If I went Bankrupt....

[simon.b]

When going bankrupt, would something such as fee's for a training course be a justifiable expenditure which they would allow when calculating my disposable income? If not, then rather than paying it monthyl, could I just pay the full amount up front £6,000 in my case) and then go BR afterwards? Would there be anything to stop me doing that?

When going BR, would my car be repossessd as part of the settlement? Worth about £1,000 - does the value determine whether it's taken or not?

[Skippy]

Hi Simon, I can't answer your question about the training course as I'm not sure, but one of the experts will be able to help you.

Regarding having a huge spending spree before you go BR - DON'T!!! If you do this knowing you are insolvent you are setting yourself up for a bankruptcy restriction undertaking (BRU) or bankruptcy restriction order (BRO). This would mean that you would not be discharged after one year (or less) as normal, but would be subject to the bankruptcy restrictions for longer. A BRU or BRO can last for up to 15 years in the case of serious fraud. Also, if you bought a new car and 42" plasma TV, the OR would want them!

Regarding your car, if you need it for work you should be ok.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[aguise]

hi simon
No Simon it would not be at all sensible to max cards out as you would be using money you know you would not be paying back the or would see that and I think they place some order of some kind. Also you should not lose your car if it is of low value and needed for work.

Ang

[Sadsack]

Hi Simon

I agree with Skippy - DON'T DON'T DON'T go out and spend. If you are serious about going BR, you need to demonstrate that you have tried all other courses of action to resolve your debt problem prior to petitioning for bankruptcy.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[coco]

Hi Simon,

There is nothing more can be added to what the other members have said, there are serious consequences involved if you where to do that. Tempting I know but not advisable.


(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[Sadsack]

Hi Simon

I am amazed!!! You had this conversation with a debt consultant and s/he did not advise you? Perhaps you were speaking to the wrong advisor!!!!!!!!!!!!!!

Sue



Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Sadsack]

Just went back and re-read your previous postings and agree that BR is probably your best option. I think it is fair to say that after 3 years, you will be in a better position to get a mortgage, however, it will be a sub-prime one and therefore interest will be higher than the high street banks would charge. At least that way, you can get onto the property ladder, wait 2 years and then either remortgage or sell and buy another which will then give you a chance of moving to the high street lenders and benefit from a better interest rate.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Sadsack]

Simon - this is a big step, but realising that you have a debt problem and facing up to it as you have is THE BIGGEST STEP. No-one likes to admit they have made mistakes and it takes a lot of pride to do so.

I say to you, stand tall and be proud of yourself! You are looking to a future of being debt free and wisely looking to invest in property.

Whatever you decide, all of us on this forum will support you - even when the going really gets tough!

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Sadsack]

You are more than welcome!!

Just a word of caution though - I am not too sure how it works in bankcruptcy, but certainly if you were proposing an IVA, it would be in your best interests not to make any preferential payments to any of your creditors.

I am sure Melanie , Oliver or one of the experts will be along to advise and correct me if I am wrong.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[MelanieGiles]

Simon

I am afraid that IPs should only really give advice as to all options available to clients, and leave the decision making process to you personally. If you feel that bankruptcy is a better option, or do not qualify for an IVA, then bankruptcy may well be a sensible option for you.

Why not seek advice from other companies before you make your mind up.

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

[Sadsack]

Hi Simon

Whilst I agree with Melanie that only an IP should give advice, there are occasions where an IP will not necessarily do so.

I am of the opinion that this forum gives an insight to all IVA companies, the IP's and the impact that the advice/non-advice given has on each person entering an IVA. Each Debtor on this forum has their own road to travel and their experiences, whilst perhaps similar in most instances, are very different. Therefore, the more questions that are asked, the more answers are available, the more informed the debtor will be.

At the end of the day, it is the debtor who ultimately makes the decision as to his/her options - ie whether they are happy to enter an IVA, declare bankruptcy or enter a Payment Plan.

Whatever proposal the debtor wishes to make, it is the creditors (in an IVA or DMP) that make the final decisions. The debtor then either accepts or declines.

Should the debtor wish to petition for bankruptcy, they have therefore made an informed decision and the onus then rests on the courts to make the final decision. Not the creditors nor the IP.

In some cases, I do not believe that it is in the best interests of an IP to push for bankruptcy as there is no financial gain for them. Having said that, it would be rather refreshing if all IVA Companies would make the effort to register on this site, post comments and read the comments and concerns from the people who are ultimately their clients, who are confused and would like different opinions so that they are better armed to make decisions which will affect their lives for up to 6 years and in some cases longer.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Oliver]

Hi Sue

I agree with your comments that it is the individual themselves who should make an informed decision and this decision is best made after seeking advice from a number of available options, IPs, Internet Forums, CCCs, CAB etc.....

If an IP was worth their salt they would always discuss bankruptcy at length in their client meetings and would advise this as the best course of action if suitable. It reflects very badly on an IP if a case fails and to ensure that the majority of clients succeed in completing their IVAs IPs need to make sure that an IVA is the correct course of action in the first place.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp