Paying for bankruptcy

[nic1975]

Hi all,Just a quick question on filing for bankruptcy…

I know from looking around on various websites that there isn't really any help with paying for bankruptcy;

I just wanted to know if anyone out there had took out a loan / used there overdraft to pay for it?

I know from what I have read that the official receiver wouldn't like it BUT if it was your only option……would you do it?

[marmaris30]

Sorry but taking out a loan you know you cant afford to repay is fraud and a very bad idea.

 

You would also be prejudicing the interests of one creditor ahead of others, which is a bankruptcy offence. If you do it, the Official Receiver will probably seek to recover it in full, as well as take punitive action in the form of extended Bankruptcy Restrictions.

 

If you can't find a family member or friend who can help you with the fee, then the thing to do is save the fee over a few months, and ask the court about any waivers that might be available for the court fee (unfortunately not for the OR's deposit). Yes, the money you save for the fee wouldn't be going to your creditors, but if you're going to go bankrupt then you shouldn't really be paying any of them unless forced.

 

It doesn't do any harm to talk to your creditors and let them know that you're planning to go bankrupt, because they might then ease up on you. They will be guaranteed to receive some money for little further effort which, in the case of DCAs who have bought the debts, will probably more than they paid for it. All without the hassle and expense of dealing with you directly or taking any further legal action, because you and they will only need to communicate with OR.

 

Good luck!

[citizenB]

Have you spoken to Citizens Advice and National Debtline - I understand there are still one or two charities that will provide funding for the bankruptcy fees.

 

Alternatively could you not let one of your creditors petition for your bankruptcy ?

[nic1975]

Hi

Yes I have spoken to both, they have both said I need to declare myself bankrupt.

I have been on line & found a website that actually list companies/organisations that may help…so I will be emailing them tomorrow.

I am at my wits end with it all & need to take immediate action, trouble is do not have that sort of money & also have no one I can lend off.

[citizenB]

nic, can you let us know a little of the history that has brought you to this point.

 

What is the overall balance of your debts - are they secured or unsecured?

 

Have you tripped over this organisation - if you meet certain criteria, they will be able to help with the fees.

 

http://www.turn2us.org.uk/

[renegadeimp]

Or ask lowell to buy one of your debts

[nic1975]

Hi all,

This has been ongoing for a few years;

Long story short I have put my head in the sand ALOT, also dealt with a relationship breakdown & lost my job through redundancy; got back up on my feet for a short while (agency job) & had every intention of sorting it all out.

My debts are unsecured; totalling £70,000+ (couple joint with ex)

The biggie is the balance of what was shortfall from the mortgage/unsecured loan £60,000+ (house was repo'd when we split)

Mix & match of things from catalogues & a personal loan

I am now out of work again & back at home with my folks

I have no assets at all - no car no money nothing I can sell in an attempt to raise funds...... I will look up the link u sent cit b x

[renegadeimp]

You catalogues and loans are probably chock full of PPI/unlawful charges. ALl of which can be reclaimed. Chances are the companies dont even have the paperwork to enforce the debts in court, so you could make them a 10% F&F offer.

[citizenB]

Certainly sounds as though this is probably the best time for you to enter bankruptcy.

 

If you are not working, then you might be able to get the court fees waived, so you are only looking at £600.00 for the Official Receiver. I know that is still a huge sum when you don't have any money at all.

 

Let us know how you get on with that link - if no joy, we will go back to the drawing board

[nic1975]

Hi citizen B,

Thanks a lot for your help/advice/ just listening,

[citizenB]

[nic1975]

I am after some more help/advise, It's now been nearly two weeks since I returned the form admitting the debt was mine to the creditors, I also offered a £1.00 pm payment due to my current circumstance; I have not heard a thing; not from the court or the company I owe money to.Is this normal? I would have thought they would have been in touch within a couple of days

Edited September 6, 2013 by nic1975