Author Topic: Bankruptcy  (Read 1329 times)


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« on: Mar 01, 2010, 03:16:36 PM »
After much browsing and interested information i have decided to register for some advice on my current poistion.I am 29 yr old currently in 20k plus debt most to lloyds,i am considering bankruptcy as my option and just wanted some help if possible in answering a few questions.I rent my house privately do i have to move out,also i am self employed carpenter can they take my van and tools as this would make things worse for me,i only have my van no other vehicle live with my partner and son.I keep hearing about assets i have none other than the flat screen tv like most households which now is 4yrs old is this classed as an assest or are they only interested in things of real value,can bailefs approach me for debt collection or does it become down to the OR after declared bankrupt,i like most hear am paying out more a month than im earning no spare cash to go down ivo route,its getting worse with slow work i cant sleep at night can someone help.Thank you.


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Re: Bankruptcy
« Reply #1 on: Mar 03, 2010, 12:00:27 AM »
If your renting and dont own an house, then they cant take your home.  As for your tools etc, then as long as you can prove that they are necessary for your work then you'll be able to keep them.  General household equipment/furnishings are ok to keep also, but anything with a reasonable value which could be sold to pay off your creditors will be taken.  I'd expect your 4 year old tv to be safe.
Good luck!

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Re: Bankruptcy
« Reply #2 on: Mar 08, 2010, 07:15:28 PM »
Please read this message fully, word for word, and scrutinise it with any due diligence required.
1) There are potentially 4 debt solutions available to you.
a) Debt management - This is where you make a reduced monthly payment to your creditors based upon something called your disposable income. This is calculated by taking your net income, subtracting from this your necessary expenses and then seeing how much money you have left. (The money you don't need to survive!). You would then pay this money to a DM firm (or do it yourself, it's not hard) who then pay this to your creditors in proportion to the amount of debt you owe them.

There are a few things to consider.
i) Do you have a disposable income?
Yes) Then you should consider this option... HOWEVER, look at the effects.
              i) You will have much less stress... Your creditors will not contact you as section 2.8d OFT for debt collections states that "if you have an elected representative for your debts, all communication must occur with your elected representative and not you... if the creditors make attempts to bypass the elected representative this is harassment". Linked with the protection of harassment act 1977, this is a criminal offence and they can have their license revoked, or have a fine sanctioned against them. 
            ii) Now... lets look and see if it helps your situation? Lets say you pay £150 a month. If ALL the interest was frozen it would take 20,000 / 150 = 133 months = 11 years and 1 month. Is all the interest frozen? NO. Look at all the Debt Management websites and they all claim "we MAY freeze the interest". This is a sales gimmick and ironically all we can do is write a letter to the creditor and ask them, which inevitably a high percentage of them reply "no". Therefore 11 years is the MINIMUM and in most cases people pay for the rest of their lives.
NO) If you do not have a disposable income then this is the wrong solution anyway as you cannot afford to sustain it.
2) IVA - You have already stated you do not have the disposable income to sustain this.... However let us look into this further. Both IVA's and Bankruptcy are covered and governed under the Insolvency Act 1986. They are both insolvency solutions. In both solutions your name is placed on the Insolvency Register. In both solutions your credit rating is impaired for 5 years. In both solutions you are asked to make payments (if affordable) to your creditors.....
The differences?
        i) You pay 100% of your disposable income for 5 years into an IVA as a minimum.
        ii) You pay 50-70% of your disposable income (if over £100) for 3 years in bankruptcy.
       iii) You therefore pay more money in an IVA... the reason for this? ASSET INSURANCE or JOB INSURANCE. In bankruptcy you lose control of your assets and also your job could be affected. In an IVA you don't. YOU HAVE NO ASSETS other than a van that I will discuss now.
Step 1) Google "Insolvency Act 1986"
Step 2) Click on the 1st link that appears. It is to the website to a PDF document of the Insolvency act.
Step 3) Scroll down to Section 283, Subsection 2.
Step 4) Read it!!! No bailiffs can take your Van if its value is modest (as you use it for work) and no bailiffs can take your TV (as it is required for your domestic needs of your family). In fact... In the majority of cases, bailiffs stopped coming to your house in 1986!!!!!
Due to the Insolvency amendment rules of April 6th 2009 your name no longer appears in the local paper in bankruptcy.
The ONLY reason you would choose any other debt solution over bankruptcy is PRIDE. Pride is not getting you anywhere, it is not solving your problems and it IS making your creditors richer. Forget pride... Please I beg of you. look at the facts and make a LOGICAL decision based upon FACT.
I REALLY hope that many people read this and see the light, as I am continuously bashing my head against a wall trying to educate people that Bankruptcy is by far the most financially viable solution for people and in my mind is the FIRST solution someone should consider before ANY other solution!!!!
Best of luck to you all and I hope this provides valuable insight to anyone who reads this.
Much Love

Raphael Gilbert

Raphael Gilbert
Head of Insolvency Divison www.ban