| T O P I C R E V I E W |
| Tikka |
Posted - 12 December 2008 : 16:10:43
Was just wondering what actually happens to the money that is owed to our creditors when you are made BR? |
| 9 L A T E S T R E P L I E S (Newest First) |
| Needafriend |
Posted - 12 December 2008 : 21:31:32
Here here, i dont feel quite so bad about having to go BR now, they get most of their monies back in the long run.
Jo
x
18 Weeks down
34 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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| movin on |
Posted - 12 December 2008 : 21:15:52
Well i felt sooo bad for weeks after going BR. THEN...I found out they are insured .....It immediately changed the way I thought about the whole process.
I still feel bad but at least they will get their money back.
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
xx |
| Tikka |
Posted - 12 December 2008 : 17:52:59
I guess at the end of the day the bank will always win!
So John just to clarify cause I have an ipa does that mean my creditors wont get to close my case for 3 yrs.. |
| Jane.l |
Posted - 12 December 2008 : 17:33:04
very interesting, I don't feel as guilty now
we went bankrupt, we had massive negative equity in our house due to a secured loan, we left the house and moved into rented. At the time of the bankruptcy, we estimated that with the house shortfall, all our debts stood at about £100,000! As the house has only just sold for nearly £30,000 LESS, I presume our shortfall was a lot higher, with arrears, interest and selling costs.
I did not work at the time of bankruptcy so no IPA. Hubby is the only earner and the OR tried for an IPA but we appealed it and did not get one in the end. He just paid 3 months Nil Tax. I even got to keep my private number plate. So all in all, the OR managed to raise just £1200 out of us for the bankrupcy for 2 of us and on such a large debt. I still feel a bit guilty when I think about it but knowing the creditors can try and claim that back from their insurance makes me feel a bit better |
| John |
Posted - 12 December 2008 : 17:07:15
Hi
now you can see why most creditors would prefer the bankrupt not to get an IPA/IPO.
The sooner the file is closed the sooner they can claim from the insurers.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Tikka |
Posted - 12 December 2008 : 17:00:15
I have an 03 plate vauxhall corsa & I was advised they would take it off me & I need it so I sold it to my BF for 2k which is roughly the true value of it (needs a bit of work doing to it really) & I gave them 1.5k & used the other 500 for the fees.
Wasnt sure which way it would go as its borderline so decided to sell it on so I could keep it...
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| jwmc77 |
Posted - 12 December 2008 : 16:51:05
just out of interest.....how much did they actually value your car at?
MAC |
| Tikka |
Posted - 12 December 2008 : 16:45:43
so for me they are getting something back, theyve had 1.5k from my car & are getting at the moment 511 as I am NT but that will go down to 250ish next april... I owed about 60k so there is a huge shortfall...
so they do get there money back somehow..
interesting!!
thanks john! |
| John |
Posted - 12 December 2008 : 16:21:55
Hi
the OR will firstly realise any assets you have.
He will then look to see if you are able to make a monthly contribution from your income for a period of 3 years.
With this money, if indeed there is any, he will firstly cover his own costs then the rest will be distributed pro rata amongst your creditors.
Once each creditor knows the extent of the shortfall between monies received from the OR and the total debt, they will make a claim for the difference from their insurer's.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
