Author Topic: Complicated Bankruptcy - Please Help  (Read 1473 times)

Eagle

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Complicated Bankruptcy - Please Help
« on: Jan 11, 2012, 08:32:12 PM »
Hi

I have a complicated case that I hope I can get some help on as I had many different advice so not sure what to do.  Thanking you all in advance.
In 2005,  I finally accepted that I had a debt problem and a big one, £144,000
I decided to manage it on my own, wrote to all and offered monthly payment which were mainly accepted.  I kept up with this for 3 years, was very tough as I did not have enough money to have a decent life, so bad that I felt sick when passing a coffee shop, knowing I was dying for one but I could not afford it.  Cut all my socialising and as a result lost friends etc.
After 3 years, I took a friend's advice and stopped paying and ignored the letters. Life got a little better but the debt thing around my neck just was not going away and I decided that I should go bankrupt and end this torment.  This included my bank taking any cash out of my current account without notifying me causing issues with rent and so on.

Challenges I now have:
- a few of the creditors have stopped writing to me, so I do not know how much exactly I owe.  Subscribed to a credit agency called checkmyfile.com to understand what I exactly owe and to who, but reports are showing only a fraction of what I owe and one County Court Judgement against my name from one of the unknown creditors.
- some of my creditors include egg bank, if finance and so on
- other challenge I have is to find a court that actually deals with bankruptcy, I cannot find any looking at the bankruptcy website from government. I even wrote to one court to ask but they never got back to me.  I live in London and any court in and around central London would be ideal.
- my salary is split into two halves, half goes to my ex wife who looks after my son in Spain, the other is for me in London.  I do not have much disposable each month, so not sure how long I will have to pay my creditors each month.

That is the summary so any advice would be greatly appreciated.

Thank you all.

James Falla

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Re: Complicated Bankruptcy - Please Help
« Reply #1 on: Jan 13, 2012, 12:20:49 PM »
Hi Eagle
 
From what you have said you certainly need to act to deal with your debt and if you have little or no assets then Bankruptcy could well be a sensible option. You need to petition for bankruptcy in your local county court. However if you live in London you will need to go to the Royal Courts of Justice in The Strand. The fact that you ar paying maintenance to your ex wife in Spain should be OK as long as the amount you are paying is reasonable. Has this amount been agreed by either a Spanish or UK court?
 
In terms of making payments towards your debts once you are bankrupt, you only need to do this if you can afford to do so. That is why it is so important to get your income and expenses information correct on your application form. If you are unable to make payments because you cannot afford them then you will pay nothing and after 12 months your debt is written off and you are debt free.
 
Bankruptcy is a serious matter and before you go bankrupt you need to make sure you understand all of the implications.
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mikkilaw

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Re: Complicated Bankruptcy - Please Help
« Reply #2 on: Jan 16, 2012, 07:59:38 PM »
Bankruptcy is a serious matter and before you go bankrupt you need to make sure you understand all of the implications.


Can you recommend any websites that detail those implications?

Eagle

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Re: Complicated Bankruptcy - Please Help
« Reply #3 on: Jan 17, 2012, 11:47:26 PM »
Hi James,
 
Thank you for your reply, and indeed thank you for all the help and advice you provide to all on this forum.
 
In answer to your questions:
 
The arrangement I have with my ex wife has not been agreed via any court, it is a personal agreement.  I am told that the amount I pay is too high as not any divorced man pays half of his salary to his ex wife, but in my case, I want the best for my son and his mum does not earn much.  I am aware that the court may decide this is not acceptable and take the money and give it to the creditors but this means that my son's life will be upside down as it will impact his school etc.
 
In terms of making payments towards my debts once I am bankrupt, I have read many conflicting articlles. some say it is 12 months, some say it could be 36 months! Are there are criteria as when it could be 36 months? 
 
The issue I have is that considering my debt has been sold from one company to another, I subscribed to checkmyfile.com to get a better picture as how much I now owe and to whom,but strangely enough 95% of what I owe is actually not on my credit reports/files which has made me think whether it is worth me going bankrupt or not.
 
Also what happens when one goes bankrup is not really clear, many conflicting info from the government web sites to private ones.  For example, if all credit card and bank cards are taken away ( I do not have credit cards but have debit card), then how is rent, utility bills etc are paid?  Does everything go to the officer and he or she hands out the money?
 
Sorry for more questiosn :-)
 
Thank you again.

James Falla

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Re: Complicated Bankruptcy - Please Help
« Reply #4 on: Jan 18, 2012, 06:18:27 PM »
Hi Eagle
 
I am really pleased that you are finding the advice helpful.
 
The amount of money that you pay to your son is always going to be an emotive subject. If you go bankrupt, the official receiver will of course allow you to continue to make reasonable support payments to your ex for your son. However the question will always be what is reasonable. Unfortunately the only measure of this is what your ex would get under the rules of the CSA. As such if you are paying more than that it is conceivable that the OR might demand that you reduce the payments to free up income to enable you to be able to make payments towards your creditors. If this would mean that something such as schooling is disrupted because school fees can not be paid you might be able to negotate but this is by no means guaranteed.
 
In terms of making payments when you are bankrupt I am surprised that you have read conflicting information. The situation is very clear. If you are asked to make a payment (called an income payment order) then this will be for 3 years from the date the payments start. As such the payments will generally continue for some years after you have been discharged from your bankruptcy which will normally last for a maximum of 12 months.
 
In terms of getting your credit file I have not heard of checkmyfile.com. If I were you I would request your file direct from one or two of the three main credit reference agencies (Equifax, Experian or Call Credit). This will give you the definitive information you need. At the end of the day whether the debts you have are recorded on your credit file or not, if you believe money is owed it usually is....
 
If you go bankrupt you will no longer be able to use credit facilities such as credit cards. You will most likely have to open a new bank account but you will normally be able to have a debit card on this account. As such you are still very much in control of your income and you are responsible for maintaining all of your monthly living expenses.
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