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

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By mt
#7938 Hi all. First time here and very pleased to find this forum. I have a BR appointment at the court in two weeks' time and I'm really nervous about the whole thing. Can someone who recently been through this calm my nerves a little? Do you find the judge friendly? Will I be made to feel a total failure?

What about the OR appointment afterwards? How soon did you get yours? My circumstances is such that I would like to have the OR interview as soon as possible. Is it possible to let the court know about this and hurry things up a bit?

Also (my main worry) is that my partner will be affected in some way. We are not married and he is aware of my financial problems but is very supportive. Has anyone been in a similar situation and can they confirm that the court cannot touch his house, which is solely in his name?

Thanks.
By Mel_Odious
#7945
mt wrote:Hi all. First time here and very pleased to find this forum. I have a BR appointment at the court in two weeks' time and I'm really nervous about the whole thing. Can someone who recently been through this calm my nerves a little? Do you find the judge friendly? Will I be made to feel a total failure?

What about the OR appointment afterwards? How soon did you get yours? My circumstances is such that I would like to have the OR interview as soon as possible. Is it possible to let the court know about this and hurry things up a bit?

Also (my main worry) is that my partner will be affected in some way. We are not married and he is aware of my financial problems but is very supportive. Has anyone been in a similar situation and can they confirm that the court cannot touch his house, which is solely in his name?

Thanks.


Hello MT and welcome,
My bankruptcy was not that recent but the formality hasn't changed that much. I don't know that I can calm your nerves but could say don't worry, but I know you still will. It is a nerve racking experience but shouldn't be as it is all straightforward and matter of fact.
You may not even see the Judge, I didn't but in any case they are not "judgemental". Your case will be among hundreds he hears every month and I guarantee that lots of those will be for more money than you owe, without even knowing your figure. I don't know about the Judge being friendly but s/he certainly won't be unfriendly. I have seen a few people who say they had a laugh with the Judge. If you do see the Judge it will be in a little room not a big Courtroom with a witness box etc that some imagine and the Judge will not have a wig on.
The OR interview will come some 4-6 weeks later in most cases. Asking the Judge for an earlier interview won't help, it will be entirely up to the OR. Why do you want it quickly? The OR has to prepare the papers etc of yours and as I said before many others.
Are you living with your partner? Your bankruptcy, including your name and home address will be published online and in the local newspaper. There is also a complicated matter in property of, what is called "Beneficial Interest" which can occur if you have made any contribution to the house. You may need to check that out.

Bankruptcy is not always the easy option and you should be absolutely sure that it is the best way forward for you. You should also take some free independant advice from the likes of a Debt Advisor at your local CAB or Council Offices; for there is one thing that the Judge will almost certainly ask and that is if you have taken expert advice before petitioning?

Mel
By mt
#7959 Hi Mel_Odius. In between posting my question and your reply I spoke to National Debt Helpline for some advice and they told me about Beneficial Interest. They said the best thing is for me to actually ring the OR office, tell them how much I've contributed to household expenses etc and ask them if I will deem to have beneficial interest. So I'll do that tomorrow.

The reason why I want an early OR appointment is that I have a plane ticket to go away 2 weeks after my BR appointment. Perhaps when I speak to the OR after my bankruptcy order has been made I can ask if I can have an earlier appoinment.

I understand that bankruptcy is not always the easy option. In fact I have been agonising over it for a while before deciding that it is the best option for me. I don't feel good about it at all. It makes me feel a complete failure :(
By Mel_Odious
#7961
mt wrote:Hi Mel_Odius. In between posting my question and your reply I spoke to National Debt Helpline for some advice and they told me about Beneficial Interest. They said the best thing is for me to actually ring the OR office, tell them how much I've contributed to household expenses etc and ask them if I will deem to have beneficial interest. So I'll do that tomorrow.

The reason why I want an early OR appointment is that I have a plane ticket to go away 2 weeks after my BR appointment. Perhaps when I speak to the OR after my bankruptcy order has been made I can ask if I can have an earlier appoinment.

I understand that bankruptcy is not always the easy option. In fact I have been agonising over it for a while before deciding that it is the best option for me. I don't feel good about it at all. It makes me feel a complete failure :(

if you are just going away for the usual fortnight, I would suggest you ask for the appointment when you get back. When I was given my appointment, it was inconvenient as I had a member of staff away and had to cover but there was no problem putting the appointment back a fortnight.
If you are deemed to have a Beneficial Interest in the home, then your partner or a family member could buy out that interest on your behalf, so not too much to worry about.
A failure? no way, you are being very brave and strong in realising your predicament and doing something about it. I look at it like this; the creditors are happy because they can now write off your debt and claim against tax. There is always a built in figure for bad debt in their annual profits anyway, which always increase year on year no matter what. The OR is very happy as you are paying his wages and I'm pretty sure that your partner is overjoyed that you will be clear of debt and will now be happier and able to contribute fairly to household expenditure. So very well done mt.

Mel
By mt
#7986 Thanks Mel for your encouragement.

Unfortunately my trip abroad is for 3 months, so I'm really in a bit of a predicament. I hope I can get the OR appointment sorted out before I go as I really don't want to have to cancel the trip and lose the money (non-refundable ticket).

You mentioned that my partner can buy out my beneficial interest in the property? For how much? How does it work?

I have another question. My partner is quite a successful businessman and could have helped me pay off all my debts if he wanted to. But we both agreed that he should not be personally responsible for my finanical mistakes, and that this whole bankruptcy thing will make me learn to be more careful about my future financial situation. I'm okay with all that. My worry is that will the court see this differently and will it take into account my partner's (good) financial situation and either not make the bankruptcy order or count his income when considering whether I should make payments to my creditors etc? Thanks.
By Mel_Odious
#7987 Hi again,
I see the problem with the timing of the appointment with the OR and hope you can be accommodated. I don't know how reasonable they will be on the day (I've seen and heard of so many different types of OR, it is impossible to pre-guess them) but they often do the interview by telephone and that may be a possibility.
As for the BI, which I don't know too much about as there was no property involved in my bankruptcy but Sarah knows more as she goes on debt management courses and has answered elsewhere that it depends on how much equity there is in the property and if nothing, the BI could be bought for £1. Have a look on the Insolvency website:
http://www.insolvency.gov.uk where there is a booklet on bankruptcy entitled "What will happen to my home?"

Mel
By Mel_Odious
#7988
mt wrote: I'm okay with all that. My worry is that will the court see this differently and will it take into account my partner's (good) financial situation and either not make the bankruptcy order or count his income when considering whether I should make payments to my creditors etc? Thanks.


Sorry, missed this bit. It is you petitioning and not your partner so that shouldn't be a problem. The OR won't take partner's income into account but will assess how much he puts into the housekeeping bills and how much you contribute. An IPA/O will be determined on your income and expenditure.

Mel
By mt
#7990 Thanks so much Mel. I feel so much better about the whole thing. Still very nervous, but much more optimistic. Thanks again.
By Mel_Odious
#7993
mt wrote:Thanks so much Mel. I feel so much better about the whole thing. Still very nervous, but much more optimistic. Thanks again.


It's the not knowing isn't it? The more information you can garner the better you will feel. have a look at the Insolvency site; lots of your questions will be answered there. The petioning part is very straightforward and basically just a rubber stamping exercise. The OR interview will cause a little more apprehension (I was a nervous wreck) but as long as you are upfront and completely honest (as far as you can remember) about everything, you need have no fear. When it is eventually all over, probably 3 years on, you will have learned a great lesson and will never be tempted with those d@mned credit cards ever again. I know I'm not.

Mel