Advice please

[pippa]

Hi all

I am currently waiting for my proposal to be sent out to my creditors and confirmation of the creditors meeting date, however as my main creditor is one of the more 'difficult' to accept iva's at the moment, I am preparing myself for all scenarios and looking at bankruptcy as it appears the only alternative if the IVA is rejected.

I have a few questions,

1. I currently have an active basic bank account opened recently as my old current account is included in my list of creditors. Will this bank account be frozen if I petition for bankruptcy?? How do I get my salary and pay bills if so, and is it likely I can continue with this account later wether frozen or not??

2. I have approx 30k equity in my property, (excluding any selling costs/solicitors fees etc). If bankrupt and I tried to find someone to buy out the interest in my home, would this be the full 30k or would they give some leniency and say allow a reduction of 5k for selling cost etc??

3. My car is worth approx 2.5K. Would this value be deemed to high for me to keep.

Thanks in advance

Pippa

[MelanieGiles]

Hi pippa

1 Your bank account is likely to be frozen by your bank following the banktuptcy order, but they may agree to unfreeze it afterwards. If not, then you will have to find alternative banking facilities elsewhere.

2 It is unlikely that you would be allowed any selling costs, as the property is not actually being sold.

3 I would have thought that your car is safe, providing it is essential for transport to and from work.

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