Bankruptcy

[Skippy]

Now I've made my decision to petition for bankruptcy rather than struggle in an IVA I decided I may as well start filling out the online forms - no time like the present!

To be honest, the statement of affairs (sounds dodgy!) wasn't as bad as I thought it would be, although there are a few questions I need answering, if anyone can help me:

1. Fixtures and fittings - do I need to state that I paid for the fridge freezer and the lights, or does this relate more to business?
2. Any other assets - do I include my laptop?
3. Use of a motor vehicle other than my own - do I need to include my partner's and mum's cars as I am insured on them, or does this relate to company cars?
4. Date debt incurred - What do I put for credit cards? I was going to put the date I last used the card but I'm not sure if that's ok.

I know I am doing the right thing - I cannot struggle on any longer, and I know the longer I leave it the more my IP will make, and the more it will cost me!

Good luck to everyone going through an IVA - they can work, I was just stupid enough to sign mine in desperation when my expenses were too low. Good luck to everyone who is going through bankruptcy as well. I am going to try and start a blog in the hope it might help someone else avoid my mistakes.

Onwards and upwards!!!

[scaredkez]

skippy contact myvesta they will help you with the forms, i think they charge £59 for a whole years support, i was warned to be careful when filling in the forms and to get help incase you omit something that can come back at you after BR, i was also told furniture didn't have to be included as it costs more for them to sell than they would actually receive unless you have some very valuable antiques, your computer as long as now worht thousands should be ok and can be used for work and educational needs, the insolvency site has a very good list of what you can put on your forms for expenditure as a guide, which also allows holidays and haircuts allowance, also if you owe anything to your utilities this can be included to.
if i can be of any more help let me know
kerri

[Skippy]

Thanks Kerri. I must admit I'm a bit scared, so I will speak to Myvesta, hopefully on Monday and I won't submit any forms until I have spoken to them. My laptop isn't flash, and I don't own anything of value apart from my car and even that is only a Vauxhall Corsa. Apart from the fridge everything else in the flat has been bought by my partner. At the moment I'm getting all my info together and I am going to ring my IP next week and tell them that I can't carry on like this and I am petitioning for bankruptcy. They are supposed to be sending me a new income and expenditure form, but I really don't see the point. I need at least another £100 per month and I am only paying 27p in the pound back now! I am not going through the stress of another creditor's meeting knowing it won't work, and then have the stress of bankruptcy after that.


Onwards and upwards!!!

[freelili]

go for, it, skippy, it is a little scary, I found filling in the forms really daunting, it made me quite shakey, its such a formal proceedure, good luck with it. I admire your courage.

good luck

LILY

[MelanieGiles]

Hi Skippy

To answer your four specific questions:-

1 With regard to Fixtures and Fittings, these generally relate to trading businesses. I would answer that you have the usual domestic furniture and appliances, and put NIL value on them, as they would cost more to be taken away. A friend of mine is in the process of placing her 90 year old mother in residential care, having to sell her house to pay for the costs. For a lifetime of gathering up furniture and household effects - some of it quite expensive, the house clearance company came up with a measly offer of £100 - puts is all into perspective doesn't it!

2 You could include your laptop, but that is also unlikely to be worth much second hand.

3 Yes - tell the Official Receiver that you have use of other vehicles - don't worry they cannot be grabbed!

4 Put down the dates you took out the credit cards - if you can remember.

Before you do decide to petition, I would still suggest that your IP puts forward a variation for you if he/she can - just to test the water and see whether creditors are prepared to reconsider after such a short time. That should not cost you any further money, and you may be pleasantly suprised by the result.

Good luck with whatever route you choose, and promise to keep posting for us as your input is extremely valuable.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

Thanks Melanie. I will fill out the form and see what happens, but if the creditors will not agree a variation then the completed forms will still be on the internet ready to be submitted.

I will definitely let you know the outcome.

Onwards and upwards!!!

[DebtDummy]

Skippy 13, on the insolvency site there is a telephone number for you to ring and ask questions about the filing in the forms. I have found them very helpful. For instance,if you are not in arrears on your utilities do not list them.

Good luck!!

All I have left is my humour.

[Skippy]

Hi, thanks for all your advice. After a lot of soul searching and discussions with my partner I have decided against bankruptcy. The main reason for this is that I have been advised by Myvesta that as I pay money towards my living costs, it could be viewed by the OR as me having a beneficial interest in the flat, even though it is only in my partner's name. I was told it's only a slim chance, but I don't want to risk it. I can't ask him to remortgage as these are my debts, and it would be difficult for him to do anyway - he is self employed and he took out his mortgage when he worked for a company and was earning a lot more. He tried to remortgage last year and couldn't do it.

We are going to struggle on between us for the next couple of months and see what happens. I am hoping to get a cost of living pay rise in April (more would be nice, but very unlikely!), and so I will send in an up to date income and expenditure form then. Even a small rise will make a difference. Am I right in thinking that if I complete a new income and expenditure form then I won't need a creditor's meeting for a variation as I wouldn't be asking for my payments to change? I am not going to ask for a variation now, but wait and see what happens then. If I don't get any sort of raise I will then ask for a variation.

Although the debts are all mine my partner has said that we are in this together and we will manage. After going to my uncle's funeral I have realised that life is too short to worry about money - family and friends are more important.



Onwards and upwards!!!

[MelanieGiles]

Skippy

You only need a variation meeting if your are asking for something to be varied - so if you are going to struggle on with the payments in accordance with the agreement there is no problem. Your IP will, however, need an income and expenditure update at the end of your first year.

I do not believe that a Trustee would claim that you have an interest in your partner's property in bankruptcy, but that is just my own professional opinion. These claims are mightily hard to prove, and I jsut don't see the Official Receiver spending government money pursuing it.

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

[Skippy]

Thanks for that Melanie.

I will see what April brings forth and then make my decision - it should only be 2 more payments, and I might be surprised with the outcome! If I get a pay rise I have been advised that I will have to pay 50% into my IVA until my review in October, but if I am able to keep the pay rise I won't have to ask for my payments to be reduced.

Fingers crossed!

Onwards and upwards!!!