Bankruptcy/insolvency!

[Rock-Angel]

Does anyone know anything about these or what happens? I am going to look on google etc but would like peoples personal thoughts on it,
I ask coz my hubby is in debt, around £5000 poss bit more, never actually worked it out, we are really strugglin to meet the demands of the companies, (each are asking around 30 a month each, if not more)
And Im debating whether its worth going down one of those routes, I know its heavy but tbh he has no common sense, to him money is there to be spent, he has never saved, and I know this sounds harsh but I think it may teach him!
We have contacted the cab but they have been useless! Also we had a letter come through the other day CT demanding £700, I thought he had been paying it, but he hasnt as its near end of financel year they want it now and wont accept installments.
I know theres no simple way to sort any of this out, but would like to try and make things a bit easier if that makes any sense? Im not noramly the sort to ask this kind of advice on a forum, but I have been racking my brains for last couple days, Im driving myself mad with it!!
Any advice would be gratefully recieved!
thanks in advance

 

[Suzie and Faith]

have a look at payplan and give them a call, they were really helpful for me xx

 

[Iggle20]

You have to pay to make yourself bankrupt, about £500 - ironic it's madnes!
Or if you don't pay and a company takes you to court about non-payment you can do it then for free.
Basically you hand the forms in with the £500 fee and usually get an appointment to go back.
A judge sits with you, says how it works and are you sure (because if affects your ability to get credit for 3 years although your on the naughty list for 7) then stamps the paper and it's done. You'll be allocated an official reciever who will then go through your income/debts and see if they can find "spare income" to pay a token to the people you owe to, usually they can't as they need to leave you enough to cover rent, running a car to get to work, food, utilities and to live a decent standard of life not scraping by each month. Then that's it. All the people you owe get a letter from the official reciever who says they are no longer to contact you in any way shape or form and if you do get a letter saying "pay up" you just reply "no I'm officially bankrupt and contact the official reciever" type thing......3 years later you can start re-applying for credit cards or what ever (though if you'd been through that I doubt you'd wanna) and then it's done really. Obviously if you won the lottery you'd be expected to pay your debts, and you have to keep your official reciever updated if you move address and all but it's not as scary as people make it out to be, just think carefully as any form of credit (even applying for a debit card at the bank) can be rejected....you might get an electron one but not a debit card one etc....for £5000 it might not be worth it, just talk to them and say all you can afford is £50 a month (or what ever) and their tough luck so long as you pay that they can't do anything about it.

Sorry if I'm waffling, used for work for CAB so pretty clued up about the process as we've done HUNDREDS of applications for bankruptcy overthe years.

 

[Rock-Angel]

You have to pay to make yourself bankrupt, about £500 - ironic it's madnes!
Or if you don't pay and a company takes you to court about non-payment you can do it then for free.
Basically you hand the forms in with the £500 fee and usually get an appointment to go back.
A judge sits with you, says how it works and are you sure (because if affects your ability to get credit for 3 years although your on the naughty list for 7) then stamps the paper and it's done. You'll be allocated an official reciever who will then go through your income/debts and see if they can find "spare income" to pay a token to the people you owe to, usually they can't as they need to leave you enough to cover rent, running a car to get to work, food, utilities and to live a decent standard of life not scraping by each month. Then that's it. All the people you owe get a letter from the official reciever who says they are no longer to contact you in any way shape or form and if you do get a letter saying "pay up" you just reply "no I'm officially bankrupt and contact the official reciever" type thing......3 years later you can start re-applying for credit cards or what ever (though if you'd been through that I doubt you'd wanna) and then it's done really. Obviously if you won the lottery you'd be expected to pay your debts, and you have to keep your official reciever updated if you move address and all but it's not as scary as people make it out to be, just think carefully as any form of credit (even applying for a debit card at the bank) can be rejected....you might get an electron one but not a debit card one etc....for £5000 it might not be worth it, just talk to them and say all you can afford is £50 a month (or what ever) and their tough luck so long as you pay that they can't do anything about it.

Sorry if I'm waffling, used for work for CAB so pretty clued up about the process as we've done HUNDREDS of applications for bankruptcy overthe years.

thanks hun, thats a huge help, I googled it and they make it out to be some kind of scarey thing! I only thought about it, after seein on tv the other day about a women who done it, she said it wasnt the best thing in the world but she feels a lot easier now! have just sat down and worked out everything he owes and its worked out at around £7700! Quite a bit more then I thought! think Im going to discuss this with him later,
thanks again (have also looked at payplan as suggested above!)

OO would things like council tax be wiped with bankruptcy and rent arrears?

 

[Iggle20]

I think (as far as I can remember and this was a couple years ago and things might have changed) but you can include any debt, with the exception of student loans - those can't be thrown into bankruptcy claims anymore (they used to but no longer) make sure you list EVERYTHING when you apply, individual items might have 'clauses' in there that say yes/no to these things (i.e. student loans now say "can not be filed in a bankruptcy claim" or something like that) will be picked up by the official reciever who will most likely (and for that 'little' amount - sometimes we'd have people coming through with well over £200,000 worth of debt) just speak to you on the phone, it's a conversation that lasts a few minutes and is again just info that was on your form anyway. If your going through bankruptcy a 2nd time they tend to then interview you (or if you are applying with a huge sum of debt, company directors etc). Write a list of everything in that persons name, store cards, catalogue statements, overdrafts etc.....if it's your partner who's applying make sure it's all in his name....LOL now's the time to get him to pay off your bills on his credit card so your debt free and he can just file it under his name then.

Oh and a little annoucement will go in the times or similar newspaper just saying the name and location, i.e. Mr. Brown, Brighton, BN2 type thing and will appear under "insolvancy" so that people can check that so if they find they are owed money by a name on the list they can contact the official reciever with a claim instead of pestering you.

PM me if you need to know anything more specific I'll try and help