I have £43000 of debt, with a failed IVA for the second time and considering either DMP or Bankruptcy, however I think I am going to loose my job soon again, and have found an ideal job but its only £14,700.00 per annum.
Ive also signed up for a gym training course so that I can get more money and better prospects.
Im therefore considering bankruptcy but have the following burning issues:
1. I pay my mum £380 a month rent, will this still be allowed
2. I have a housekeeping budget of £140 which is for clothing, toilettries, food for work, extra food outside the housekeeping will this still be allowed
3. I have a mobile phone and pay £28 a month for it, will this be allowed
4. The training course I am going to do is from March and is £131 a month for a year, and then I would need to hold back at least £30 a month for CPD would this be allowed
5. I have a car on HP With GECapital it expires 2010 will I be allowed to keep this going
6. I have a contingency allowance of £40 will this be allowed
7. If my income is £997 and my outgoings are £994 will I have an IPO
8. I Have an Abbey basic account, can I keep this if I go bankrupt
9. I live in Liverpool whats the bankruptcy proceedings like there
10. Can I file for Bankruptcy online
11. If I can file for Bankruptcy online, and want to go bankrupt in March/April 2009 when should I file for it?
Sorry youre feeling so down and overwhelmed, I dont know what is acceptable or not in BR. Its probably going to be up to the OR. If you take a look at the earlier entries in Skippy 13's blogg, there is a list of expenditure and details about disposible income and an IPO.
As far as I am aware you can fill in the forms online but you would have to go to court to get the BR order. Its a last resort, if you have a failed IVA you could try a DMP if you dont want to go BR.
The car would probably be taken back if its a hire purchase as its owned by G. E Capitol and not by you, someone else might be able to shed more light on it.
I am just wondering why you want to wait until April to go BR?
You would probably to able to keep your Abbey account.
I hope someone with more knowledge will come along and offer more.
Hi sjbyron. Sorry things have been so awful for you. I'll answer what questions I can.
1. You should still be able to pay your mother rent.
2. You'll be allowed money for your toiletries etc.
3. I think you'll be allowed to keep your phone
4. Not sure about that one.
5. Not sure about the car
6. You should be allowed a contingency, don't know how much though.
7. If you only have £3 income, you won't be expected to pay IPO.
8. Your bank account may be ok, not sure.
9. Can't help with that one
10. You can fill the forms in online.
11. Don't know that one.
Hope some of that helps
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Stu, sorry you're not having a good time at the moment. I'll try and answer your questions in order.
1. I don't think this would be a problem as it's not excessive. Does it include food and bills?
2. This might be disallowed, although you will be allowed a clothing allowance. If your rent includes food you might be better listing that seperately.
3. Is it a contract or pay as you go? I kept my contract, but a lot of people have had them either disallowed by the OR or terminated by their service provider. Also, do you have a landline? I didn't have one in my name, so I listed my mobile under telephone.
4. I'm not sure about this, hopefully Melanie will be able to advise.
5. Do you need your car for work? If so, you may be able to keep it, although it depends on how much the payments are, and whether the finance company are happy for you to keep the car.
6. Contingency will probably be disallowed. You only pay a percentage of your surplus into an IPA so you are expected to use your part of the surplus for contingencies.
7. No, you won't get an IPA with less than £100 of surplus income. However, you need to be prepared that the OR might not allow all your outgoinfgs.
8. Providing the OR has no interest in the account then it's down to the bank's discretion whether you can keep the account.
9. Sorry, I can't help you with that, but you could have a look at Scaredkez's blog as she is from the Liverpool area.
10. You can complete the BR forms online, but you need to file BR at your local county court.
11. You would need to contact your local court to find out what their procedure is. Some courts have an appointment system and other courts have a walk in system.
If you are planning on going BR in March/April, I would recommend doing it in this tax year rather than the next one as this would mean that you are unlikely to get a Nil Tax Code as HMRC are unlikely to have time to implement it.
If you get an NT code you don't pay any tax for the remainder of the tax year, but you hand it over to the OR as an NT IPA.
I hope this helps, and good luck x
Last edited by Skippy on Sat Nov 29, 2008 2:55 pm, edited 1 time in total.
Hi just wanted to add a few more points to Skippy's post;
1/ Your income and expenditure does not really seem over excessive, though it will really be up to the OR who deals with your case. In any event they will only ask for a proportion of your surplus income to be paid over.
2/ With regards to the course, again it will be up to the individual OR and his or her views. If need be you may need to put a convincing argument together for them allowing it. At the end of the day you do not need to agree to the income payment. The OR will then ask the court to decide on what the payment should be - this will require your attendance at court.
3/ The car is not your property - it is GE Capital's - the OR will therefore not be interested in it. If you need the car to get to work, it is of a resonable value and the payments are not too high, then OR should have no objection to you maintaining the payments to it. The ultimate decision though is down to GE Capital - they may decide that they would rather not take the risk of your not continuing to pay the HP agreement and ask for the car to be returned. If this happens, they will probably be happy to allow you to keep it if you can ask someone to stand as guarantor on the loan.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
I would sign up for the course before you make your bankruptcy application. The OR will be far more likely to allow the cost of your further education if you are part way through, than if you just tell them it is something that you are allowed to do.
The OR may well be interested in your car if its value is more than the amount owing to the hire purchase company. The difference between the two figures would therefore represent an asset, which would vest in the Trustee. Could you provide details of the value of the car and the amount you believe is currently owing to the HP company, together with details of the monthly payments you are currently making.
The total amount of HP owing is £2495 and the car is worth £1500 I pay £101 a month.
If the course starts in March and therefore file for bankruptcy in April, then thats six months of not paying the creditors, what do i do when they ring
Hey Stu, it doesn't really matter what you tell them, they won't listen. I went 8 months without paying them and I had one debt collector to the house. I would think about maybe a temporary debt management plan or token payments just to keep the phone calls down. X
With regard to the car, there is definately no equity in this, so the decision as to whether you can keep it will rest with the OR and the HP company - in line with Liz's previous advice.
If you cannot pay creditors, due to changed circumstances, then tell them the truth. The worst they can do is petition for your bankruptcy - which will save you the cost of petitioning yourself.
