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davidandkeiley
Starting Member
United Kingdom
1 Posts |
 Posted - 20 October 2010 : 11:56:09
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We have been in a DMP for the past 3 years but the time period for paying off the debt is unrealistic, our debt is £32,000 and we can only afford to pay £110 per month, so we need to look at IVA or bankruptcy and have been advised by the debt management company to go bankrupt. I am scared as I do not know enough about it.
We rent privately, have no expensive cars, savings or property etc and can only afford £110 per month on the DMP. The main questions I have are:
1. what happens to my bank account (we are always in the overdraft by £300).
2. we are looking to move to a cheaper rented property and I dont know if bankruptcy will affect this?
3. I am also starting a new job next month - admin role but in an accountants firm - could this jeopardise my job?
4. I dont want family or friends to know - does the bankruptcy get advertised anywhere and if so can we stop it?
Bankruptcy sounds so scary and drastic - any advice greatly received as I dont have a clue! |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 20 October 2010 : 18:40:49
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Hi,
An IVA may not be possible if you only have £110 free each month as most IVA companies need a minimum of £200. You would also find yourself in the same position with having no extra money each month for the next 5 years. With no property BR is probably the best option although you should be aware that vehicles above £2k are not allowed if you declare BR and, regardless of value, if the OR deems you do not need the vehicle for work, they will take it and sell it to provide money to your creditors.
1. Unless the bank account is a basic bank account then you will not be allowed to keep it. You should open a Co-op Cashminder account as they are BR friendly. Even if there isn't a Co-op bank nearby you can still pay money in at a Post Office and withdraw money at most cash points. The OD on your current account can be included in your BR.
2. Most Agencies run a credit check so you will have problems trying to find a new rental property once you are BR. The best option is to either find a property before you declare BR or rent from a private landlord as they don't normally run credit checks. There is nothing wrong with stopping paying your creditors and using the money to pay for a deposit on a rental property. You can either move into the new property just before or after you have declared BR. When you are declared BR your current address will appear on the Insolvency Register so some people declare BR at their current address and then move into a new property a few days/weeks later so their address doesn't appear on the Register.
3. This is difficult to say. The only option is to either anonymously ring the HR Dept and see what they say or check the contract very carefully to see if their is a BR/insolvency clause. If the job were in accountancy then there would definitely be problems but for an accountancy firm it's hard to say.
4. The BR is advertised on the Insolvency Register and the London Gazette. Neither are monitored by 'main-stream' people but are by creditors. It is highly unlikely that family/friends will find out unless you tell them. I was declared BR 18 months ago and the only people who know are my parents. The rest of my family/friends have no idea.
Feel free to ask more questions as there are plenty of helpful people on this board.
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 20 October 2010 : 23:44:26
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Great advice from GOOD as normal
gone are the days of local paper adverts unless you are in business
COOP bank are very BR friendly cashminder is the account to have its great.
you may want to consider having your I+E assessed or post it on here to see whether you will be liable for an IPA for 36 months. it would be a shane to move somewhere cheaper to then have to pay an IPA with surplus money.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 21 October 2010 : 01:16:46
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Hi,
bankruptcy may appear drastic and scary,but that is only through myths, perpetuated by ignorance, to hear some people you'd think that the UK still operated the debtor jails that the Victorians had!
The truth is that since the Enterprise Act of 2002, the bankruptcy laws in England have become the most liberal in Europe, which is why in particular Germans try to wangle it, to declare themselves bankrupt here!
GOOD has already given some sound advice, and moving to a cheaper property could mean the difference between not having sufficient surplus income for an IPA if you stay were you are, to having a surplus if you move. The other plus in staying put, is that you don't have to tell the landlord of your intentions, as the OR definitely won't(you'll just have to provide a copy of the tenancy agreement).
As for cars, reference is made to them on this forum under a "Sticky",which should explain a lot about them in bankruptcy.
As previously stated, there are lots of people on here to help!
Big Al |
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