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new mum and worried
Starting Member
United Kingdom
1 Posts |
 Posted - 17 October 2010 : 23:52:35
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Hi All, I was after some advice, after 33 payments in my IVA i have been told due to a change in my personnel circumstances (happened in the last year - been kicked out of house by partner when found out pregnant, had to leave job due to being homeless, was ill during pregnancy and hospitalised - had my baby) that the insolvency practioner is going to file for bankrucpy at end of november, I am worried as i have just had a baby and i am now a lone parent, what actually happens as far as going bankrupt goes, Sorry i have a few things that i would be grateful for answers etc.
1) I have a basic bank account will that be taken off me or will i be made to close it.
2) I am not working at the moment and will i be made to pay anything towards the bankruptcy i.e out of my benefits(at the moment) and when i go back to work will i have to fill out and I and E.
3) What is the process and how long can it take if everything goes smoothly.
4) what happens during bankruptcy personally, i.e could i get a mortgage later on when back to work.
5) Is it as stressful as people say - as i am not sure if i could cope with the stress if it,s that bad,
Sorry if this is long but my Insolvency Practioners have just abandoned me and dont want to know or help, and i dont know where to turn to and i am worried that i wont have enough money to live off or provide for my little boy now and in the future.
i would be very grateful for any info or advice that anyone could give me, Once again many thanks for taking the time to read this. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 18 October 2010 : 00:59:16
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Hi,
by the sounds of it you've had a pretty torrid time, especially as you were more than likely over half way through the IVA, but the thing to remember with the OR(official receiver) is that they're not there to judge anyone, it is mainly to establish the cause of failure, and deal with any assets. The person who will eventually deal with you is an insolvency examiner, having previously been one myself, they are not ogres, and will try and make the interview as stress free as possible.
In answer to your questions:
1)As long as your basic account is not overdrawn, the OR will not close it, they will write to your bank, stating that as far as they are concerned the account can stay open, as you need it for your benefits etc to go in. If it then gets closed, it will be the bank, not the OR. However, the Halifax and HSBC are generally the ones that will close accounts, which bank are you with?
2)Any benefits you are on, are not taken into account in calculating an Income Payments agreement(what you mean by paying something towards the bankruptcy). Tax credits can be, but by the sounds of it, as you are not working, an IPA is unlikely.
3)As you are going to be declared bankrupt by the IVA supervisor, you will once the order has been made, receive a letter from the OR inviting you in for an interview, about 2-3 weeks after the order has been made. In the letter will be a green booklet known as a PIQ(preliminary information questionnire), which you will need to fill in as much as possible. One of the sections is to do with creditors, the OR will get that from the IVA supervisor, as they will know what they have received from your contributions(don't be surprised if the balances from 33 months ago haven't gone down too much!), but you can provide details of any arrears you may have with utilities etc.
After the interview, if you have no assets, and no IPA, then that should be the end of any direct involvement with the OR, apart from, if you qualify for early discharge(ED), then you will be sent another income payment questionnaire to complete, prior to being discharged.
4) in bankruptcy(which lasts for a maximum of 12 months as long as no misconduct is identified, in your case it doesn't look like it), you can obtain credit if anyone is willing to lend to you, however, if you intend to borrow more than £500 then you must inform the lender that you are bankrupt. That is one of the restrictions placed on you in bankruptcy, however once discharged from bankruptcy, those restrictionns are lifted.
5) The stress is caused by people who don't know how the system works, contributing to urban myths about the process, by saying things they don't know anything about, or doing it maliciously. After the order has been made, attended the interview, etc you will wonder why you were stressing so much, the best way to look at it, is that bankruptcy will lift all those debt burdens from you, and you will have a fresh start.
The other thing you could do, is to actually attend the bankruptcy hearing so as to at least give your side of the story to the Judge, it won't stop the order being made, but it will show that you are being co-operative. Finally when you do get the OR's letter, telephone them to make the process smoother.
Hope this helps
Big Al |
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New and need advice. bankrupcy looming
