bankruptcy

[worriedgirl]

Can anyone give me insight into bankruptcy. What have your experiences been like. when do they advertise it in the local paper etc

I work for the local council as a benefit administrator would I loose my job.

what time scales am I looking at, as there is negative equity is it a sure thing that the OR will have no interest in it leaving a 3rd party free to buy out my interest or could the OR still take possession. Do they always do a payment order.

Thanks

[MelanieGiles]

I cannot speak for the personal experience - but Skippy is posting at the moment so I am sure will offer good advice on that side.

The bankruptcy advertisement generally appears in the paper during the month following the bankrutpcy order. With regard to your job you will need to check your contract and terms of employment.

They will only take a payments order if you have disposable income of more than £80, and if you are in negative equity with your property a nominal offer of £1 plus costs of transfer can usually acquire the beneficial interest, leaving your property completely excluded from the proceedings.

[worriedgirl]

Thanks Melanie

I am seriouly considering bankruptcy but ned to be sure that the house will not be affected. Do you know what the procedures are for buying beneficial interest.

[Skippy]

When I went to court it was nowhere near as bad as I expected - the people were lovely and I was treated well throughout the whole experience. Even the OR was ok - not friendly, but efficient and polite. I think I would have cried if she'd been too nice!

My BR notice went in the paper a couple of weeks after I was made BR - it wasn't in the free paper which was something! The BR adverts were tucked away with the 'adult services' adverts - if anyone had been funny about me being BR I was going to ask them if they'd found the services they required!

Being BR didn't make that much of a difference to me as I didn't have any assets (apart from my car) that would be at risk and I obviously didn't want to borrow money! The difference it did make is that I am so much more careful with money and I appreciate things so much more.

If you have a look at my blog I've written the whole story from the start of my IVA to my discharge from BR - hopefully that might help you.

[worriedgirl]

Thanks Skippy found your blog really interesting.

Did anyone notice the advert in the paper?

Do you get annual reviews as in an IVA?

What is a BRU I have 25k debts and due to recent seperation am finding it difficult to pay, the debts have accumalated due to illnes, unemployment and a level of living beyond my means will this have an effect. I do own my home but currently it has no equity so I have been told that the OR will not require any interest in it and I could get a 3rd party to buy my interest. I think this is going to be better than an IVA for me. Just need to check situation regarding my job. What time frame did you have from filing for BR to being declared.

[worriedgirl]

Sorry but need to know it is right is right that you cannot have a bank account or is that you cannot have one with o/d facility as with IVA or can you not have a card at all, what about an electron card or solo card. You have to hand all your cards/accounts to the OR when do you get the ones backk that you can keep

[Skippy]

My uncle saw the advert, but apparently he reads the BR notices each week along with the hatches, matches and dispatches because he's nosy. I'd already told him so he was on the hunt! No-one else said anything.

No, you don't get an annual review in BR, but you must tell the OR of any changes in your circumstances before discharge, and if you have an IPA (Income Payments Agreement) you will need to tell them for the of that, which is 36 months.

A BRU is a Bankruptcy Restriction Order. If you get a BRU you are subject to the restrictions of BR (no credit over £500 etc) for the length of the BRU. These are usually given for reckless conduct, fraud, disposing of assets prior to BR etc.

You are made BR the same day that you go to court - I went to court for 9.15am and was BR by 10.15am and back at work by 11.45am!

Yes, you can have a bank account but you cannot have an overdraft. If the account is opened prior to BR you will need to declare it on your forms and the OR will notify the bank that s/he has no interest in the account. It's then down to the bank as to whether you can keep the account. I have a Co-op Cashminder account which is excellent and comes with a Visa Electron card and internet banking.

Who do you bank with at the moment and are they one of your creditors?

I had to send all the cards I hadn't already cut up to the OR. They were credit cards so I couldn't keep any of them. I presume that if the OR hasn't got an interest in an account you would be able to keep the debit card.

[Reviva UK]

Hi worried girl

You can have a bank account even in br. The best one is currently with the COOP and is called a CASHMINDER account 0845 602 7057


This account gives you direct debits / standing orders / internet access PLUS a visa electron debit card.

You also need to know that there is a small administration cost for the transfer of beneficial interest from the OR to your friend / 3rd party.

The most important thing to do is to fully research the other options - IVA & DM and realistically see if they are possible.

If they are not then you should prepare for Br. carefully map out a time frame ( you need 495 in cash to go to court with) plus you need to ahve the new bank account open etc.

[worriedgirl]

I have my main bank account with TSB but they are my main creditor. I have just opened an account with ALLIANCE AND leic but have declined an o/d I do have a debit card.

I am still using my credit cards because I need to to live but all my min payments have been made. Will the courts say that I have been taking further credit knowing I was insolvent even if min payments are still being made. I know that I am not going to be able to keep making min payments so am going to have to eventually declare insolvency.

[Reviva UK]

Hi worriedgirl

lloyds tsb account will definately be closed
Alliance & leicester account will probably be closed because you have a debot card ( 99% sure)

Would highly recommend the COOP CASHMINDER account as this will remain open.

you are storing up trouble for yourself if you continue to use cards.

My recommendation would be to sit down with someone face to face and work out a real budget ( income & expenditure) so you can get a grip of the viscious circle you are in.

You would also be able to fully understand the Br position and perhaps a specialist may see alternatives where you can't.

Just a suggestion.

[MelanieGiles]

Dealing with your point on beneficial interest, if you have little or no equity in your property, a friend or family member can make an offer to acquire this for a nominal sum, and this removes the asset from the proceedings - so if it increases in value in the future this increase is not available to your creditors.