Went to see Citizin Advice today

[sjbyron]

Hi went to see CAB today, and she advised me that becuase i have no assets, I dont work within the financial / legal services and because I am young to go Bankrupt.

She said that she would find it unlikely that the creditors would accept a reduced payment of £130 a month, and that she also said that it would be unlikely that I will have to pay anything back to creditors.

One thing she did say though that I wasnt sure about, is that I could open an account with one of my old creditors, i.e Barclays or Coop.

So not sure what to do here, whether to call it a day and go bankrupt or not.

[MelanieGiles]

How much do you owe to your creditors Stu?

[sjbyron]

Hi Melanie

£44000 including £4700 to Student Loans.

I asked my IVA practitioner about that staggered payments and they havent got back to me, I spoke to CAB about it and they felt that they wouldnt accept it.

Thanks

[MelanieGiles]

With debt of that sort of level, and disposable income of only £130 per month, I think that bankruptcy is probably your best option given that you have no assets.

[sjbyron]

Thanks Melanie

Can I ask a few things though:

1. Is it true that I wont have to pay anything per month to my creditors?

2. that Abbey will definetly close my account

3. That I can open a Co-op account or a Barclays account after bankruptcy even though Co-op and Barclay Card are currently creditors.

4. What will happen with my Car HP?

Thanks

[MelanieGiles]

1 I cannot answer that - it will depend upon how the OR assesses your income and expenditure.

2 Not necessarily - but this will be at the discretion of Abbey.

3 Again with the discretion of those individual banks this may be a possibility.

4 This is at the discretion of both the HP company and the OR.

Sorry not very helpful replies, but with bankruptcy you have to get there before these decisions can really be made.

[sjbyron]

Thanks Melanie

Thats why Bankruptcy scares me, as you are at the mercy of the OR

[Viki.W]

Stu, have a look at the sister BR site. Lots of advice there. X

[Skippy]

Stu, I don't want to influence your decision but I found that BR was nowhere near as scary as I thought it would be. The only asset I had was my car, which I was allowed to keep, and I found that the allowances were more generous than in my IVA. I was treated with dignity when I was at the court, and although the OR was very efficient and too the point she was fair and approachable.

Good luck whatever you decide

[plasticdaft]

Thanks Melanie

Thats why Bankruptcy scares me, as you are at the mercy of the OR

Dont be scared of a tool that can be used to help you get back on track.

As for the OR they cant make you pregnant so how bad can it be???[;)]

[rachellxx39]

Hi sjbyron, I like you am going down the bankruptcy route. I have all these questions as well. I too am scared but also relieved at the same time . Im just waiting for my iva discharge letter , saving the fee, and away i go to the court. The br website is fantastic also and if you ring the helpline they have an adviser ring you back. They are understanding ,and very helpful. I rang yesterday and after speaking to them i feel so much better. All The Best Rachel x

[sjbyron]

Thanks everyone,
im just really frightened that i may be at the mercy of the OR, that I may loose my car, and my abbey account

[ianmillington]

Hi Stu

Whilst it's true that bankruptcy is a far less scary process than it used to be, you are right in saying that there is a prospect of some or all of those undesirable things happening. for example, if you have incurred any debts at all to Abbey, then it is highly unlikely that you will be allowed to continue with the account. I have serious reservations in suggesting to you that any of your creditors will be prepared to offer you a post-bankruptcy banking facility.

The HP situation will probably be similar in bankruptcy as it is in the IVA. However, if you need a car to get to work then the official receiver will be more likely to allow the HP payments to form part of the income payments order allowances. If not, then it will be less likely. also, different HP companies have different policies. With whom do you hold the car finance and, very importantly, have you incurred any arrears?

So far as the student loan is concerned, has this been included in the IVA, because it will certainly not be a debt that is discharged by the bankruptcy?

I note that you are already in an IVA, and are also considering the possibility of varying it. Frankly I think you need to hear from the Supervisor as to whether he thinks it will be feasible for you to achieve a variation of your IVA. once you have an answer to that question, you ought to be able to make an informed decision. if the answer is yes, then clearly that option has a number of things going for it. If no, then it becomes a no-brainer and bankruptcy would appear to become your only sensible option.

Hope this helps

Ian

[kallis3]

Interested to read your post Ian - do I read it right that Student loans cannot be included in BR? I thought all debts were written off if you were bankrupt?

[sjbyron]

Hi Ian,

thanks for your reply

The HP is with GECapital it has no arears, and expires november 2010, it was allowed in the IVA
Student Loans was not included in the IVA but as part of my income and expenditure
My supervisor has not said whether it is faesable or not, just that it is a low offer which the will need evidence for, and will put it to the IP to draft and then send to creditors
I dont owe any money to Abbey I have a basic account with them, which I would like to keep.