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

Moderators: TalbotWoods, JaneClack

By Maverick1103
#472913 Hi all I'm after some advice please.

I'm pre bankruptcy by about 6 months; about 9 months ago I separated with my ex partner and moved in with a friend for about 8 months, during this spell I sorted myself out and contacted all of my creditors and agreed a lowered amount to them all, mostly £1 token payments with the exception of about 2/3 which I pay a little more to, max £10, in total I pay about £40. I have 16 creditors and I owe a combined amount approx 22k. About June last year I feel behind with payments therfore most of them have defaulted, which I knew then that bankruptcy was my only way forward out of this mess.

One of my old creditors Lloyds which is from a loan back from 2008ish, have sold the debt a few times, to which I've had agreements with these companies and paid them up until about a year ago. I stupidly thought at the time I could ignore the company which was Westcott because the default had dropped off my credit file, however being pretty naive I didn't think it would come back to me, which about 9 months ago the creditor at the time Cabot Financial lodged a CCJ against me.

I accepted it as I had recently paid Westcott and offered a payment of £1 to Cabot, which at the time was accepted by the court, until about 4 months ago I received a letter stating that the claimant had not accepted the payment and had requested a determination of rate of payment for the courts, I called Cabot at the time who just fobbed me off telling me it's up to the courts to decide. Well a week ago I received a letter from my local court stating I've got to attend court in 2 weeks time for this hearing.

My circumstances have just changed and I've just moved into my partners house and we've got to work out our household I&E. My partner doesn't work therfore we've got to contact the benefits before I can redo my I&E and hand it out to my creditors as we do not know what if any benefits she'll continue to receive. My plan is after about 2/3 months I was going to go down the bankruptcy route once things have settled down and I've got the final funds for it, which I've been saving for over the last 6 months, as obviously pointless doing it when I don't know figures for my I&E and knew my circumstances would change.

Now I assume I've got to attend this hearing as it's in my best interests? Although I don't have a true I&E as stated above, do I complete an I&E with my partner and take that and state it could change varying on benefits? Can anyone advise what I should do?

I'm planning on calling StepChange for more advice from them as well.

Any advice is appreciated in advance!
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By JaneClack
#472914 I am sorry I was not able to reply before due to a glitch with the system and my browser.

You must attend the hearing as you would be in contempt of court if you did not and a potential warrant for your arrest could be issued. Explain you have no income of your own as yet as you are applying for benefits and have just moved in with your partner and so cannot offer anything but a token payment towards the debt. It will all go into the bankruptcy when you go bankrupt even if the CCJ has been granted. The only fly in the ointment would be if you owned a property as if you did they could secure the debt on this and that would then be excluded from the bankruptcy.