Hi! After an hour long chat with my IP, it was agreed that bankruptcy would be the best optionafter exhausting all other avenues. I am worried that my employers will have to know (why?) and that they will send in the bailiffs to take all my stuff - scare stories I have heard. Can someone talk me through the process of bankruptcy from getting the forms from the county court please? My stomach is churning just like it did before I entered into an IVA!
The only way your employers would know about bankruptcy is that you would get a nil tax code for 12 months and you would then be responsible for paying the tax to the OR.
However, the closer to the end of the tax year you get, the less likely it is that you would get this. In that case your employers wouldn't need to know.
Bailiffs will not come in to take your property at all.
You fill the forms in, make an appointment at your local county court and go along with £600. The BR will be agreed and you walk away debt free. You then just have a telephone interview with the Official Receiver who will sort out whether you need to pay anything across to your BR.
If you are already in an IVA then you need to let this fail first and get a letter of termination before you go for bankruptcy.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
If you are already in an IVA then you need to let this fail first and get a letter of termination before you go for bankruptcy.
I believe that this depends on the court - we have had instances where a client has made themselves bankrupt before their IVA has been terminated.
Best of luck, and please don't hesitate to ask any more questions. There is a sister forum to this one dedicated to bankruptcy, and you may find a lot of support there too. http://www.bankruptcyhelp.org.uk/
I think that the majority of times they do need proof that your IVA has failed, but sometimes your IP can provide that information before the 3 months missed payments are up.
This does usually allow petitioners to get some money together towards the fees.
Wonder if they will be going up again this year?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Surely your own IP is best placed to provide this advice, as experts posting on this forum are not allowed to offer their services to posters directly.
You cannot offer your services to posters directly. Paul needs to speak to his IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
As usual I have to agree with Melanie. If your IVA is failing and nothing can be done to save that your IP should be helping you with basic questions. Jan has explained that what you fear is not reality and it is a shame that your IP could not have put your mind at ease.
Finally, if your IVA has failed and there are no ways to go on or settle,ask your IP to bankrupt you and save yourself the fee. Creditors may not agree but it is worth a try.
Good advice from Michael - definitely worth a try!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Good call Michael. I've found that HMRC are often happy to use funds to pay for bankruptcy, and depending on the dividend already paid we've also had some success with others.
It is quite uncommon, but worth a shot if you would otherwise struggle to pay the court fees.
