penalties for 2nd bankruptcies

[stevo2o]

After reading these forums I am now more confused than ever. I and my partner were looking into entering into an IVA, and now see they can fail. We have debts obviously, which reach almost £20K + 17K car HP. We have previously been bankrupt in 2002, which lasted for 3 years. It was very hard. We lost our home and car, and are now 5 years later, are still in rented accomodation, and struggling like mad. We were considering bankruptcy again. We cannot cope, dont have enough money coming in to the pay the bills, cannot sleep and need advice on the best way to go. After reading these forums I see that many IVA's fail and bankruptcy happens anyway. We dont have the £1000 spare to go bankrupt, but are unsure about entering in to an iva if the possibility is that it may fail. We have 4 children to support, 2 of which are teenagers, who want the best and try to compete with friends. Please give us some advice on the best option. We hear there are penalties for 2nd bankruptcies, eg restriction orders. Last time we didn't have to have an income payment order.

Will it be possible on a 2nd time that we will? Due to us having no property or car that they can sell to reclaim debt money? It is all so confusing. Please help.
We have been seeking advice and financial statements from the citizens advice bureau, but they haven't really advised us on the best option. Help.

[Skippy]

Hi Stevo2o and welcome to the forum. Yes, IVAs do fail (mine did) usually because people agree to unrealistic payments, or due to a change in circumstances.

If you were to go BR a second time, then you may be subject to a Bankruptcy Restriction Order or Undertaking. You will usually only get an IPA if you have more than £100 surplus, and then it will only be a percentage. You may well lose the car that you have on finance due to the amount outstanding (and also the fact that the HP company will probably reclaim it).

Melanie or one of the other experts will probably be along shortly to advise you of your best option - good luck whatever you decide.

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/

[mish1953]

Hi Steveo2o
I think this may be one for the experts , but I did have a browse thru the Insolvency website and didnt find much about a 2nd bankruptcy .. I think that there may be some questions raised by the OR if you were discharged in 2005 and are looking at going BR again in 2007.
They can put restrictions on the BR and may consider a BRO - these are fairly new and can run for up to 15 years...

have a look at http://www.insolvency.gov.uk/faq/faqeacti.htm#05

They have to consider whether you are irresponsible, I know when I went BR my examiner went over my spending etc to make sure that I wasnt being irresponsible but every OR seems to take a different view on this.

A tricky one ..

Mish

[MelanieGiles]

I am afraid that you will be seen as irresponsible borrowers as a result of the second bankruptcy, and you will have to apply for your discharge this time rather than it be granted automatically.

That is a very high HP agreement, given your circumstances, apart from that your debts are not that high. What has led to your current difficulties - exceptional circumstances or just living beyond your means?

You may also find it difficult to find an IP who will take you on for an IVA, given that you have been bankrupt before - unless your debts were business related and therefore beyond your control.

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