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| jayne1970 |
Posted - 12 February 2009 : 15:34:26
Just had IVA refused, Northern Rock been the only creditor to object but owning 25% of debt. Now considering bankruptcy, but we were still spending on credit cards up until Christmas knowing we would not be able to repay. How would this affect how our application was viewed? Would we be better going for DMP, then trying again for IVA later? We are both in full time employment, and own our own property, but little if any equity. |
| 8 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 12 February 2009 : 20:24:04
Hi jayne
you should not receive a BRU/BRO because you used credit recently when you were clearly still in the throes of applying for an IVA. Therefore, by definition, bankruptcy was not on the radar until your application was refused.
In the case of BRU's, the OR MUST be satisfied that you had no intention, or ability, to repay pre bankruptcy, it should not count pre IVA. It is the same with preference payment rules.
You are asked " have you made a payment to any creditor in preference within the last 2 years KNOWING that the creditor would be placed in a better position before declaring bankruptcy."
So contrary to popular belief, it's not considered a preferential payment when repaying 1 creditor over another, even only 3 or 4 months pre bankruptcy, unless the bankrupt KNEW, and the OR can evidence that he/she KNEW, that they were going to declare bankruptcy.
The OR has to apply to court for a "sanction" to recover preferential payments. The court will not grant the sanction unless it is evidenced that the bankrupt KNEW exactly what they were doing and therefore the whole transaction being contrived.
timendi causa est nescire
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| Niobe |
Posted - 12 February 2009 : 18:15:35
Sorry an IVA wasn't for you Jayne.
Good luck at court on the 3rd.
The glimmer gets brighter all the time
Jan
xx |
| jayne1970 |
Posted - 12 February 2009 : 18:07:09
Thanks for all your replies, really thought IVA would work, but there you go........Made a decision, and court date for bancruptcy hearing booked for 03/03/09. Thought about little else for ages now, need to draw a line, and deal with any nasties this entails.
J
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| coxy |
Posted - 12 February 2009 : 17:21:21
HI Rhb
know what youre saying this is what or was trying to get at with us yesterday, even going as far as trying to change my answers eg. or said what have you used credit card for i said i cant remember everything he said give me examples i said a new fridge in may 08 He said new fridge dec 08 youve already said you became unemployed oct 08.
No wonder interview took 1hour 45 mins id be interested to know if ors are on a bonus to give out BRU/BROS. |
| coxy |
Posted - 12 February 2009 : 17:03:17
HI JAYNE
If br is the route you take, from our interview with or yesterday this is what he was looking for if your payments to credit cards are up to date cant see how they can do anything, if they are behind then see how much you of it you could put down to normal living expenses. |
| RHB |
Posted - 12 February 2009 : 16:43:11
Taking credit knowing you will be inable to pay is a common reason for a BRU/BRO. |
| mab |
Posted - 12 February 2009 : 15:46:48
I apologise I just noticed the bottom of your thread regarding your property.
I am in a similar situation at the moment and all I can say is that the advice you can get on this forum will help you greatly in sorting your finances and gaining your life back.
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| mab |
Posted - 12 February 2009 : 15:44:37
Hi
Welcome to the forum
Im sure one of the experts will be along to help you soon.
All I can say is that a DMP might not be the best way forward, as far as I am aware your crediters are not legally bound to stop interest and charges etc, and can adjust the payments at any time.
It may be worth considering bankruptcy as I believe that its not as bad as you may have first thought, and would at least allow you to continue your life without the constant worry of a long term DMP.
Do you have any big assetts such as any other property etc? |
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