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Hello,

Just to let everyone know we have been made bankrupt as of 11.24am this morning. We were really worried this morning on our way to the court, but to be honest it wasn't half as bad as we had expected. Everyone was really nice...in fact the court usher was that nice that I nearly cried!!!

Just a run down of what happened...we arrived at 10.30am and went into see the court usher she went over what would happen got us to sign our forms off and swear on the bible and then she took our fees. Then we had to wait to see the judge, she said we may not need to see the judge he may just sign the petition, some like to see you and some don't bother. We did have to go in to see him though but we were in and out in seconds...he just asked if we had sought advice and we said yes and that we wanted to go for a IVA but were advised that as a lot of our debt was with NR that there wouldn't be much point as they are refusing most proposals...and that was it he declared us bankrupt.

Then it was back downstairs to speak to the OR over the telephone from the court...just to clarify a few details really it was the OR's clerk we spoke to she said the OR would be in touch soon with an interview date. So now we wait...but we do feel a lot better...it is a horrible thing to have to do but not as bad as we thought...just have to wait to hear what the OR sets the BI at for the house.

If anyone is about to go BR just to say don't worry it is'nt as bad as you are probably thinking...

Michelle x

Hi michelle.l

Well done - bet your glad it's almost all over - good luck for the future

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I'm glad it went ok Michelle.

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bet you are soo relieved! I nearly cried when I had to read the oath!

We did not see the judge, there were 2 on that day, and apparently one likes to see the petitioners and the other does not bother, and we got him/her!

We just had to wait around for quite a while, that’s the worst bit

well done for getting through today michelle, i bet you feel so relieved now thats over, good luck with the OR.
kerri

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

BR is sometimes better than IVA. I'll be honest and say to keep to those unrealistic IVA expenditure plans is so hard as many have said here. Who knows those doing IVA may go BR soon?

As least you get O tax code, paying no tax in the first year I think, and have more to spend than the rest of us.

Hi Michelle

Pleased you got through that ordeal but not wanting to bring you down to earth you still have to sort the OR out and then you will be able to rebuild!

Anyway it is a big hurdle to get through!

Good Luck

Hi Michelle and well done for today

Can I just add that although it is true your tax code is set at zero until the end of the current financial year. The amount of tax you would usually pay has to be handed over to the OR/Trustee every month so unfortunately it is not yours to keep.

However it is true that expenditure allowances tend to be a little more lienient then in an IVA and any child benefit or working tax credits are not counted towards income, these payments are left for essentials for the child/children.
Good luck

Pippa

Hi Phillipa

Thaty is a good point about the tax credits and other benefits.

During the next few months we should look at the whole area to see if we can get more for people!

Thanks everyone for your kind words - yes we are both really relieved...just waiting to see what the OR says now...hopefully that wont be too bad either...just need to find the BI so we can stay in the house! Soon as she sets this we can ask mum and dad for a loan!

Michelle x

Hi Michelle
I,m glad that it all went well for you.
Interesting your quote"he just asked if we had sought advice and we said yes and that we wanted to go for a IVA but were advised that as a lot of our debt was with NR that there wouldn't be much point as they are refusing most proposals...and that was it he declared us bankrupt."
It,s just wrong that you should,and the rest of your creditors,be excluded from an IVA because of NRs apparent policy of near automatic rejection.
Will be interesting to see how much they get in bankruptcy ompared to your proposed IVA.
Regards


Andy Davie
IVA.co.uk Spokesperson

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Yes Andy it will be very interesting to see how much NR get back now...Tina (in Melanie's office) worked out that we were able to pay back roughly 51p in the £1 if we could have gone ahead with an IVA which we both would have prefered...I will keep you posted!

Thanks
Michelle

I think NR would get 10 - 15p the most to the pound.

Michelle

I too was in a very similar situation, offering 54p in £ and NR rejected and as they were my main creditor i had no option other then to petition for BR. A rough estimate would be that they will receive 5p at most in the £, now where is the logic in that.

Whatever their criteria is, I certainly wasnt privvy to it, I have had my loan over 3 years ago, no mortgage with them though, and at the end of five years they would had realised just over the original amount borrowed, I thought I had a good case.

BR so far has been quite painless, although at the moment a little stressed arranging valuations and redemption statements so the BI can be calculated. Just cant wait to get over this final hurdle, I am also applying to the Bank of Mum and Dad[:I].
Good luck

Pippa

Thanks Pippa...and good luck to you too...really hope all goes well for you.

We actually have a together mortgage with NR as well which we have had for 2 years so not looking forward to speaking to them as the the unsercured bit will have gone now...I don't suspect they will be too pleased. We have a fixed rate until 2009 but then will need to remortgage to another deal, really hope they are not too funny with us!

Michelle x