Bankruptcy Order !!! *** WON, TWICE ***

[Saffronflowers]

42M, I am sorry that I have no knowledge whatsoever on these matters, but I just wanted to voice my support to yourself. Please post whenever you need to both good and bad, I for one promise to support you through this and I know there are also many others that are here for you in this traumatic time.

 

SFx

[tomterm8]

She is a full time mum (but is looking to go back to work in September when our littlest starts school) so it's probably out of the question at the moment...

 

It normally takes a substantial amount of time for the OR to look at this... there are no guarantees, but it's likely to take more than 6 months before he/she even really looks at it...

 

Have you called the OR yet, and made sure that he/she has sent you a copy of the bankruptcy handbook?

 

Also, have you contacted him/her and talked about bank accounts yet? Your bank accounts are about to be suspended*... I would suggest going to the other forum, and asking about the practical things you should be doing immediatly. One of those is to start the process of opening a basic bank account today if possible.

 

* now that you know about the bankruptcy, it is not legal to withdraw substantial amounts of money from them.

[Goldlady]

42man, I have considered bankruptcy for the past 18 months but so far have kept it at bay. How much equity is there in your house? How much are your total debts? Tom is right that they won't evict you - in some cases it is 12 months in others it is when youngest child is 16 but who wants to be paying a mortgage all that time just for the OR to take your house off you in the future? You should be able to find out how much this judgment is for if you contact the county court - my thought being that if it is not for a massive amount you might be able to resolve it with the creditor, assuming that you are too late to launch a counterclaim for unlawful charges. Chances are that if it has been dormant for years there will be lots of them.

[sequenci]

If this all falls through, does anybody have any first hand experience of dealing with these sell your home and rent back companies ??

 

i personally haven't but alot of my clients have and the general consensus is that it is a bad idea.

[42man]

Tom - (you sound like you know quite a lot about this situation - ty for your contributions) and yes I have spoken to the OR, they are sending me the pack....they are leaving our joint account open but closing others (or so they told me) (my 2 girls have savings accounts - not a huge sum in there) I also have £6 of premium bonds from about 25 years ago - I think I have won 2 x £50 about 13 years ago !!)

 

There is quite a bit of equity in the house my wife owns half (she is NOT being made bankrupt) we have a mortgage of around £50,000 (about 11 years left on it) house is probably worth around £130,000, loan with bank for about £12,000 going back years (been paying no problem)....(been with HSBC for ages)....

[42man]

How quickly do they close the bank accounts ??

[Saffronflowers]

When I went bankcrupt voluntairly it took them about 6 weeks, even when I informed them on the day and they said it would not be closed.

 

SFx

[tomterm8]

closing the bank accounts is often the banks policy rather than the O.R's requirement.

[Saffronflowers]

Barclays - do a basic bank account and accept bankcrupts, though you only get a cash card, no debit car ability

 

SFx

[42man]

Thanks Saffron.....the only reason I am asking is that we are due to go holiday and I will need a small amount of cash for going away....(please, please don't say extravagance etc etc)....as the holiday is the ONLY holiday we take each year and we are lucky enough to get the free use of a house by the seaside, and the only time my 2 girls get to go on a beach....strictly a budget holiday too I promise - it always has been....and my 2 girls keep asking how many days to go !!!

[Saffronflowers]

TT - agreed and the manager I spoke to say it would not be a problem as I owed them no money, it was Natwest if that is of any help and then I got a letter from Bank of Scotland that said it was.

 

SFx

[Goldlady]

If you have that much equity in the house there must be a way of releasing some of it to pay this debt I would have thought - depending of course how much it is. It is absolutely ludicrous and I would hope that the court/OR would agree.

[Saffronflowers]

42M - is it a joint account, my thoughts I could be so wrong would be surely as if it is a joint account surely your wife would be allowed to withdraw money on her cash card.

 

SFx

[42man]

I will try and open one up tommorrow....along with my CCA to 1st Credit !!!...do they suspend it in a matter of days or is it weeks ? bearing in mind I have my interview on August 7th with the OR....

[42man]

Well yes Saffron you would have thought so....I presume as she is not being made personally bankrupt she can still use it freely....

[tomterm8]

Do you know if your other creditors were informed of the bankruptcy proceedings?

[42man]

Tom i'm pretty sure that nobody else was made aware of this....as it has been business as usual....and Goldlady, yes it would be good if I could release some equity, but I don't think I can do this right now as I am not sure when I 'officially' become bankrupt - is it after my interview with the OR ...Tom ? or is it immediate ?

[Saffronflowers]

42M - you are bankcrupt from the moment the judge signs the petition. The OR is just the sorting out bit, I went Bankcrupt for a very small amount of money somewher in the region of about £7000 so small the judge made very sure that it would make a differenece to my life - which it did, none of it was credit cards etc, just debts accrued when my ex husband walked out. I was discharged after 6 months.

 

SFx

[BLADES65]

42man you have my greatest sympathies.

 

I am dealing with 1st Credit - MBNA, I sent a CCA request and they supplied an illegible application form with no prescribe terms so unenforceable. I sent them a letter informing them of this and I have been threatened with bankruptcy twice, the second time after receiving a set of terms and conditions which they say fulfill their obligations for the original CCA request.

 

I really look forward to fighting them as I don't have any beneficial interest in our home, it belongs to the wife and that is registered via a Trust Deed with the Land Registry.

 

Keep your chin up and keep fighting don't let them win.

[42man]

Thanks Blades...your support is very much appreciated.....I will keep posting on here until the bitter end of this as hopefully some help to others that face this situation....

 

Sorry about your situation Saffron....sounds horrible...

[42man]

I just emailed one of those 'sell your home and rent it back' companies just out of interest....this is the reply...they are repaymortgage.co.uk

I'm just a bit dubious about getting involved with a company such as this after Sequenci's comments.... they wrote..

 

I can understand your shock, do you know who has filed against you for bankruptcy? We can move quickly but you need to find out whether you still have the rights to sell your house and rent it back. Normally your assets are frozen when a bankruptcy is filed. However depending on how much is involved you could get things placed on hold if you can provide enough evidence that you will be able to pay the debts.

Its difficult to communicate effectively by email, do you have a phone number I can call you on?

Thanks

Gordon

[Saffronflowers]

42M - it was but it made ahuge difference to my life, unlike you - do you know how much it is? I will pm you my phone number cos I had a meeting with a director of a bailiff company yesterday and I dont know if what we discussed re the threat and the actual use of their ability to make someone bankcrupt would be of any use. I must htough reiterate that I am very naive on the actual ins and outs, bailiffs yup go them licked but not this!!

 

SFx

[Goldlady]

42man have just been looking at the london gazette - seems it is about 8 days between the bankruptcy order and it being published as only person in wrexham county court for 10 july was actually declared bankrupt on the 2nd.

 

A thought - there is nothing to stop your OH getting a secured loan! Again this depends on how much the debt is for but if it is worth settling it to save your house and your reputation then worth a thought.

 

Your head must be done in with all this - I am just so glad there are so many people trying to help.

[42man]

Well i've never been faced with Bailiffs before...I can't imagine it is very nice after reading some of the stories on here....

[BLADES65]

You really need to get the CCA and SAR requests sent A.S.A.P.

 

This is from the insolvency website:

 

Can anyone appeal against or stop the bankruptcy?

• The court may 'annul' (cancel) a bankruptcy order. The bankrupt (and anyone else) can apply for an order to be annulled if:
  • a. the court did not have all the relevant facts when making the bankruptcy order and would not have made an order had it known those facts; or
    
  • b. the bankrupt can pay all the debts in full; or
    
  • c. the bankrupt enters into a voluntary arrangement with the creditors.

  [*]An application to annul the bankruptcy order can be made at any time (even after the bankrupt's discharge). For further information about annulment of the bankruptcy order, please refer to our leaflet 'Can my bankruptcy be cancelled?'.

  [*]The bankrupt can apply for the ‘rescission’ (cancellation) of the bankruptcy order, if there has been a change in circumstances since the bankruptcy order was made. A rescission will usually only be granted in exceptional circumstances and normally requires the consent of the petitioning creditor.

  [*]The bankrupt can 'appeal' against a bankruptcy order on a point of law. As a result of an appeal, the court can cancel the bankruptcy order or otherwise change its decision. The bankrupt should appeal within 4 weeks of the order being made.

  [*]Bankruptcy proceedings can be 'stayed' (stopped). The bankruptcy proceedings are usually only stayed while waiting for an application for an annulment, an appeal or a rescission of the bankruptcy order, or while an individual voluntary arrangement is being proposed.

The bits in red are what will be the basis of my defence if 1st Credit carry through their threats.

 

Incidentally what is the amount 1st Credit are claiming and who was the original debtor.

 

There is hope.