questions about going BR

[paddyuk]

right. im currently in the process of starting a new debt management plan with abacus finance but I am considering if its just worth going bankrupt as im really stressed out by all these bills and how little much money i have left.

ok here we go, questions and worries i have, im hoping someone can help clear my mind.

1. I have a car on hire purchase, its prob worth about £4000 and I use it to get to work every day which is 25mile round trip and I use it to also see my family sometimes who live over 100miles away. I know they will take this away from me as i have read these forums, but do they give u the money to purchase a cheaper car? i really dont want to loose my car without it it will cost me a fortune to get to work and nearest family

2. I have a contract mobile phone with t-mobile which im a month behind on payment but I am paying and need my phone for work etc, is it best to just stop paying this and get a payasugo phone before I go bankrupt?

3. Im currently renting in my flat and im worried my landlord will kick me out im also worried ill lose my job once they find out. i dont deal with finance at all i work in IT for a printing company but im not sure how to tell my boss etc it scares me. Not sure what the question is really just any advice.

4. I have a current account with alliance&leicester, will they close this? im not in arrears with them and my wage goes into that account.

5. My plan was to buy a house next year and rent out the rooms to my mates, and thus myself not paying rent saving me a little bit of money but i take it I cant do that unless I buy a house now before going bankrupt in a few months? but then again they might take it away again ? is it best on just staying in rented accomodation for now do you think?

6. What happens to little things like my sky tv and my internet etc? i use the internet for work as im a network admin so need access all the time but skytv could go im not to fust on that? i do have a big tv so obviously the person will take that

7. What happens after you file for bankruptcy, do they come round your house to make sure you havent got anything like big tvs etc if you put you havent got anything of value, bit scared of telling my flatmate aswell.

sorry for the long post just things on my mind

[mikebdomain]

Hi PaddyUK

Sorry I can only answer one of your questions I'm sure one of the other experts will be along shortly

5. My plan was to buy a house next year and rent out the rooms to my mates, and thus myself not paying rent saving me a little bit of money but i take it I cant do that unless I buy a house now before going bankrupt in a few months? but then again they might take it away again ? is it best on just staying in rented accomodation for now do you think?

You will not be able to purchase a house whilst you are bankrupt.

If you buy a house before going bankrupt any beneficial interest you have in the property (deposit etc.) will pass to the OR. Surely the OR will question why you spent a large sum of money on a property prior to going bankrupt and this may lead to other problems…

I would suggest you may have serious affordability issues (obviously depending on your personal circumstances) that will show in your credit report, that would stop you from obtaining a mortgage.

My advice would be to stay renting.


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[Adam Davies]

Hi Paddyuk

1]How much finance is outstanding on your car finance ? Have a look at your agreement as the finance company may well automatically re-possess your car if you are made bankrupt.Also double check that it is a HP agrrement as many are actually personal loans.
2]The OR may allow this in bankuptcy,if not then you can soon pick up a pay as you go phone
3]Unless there is a clause in your terms and conditions of employment you will be safe.You have the same job protection as everyone else and can't just be sacked because you are bankrupt.
Again,unless it is written into your tenancy you will be fine.However on a short let tenancy[6 month or a year] your landlord has the right not to renew.
4]Do you have any unsecured borrowing with A+L ?
If so,even if you are upto date,that will be part of your bankruptcy and you will need to open a new basic account with a non creditor
6]The Official receiver will determine if you can keep Sky tv etc but I'm sure that broadband will b allowed...........oh and your TV is safe
7]No one will come and look round your flat,normal household appliances are fine...even big tvs.
You will have to inform the OR of any assets[savings,shares etc]
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[paddyuk]

Hi. I dont have an unsecured borrowing with A+L and i have checked my car and it is in hire purchase, i rang them and its £4700 to pay it off.

[Skippy]

If you are going BR I would recommend opening an account with the Co-op or Barclays (providing they aren't among your creditors) after you have been declared BR. It seems as though A & L aren't sympathetic to BR, as Fudge has had problems with them since her BR.

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