I have noticed as have most of my friends and family the increases we are all experiencing in what it is costing for food, petrol, and just about every other living expense out there. It is just madness and takes me back to a period before in my life which I had hoped to never see again.

I just needed to vent a bit.

B
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In reading your post Jon and thinking about what you stated, I don't think that bankruptcy is too easy here, but I do take issue with people coming from other countries to live here just to make use of our insolvency laws.

In my mind it just ties in with the whole immigration issue here and that we have let too many people just enter our country and make use of the benefits and all our other resources. One of those being our insolvency laws.

DH
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Hi Abigail,

If the figures you gave are accurate, Jon is right that it appears you really cannot afford the car, plus it may be worth more than what is allowed for a car in bankruptcy.

B
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Steve,

Hi, yes there is a time period that the Trustee has to dispose of a property and I believe it was 3 years, and that may have changed.

You can always inquire with the insolvency service, but if there is no real value or equity to be had in the property, then the Trustee may not be interested.

B
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You may want to contact the court where you were made bankrupt and possibly they can search the details out if you know the date of when you were made bankrupt and alpha search it by your name.

There is an insolvency register on the government's insolvency web site, but I don't believe it goes back that far.

Regards,

B
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I am unaware of any time limit, but there would need to be a change. If an IVA is rejected, why resubmit it in a week or a year, if nothing has changed?? Now the creditor's position may change, but no one can say when that might occur.

From my past experience, an IP is not going to submit an IVA unless they feel it will fly.

If an IVA was rejected, then possibly a debt management plan for a period until there was a change, or bankruptcy, but if you have property, bankruptcy may not be a good idea.

You may want to speak to an IP or company setting up IVA's, such as who has this web site, and get the answers addressed straight form who would set-up the IVA. They can tell you if it looks feasible or not.

Regards,

B
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In an IVA you make your payments for five (5) years, and if you have property, you will be expected to release a portion of any equity you may have in the property in the final year of the IVA, to sort of buy it out.

The amount of equity you will need to release can vary according to each person’s circumstance and property, and is usually done through re-mortgaging the property.

In some instances if a person cannot re-mortgage to release this equity, a longer term of payments can be added on, say an additional year of payments to make up that difference.

So if you have property with equity, and want to preserve the house, an IVA can be an option to do this.

Regards,

B
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If you have an IP working on this for you, you may want to discuss this with them as they would have all the details of the bankruptcy, property and everything involved. In addition, they should be more in tune with what will happen as they are an insolvency practitioner.

Regards,

B
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Mike,

In reading your post and your concern about where to live, you are allowed to live anywhere you want if bankrupt. Being bankrupt does not dictate as to where you can and cannot live.

The issues of moving and having a job are critical and you may want to try and sort that out prior to going bankrupt. Finding new work, if you will lose your job if bankrupt, and if you are planning to move.

The moving issue really has a few aspects to this. Do you need to move, or do you want to move??

If you want to move, then doing this before you go bankrupt may be best as a prospective landlord may do a credit check, and you would also need to review any tenancy agreement to see if there is a clause about being bankrupt at that address. If so, discussing it with the landlord as they may or may not enforce that clause.

This does not mean you cannot go bankrupt first and then move, but again if a landlord does a credit check, it can be an issue, unless you get a landlord that will listen to you and is not concerned about a prior bankruptcy.

B
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Gilbert,

You can be a sole trader and be bankrupt, the only restriction in bankruptcy that may pertain to being self-employed is that you cannot be the Director of a LTD company.

If the property in question is in both yours and your wife's name, she can be given the opportunity to pay an amount to the Trustee appointed in your bankruptcy to allow her to keep the property.

Regards,

B
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Pixie,

That is a question best asked of the Trustee appointed to handle the property in your husband's bankruptcy.

Yes, there has been a change in that the Trustee now waits over two years before looking at disposing of the property:

Changes to the way in which the family home is dealt with

From 1st January the following changes came into effect:

The OR, as trustee of the bankruptcy estate, will no longer dispose of a bankrupt’s interest in a family home until two years and three months after the bankruptcy order is made, except if an offer is received which is in the creditors’ interests to accept.

At two years and three months a review will begin. In cases where the bankrupt’s interest in the property is valued at less than £1,000, steps will be taken to re-vest the property interest in the bankrupt.

Otherwise, if there is insufficient equity to attract an insolvency practitioner to act as the trustee of a bankruptcy estate, then enquiries will be made as to whether the bankrupt or a third party would be interested in purchasing the interest, assuming the property interest may be worth more than £1,000. If it is not possible to transfer the interest, and the interest is valued in excess of £1,000, the OR will consider applying for a charging order.

If there is sufficient equity in the property, and if the OR is not aware of any willing purchaser, a Secretary of State appointment of an IP trustee may also be sought.

The OR has the discretion to effect an early re-vesting of the property back to the bankrupt in specific circumstances.

The key here may be in the first paragraph, except if an offer is received which is in the creditors’ interests to accept.

So again, you may want to discuss this with the Receiver or Trustee handling the case.

Regards,

B
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My advice would be to inquire with the OR as to the status of the car before you do anything.

The other issue may be with the DVLA, did you advise them of the car as you may have been required to have a off road disc for it. I believe it is a SORN disc or something like that.

B
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Hi,

Having worked in the mortgage and banking industry in the past, your post is not unusual to me, unfortunately I may not have the best news for you.

If your ex-partner goes bankrupt, by his name being on the mortgage, it gives him an interest in the property, and the Receiver/Trustee in their bankruptcy may try to prove this interest, especially if there is equity in the property.

How to understand and deal with this can be difficult, but can be done.

The Receiver in your ex's bankruptcy may contact you regarding details of the property, valuation, how long lived there, etc. Your job is to try and prove/document that you have made all the mortgage payments and have the lion's share of any equity in the property, or all of it if you can.

The Receiver may want to show your ex has a beneficial interest in the property and is entitled to a portion of the equity, which the Receiver could then ask to be paid into the bankruptcy. If the Receiver does this, they can allow you to pay this amount to them to preserve the house and not force a sale.

Now there have been changes in the way the Trustee can value and handle a property in a bankruptcy, which can give you more time with this.

Let me know more as you get the information.

B
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Angela,

I know it seems like a dark period and stressful, but it will get better.

From what you have stated, bankruptcy may be something you do need to look more into.

As to where to begin: if you have not done so, obtaining and looking over the forms is a good start; then if you feel you are not 100% comfortable in filling them out, finding someone to help you do this.

The company that has this web site I've noticed has an assistance service for people going bankrupt as well. And through this forum, there may be some people who can help with any technical questions you may have.

B
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