Decision made! bankruptcy it is!

[DebtDevil]

Sorry had remove

[PlanB]

Re: Decision made! bankruptcy it is!

Hello Debtdevil and to AAD

We have lots of information about going BR on this website so start with this link and then post up here for more help http://forums.all-about-debt.co.uk/s...ull=1#post1224

We have some personal experiences on here too like Fiscalfool's thread and loads more http://forums.all-about-debt.co.uk/s...l=1#post126887

[PlanB]

Re: Decision made! bankruptcy it is!

We currently have approx 60k of debt unsecured between creditcards/loans/storecard, we rent, we have no savings, to children both under 10, two cars that neither is worth over an thousand both 10 years old, i get approx £1500 and the other half just shy of £500 including the kids allowance, i work full time, she works part time. I work for the local council she works as a hairdresser . . . Due to excessive income I can see that i will have to have an ipa, once the ipa is in place for 3 years . . . .

Are you sure you need to go BR or into an IVA? This may have been something the CAB or Debtline have suggested but it may not be necessary if any of those credit cards, loans or storecard are unenforceable in a court of law.

Were any of them taken out before April 2007? If so tell us more about them and we'll see whether you are worrying about paying them back needlessly.

[ScabHunter]

Re: Decision made! bankruptcy it is!

I totally agree with the above post.

So far, you've provided us with quite a bit of information, but absolutely no reason as to why bankruptcy should be necessary.

Even if the alleged debts are post-6th April 2007 or have enforceable agreements from prior dates, that wouldn't necessarily mean that BR was the right or only option.

Make sure you consider every possible way forward before you take such a drastic action as going bankrupt. It may be the best way forward, but make sure of that before you take the final leap.

SH

[Riz]

Re: Decision made! bankruptcy it is!

1. Hell of a lot of people put nothing. Unless you have something new or significant that would be worth the bother of collecting and auctioning, I would not include it.

2. IPA would be varied downwards but would continue to run. Even if payments were varied to £0.

3. If not worth over £1K and necessary for your needs you may be allowed to keep it. No guarantees though.

What will happen to my motor vehicle

4. Heard of someone who had a large CD collection (and I mean excessively large. many many £1,000s worth back in those days) have those sold. As said though, most things a person has are just not worth the bother taking and auctioning.

[SXGuy]

Re: Decision made! bankruptcy it is!

When I went Br I had nothing of value so they didn't take it. They did want my jewellery I was wearing and cash in my pocket. So turn up with very little if you do decide to do it.

[PlanB]

Re: Decision made! bankruptcy it is!

They did want my jewellery I was wearing and cash in my pocket. So turn up with very little if you do decide to do it.

Thanks for the tip SXGuy. Never turn up for your BR appointment covered in bling

[DebtDevil]

Re: Decision made! bankruptcy it is!

All debt is post 2007, moved it around several times to reduce interest etc. i will not put anything down on assets as I don't feel that anything would reach anything near a grand at auction, i will obviously declare the cars. will this decision be questioned by the court, I do not want to appear fraudulent is this just the done thing???? I will look at reducing hours at work if I get an ipa, id sooner not work for nothing. I have looked at iva but it just drags everything out of a longer period, and i don't have my own home et...

[SXGuy]

Re: Decision made! bankruptcy it is!

The judge is very understanding so don't worry about that. It's the insolvency service that go through everything. If you explain what you have and what value it is they prob wont bother taking it. It's all weighed up against value, cost of processing the asset and time spent doing it. If it's not worth their time they will leave it. Car used for work won't be taken as far as I remember.

[Riz]

Re: Decision made! bankruptcy it is!

30.127 Vehicle should be ‘necessary’ for the bankrupt to be treated as exempt

For a vehicle to be treated as exempt property it must be necessary for use personally (see paragraph 30.128) by the bankrupt in his/her employment, business or vocation (see paragraphs 30.130 and 30.133), or necessary to meet the basic domestic needs of the bankrupt and his/her family (see paragraphs 30.135 to 30.138).

It is the bankrupt’s responsibility to satisfy the official receiver that this is the case, particularly that the vehicle is necessary, to the extent that no practical alternative exists, to meet a genuine need and not merely as a matter of convenience.

It would be expected that a vehicle be treated as exempt property to meet a domestic need (as opposed to an employment need) only in very limited circumstances (see paragraphs 30.135 to 30.138).

30.128 Use of the vehicle personally by the bankrupt

As outlined in paragraph 30.127, it is a requirement that the bankrupt satisfy the official receiver that the vehicle is necessary personally to him/her for it to be treated as exempt. This does not mean that the vehicle must be used exclusively by the bankrupt, but it must be necessary to him/her and not just necessary to others (where, for example, a spouse of the bankrupt needs it to get to/from work).

In considering whether the bankrupt is personally using the vehicle, the official receiver should consider the use to which the vehicle is put by the bankrupt and the frequency of that use (see paragraph 30.136). If the bankrupt is unable to demonstrate that the vehicle is used by him personally, or that the frequency of that use is low, the official receiver should give him/her the opportunity to introduce a third party to purchase the vehicle (see paragraph 30.140).

30.129 Bankrupt claims he/she needs vehicle for work

When considering whether to treat a vehicle as exempt property under the provision relating to use of the vehicle in the bankrupt’s employment, business or vocation, the principal points to be considered are:

1. Whether the vehicle is, in fact, used by the bankrupt in his/her employment, business or vocation and not, for example, for some, unrelated, domestic use.
2. The extent to which the bankrupt could reasonably travel to and from his/her place(s) of work using alternative transport (public transport, for example), taking into account his/her need to carry equipment or tools.
3. The extent to which the bankrupt’s prospects of keeping employment would diminish without use of the vehicle.
4. If the vehicle requires repair, that it will be used to travel to work when repaired (taking into account points a – c above) (see paragraph 30.131).

[Riz]

Re: Decision made! bankruptcy it is!

Actually, read carefully through the whole of this link.

https://www.insolvencydirect.bis.gov...6/Part%206.htm

You need a full understanding of how the OR will decide.

[Never-In-Doubt]

Re: Decision made! bankruptcy it is!

Is it me? Link no worky

[Riz]

Re: Decision made! bankruptcy it is!

Was working earlier. Looks like site is down now.

Perhaps Sunday mainentance or other problem.

[Riz]

Re: Decision made! bankruptcy it is!

pdf from Google's cache

MOTOR_VEHICLES_AS_EXEMPT_PROPERTY.pdf

[CleverClogs (RIP)]

Re: Decision made! bankruptcy it is!

They did want my jewellery I was wearing and cash in my pocket.

But not your gold tooth?