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Hi all,

Hope you can help.

I am currently in an IVA which is going OK. Within my IVA we were allocated £100 per month to pay my wifes creditor's. She only has 2 and as such would not qualify for an IVA. Her total debts are in the region of £18k, the vast majority being on a credit card. We agreed a DMP with them at £110 per month. However, they did not stop the interest, only reduced it. It is in the region of £75 per month. So effectivly we are only paying off £25 per month.

This was further compounded when our boiler blew up. We could only pay £40 one month. We contacted them but they were not interested and put us stright back on the full interest, something like £300 per month.

So We think the only way forward now is for her to go BR. We are in negative equity so wont lose the home (I hope!).

So the questions. How much does it cost to the courts to go BR ? I have seen figures of £400 odd mentioned. What will happen to our joint bank account once she is declared BR ?

When completing the Statement of affairs, will it be just like the I&E sheet we had to do for my IVA ? or will they require additional info ?

We have finally sold my wifes car, and are now able to pay my Dad back the loan we borrowed to get it. She is looking for a little run around for work and the kids, we have about £1500 to spend, will the OR let us keep a car around this value ?

Thanks for reading and hope you can help.

Sort out seperate bank accounts soonest. Extra info may be required for statement of affairs,and the OR is unlikely to want a car thats value is £1500 and is required for work.

Think BR fees is just over £500 nowadays.

It costs £510, and your wife's car should be safe so long as the need for it is justified to the OR, which it seems you can.

I would be concerned that you have sold a car and paid your father. This will have to be mentioned in the bankruptcy papers and the O.R. may deem this to be a preference. How much did you borrow from your father and did he have any security over the vehicle?

I borrowed £5k off him. We have sold the car for 5800, was going to pay him 3800 against the loan, 1.5 for a run around and the rest to go BR.

I must admit I was a bit worried about this myself, as I really dont want me Dad to find out about our financial problems.

The bankruptcy papers ask specifically about payments to other creditors and if you have disposed of a vehicle in the last 12 months. Effectively you will have done both and the O.R could pursue your father for the money. Bankruptcy may be tricky if you opt for this route but it may be worth posting this query on the sister site www.bankruptcyhelp.org.uk as there are experts there with much more experience of bankruptcy. I know Melanie Nicholas who works in Melanie Giles office has extensive experience having actually been employed the O.R. and she may be able to give an answer based on her knowledge of the workings of the O.R. I hope it works out.

Thanks very much for all your help.

Good points fro Michael, and my Melanie woule be very happy to chat through the implications of this with you over the phone if this would help.

Thanks Mel. Had a chat with Suzanne from your office and it looks like unfortunately there is no other way out of this mess than coming clean with my Dad and splitting the money pro rata.

Thats going to be that hardest conversation I have ever had with him, thats for sure.

CHECK IF ALL OF YOUR CREDIT AGREEMENTS WERE ENFORCEABLE!!!!!!

BEFORE YOU GO BANKRUPT!

WISH I DID!!!!

pm.e the problem with doing this is that it can take an age to find out if any agreements are unenforceable and I really cant see the benefit of taking such action if you are to make yourself bankrupt??

Paul

Have a look at my post:

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=24482

Be under no illusions, BR is no easy option.

I think you should ask for copies of the original credit agreement and see if it complies with the CCA 1974. In this act there are prescribed terms which the agreement has to comply with.

All I am saying is that I - like you were in an IVA, the main creditor didnt accept her offer of an IVA and she ended up going bankrupt as well.

I know only too well how much of a struggle it is, and given hindsight, would have tried to get some of these debts removed because they were unenforceable.

have a look at my thread as well.

BANKS NEED NO MERCY!!!