I can help but what can my friend do at this late stage?

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barfountain

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Post by barfountain » Tue Aug 17, 2010 10:06 am
i have a friend who lives at the other end of the country from me and has just told me that she has received a petition for bankruptcy at Eastbourne county court on Thursday 19th August from a company called Largo Law acting for Gothia Ltd. The debt is for approx £1500 and fees of approx £1600. I can offer her £1500 to help but what can she do at this late stage? She also has credit card debts of around £10k but no one is taking her to court over these. Her mortgage of £135k costs around £800 per month. She earns £1200 per mth net. Her husband earns around £150 - £200 per wk.
 
 

Michael Peoples

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Post by Michael Peoples » Tue Aug 17, 2010 10:20 am
Hi Barfountain and welcome to the Forum.
The first thing your friend should do is attend the hearing and ask for an adjournment while she raises the money or seeks insolvency advice. She could pay the money but she would need to pay the fees as well and make sure it is with the creditor's solicitor in cleared funds on the day. Clearing the £1500 debt would not be enough to stop the bankruptcy.

If the bankruptcy is granted the fees and costs will escalate so she will need to get this stopped. An IP can get a court order halting bankruptcy proceedings in order to prepare an IVA but since the hearing is on Thursday an adjournment would probably be the only realistc option. Most courts will adjourn cases at least once if the debtor attends.
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
 
 

barfountain

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Post by barfountain » Tue Aug 17, 2010 10:51 am
Many thanks for your advice Michael. This makes me feel more confident about the way forward to help rather than just offer financial as I think this will just be the start of things if it is not dealt with immediately. I am just annoyed that she didn't ask sooner.
 
 

Michael Peoples

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Post by Michael Peoples » Tue Aug 17, 2010 11:34 am
Don't be too harsh as most people in debt are embarrassed or ashamed but also very worried. Now that you know and can help, find out everything and get your friend to seek some advice. Speaking to an IP is free and could help her get back on track especially if you are there to support her and not condemn.
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
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