Topic: Bankruptcy

[Steven Jackson]

Well done Tinkerbell
 
I guess the court must be very busy if they could not fit you in to see the Judge on the day. It is good news that you will be able to speak to the OR tomorrow as well as this is often delayed for a coupld of weeks. I suggest you take all of your paperwork with you (letters from creditors, copy of wage slips / benefit statements, recent bank statement etc) so that you can refer to it if necessary.
 
I am please to hear that the clerk was helpful. This is normally the case but I have had people tell me that they have had diffierent experiances. Would you mind telling me which court you are visiting?
 
Best of luck for your meeting tomorrow.

[tinkerbell]

Hi Steven
 
I am now debt free!  The Judge was very sympathetic and understanding and said this was the only forward for me to make a new start.  He was brilliant.  This was in Preston Crown Court there were actually eight of us.  Spoke to OR who advised me to forward a copy of the bankruptcy order to creditors to make them aware in case they decide to take action.  They are going to contact me by phone in one weeks time for information to put together a report for the creditors as to how I came about my situation.  Blackpool Official Receivers deal with this and they do not put in local press anymore.
 
Thank you so much for your advice I wouldn't have done it without your help as you reassured me.
 
Anyone reading this it is really not as bad as you think and you feel so much better.  Will steer clear of credit cards from now on.
 
Once again thank you Steven for helping me so much. 
 
A happy Tinkerbell

[Steven Jackson]

That is brilliant news Tinkerbell. I am so pleased for you.
 
I would definitely do as the OR says and send a copy of the order to all of your creditors. They will eventually be formally notified by the ORs office but if you let them know it will speed up the process. I have heard one or two people say that creditors have continued to contact them up to 2-3 months after they have declared bankruptcy. If this happens, the ORs office should be very helpful in contacting them again to put them straight.
 
Quite right about the local press. Since April last year, it has been accepted practise not to include a bankrupt persons details in the local newspaper unless they are self employed.
 
Please let us know how you get on when you have spoken to the ORs office again. By the way what are you doing about your bank account Tinkerbell? Have you opened a new account to use from now on?

[tinkerbell]

Hi Steven
 
Thanks I will let you know how get on with the OR's.  One more question can the OR's make you pay the creditors for 3 years if they feel you have enough money (I haven' because like I said once you put everything down you realise how much you need!) even though the Judge has granted you bankruptcy?
 
I opened a new bank account in March when I realised I was going to consider an IVA because CAB advised me to do this as my existing bank would freeze my account once they got wind of what I was proposing to do.  I opened a basic cash account with no overdraft facilities.
 
I will let you know what the OR's ask me I presume they will go through the financial form I filled in for the courts?  I do not have any savings or assets of any value.  I do have a pension which is worth about £5,000 from 1988 when I left an Insurance Company it was frozen and I transferred it to a pension company when the government changed the law on pensions but I have not contributed to this since I left in 1988.  I now work for NHS so have an existing pension with them.  They may want to take this pension?
 
Your help and advice is greatly appreciated and if I can help with any answers in any way I will because it will help other people to understand what they ask and what to expect.
 
Many thanks, Tinkerbell.
 
P.S. Even though I am getting sorted I will stay in touch because I feel this forum is very beneficial!
 

[Steven Jackson]

Hi Tinkerbell
 
Regarding whether or not you will have to make monthly payments to your creditors (called an income payment order), this will be down to the Official Receiver not the District Judge who granted your bankruptcy order.
 
The OR will only require that you make a payment if you can afford to do so. If your reasonable disposable income is less than £100 a month, it is highly likely that you will not be asked to pay anything.
 
The OR will normally want to go through all of your income, expenditure, debts and assets in some detail. If you have a pension fund, do not worry, this is safe although if you are currently making any new payments into a pension, these might have to be stopped while you are bankrupt.
 
Re your bank account, I would contact the bank and let them know you have declared bankruptcy. Even though the account you have is a basic account, some banks can still be a bit funny. If there is going to be a problem, better to know in advance so you can make arrangements elsewhere rather than suddenly finding you account is frozen. If you let us know who are you banking with I can comment further on this.
 

[tinkerbell]

Hi Steven
 
I have a basic account with Co-op I do not have any debts with them whatsoever and I do not have any overdraft facilities so surely they can't freeze my account as I do not owe them anything.  Let me know asap as just got paid!
 
Many thanks.
 
 

[Steven Jackson]

Hi Tinkerbell
 
You should be fine with a Co-Op account particularly if you have no debts with them. It might be worth informing the Co-Op that you have recently declared bankruptcy to make sure you have an account that they are happy for you to keep open. If not they will quickly move you to another so there should be absolutely no problem at all.

[tinkerbell]

Steven
 
Thanks for that.  I did inform them when I opened the account that I was considering an IVA.  I have a telephone interview this Thursday with the Official Receiver I am a bit worried about it, should I be?
 
Tinkerbell

[tinkerbell]

Can I rent now I have been made bankrupt?  I am living with a partner at the moment but to be honest this is taking its toll on our relationship and it is not my house and feel I need to move out.  Will this have an affect on me trying to rent somewhere?

[Steven Jackson]

Hi Tinkerbell
 
Sorry for my silence. I have been out of action for a couple of weeks. How did your interview with the OR go?
 
Yes, now you are bankrupt, there is nothing to stop you renting as long as you can afford the rent payments. The only issue you might have is that if you want to rent privately, any lettng agent will do a credit check on you and find that you are bankrupt. It would be best to be upfront about your bankruptcy with the letting agents. Is there anyone you know who might be able to act as a guarantor for the rent? This normally does the trick.

[tinkerbell]

Hi thanks for your reply.  I have to pay £99.00 per month for 3 years plus what is called a holiday tax free holiday of £217.00 to them too until March 2011?  Now I am looking to rent this should be taken into consideration?

[Steven Jackson]

Hi Tinkerbell
 
The £99 you have to pay is an income payment order. This is what the OR has calculated you can afford to pay after your resonable living expenses have been taken into account. If these increase because you are changing your accommodation then you may be able to pay less.
 
However, you need to be careful. Why are you planning to move. If there is a good reason then this should be OK. But if it is just becasue you fancy living in a better place, the OR might not like it and may not be prepared to reduce your payment order.
 
The £217 you mention is income tax that would have otherwise have been deducted from your salary. While you are bankrupt, this is not deducted. You then have to pass it on to the official receiver when you get it. You need to keep an eye on your wage slips. and check whether your employer is still deducting tax or not.

[tinkerbell]

Steven
It is not that I want to live somewhere nicer it's because my partner keeps reminding it is his house and that I am bankrupt.  I feel trapped.  I did this so that I could have a fresh start. I have had a letter from British Gas and Electricity today to say that my payment arrangements will have to change as they have been notified by OR.  What does this mean?  I am able to keep my car and have also had notification today from solicitors to say that I will have to pay £99 per month until August 2013 plus £217.00 tax payments from my employer.  I don't understand the tax bit?
 
Thanks Tinkerbell

[Steven Jackson]

Hi Tinkerbell
 
Not sure if this helps but your partner and his property is not affected in any way by your bankruptcy. Infact it should have made things easier as given you no longer have responsibility for paying your unsecured bills you are in a better position to contribute towards some household expenses. Bot sure if he sees it that way though?
 
If you feel you really need to move, then I am sure that the OR will understand this. My suggestion would be to have a chat with them up front, explain the problem and the reason you want to move and the financial affect it will have. Explain that this will then affect your ability to pay your income payment order and confirm with them that they will be OK to reduce this. Always best to do this up front.
 
In terms of the tax payments, as I mentioned in my last post, this is quite normal in bankruptcy. The £217 you mention is income tax that would have otherwise have been deducted from your salary. While you are bankrupt, this is not deducted but paid directly to you by your employer. You then have to pass it on to the official receiver when you get it.
 

[tinkerbell]

Steven thanks for that.  My partner seems to be calming down a bit now I think it took its toll on us but now I am debt free I still make the usual contributions.  I think he got a bit worried that he would be drawn into it but this is not the case.  Also I have spoke to British Gas and they say the direct debits are still up and running in my name and there is nothing to worry about.  Things just got a bit panicky!  Still glad I went down this route though and appreciate your advice.