Zeezee
I have just read all of the posts in response to your situation. I totally agree that given your situation, you should stop your IVA and declare bankruptcy. I am pretty sure from what you have said that you should never have entered into an IVA in the first place.
You do not have to wait for your IP to fail your IVA or anything else. You just go right ahead and file your own bankruptcy at the local court. I have summarised the procedure you need to follow below.
One point that I do need you to think about. Do you and your wife own your home or do you rent. If you rent then there is no issue whatsoever, if you own your property and there is any equity in it, you may be forced to sell if you declare bankruptcy
1. Identify Your local County Court
To declare bankruptcy, you will have to present your bankruptcy application documents (petition documents) in person at the County Court local to where you live. The local Court can be identified through the telephone book, directory enquiries or by searching on the Court Finder web site:
http://www.hmcourts-service.gov.uk/HMCSCourtFinder/
If you live in London, you may have to present your documents at the High Court located in the Strand.
2 Contact Your Local County Court and Request Application Forms
Telephone your local County Court and confirm that you are considering bankruptcy. Check whether you are speaking to the correct Court location based on your home address. This is important as you must present your Petition for Bankruptcy at the County Court local to your place of residence.
You should then ask the Court to post you the necessary application forms for Bankruptcy and associated information. You will need two documents:
· Bankruptcy Petition (doc 6.27)
· Statement of Affairs (doc 6.28)
The Court will post blank copies of these documents to you free of charge.
Alternatively, these forms can also be downloaded from the internet using the following website links:
http://www.hmcourts-service.gov.uk/cour ... 7_0602.pdf
http://www.hmcourts-service.gov.uk/cour ... 8_0405.pdf
3. Confirm the Court Fee
If you want to declare bankruptcy, you will have to pay a Court fee. This is generally £460/person. When you are speaking to the Court, you should confirm the exact charge. If you are currently receiving benefits, then you may be able to apply for a discount. You should ask the Court about this.
4. Confirm Whether You Need to Book an Appointment
When you speak to the Court, you should ask whether you will need to make an appointment or whether you can just turn up at any time. Different Country Courts have different procedures. If you need to book an appointment you may have to do so quite for in advance.
If you live in London and are planning to attend the High Court in the Strand, you will not need a prior appointment. You can just turn up on the day.
5. Complete your Bankruptcy Petition Documents
The bankruptcy Statement of Affairs forms are c30 pages in length. They need to be completed fully and correctly. This will normally take between 1-2 hours. Once completed, you should make a photocopy of the forms for future reference. Normally there will not be any facilities at the Court for you to do this.
6 Present Your Completed Application Form at Court
Once you have completed your forms, you must take them, together with your Bankruptcy fee, in person to your local County Court. You should ensure that you arrive no later than 10.00 to ensure the process can be completed the same day.
Once at court the following will happen:
·A Clerk of the Court will take your fee, ensure that your application forms are correctly completed and witness your signature on the Petition Document.
·You will then meet privately with a District Judge. The Judge will ensure that you eligible for Bankruptcy (i.e. insolvent) and will determine whether bankruptcy is appropriate. If the Judge agrees with the Petition, they will declare you bankrupt the same day.
·You will be asked to visit the Official Receiver. This will either be arranged for the same day or you will have to make an appointment at a future date.
7. MEETING THE OFFICIAL RECEIVER
Once you have been declared Bankrupt by the District Judge, you will then have to meet with the Official Receiver (OR). The Official Receiver will study your application forms in more detail. Based on this information, they are responsible for deciding decide how your Bankruptcy will be dealt with:
The Official Receiver will decide the following things:
·How long the bankruptcy will last. This will normally be 12 months although the OR has discretion to shorten or lengthen this.
·If you can afford to make a monthly payment towards your debt and if so how much (known as an Income Payment Order which will normally last 36 months).
·If you have any assets or property, how these will be treated. I.e. if and when they will be sold to realise the asset value for the creditors
James Falla
Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. My book, "IVA, Bankruptcy and Other Debt Solutions" was published in 2006. I have made numerous TV and radio appearances including BBC1 News, BBC News 24, Radio 4 and Wake up to Money.
Visit my blog at:
http://jamesfalla.blogs.iva.co.uk
