BR or not?

[cowley]

Hi all, I have been reading the v helpful and interesting posts here for a while, just trying to pluck up the courage to post and ask some questions.

I have 80k of unsecured debt with 9 creditors,I have been in a DMP for a year,just trying to get my head around the mess I have got myself into...,then i decided i would look into an IVA,which i spoke to a company about,they were very helpful,and i proceeded to apply for the IVA (40p in the £),unfortunately i have just found out it was rejected by 0.19% as Northern Rock had 25.19% of my debt.
I have always had the thought that I got myself into this mess,so i should try to pay as much back as possible,however it is causing great strain on my relationship with my wife,and also my health mainly stress related problems.

I have looked into the pros and cons of bankruptcy,and am beginning to think it is my only option to get my life and future back on track,i have a couple of questions that i am not sure of though,so if i may......
1) I have a joint account with my wife,should i take my name off this,or will it be ok?
2) do i need to tell my landlord that i am going br
3) Should i open a new account for my wages to be paid into or can they go into my wifes account,until after br?

I should say I do not own a house,have no car and therefore no assets.

[pippa]

Hi cowley

Mine too was rejected yesterday as a result of NR, I am so sorry. I am totally with you on the impact of this. The stress is causing me real issues in my day to day life. I to am looking at BR.
I cant really answer your questions but I am sure one of the experts will be along shortly with their valuable advice.

Take care

Pippa

[catullus]

1) Assuming that this is a bank account and that it's not overdrawn (that is very important)it probably would be a good idea to take your name off this account. I believe but I'm not 100% sure(any views, other experts?)that if you do this the account will not be frozen at the time of your Bankruptcy. Be prepared, however, for the OR to want details of this account to consider whether any of your money was in the accoubt at the time that you take your name off the account, and if so, some of that money may need to be paid in to the bankruptcy.If, all there is in the account, is your normal wage/salary and you spend this every month on normal day to day expenses it's unlikely that any money will have to be paid in to the bankruptcy.

2)If you have paid a deposit to your Landlord and you do not owe him/her any money then in my opinion you do not have to inform the Landlord.

3) It wouldn't be worth your while opening a new a/c prior to BKR because this will be frozen and you may find that the Bank involved may withdraw banking facilities from you. Sometimes your existing bankers will allow you to continue to use your account after clearance from the OR or you may have to open a basic account with one of the other banks. Other posters here will be able to recommend the best accounts.

Again I'm not 100% sure on this but I don't think that you could get your wages paid in to your wife's account. Nothing to do with BKR, more to do with banking procedures. If you are paid in cash, however, there's nothing stopping the money being paid in to the account.

[MelanieGiles]

Yes - I agree that there would be little impact in taking your name off the account prior to declaring yourself bankrupt, so long as there is a minimal balance. The OR tends to deal with monies held in joint accounts on a 50/50 basis post-bankruptcy, unless it could be proven that either party was entitled to a larger share.

You do not need to tell your landlord about your intention to declare yourself bankrupt, but the Trustee will circularise them under normal procedures to identify whether there is any contingent liability.

And I do not see that there is any issue with you asking for your wages to be paid into your wife's account. I have several IVA clients who have done this in the past, and cannot see why this should be any different in bankruptcy - but I am also not a banking expert.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zoe]

Hi there
Yes you can pay wages into a spouses account as i have done this
Hope this helps
Z
x

Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[cowley]

Thank you all for your advice and help so far.I will read over things again,and i may be back for more answers [;....by the way the joint account is just to "pay the bills" for the home,so the balance is always around 0 at the end of the month,but i will get my name removed.

As regards my own account,should i just withdraw any monies in there before going to the OR? is that a normal procedure that he/she will expect?

[MelanieGiles]

There is no problem in withdrawing monies from your account prior to bankruptcy, but you must be able to account for the cash withdrawn, and if any of this is surplus to your ongoing basic living requirements, the OR may well demand that you hand the surplus over.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[cowley]

Thanks Melanie, with regards to having to account for monies withdrawn...is it acceptable to use it to pay money back to my wife that i owe her for flat deposits etc?

[Adam Davies]

Hi
I am sure that you will not be able to do that as the OR may think that you are moving cash away from your creditors.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

No - you must definately not use the money to pay back your wife. This would be preferring her as a creditor.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[cowley]

Many thanks again for your help..what a great forum this is...