going bankrupt next thursday

[zoe]

Hi all
Can someone help?
I am going bankrupt next thursday.
I got a letter from a solicitor this morning giving me 7 days to pay or court proceedings will go ahead.
I called them and the creditor concerned is not interested in anything but obtaining a charge against our house.
The lady was nice who i spoke to, explained she would call this creditor as i am being made bankrupt.
She called me back and said the creditor concerned wants to proceed - fair enough they are wasting even more of their money, but not my problem.
Michael has come home and is worried. Now i know they have to apply to the court and then i have 2 weeks from them to answer their claim, by which time i will be bankrupt anyway, but that does mean that they have to stop all action and cannot obtain the order doesn't it?
Z
X

[scaredkez]

thats right Zoe you will be BR before the charging order is in place, so i don't think you will have anything to worry about, they have to obtain a CCj first and it would be non compliance by you that would mean they could go for the CO which would take months, so don't stress that debt will be covered by your BR
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Zoe

They will not get a Charging Order in the time you are talking about, so do not worry about that.

Your case highlights exactly the problems faced by individuals who put forward reasonable offers of settlement to creditors which are then rejected. My gut reaction is that this will lead to more bankruptcy cases in time, where returns to creditors will be minimal or zero. It is a shame when you are trying your best to offer an affordable return, but the decision lies with the creditors and we have to respect that at present.

Good luck with your bankruptcy application, and as ever don't forget to tell us how you get on.

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

[zoe]

Thanks Melanie
To be fair, the lady i spoke to at the solicitors was very helpful and could see exactly what i was saying to her, she agreed that with what i said, however they wished to continue.
As i said their money - seems like they have a vendeta against me - still another week and will nearly be over.
Mum has offered me money to pay to OR for my share of the house so should not loose that and i DONT want credit again!!!!!!
Z
X

[MelanieGiles]

Zoe

Your house will be perfectly safe under bankruptcy proceedings, providing the OR's valuation accords with that you used for the IVA - and your Mum can raise the money. It is likely that this will be entirely absorbed in DTI costs and Trustee fees, leaving nothing to return to your creditors, which is sad.

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

[zoe]

Hi Melanie
I will have to of course pay into a IPA though will this not do anything?
Z
x

[MelanieGiles]

Unable to advise on this until it actually happens. Bearing in mind that the DTI take the first 17% of all realisations in a bankruptcy it is hardly likely to result in much of a return compared the that you were offering under the IVA.

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

[zoe]

Hi All
Can anyone advise me how the amount that my mum will have to pay to the OR for my share of the house is worked out for bankruptcy cases.
I was under the impression it is usually value, minus mortgage and costs of sale divided by 2 (mine and hubbys share) is that right?
Thanks

[MelanieGiles]

That's about right Zoe, but the OR may not allow costs of sale, as you are not actually selling.

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