Should I go bankrupt?

[Riz]

Yes, they can. It is a legal position.

If the "preference" occurred within 6 months prior to the bankruptcy, or 2 years if you pay off an "associate" (including relatives).

John's case may be considered a transaction at undervalue though.

In which they can go back 5 years rather than 2.

Do you think an ex-wife would count as a "preference" in the eyes of the OR

If anything, I think it might be a transaction under value?

I was responding to Talays different question on preferences previously.

TUVs are discussed here:

TRANSACTIONS AT AN UNDERVALUE

[Riz]

Re: Should I go bankrupt?

TThere is something encouraging in that info about not 'restoring the position' (ie taking back the money from Jon's mum or ex-wife) if it would result in hardship for the recipient perhaps making them homeless

There is also the practical aspect of the OR/trustee having to instruct external solicitors in any recovery.

In even straight forward cases, that usually means that unless the sum to be recovered is greater than £5,000, then it just aint worth their while bothering
with.

At £7.5K, this is above that limit. But taking into account other issues, not withstanding whether it's actually a TUV in the first place, I would be amazed if they went further than just asking. Cannot imagine them taking formal legal action.

[PlanB]

Re: Should I go bankrupt?

John's case may be considered a transaction at undervalue though.

In which they can go back 5 years rather than 2.



If anything, I think it might be a transaction under value?

I've always thought becoming a wife was a *transaction under value*

[PlanB]

Re: Should I go bankrupt?

It's ironic that some people could be "too poor to go bankrupt" when they haven't got the money to pay the OR fee...

This may seem like a wild card but I've had success in the past with getting fees paid by this charity for people to go BR who can't afford the cost. It's a grant not a loan and doesn't have to be paid back ever. I'll check out some more resources in the next couple of days

http://www.uutf.org.uk/files/UUTF%20...2007%20(3).pdf

Believe it or not British Gas will provide grants to help people go BR too in some cases:

http://www.britishgasenergytrust.org...o-applications

In fact most of the big energy companies have associated charities like EDF:

http://www.edfenergytrust.org.uk/hel...o-applications

Before anyone gets the wrong idea that these big hitters are fuzzy wuzzy nice people just remember that donations to charity are tax deductable so it makes sound business sense to them

[jon1965]

Re: Should I go bankrupt?

Thank you PlanB

Silly question but do you need to be a customer of the companies, as i am with EON and they do not seem to do anything.

[philnicandamy]

Re: Should I go bankrupt?

you dont jon no....

they sometimes though will ask if the paperwork can be filled in by a debt advisory CAB etc

its a little hit & miss but very much worth a shot

[jon1965]

Re: Should I go bankrupt?

Well I am off to CAB tomorrow to discuss it all. Knowing the lot where I live I will know more than them!

[jon1965]

Re: Should I go bankrupt?

Hi
Just been eading FF's story. What is an IPA? he said he had BR for a year then IPA for 3?

[IF]

Re: Should I go bankrupt?

Have a read here Jon xx

Income Payment Agreements/Orders.

• Changes for new IPAs from 1st Dec 2010 - Click here
• IPO / IPA (Income Payment Orders and Income Payment Agreements) (IS)
• Annex A – Assessment of real disposable income where the bankrupt's income is derived in part from state benefits
  Annex B - Guidance on the assessment of real disposable income where the official receiver seeks to claim a lump sum payment
• Income payment agreements (IPA)
  Spreadsheet showing average UK spending calculated from the Office of National Statistics publication ‘Family Expenditure Survey’
• IPA calculator Pre 01 December 2010
• IPA calculator Post 01 December 2010

[IF]

Re: Should I go bankrupt?

Forgot this link too:-

Income Payment Agreements & Orders

[jon1965]

Re: Should I go bankrupt?

Thanks
Seems I still have a lot to learn
There was me thinking that it would all be over in a year but I see it goes on for 3.

Might have to have a rethink but lets wait and see what CAB say tomorrow.

[jon1965]

Re: Should I go bankrupt?

Well CAB were about as much use as a chocolate tea pot.
I have an appointment in Coalville of all places on 17th July (Hinckley couldn't do one till August) with the debt advisor. As some of you know 16th July is another important day for me.

Rizzle, could you explain what a transaction at undervalue is, the house was sold on the open market for the best price I could get at the time and in line (although the bottom end) of the estate agents valuation. I have no connection with the purchaser.

Also can someone clarify that i would be liable to be paying monety towards the BR for a total of 3 years (assuming I get a job etc) and that within those three years were i to come into some money they would take some of it.

Also looking at the links that PlanB kindly put up, they all need support from some form of money advisor, am I going to have to wait for CAB or is there another avenue?


P.S. Masses of lovely post today,I had to open it all just to check there was nothing for my "normal life" but it is all in a pile waiting for another time, another day if ever. Shame there was no SD in there lol

P.P.S One of them offered me a discount so i asked Dx and he said it must be UE

[PlanB]

Re: Should I go bankrupt?

Well CAB were about as much use as a chocolate tea pot. I have an appointment in Coalville of all places on 17th July (Hinckley couldn't do one till August) with the debt advisor. As some of you know 16th July is another important day for me.


Also looking at the links that PlanB kindly put up, they all need support from some form of money advisor, am I going to have to wait for CAB or is there another avenue?

I believe you may go to Birmingham from time to time so try this Law Centre which gives free advice on debt and could refer you for charity funding for BR

http://www.birminghamlawcentre.org.uk/aboutus/index.htm

[PlanB]

Re: Should I go bankrupt?

In the case above, would it be crucial that the defendant is bankrupt BEFORE appearing in court?

I'm not a qualified lawyer but I would think that the optimum time would be to arrive at any final hearing as a BR so it doesn't look like a last minute avoidance strategy This could be months and months away or indeed never

[PlanB]

Re: Should I go bankrupt?

I believe you may go to Birmingham from time to time so try this Law Centre which gives free advice on debt and could refer you for charity funding for BR

http://www.birminghamlawcentre.org.uk/aboutus/index.htm

I've spoken to the Birmingham Law Centre and they have appointments available for debt issues next week so call them pronto to book a slot

Also try the Birmingham Legal Advice Centre which is part of the LawWorks network of clinics (I work in one in London) and they're dead good too

http://www.lawworksclinics.org.uk/bhamlac/index.php


Sorry to hear the CAB were useless this morning. It's not really their fault it's all about this rotten Government's austerity cuts