bankruptcy

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1964alison

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Post by 1964alison » Wed Aug 18, 2010 3:40 pm
Can someone please tell me the down side to bankruptcy.
Will I be able to keep my job and would I have to pay anything towards my debts? I have no assets, apart from a £2000 car and rent off the council. I know my name will be published in local paper and that it will cost approx £500 to file for bankrupty. Is that the only pitfalls? I also have just changed to a standard bank account with no credit facilities. Would the bankruptcy take my wages from my bank?
 
 

Tina Shortland

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Post by Tina Shortland » Wed Aug 18, 2010 5:18 pm
Hi 1964alison,

To answer your questions in turn:

Unless you work in the financial services, are a Director or serve in the forces your job should be fine but I always advise clients to check their contract of employment to make sure.

you will be assesed to see what your disposable income is after all normal living costs have been taken into account and the Official Recevier will determine whether you need to make an Income Payment order, if you do it will be for 3 years but you will not be expected to pay what you cannot afford.

Names are not automatically published in local papers in some areas so check yours as they may no longer publish them.

Bankruptcy will be on your credit file for 6 years from its start. You may be asked in the future if you have ever been declared bankrupt to which you will have to answer honestly.

Your wages will not be touched - if you have to make a payment this will be set up from the beginning as a payment you make from your account. If there are proboems in your making your payments the court can arrange for the payment to be taken directly from your wages but this is not the norm.

I hope this answers your questions but do let us know if you need anything else - remember we're here for support as well as information so use us as you need to!

Best wishes,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.

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If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
 
 

MelanieGiles

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Post by MelanieGiles » Thu Aug 19, 2010 12:48 am
Just to add that it is now £600 to apply for bankruptcy.
Regards, Melanie Giles, Insolvency Practitioner
 
 

ashb

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Post by ashb » Thu Aug 19, 2010 6:38 am
is it not the case the employers will know as the tax code changes?
 
 

kallis3

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Post by kallis3 » Thu Aug 19, 2010 6:42 am
Ubless you petition close to the end of the tax year, your tax code will go to nil, so the payroll department will certainly know about it.
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Shining

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Post by Shining » Thu Aug 19, 2010 7:35 am
Are there other reasons your tax code would change to nil apart from bankruptcy? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

1964alison

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Post by 1964alison » Thu Aug 19, 2010 8:51 am
Thanks everyone for your advice. Why would my tax code change to zero? Also an Income Payment Order - does that equate to my disposble income? Lastly, is there any criteria stating how much percentage of the deb your DI must be to get bankruptcy or is it just a case if your debts are more than your annual income?
 
 

teal1066

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Post by teal1066 » Thu Aug 19, 2010 10:46 am
Spam posting deleted.
 
 

1964alison

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Post by 1964alison » Thu Aug 19, 2010 11:04 am
I wouldn't get a loan - have bad credit - and don't want any more debts
 
 

Michael Peoples

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Post by Michael Peoples » Thu Aug 19, 2010 11:26 am
Your tax code usually changes to [NT] i.e no tax and the money is paid to the OR until the following April. This is in addition to any surplus that would form the basis of an IPO.

Bankruptcy is open to anyone who cannot pay their debts but you would need to take some advice to make sure it is the right thing for you.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

FormerlyST1100

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Post by FormerlyST1100 » Thu Aug 19, 2010 11:43 am
Can anyone answer Lesley's question please, I would like to know this as well, is there any other reason, apart from BR, that would result in your tax code being changed to NT.
Also, why is this done, is it an agreement from the Government so that at least some money from wages go to the OR for the creditors?

PS, sorry if it is hijacking the thread.
Last edited by FormerlyST1100 on Thu Aug 19, 2010 11:44 am, edited 1 time in total.
 
 

Michael Peoples

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Post by Michael Peoples » Thu Aug 19, 2010 1:32 pm
There are two other ways to have an NT code that I am aware of. Students who work during the holidays and will not earn their full tax free allowance can sign a P38s form and this would entitle them to an NT coding.

Alternatively, if you are non resident and all of your work is carried on outside the UK you can have an NT coding even if you work for a UK based company.There may be other cases that I am not aware of.

HMRC submits a claim for the unpaid tax and the money forms part of an IPO/IPA. Someone else may know why this is done.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

nepensioner

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Post by nepensioner » Thu Aug 19, 2010 5:22 pm
Hi,
another reason you could have an NT code is for example if you are a subpostmaster and run this along side a convenience store, you can have this code and complete a Self Assessment Tax return to pay your tax then
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