Think I need to go BR!

[fiscalfool]

Re: Think I need to go BR!

Excellent thanks

[fiscalfool]

Re: Think I need to go BR!

Hi all,

Just a quick update, my plans are progressing. I've sold my car, and now in the process of getting a company car. I've opted back into the childcare vouchers from work.

Some quick questions:

1) From the sale of the car, I have 2k spare. I've put it in a savings account to use as a "buffer" in case of emergencies. I take it that if I go BR, that this will be taken by the OR? Is there any way that this can be squirrelled away?


2) Household goods ... I realise that they are all assets which belong to the OR ... and also realise that anything with a second hand value of over £1k is generally resold. Is this the case? Or will things of lesser value be taken too? I'm thinking laptops, TV's, computers, PS3, furniture etc? what are people's experiences of this?

3) Should I arrange for friends to "look after" certain items for me?

4) If I go BR, it will be a couple of months, but I will need the £500 to pay for the BR process. Therefore, should I stop paying the mortgage on the house which I rent out now?

5) Does the OR go through recent bank account statements to look at spending, to see what has been bought/disposed of? I'm thinking that they will see several thousand enter my account for the car sale, and then I'd put some in a savings account, some to my partner to repay a debt I owed her, and then some to a payday loan company.

6) Looking at my SoA, if I have a tenant in my property, it seems that I can make reduced payments to my creditors. However if I don't have a tenant, I am a definite candidate for BR ... but afterwards I would still have a £500 excess each month. My partner is wanting to move in. If she has moved in, then I would certainly have little to no "disposable" income left for a Payments Order. Is it wise to get her to move in, or would the OR look at this unfavourably?

7) Secondly, if she moved in, then will her credit rating be screwed by the financial association with myself?

8) If I went BR, and then she moved in, could I get the OR to re-assess the Payments?

Sorry for huge list of questions ... I'm sure that BR is the way I need to go, especially with a property that is a huge noose around my neck, and a car that I still need to pay for ... the rest of the credit is being deferred as Unenforceable at present, but the car and house worry me.

[philnicandamy]

Re: Think I need to go BR!

Hi all,

Just a quick update, my plans are progressing. I've sold my car, and now in the process of getting a company car. I've opted back into the childcare vouchers from work.

Some quick questions:

1) From the sale of the car, I have 2k spare. I've put it in a savings account to use as a "buffer" in case of emergencies. I take it that if I go BR, that this will be taken by the OR? Is there any way that this can be squirrelled away? It "could" be claimed BUT make a case to the OR regards needing stuff etc


2) Household goods ... I realise that they are all assets which belong to the OR ... and also realise that anything with a second hand value of over £1k is generally resold. Is this the case? Or will things of lesser value be taken too? I'm thinking laptops, TV's, computers, PS3, furniture etc? what are people's experiences of this? usually its things that will reach AT LEAST a thousand pounds at auction everyday stuff such as you mentioned wont be touched

3) Should I arrange for friends to "look after" certain items for me? no need unless you've a couple of sportscars and some old masters stashed in the loft

4) If I go BR, it will be a couple of months, but I will need the £500 to pay for the BR process. Therefore, should I stop paying the mortgage on the house which I rent out now? just pay your priority debts gas/elec/water/TV the money you save can go towards the costs

5) Does the OR go through recent bank account statements to look at spending, to see what has been bought/disposed of? I'm thinking that they will see several thousand enter my account for the car sale, and then I'd put some in a savings account, some to my partner to repay a debt I owed her, and then some to a payday loan company. you may get a telling off about paying creditors they could ask for the cash to be returned from creditors you have paid from the cash...if they ask you simply say they cant repay end of..

6) Looking at my SoA, if I have a tenant in my property, it seems that I can make reduced payments to my creditors. However if I don't have a tenant, I am a definite candidate for BR ... but afterwards I would still have a £500 excess each month. My partner is wanting to move in. If she has moved in, then I would certainly have little to no "disposable" income left for a Payments Order. Is it wise to get her to move in, or would the OR look at this unfavourably? the receiver would then ask what contributions your OH will be making to the living expenses

7) Secondly, if she moved in, then will her credit rating be screwed by the financial association with myself? financial association is only debts you take on together now...long as you dont have anything in joint names she'd be fine

8) If I went BR, and then she moved in, could I get the OR to re-assess the Payments? Yep

Sorry for huge list of questions ... I'm sure that BR is the way I need to go, especially with a property that is a huge noose around my neck, and a car that I still need to pay for ... the rest of the credit is being deferred as Unenforceable at present, but the car and house worry me.

Hope that little helps....and good to see you back!

[fiscalfool]

Re: Think I need to go BR!

Cheers Phil,

So the BR process isn't too strict then when you've got the payments set-up then. In terms that I can get them to re-assess at any point.

Looking a lot more positive now. Very daunting though.


After filing the paperwork, how long does it all take to come through with a court date? I'm thinking I shall leave it until end of October as I need to get a good couple of months on my adjusted salary, so I can present a decent SoA. So if I file in Oct/Nov, will it be seen before Xmas?

I've still got to phone National Debtline just for their agreement that BR is best. But I think I need to stop procrastinating, and waiting to win the lottery and get on with it.

[philnicandamy]

Re: Think I need to go BR!

If you indeed end with an IPA/IPO they can be reassessed at ANY time your financial needs change...all you have to do is tell the OR within 21 days of any change and they'll adjust accordingly

All depends on your court really...some operate a walk-in service some appts only...give them a ring and see what they say around end of sept should be all done within a couple of weeks tops if you have to wait for an appt so well before xmas !!!

[fiscalfool]

Re: Think I need to go BR!

Oh that's good news.

Right, I know there is a courthouse just around the corner from my current house. I wonder if they hear BR cases. I'll investigate.

[philnicandamy]

Re: Think I need to go BR!

Oh that's good news.

Right, I know there is a courthouse just around the corner from my current house. I wonder if they hear BR cases. I'll investigate.

as long as they do bankruptcy & you've been in that courts area for a minimum of 6mnths should be fine

[fiscalfool]

Re: Think I need to go BR!

Bum, I've got a choice of two, both are 30 minute drives. No problem I can go to the one out of the area in the vain hope my folks don't find out!!
Fully grown adult and still get disapproving comments from parents!

[philnicandamy]

Re: Think I need to go BR!

Ah right...mine was the same 3 courts in the centre and only one did it (had the worse parking as well!!!)


No reason why anyone should find out...not published anywhere now so you 'll be fine, although know what your feeling I felt the same with my parents as well...I did after some time pluck up courage and tell them...they suprised me with the response and are now happy to refer any questions about bankruptcy on to me!! (couple of neighbours looking at BR)

[fiscalfool]

Re: Think I need to go BR!

Ah ... I don't think my folks would be so understanding.

I'm partly in this mess due to ex's who have spent, spent, spent like mad and not slowed when asked to. But my dad was an accountant, and in his eyes "If you can't afford it, you don't buy it". He has bailed me out when I was younger, which I think didn't really teach me a lesson. If I'd been made to pay off the cards when I was younger, it wouldn't have snowballed. He gave me some cash as a deposit for my house, which I left with zero ... although he assumes I'm sat on a nice pile of cash. I don't think we will see eye to eye financially!

[philnicandamy]

Re: Think I need to go BR!

at the end of the day you do whats best for you...I switched between all sorts before I finally bit the bullet

at the end of the day its the best thing I ever did...be 5yrs March 2012!

[Riz]

Re: Think I need to go BR!

Bum, I've got a choice of two, both are 30 minute drives. No problem I can go to the one out of the area in the vain hope my folks don't find out!!

You will need to find out which one has jurisdiction to hear bankruptcy cases covering the area you live in.

Only one local court will cover you. Go to the wrong one, and you will most likely be turned away.

[fiscalfool]

Re: Think I need to go BR!

Oh that's fantastic news then, just over 1 year left to go. Congrats.

After the BR has been accepted, and I'm classed as BR for 1 year. I understand the limitations. But then I may have 3 years of payments, during that time am I still bound to advise the OR of any additional income etc? Or is it just during the first 12 months that it's strict?

I realise I'm not going to have much free cash at all during the first 3 years, but it would be nice to start building a saving ethos.

[fiscalfool]

Re: Think I need to go BR!

You will need to find out which one has jurisdiction to hear bankruptcy cases covering the area you live in.

Only one local court will cover you. Go to the wrong one, and you will most likely be turned away.

Aaah true ... thanks.

[philnicandamy]

Re: Think I need to go BR!

Oh that's fantastic news then, just over 1 year left to go. Congrats.

After the BR has been accepted, and I'm classed as BR for 1 year. I understand the limitations. But then I may have 3 years of payments, during that time am I still bound to advise the OR of any additional income etc? Or is it just during the first 12 months that it's strict?

I realise I'm not going to have much free cash at all during the first 3 years, but it would be nice to start building a saving ethos.

If you have an IPA/PIO that runs for 36mnths and through that time if you have ANY finance changes you have to inform the receiver then they can adjust figures accordingly..so not just the 12mnths sorry