bankruptcy - a way out of debt?

[Dollydoo]

my cirumstances at present are that I have 3 major debts. (approx. £12,000 ccj & £4,000 charging order, both with same company) and a

credit card debt of approx. £4,000 which I have been fighting by the route

of no valid agreement. I offered f&f of £1,000 to clear CO but has been

refused. I am about to sell & move into another house owned by boyfriend, nothing therefore to do with me legally. I know the CO will be

paid off but I was considering then to go bankrupt. does anyone have

any advice on this.....I won't own a property, I'm not concerned as to my

credit rating as I won't be needing it now or in future. will the other debts

have to be wiped off? the only legal asset I will own will be my car, which

I can solve by changing back to my boyfriends name. any advice would be welcome.

[Dollydoo]

I may have posted this in the wrong place - if so could a mod move it please, thanks.

 

Also, with regards to the house I will be moving to, my parents are putting

in some money & the proceeds of the sale of my house would also be used

though the house will solely be in boyfriends name because he will be taking on a mortgage also. I will be the only resident, the bills will all be

in my name and I receive income support, incap benefits & disability living

allowance.

[saintly_1]

Thread moved to Formal Solutions

[Dodgy Geezer]

Hi Dollydoo.

Bankruptcy should only be contemplated as a last resort. Although i would recommend the benefit of going BR to anybody who has no choice, i would also strongly advise against it if avoidable.

 

Based on what you have posted. the CO will be paid off, and your debts will then be an unenforceable ???? CCA, and a CCJ.

 

If that's all, i would simply apply to the issuing Count Court to have a variation order on the amount payable in judgement. This could be as little as £1 PCM if thats all you can afford.

 

Your debts dont just get " wiped out " if you go BR. You will still be liable for them if you can afford anything towards them. So selling the house would have to leave you with no disposable income or savings.

[Dollydoo]

I wouldn't go BR for at least 6 months to a year after moving. my only

income would be benefits. the proceeds from the sale of my house would

be put into the new house (boyfriends name only) along with a substantial

amount of money from my parents. In effect, I would have no assets & living on benefits. it's not what I want to do but as I am not liable to want nor apply for credit of any sort in future I thought maybe it would be my best option

[phat256]

my cirumstances at present are that I have 3 major debts. (approx. £12,000 ccj & £4,000 charging order, both with same company) and a

credit card debt of approx. £4,000 which I have been fighting by the route

of no valid agreement. I offered f&f of £1,000 to clear CO but has been

refused. I am about to sell & move into another house owned by boyfriend, nothing therefore to do with me legally. I know the CO will be

paid off but I was considering then to go bankrupt. does anyone have

any advice on this.....I won't own a property, I'm not concerned as to my

credit rating as I won't be needing it now or in future. will the other debts

have to be wiped off? the only legal asset I will own will be my car, which

I can solve by changing back to my boyfriends name. any advice would be welcome.

 

 

hi first and foremeost if you are consideing Bankruptcy you shoudl get advixse from the CAB, the CCCS or natianl debtlien because if you going down that route the judge will ask you .

 

first you have to make sure that you are insolvent by this It means the inability to pay one's debts as they fall due.

 

for your credit rating well you will have not to worry about it for a while as it will be shot to piece if go BR for at least 6 years.

 

BR will wipe off all you unsecure debt apart from court fine , CSA arrear and secure debt.

 

One word of advise it is usually a bad thing to get rid off asset very wquickly and espcailly under value before going BR as you will find that the Or can reverse the transaction and get you a BRO/BRu for it. so i wouldmt just give you car to your friend just to protect it. if you car has a low value and/or you need for work etc... you will be able to keep it.

[phat256]

Hi Dollydoo.

 

 

Your debts dont just get " wiped out " if you go BR. You will still be liable for them if you can afford anything towards them. So selling the house would have to leave you with no disposable income or savings.

 

dodgy geezer uyes your debt are wiped off by BR as they become the liability of the Official receiver and as such you are no longer liable to it and you discharged from liability on the day of your discharge. Whne you go BR all your liability and asset transfer to the OR.

 

usually people who have a surplus of 100 pounds /month will have to pay at least 540% of their surplus toward their Br estate and towards their in the form of an Income payment agreement/order.

[Dodgy Geezer]

dodgy geezer uyes your debt are wiped off by BR as they become the liability of the Official receiver and as such you are no longer liable to it

 

Rubbish.

 

Your debts are not wiped off by Bankruptcy, you are still liable for them, they are simply managed by the Insolvency Service.

 

you discharged from liability on the day of your discharge. Whne you go BR all your liability and asset transfer to the OR.

 

 

Agreed to an extent. If you can no longer afford to pay them then you will be discharged from them. However it is wrong to suggest that BR is a simple,

 

" way out of debt ".

[phat256]

Rubbish.

 

Your debts are not wiped off by Bankruptcy, you are still liable for them, they are simply managed by the Insolvency Service.

 

 

 

Agreed to an extent. If you can no longer afford to pay them then you will be discharged from them. However it is wrong to suggest that BR is a simple,

 

" way out of debt ".

 

Dodgy geezer have a read below :

 

- this is form the insolvency services websites

The bankruptcy proceedings:

• free you from overwhelming debts so you can make a fresh start, subject to some restriction.

  
  

 

- this is a definition of Bankruptcy by the national debtline

 

National Debtline England & Wales | Debt Advice | Factsheet 01 Bankruptcy

 

"

Bankruptcy is a way of dealing with debts that you cannot pay. Whilst you are bankrupt any assets that you have might be used to pay off your debts. After a period of time (usually one year) all of your outstanding debts are written off and you can make a fresh start. The effects of going bankrupt are the same whether you file your own petition or are made bankrupt by your creditors. Many of the bankruptcy rules have changed from April 2004 under the Enterprise Act. This fact sheet mainly outlines the new rules."

 

 

so in effect yes bankruptcy remove your liability and free you up of any unsecured debt you may have although you are still liable to debt arising from fraud, court fines, CSA arrears and secure debt. You can argeu that it is rubbish but the reality is that indeed once you are br you are no longer liable for it .

[loobyloo85]

Hi Dollydoo

 

Bankruptcy can carry a heavy stigma attached to it, so should only really be considered as a last resort. It can have effects on credit, employment and assets.

Have you considered entering into an IVA? You can get IVAs where all fees are built in within arrangement once approved, so that you do not have to pay for these to be set up. This way, you can make amonthly payment into the IVA, of at least £100 for 5 years and then the remainderof your debt will be written off. IVA is an alternative to bankruptcy, and remains on your credit reference file for 6 years and then is wiped clean.

 

Thanks

[postggj]

i would consider an iva

 

contact cccs for advice

[Dodgy Geezer]

 

- this is form the insolvency services websites

 

 

 

 

The bankruptcy proceedings:

• free you from overwhelming debts so you can make a fresh start, subject to some restriction.

  
  

.

 

I dont disagree that you will be discharged from any debt liability if you are unable to pay.

 

I am saying that a BRO does not automatically instantly discharge you.

 

Anybody, with any assets, or surplus income, who thinks that BR is just a simple way out, is in for a shock.

 

so in effect yes bankruptcy remove your liability and free you up of any unsecured debt you may have

 

But ONLY if you cant pay them. And thats what is meant by supervision. Its the Insolvency Service that decide whether you pay or not. Not simply going BR

 

In this case, i believe the OR would want a very good reason as to why the assets were disposed of 6 months before BR. If the reason was not accepted by the OR, ALL DEBTS would still be payable, plus very expensive additional costs.

 

From what i am reading here, its being implied that all you have to do is go BR, and its all over.

[debtinfo]

Ok lets clear this up, you are both right in a way.

 

Once you go bankrupt the liability officially stays with you until discharge However the creditor is prevented in most cases from taking any remedy against the bankrupts assets. The Assets transfer to the OR automaticaly without conveyence. From this point onwards all the bankrupts assets belong to the OR unless they are exempted by the OR and can be realised to pay the debts. The OR can also recover assets previously disposed of in some situations. The OR can also claim assets that arise during the bakruptcy and can collect part of bankrupts income for up to 3 years. Upon discharge the liability for the debts is taken away from the bankrupt but the debts do not cease to exist. The OR can go on realising existing debts for years afterwards. There is an exception in that some debts are not discharged and that some debts for example fraudulent ones will be with the bankrupt until they are paid

[Dodgy Geezer]

. Upon discharge the liability for the debts is taken away from the bankrupt but the debts do not cease to exist. The OR can go on realising existing debts for years afterwards.

 

In what circumstances. After 326 days and counting. Im kinda hoping it will be over soon.

[debtinfo]

For instance if you had employee shares on the day that you went bankrupt that cannot be sold for 3 years then the OR might just wait and realise them later, they do not automatically become yours again when you are discharged.

 

Another example might be a court case that starts before the bankruptcy but goes on for years before it pays out

 

or a property abroad that takes years to get permission from that country to sell. Most of the assets stay the property of the OR indefinitly untill they are realised. The major exception to this if the family home which if nothing is done about it reverts back the the bankrupt after 3 years.

 

This applies only to assets that are the bankrupts before the bankruptcy order or become the bankrupts during the bankruptcy. If one day after you were discharged you won the lottery then it would be yours to keep.

[phat256]

I dont disagree that you will be discharged from any debt liability if you are unable to pay.

 

I am saying that a BRO does not automatically instantly discharge you.

 

Anybody, with any assets, or surplus income, who thinks that BR is just a simple way out, is in for a shock.

 

 

 

But ONLY if you cant pay them. And thats what is meant by supervision. Its the Insolvency Service that decide whether you pay or not. Not simply going BR

 

In this case, i believe the OR would want a very good reason as to why the assets were disposed of 6 months before BR. If the reason was not accepted by the OR, ALL DEBTS would still be payable, plus very expensive additional costs.

 

From what i am reading here, its being implied that all you have to do is go BR, and its all over.

 

dodgy geezer i am not dusputing what you are saying re read my previous post , especially post number 6 . sorry i dont have a good way with words sometimes. but it is more or less what debt infos said. i

[Dodgy Geezer]

Sorry to hi jack this thread.

 

Phat256. Im not your enemy. Im glad that it worked out for you.

Edited October 12, 2009 by Dodgy Geezer