, but the bankruptcy normally over-rules a divorce financial consent order. This is why you MUST tell the OR

Do not try and hide any debt, or account, no mater how 'obliged' to your ex that you feel, doing that can cause you even more problems!

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By JaneClack
#471648 Incidentally I have seen someone only be allowed £1,000 for a car! He did not need to drive that far for work etc but it did seem quite churlish - but then again it was only really for the year!
By seashell
#471651 I will certainly tell the OR. I had been told by the CAB that I would be offered £1000 so when the OR said £1500 I was pleased. Thinking about it now though it might be my fault. The OR asked if I had been told what would happen to my car, I then said that I had been advised by CAB that I would lose my car but recurve £1000. Maybe if I had said £2000 that's what I would have got? Anyway, I have a replacement car now and it's ok really :)
Checked my natwest account last night and it's frozen so really can't get statements. I opened a new account with nationwide just before bankruptcy as they agreed that as long as I didn't owe them they would allow the account to continue. Just have to watch it carefully to make sure that actually happens. Wish I had some time off work to keep on top of it all.
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By TalbotWoods
#471652 Just tell the OR you cant get the statements as the account is now frozen, they are so so used to getting them from the banks it is not really a hassle for them. Just a form they have to send of! (may even be done electronically now)

However, don't forget you will need statements for all your accounts, not just the Natwest one.

Yes the first few days do seem a bit frantic, but within a week or less you will start to wonder what all the fuss was about

By seashell
#471677 Well, despite nationwide saying they wouldn't freeze my account, they have. My OR said she has written to them saying she has no interest in the account but she is going to fax it to them again in the morning. I did check with them before I went bankrupt and they said as long as I didn't owe them that once they had confirmation from the OR that they would allow the account to continue. Is this likely to be true or should I start panicking about how I get paid and how I pay my bills? Stressful :(
However I did also tell the OR about my finance agreement when I divorced and she said it was no longer relevant so that's good. I post all my document tomorrow.
I have a week off work now so if I need to make lots of calls to try and resolve the bank stuff I can, just hope there is a way?
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By TalbotWoods
#471679 Hi

OK not overly surprised with Nationwide, as nationally they have a policy of not opening accounts or allowing already open account to remain open. I didn't say anything when you said you had a Nationwide account, because I do know of a few that have been allowed to remain open, at some regional mangers discretions.

Currently the only bank that routinely allows undischarged bankrupts have an account is Barclays (Cash Card Account), Don't be thrown by its name, it actually a decent account ( ... 2557963900 )

And it is also available to people who owed Barclays money before as well, but you will need to open it in branch, make sure you take the proofs, ect.

Make sure the Customer Service Advisor ONLY attempts to open a Cash Card Account, as they will try and up sell you which will result in your application being refused!

By seashell
#471680 Thanks Tim
I had heard that because I have included Barclay cards on my bankruptcy they wouldn't offer me an account but I'll phone them in the morning. This site and your advice is really helpful, glad i found it in time! :)
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By TalbotWoods
#471681 Your welcome

But remember the Barclays account can ONLY be open in branch, they cannot open it via the phone

By seashell
#471682 Morning :)
Just wanted to let you know that nationwide have removed the freeze from my account this morning after receiving a fax from my OR. So hopefully I will be able to carry on banking with them. I sent all my information and forms to the OR this morning. How long does it usually take for them to inform me about any IPA? Also, although a couple of my debtors have already written to acknowledge I'm now insolvent, my phone has started ringing! Should I just not answer and wait for them to find out I'm bankrupt or should I tell them myself about it? Feel worried I might say the wrong thing.
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By TalbotWoods
#471683 If they call or write just politely but firmly tell them that is now against the law to them anything, because you are now bankrupt, give them the details of the case number, the court and the details of the OR.

If they continue to call (and sorry to say it some will) just inform them that they have been informed who they need to contact, and if they continue to call you WILL be reporting them for breach of the FCA Rules!

Good news on the Nationwide, as I said not unheard off, but not the norm, which is good news for you.

Once the OR has all the paperwork, it is a case of, Errrr Ummmm.

OK should be a couple or weeks but I have some wait a few months, through no fault of either the OR or the Bankrupt.

Remember when the Tax IPA comes in you cannot argue that, especially if you are basic hours.

With the Excess Income IPA, if you feel the OR has been overly hard, challenge them, if you think they have discounted something that is essential, again challenge them. IPAs can have a element of negotiation in, but don't go over the top or it moves from an IPA (Agreement) to and IPO (Court Order!).

Having said that most IPAs are pretty much spot one

By seashell
#471824 Hello!
I got my IPA letter today and as far as I can see I think it is just a nil tax IPA. The letter says I should pay the amount my OR has estimated I will gain through nil tax every month from when my tax code changes until April 15. Will they recalculate after that? Also I have just been recommended for a pay rise. If it's authorised I will probably receive it from Decembers pay but it will get back dated from September. Assuming it goes ahead, should I just contact my OR as soon as that happens?

I am really relieved and pleased with the nil tax IPA. Might just be able to give the kiddies a Christmas after all this year!
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By TalbotWoods
#471825 Hi Ya

OK the tax IPA means that when and ONLY when HMRC change your tax code to NT, and you stop paying tax, you pay the difference to the OR (or the appointed trustee) directly.

You will pay this until:

1. The end of this current tax year
2. You change employer or have a period of unemployment.

In April 2015 (assuming HMRC have applied the NT Code) you will revert to paying tax normally (though your pay), and STOP paying the NT IPA.

Yep with regards the pay rise you notify the OR within 28 days of getting it, so that they can see if it effects any pay type IPA (which you don't have now)

[Hint: But don't forget that by December bills will have gone up, cost of living will have gone up, ect, so your payrise may well have been eaten up in rising costs. This way they may well not be interested].

Now go and enjoy live, look after the kids, and have an enjoyable Christmas yourself, and most defiantly a much more prosperous New Year !