This bankruptcy timeline shows WHAT is likely to happen and WHEN if you go bankrupt in England, Wales or Northern Ireland.
Some of the times are fixed – the bankruptcy marker is definitely going to drop off your credit file after six years.
Others are less definite, but the indications in the timeline here should be right for a large majority of the people who go bankrupt.
Take the decision to go bankrupt
Bankruptcy may seem obviously right for you, but it’s always worthwhile talking to a good free debt advice agency – this is a very bad decision to get wrong!
So if you haven’t taken debt advice so far, I suggest you phone National Debtline on 0808 808 4000. They also have a very good webchat facility, staffed by proper debt advisers.
Your debt adviser will be able to answer many of the questions you have about the process of bankruptcy – for example, should you open a new bank account before or after you go bankrupt?
Get the bankruptcy fees
They can be paid in stages but they have to be paid in full before your bankruptcy application is submitted. See Paying your bankruptcy fees for details.
If you don’t think you can afford the fees, read Help With the high Bankruptcy Fees which looks at possible ways to raise the money.
Complete the online bankruptcy application
It’s not complicated but it is very long!
If you are very well organised or your affairs are very simple, you may be able to complete this in an evening. But most people will need several sessions – you can save what you have done so far and then come back and add details such as an address for a creditor or a pension manager, or review your Income & Expense amounts.
All your debts will be included in your bankruptcy even if you miss one off your application – except for a few like student loans and Social Fund loans. A debt adviser can tell you if any of your debts can’t be included.
Adjudicator approves application
Your bankruptcy application will have to be approved by the Insolvency Service’s Adjudicator. If you have taken debt advice and been told that bankruptcy is a good option for you, you can have confidence that it will be approved – it is VERY rare for an application to be rejected.
When you have submitted your online bankruptcy application, it goes to the Adjudicator’s office to be checked. The Adjudicator’s target is to approve 95% of applications within two working days.
When your application is approved your Bankruptcy Order is made – this is the start date for you bankruptcy, not the date you submitted your application.
Immediately you are bankrupt, some restrictions apply which are explained here. If you are unsure about these, ask the Official Receiver’s office. In fact if you are unsure about anything at all, ask the OR’s office!
Interview with Official Receiver’s office
This will normally be in the first week or two after bankruptcy. It usually happens by phone, unless your affairs are complicated.
After Covid-19 some people have reported waiting longer for this first interview – this isn’t something to worry about, it doesn’t mean your case looks “difficult”.
If you are nervous about the interview, read “Why I went bankrupt and how it went” which has some details about a reader’s OR interview.
The best advice is to be completely truthful and say if you don’t remember something. The OR is not looking to catch people out, but to find out what happened.
Make NT tax payments (if any)
If you pay income tax through PAYE, your tax code will be changed to NT and you will have to make the tax payments to the OR instead until the end of the tax year in April. You will not be worse off because of this, you will be paying the same amount of tax to someone different.
If you go bankrupt towards the end of the tax year, this arrangement may never be set up. If you are unsure what you need to do, ask the OR’s office.
Start IPA monthly payments (if any)
If you have sufficient surplus income, you will be asked to agree to an Income Payments Agreement (IPA). An IPA cannot be set up after you are discharged.
Most people don’t – only about 1 in 6 people who went bankrupt in 2017 had to pay an IPA.
If an IPA is agreed, it lasts for three years from the date it starts, usually a few months after your bankruptcy date.
You should report significant changes in your income or expenses to the OR. During the three years, the monthly amounts can go up or down or be paused so you pay nothing.
Read Should I get a new job? Work overtime? which looks at the problem of working more if much of the money will be taken by your IPA.
Discharge from bankruptcy
Almost everyone is automatically discharged after one year. The very rare exception is if the Official Receiver goes to court to suspend the automatic discharge because a bankrupt is not co-operating.
See What happens when you are discharged? for more details about how you know if you have been discharged, and what changes.
Discharge also ends the bankruptcy restrictions except for the few people who have a Bankruptcy Restriction Undertaking (BRO/BRU), in which case the restriction on getting credit, becoming a director etc will continue to apply until the end of the BRO/BRU.
Start credit file clean-up
Many people swear they will never again borrow any money after going bankrupt! But if you want a good credit rating in future, going through the Repair Your Credit After Bankruptcy process will speed things up.
It may take your creditors a while to update your records, so wait two or three months after your discharge before starting this clean-up process. Your credit rating is never going be good though until bankruptcy disappears six years after the date your application was approved.
Trustee decision about your house
If you have a house with any equity a trustee is likely to be appointed to manage this asset. The trustee has up to three years from bankruptcy date to deal with this property, see this summary of the trustee’s options.
Monthly IPA payments end
This will be three years after your IPA started. If your IPA payments were reduced or halted for a while, this does not extend the three-year IP for longer.
From this point on your bankruptcy is effectively finished. It will be another couple of years before the bankruptcy timeline ends when the bankruptcy marker on your credit record is deleted.
Bankruptcy removed from credit records
This will happen automatically six years after your bankruptcy date. Check your credit records a month or so later to make sure everything looks correct!
This is the end of the bankruptcy timeline, you have your clean start and now have a clean credit file.
A Guide to Bankruptcy – what really happens
Timing, fees, applying to go bankrupt
How does discharge from bankruptcy work?
Phil says
Thank you, this is clear and covers everything I needed to know.
Emma says
Hello , I went bankrupt 2 years ago . At the time I had to sign a paper to let them have access to shares I got from Tesco . In that year they sold 1 years worth of shares .
Now the insolvency people still have there name on them but have not sold any more . BIG QUESTION can I get them back to me now. Many thanks emma
Sara (Debt Camel) says
Hi Emma, unfortunately I don’t think there is any time limit for shares to be sold. I don’t know why only 1 years worth were sold – I wonder if these are some form of share option plan where a certain time has to elapse before they can be sold? I don’t think you will get them back but you may as well ask the OR (or trustee, whoever is handling this) what is happening.
Free@last says
I went bankcrupt 7 years ago but I would like to take on a lease for a small business am I allowed to sign a lease?
Sara (Debt Camel) says
Once you are discharged you are allowed to do anything you want (assuming you don’t have a Bankruptcy Restriction Order which would be very rare).
dan says
Hi debt camel, thank you for the info. Something I am having trouble with us the Ipa. Can the OR take money fromy my income which is made up from student loans and student grants?
Also if he can will he allow my wife to carry on paying her debts of HP CAR and 200 per month unsecured debt?
Cheers
Sara (Debt Camel) says
Hi Dan, when trying to decide whether you have enough surplus income for an IPA, the OR will usually look at all your sources of income – but obviously the part of your student loan that you never see because it pays your student fees isn’t real income for these purposes. With a couple, the OR usually expects each part of the couple to cover their share of the joint household costs. If your wife has any spare after doing this, the OR won’t care what she spends it on and this can include repaying her debts. But she can’t use all her income to pay her debts and leave you to pay for all the food and utility bills. I usually recommend that people who are worrying about whether they will have to pay an IPA should go to the MoneySavingExpert forum and post details of their income and expenses: https://forums.moneysavingexpert.com/forumdisplay.php?f=136
charlene says
Hi debt camel, I want to go bankrupt but don’t really understand much about it. I get esa and pip but still can’t afford the fees to go bankrupt. Can I have help with these? Also I have a lot of debt and can’t remember some companies can they still demand money after I go bankrupt?
Sara (Debt Camel) says
Hi Charlene, I think you need to talk to a debt advisor about bankruptcy – it may well be the right solution for you but you need to go through all the details. Your local Citizens Advice is a good place to go. I’ve written more about how to get help with bankruptcy fees here https://debtcamel.co.uk/help-with-bankruptcy-fees/ – Citizens Advice will also be able to help you apply for a grant which will help with the fees.
Kaye H says
Hi
I have been discharged from bankruptcy for 6 years. I recently won a PPi claim against Mint credit card company but they have sent my claim money to the official receiver and not myself. I have been asked to pay the PPI company 25% + vat but I have not received any money what should I do please feel stressed.
Sara (Debt Camel) says
You shouldn’t have made this claim – the money is always going to go to the Official Receiver so Mint were right to do this – see https://debtcamel.co.uk/ppi-iva-dro-bankruptcy/. You should ask the OR if they will pay your PPI company debt.
Julie says
Hi, I went bankrupt in 2010, with my discharge in 2011, after a divorce and moving and things, I am now with a new partner who owns his own property outright, we are going to downsize and buy a bungalow. Can I have my name put on the deeds with the land registry, and would the insolvency people be able to take any equity in the property as in reality the money for the property is not mine, hope that makes sense, many thanks.
Sara (Debt Camel) says
Hi Julie, no property you acquire after your discharge can be touched by the Official Receiver. If you are worried about this, call your OR and they will confirm this. I am glad things are going so well for you.
Julie says
Many thanks Sara, I have been trying to findout the answer for ages, but all the answers seem to be in solicitors talk, and not plain English. Once again many thanks. Julie
Richard R says
I was discharged from bankruptcy in earlier this year and have since managed to get a Vanquis Credit Card in an attempt to rebuild my credit rating. In the next few months I hope to be in a position where I will be able to apply for a mortgage again. As part of my bankruptcy I agreed a BRU which still has a couple of years to run. Will this prevent me applying for a mortgage?
Sara Williams says
Hi Richard, realistically you won’t be able to get a mortgage until bankruptcy has dropped off your credit file – which will be 6 years after you went bankrupt unless your BRU is still continuing at the 6 year point, in which case it will be when that ends. The only exception here will be if you have a VERY large deposit, in which case talk to a broker that specialises in “bad credit”. Here are some related articles which may be useful: https://debtcamel.co.uk/bankruptcy-iva-dro-credit-rating/ and https://debtcamel.co.uk/mortgage-with-debts/
Helen says
Hi there,
I wonder if you can help me. My husband and I went bankrupt 3 years ago in seperate cases (as advised by gov Debt agency). Our IPA payments end in January – that will be our 36th payment.
However, my husband’s case was under review for several months approximately halfway through his payments (we have no idea why, nothing had changed and he continued to pay every month). The payment schedule was sent to us saying his final payment is in October 2016. This would mean him making 9 extra payments therefore paying for 45 months.
Is this a mistake or can they extend the payments beyond 36months? If so on what grounds? I wanted to know the facts before confronting!
Sara (Debt Camel) says
Hi Helen, I am not aware of any circumstances in which an IPA can be extended. I suggest you ask for a review of the schedule he was sent.
victoria says
May I ask what happens if there is a threat of you being made bankrupt?
Sara (Debt Camel) says
Hi Victoria, a creditor may be bluffing, but it’s unsafe to assume this. It’s unusual to be made bankrupt for consumer debts (credit cards, loans etc) but it is possible if the debts are over £5,000 and you have a house with a lot of equity. It is much more common if you owe the tax man money – any debts to HMRC or council tax need to be taken very seriously.
I suggest contacting National Debtline immediately if you get a Statutory Demand, then this is the first step in making you bankrupt, not just a threat.
Mary says
Hello my parnter wants to go bankrupt but there income pays stuff in my name due to me giving up work to look after children how will that effect me it’s a loan and car thanks
Sara (Debt Camel) says
Hi Mary, there isn’t a simple answer to this. If your partner is bankrupt, he may need to pay a monthly payment to the Official Receiver for 3 years and in calculating this, he won’t be allowed to include the cost of paying loans that are in your name. So you may need to take debt advice about where that will leave you… It would probably be best if the two of you could talk to an advisor together about both of your situations, so you both understand the different options and implications. I suggest going to your local Citizens Advice.
Edward says
Hi I’m self employed carpenter and I’ve just had an hrmc debt collector come round saying I need to pay, £20,023 which I don’t have I’m struggling to pay my rent on time and all my other bills are mounting up. I have two little girls of 6 & 4 and my new partner who I live with has a 5 year old son.
The house is fully furnished, I own a car that’s worth less than £800 the only asset I really own is my work van and tools. I don’t know if I should go for self bankruptcy or not I’m Worried I’ll lose everything and the kids will go with out.
Sara (Debt Camel) says
Hi Edward, HMRC can be a very difficult creditor to deal with. I think you need good debt advice on whether you have any other options apart from bankruptcy and how bankruptcy would affect you and your business – as you are self employed I suggest you ring Business Debtline on 0800 197 6026.
Diana says
I am not answering my phones as i keep getting hassled by my creditors everyday and they text me and keep sending me letters,but i am frightened that the bankrupsy will phone me and i dont want to miss the call,,i applied online,how do they get in touch with me to tell me i am now bankrupt….thank you….
Sara (Debt Camel) says
Hi Diana, you should get an email to say when there has been a decision on your application. Or you can just log in to your application and that will tell you the status. I don’t know when you applied? Most applications are being processed within one or two working days.
rob says
hi Sara paid the fees online to go bankrupt on the 28/07/2016 and was approved the next day the 29/07/2016 how quick was that!
also phoned nationwide and told them that l was now bankrupt can keep the account so no worrys there
i would just like to add that i got the fees to go bankrupt from charis grants which was part of the British Gas energy trust so if anyone is struggling to get the money together may suggest that you give them a try. It took in total about 10 weeks from start to finish could have been quicker but did not give them all the required information.
Lovely says
I was told bankruptcy is not recommended to me as i do not have an income. Not sure what that means really as that is why i have debt problems as i have no income :( and any possible future employment is not near enough to pay the monthly payments told to me of a debt management plan. So confused a i need to get richer to be bankrupt or get even richer to pay debt management or get filthy rich to clear all debts. :(
Sara (Debt Camel) says
Who said this? It may be they just meant that debt is not your main problem at the moment and that it is more important for you to get a job or claim the benefits you can and find housing etc than to look at going bankrupt?
Sara P says
Can you advise please – I went bankrupt in 2008. like a person above I received a large PPI payment from Lloyds bank, which was paid to HMRC – I didn’t know that this would happen and was terribly shocked. I am now 55 and have just left a government job after 8 years. My question is: I have been offered a lump sum from my pension contributions as I am eligible to take it now I’m 55, but will this payment be taken by HMRC, like my PPI payment was? Can’t seem to find a definitive answer! Thanks.
Sara (Debt Camel) says
No it won’t, see https://debtcamel.co.uk/pension-safe-bankrupt/ for details.
Trudy says
Am desperate. Long story …
In 2010 my apartment caught fire and I didn’t have building insurance to cover this.
To enable me to move elsewhere I went bankrupt as I could no longer afford the mortgage and paying for elsewhere to live.
11 months after I went bankrupt, I received a letter from the solicitors of the mortgage company saying that they will not be seeking a possession order and I no longer needed to attend court. The apartment has been boarded up since 2010.
I was discharged in 2011. In 2014 I received a letter from the official receiver to say the they had no interest in the property.
This week I have received a letter from the local council demanding council tax on the property from 2014 since the official receiver declared no interest.
Now I’m stuck. I assumed that the mortgage was part of the bankruptcy. It was put down a debt. Is this correct ?
As the mortgage company haven’t repossessed it am I still able to surrender it back to them without paying anything?
Do I have to pay the council tax for an uninhabitable house?
Sorry for all the questions. Not sure where else to source information.
Many thanks
Sara (Debt Camel) says
Your mortgage was included in the bankruptcy and no longer exists. The reason a mortgage lender can repossess after bankruptcy is that although the mortgage has gone, they still have the security over your property. But your mortgage lender has said it will not exercise that and I don’t think there is any way you could make them. In any case even if they took over the property now (which they won’t) this wouldn’t affect previous council tax bills.
Whether council tax should be charged depends on the state of the property. I suggest you go to your local Citizens Advice and ask for their help with this.
Gladis says
Hi there,
I am looking into bankruptcy as an option because I owe over £25,000 including credit cards and loans. I recently lost my job, so I am beginning to miss payments.
My worry is that I read somewhere that if you made use of these accounts/credit facilities one or two months before bankruptcy, the lenders could query this and accuse you of intentionally spending money you do not have while planning on going bankrupt. Is this true or a myth?
Sara (Debt Camel) says
You may find this article helpful: https://debtcamel.co.uk/bankrupt-after-borrowing/. If you have just used the cards and your overdraft for a month or so to get by whilst looking for another job this doesn’t sound too serious to me.
But now you realise that bankruptcy is an option, this needs to stop. I think you could do with some debt advise about bankruptcy and other options. For example a temporary debt management plan for a few months may make sense if you may get another job soon. I suggest you call StepChange and discuss your options: https://www.stepchange.org/.
paul says
we have not heard from the trustee since Aug. 2015 and it will be 3 years from my wife’s bankruptcy 18/12/2016 should they then write to her to say she is clear ? many thanks
Sara (Debt Camel) says
No I don’t think it would be usual to get an “all clear” letter at the three year point.
Ann says
Hello Sara.
I had my bankruptcy in 2015 April 3 years ago. Would like to take the mortgage for my council house. So where and how I can to get the information that I am “clear”. Or is it still not possible? Do I have to wait when will finish 6 years?
Thank you Ann
Sara (Debt Camel) says
It is VERY unlikely you will be able to get a mortgage until the 6 years is up.
Andy says
Can it take longer than 2 full days for the Adjudicator to get back to you regarding a decision on your bankruptcy, if so how common is this?
Sara (Debt Camel) says
Longer than 2 working days? The cases that are most likely to take longer are the unusual ones where one of the following applies:
– unclear if the England is the appropriate jurisdiction for bankruptcy
– difficult to confirm identity
– Large pension pot and over 55 means need to consider if meet definition of insolvent.
Richard says
Hi
Can i pick and chose who i am bankrupt with?
Basically i bought a property at height of the housing market (2008). It was in effect a 100% mortgage where the lender lent me 90% and the developer lent me the 10% deposit but placed a second charge on my property. Long story short, it is now coming to 10 years and developer is wanting their 10% of the sale price or the amount lent (whichever is greater)
Property bubble has burst well and truly where i live and i am in negative equity on property. We all thought that prices would keep climbing, we would sell and move on.
I am wanting to hand the keys back to mortgage provider and developer and let them argue the money between them
the rest of my finances, everyday banking, utilities a HP agreement etc are all fine and the mortageg is up to date. it is just the issue with the second charge (approx £20K of neg equity) that i can not pay or have
Sara (Debt Camel) says
No. No ifs or buts, there are no ways to choose to exclude certain loans from bankruptcy.
Is the property worth more than the mortgage?
Richard says
Hi, thanks for swift response. Property is worth 130k. Mortgage is 133k and the developer has a second charge of 10.5% I bought for roughly 148k
The developer wants 15.5k as this is what they lent when I bought (a max 10 year loan or repayableon sale, which ever the sooner). If I hand the keys back and walk away from property. Will lender or developer still chase me for the inevitable shortfall after the property sold for significantly lower at auction.
Can I even go bankrupt as all my other unsecured borrowing (and even the mortgage) is all uptogether and paid
Thanks
Sara (Debt Camel) says
If you want to try to repay this, you need to talk to the mortgage lender and the secured loan lender and get their consent for you to sell the property. You will almost certainly get more for it this way than they would at auction. Then you do need to make arrangements to repay your unsecured debt. It is usually a mistake to try to ignore these – then 5 years later when your finances are feeling good up pops the old debt again – if you think it’s unrealistic (and /or unreasonable!) to repay this debt, then you would be better opting for bankruptcy as soon as you have moved into a new place.
If you are going for bankruptcy, then there isn’t much point in going through the hassle of trying to sell the place yourself. It can be pretty stressful and if the debt is going to be wiped out anyway, many people decide they would rather keep it simple and hand back the keys. If you plan to do this, you are going to need a deposit to rent and to cover your moving costs… if necessary you can stop paying the mortgage to get this. Obviously not something to do lighlty if you aren’t very sure of your route forward.
Which brings me to the last point – I think you need to discuss your full situation with a debt adviser. They will be able to to talk about your other options and your debts and the process. However definite you are, it is ALWAYS worth an hour of your time to go through this with an expert. You can do thin on the phone with National Debtline 0808 808 4000.
Richard says
Thanks for your help, last question i promise…
I appreciate you cant advise on individual cases however do you know if you can declare bankruptcy if payments are up together?
My case is i know the developer will ask for the money in next 6 months, i dont have it and i cant borrow it and so they will force a Bankruptcy Order on me. The court will see i have no means to repay and probably write it off. Not sure if me getting there first and declaring myself bankrupt has any advantages over waiting for a creditor to do it.
Do you have to be in arrears and default on payments before a court will consider it?
Thanks
Sara (Debt Camel) says
“so they will force a Bankruptcy Order on me.” Highly unlikely. It would cost them a lot in fees and they would get nothing – why would they do this rather than wait 5 years and hope your finances improve? If you want to go bankrupt to wipe the debt and have a clean start, you will have to do it yourself.
“The court will see i have no means to repay and probably write it off.” Not what courts do, this isn’t going to happen. After the property is repossessed, the creditor could go to court for a CCJ, then the court would make an order for you to pay so much per month, which may well mean you have to default/pay less to your other debts.
“do you know if you can declare bankruptcy if payments are up together?” but they aren’t going to be, are they? You need to move out first, then hand back the keys, then go bankrupt. It’s much easier to rent a place now with a good credit record! Then once you have moved, you aren’t going to be carrying on paying the mortgage or secured loan are you? So you will be in arrears.
Michael says
Hi
My partner had a serious head injury meaning she is getting sick pay from work, it’s a long term injury but after pressure from one creditor in particular it was decided to go through bankruptcy. I have third party authorisation should I speak to her mortgage company and loan company who have a charging order on the property or just leave it until the OR to inform them
Sara (Debt Camel) says
Did she take advice on this bankruptcy? Is there any equity in the property? Does she want to carry on living there?
Michael says
Hi Sara
I believe from valuations that there is no equity in the property, she’d like to remain there. We had a court meeting on the bankruptcy petition unfortunately she was rushed back into hospital via ambulance 1.30am the night before obviously we have evidence of this but I also feel the pressure of the creditors was having an effect on her, the court have papers from her doctor that they had requested. I missed the meeting because I was at the hospital. I did ask -as I had no paperwork – my sister to ring the court but they had no record of the meeting, my sister had rang the wrong court! There was old paperwork but the hearing had been moved from the original court. I think my partner has accepted bankruptcy is the most logical option I don’t think an IVA would go through because of one of the main creditors. Most debts are personal debts from her business she had to close because of her head injury
Regards
Michael
Sara (Debt Camel) says
I am sorry to hear about her health problems – these can be made more diffiuclt when you also get big money problems as a result. Was the court hearing for a statutory demand or a bankruptcy petiton from a creditor? Has she taken debt advice? her head injoury – is there any chance of any insurance or other payout because of this?
I am not saying that bankruptcy isn’t a good option for her, but it is important to get this decision right as it may be difficult or expansive to change it later. The decision to stay in a house after bankruptcy is not always easy. If there is no equity it may well be possible but if the mortgage and secured charge repayments are high this isn’t always the right decision.
Michael says
Thank you. It was a bankruptcy petition, they served a stat demand whilst she was in no fit state to be served it, however, my opinion – and it’s with no legal knowledge – is the debts aren’t going to go awa,y once she’s well she would have them to deal with, an IVA I feel won’t get the 75% whilst a DRO would mean she is repaying for many many years I think the debts are in excess of £40k. I had a brief chat with x debt but their suggestion of an IVA won’t go through with three creditors having more than 75% and as they are pushing, I have tried to talk to the creditors but they are not interested even with the doctors form completed for the court. The accident was basically that an accident when only she was there, there was no blame to put in any claims.
Regards
Sara (Debt Camel) says
OK, bankruptcy probably is a better option with no equity and her health situation than an IVA. A DMP (I think you meant that, not a DRO) is not an attractyive option at all.
However I think she still needs some proper debt advice on whether staying in the house is a good idea. That would be from someone like National Debtline (0808 808 4000), not an IVA firm. The reason I am saying this now, is your question about whether you should contact the mortgage and secured debt firms. I thinks it’s better to be really sure what you will be doing before talking to them. There is no pressing need, the OR will inform them anyway.
Michael says
Hi Sara
Firstly thank you so much for your time and suggestions, I will contact the debt helpline now. You will probably never know how much support you give people replying to people questions. Thank you so much. Best wishes. Michael
louise says
I owe £600k to a Cyprus bank – missold a Swiss franc mortgage, the exchange rates slipped against us and the final bill shot up. We couldn’t afford the repayments so stopped paying in the end despite best efforts. We have 0 assets and offered £40k which my mother can give me and the return/auction sale of properties at market value. Seems that our offers to settle via a solicitor are failing. The bank via their UK solicitors countered with an offer once again way out of our means. By the end of June a 3 month stay (agreement with bank to not proceed with litigation in hope that agreements can be reached) will end.
I am looking for advice whether to file for bankruptcy or something else. I don’t know where to start, but just want the nightmare to end.
We have UK properties in joint names (tenants in common) which we rent out + a home + pension + monthly income.
UK rental properties: – There is no equity here because some are in negative equity + they all have second charges on them with the land registry. Why? Following a failed business start up venture I owe a different creditor. When the UK properties are sold the lender will be paid and then any equity paid to the UK creditor on the land registry document. This means there will be 0 to pay the Cyprus bank.
Pension: – not retired yet, but not a massive pot.
UK home: As the lender mortgage product would not allow a second charge a B133 Bilateral notice has been applied by the UK creditor. Not really sure what this means, but I guess it works like the above UK rental property situation. If i sell then there is nothing available for the Cyprus guys.
We do not own our cars.
If I add it all up including the £600k for Cyprus we can never repay it all in our lifetime. I believe my debt:income ratio is 190%
What our options?
1. Do I wait for the Cyprus bank to come after me in July with litigation proceedings? Seems stressful option for us as we do not have funds to pay a legal team and fruitless for the bank to pursue given there is 0 at the end of the rainbow owing to the second charges in place in the UK.
2. Do I respond to the banks latest offer with a counter offer and repeat my 0 asset situation, (high debt ratio and 0 gold at the end of the rainbow due to the charges on Uk assets) and advise that I am filing for bankruptcy so they will get absolutely 0 in that event? Then hope they take the offer on the table because that is better than nothing and in turn I cancel the bankruptcy proceedings?
3. Do I ask an insolvency practitioner to provide a report on my debt situation which I can forward to the bank with a counter offer?
4. Do i just make ourselves bankrupt and send the bank a letter advising?
I have 2 children: 15 and 17 year old and don’t want to lose my house if possible.
I am so confused as to what to do. Feel that bankruptcy will take this stress away.
Sara (Debt Camel) says
Are you saying your income is c. 300k a year? How old are you? How much is in your pension pots? Is your mum well off and really able to afford 40k?
Avo says
A question relating to other benefits and bankruptcy…I’ve just received a backdated Severe Disability Premium (ESA top up as on PIP too) and I am aiming to go bankrupt in May/June. I’ve been advised by a money advisor just to use this money for essentials as I have just been given permanent accommodation having been homeless.
edited – I’ve written an article to respond to Avo’s question – it’s here: https://debtcamel.co.uk/spending-money-before-bankrupt/
Avo says
Thanks so much for all of that information Sara. It’s really reassuring and I’m pleased that I can do a little to kit out the flat a bit. I was so worried that I’d have to pay the creditors with it instead. Phew. Rugs, here I come! Have a nice weekend.
Avo
Alex says
We were declared bankrupt in November 2016. We did this after my husband suffered a stroke and it was obvious we would not be able to keep our heads above water. We moved into rented accommodation, a bungalow – no steps for my husband! Our house is in the process of being sold after a repossession order. We have a secured loan on the house. When the house sells there will not be enough money to pay the mortgage and the loan. Our insolvency officer has told us that the loan will come under the bankruptcy but what if we are discharged before all the legal wranglings have been completed. Will we have to pay the shortfall?
Sara (Debt Camel) says
No, being discharged doesn’t affect this. The mortgage and any secured loan were included in your bankruptcy. But read this: https://debtcamel.co.uk/repossession-deed-of-acknowledgement/.
Alex says
Thank you that has made me feel a lot better
D halliwell says
Chris says I’ve filled in forms and submitted them thay sent me a form with needed a witness did this sill have not hard anything this was 6weeks ago is this normal ,sould I get back in touch .
Sara (Debt Camel) says
Sorry could you give some more details? Who is Chris? Have you submitted an online bankruptcy application? What was this form that needed a witness?
jan says
I have just had my IPA cancelled due to a change of circumstances. I provided the OR with wage slips and a financial statement and she decided I could no longer afford the repayments having reviewed my situation. She emailed me stating she was ending the IPA. My actual bankruptcy ended in April 17 and I had 2 years left of IPA payments. Does this mean I no longer need to keep informing the OR of any further pay rises etc.
Thank you
Sara (Debt Camel) says
I think you should ask your OR to confirm this.
gemma says
hi do i open basic bank account before applying to go bankrupt, as i need to pay my bills and receive my wages and tax credits
without my accounts being frozen?
Sara (Debt Camel) says
Hi gemma, this article https://debtcamel.co.uk/bank-accounts-after-bankruptcy/ looks at this issue.
Karen says
Hi
I’ve been declared bankrupt since February this year. We’re in council housing which my husband pays full rent for. I’ve just been awarded DLA & PIP for my health & mobility issues. I am about to inform my OR about this, will they look to take any of this benefit from me during or after my bankruptcy?
Sara (Debt Camel) says
Do you mean ESA and PIP? If so, then unless you (not your husband) have other income as well, which sounds unlikely, the OR shouldn’t want any of this money, it won’t mean you have to make monthly payments. But do tell the OR.
Karen says
Thank you Sara, no other income just the PIP. Will definitely inform my OR, thanks for your prompt reply ?
Beth says
Hi there,
I was wondering if you could help me with something regarding the six year ‘rule’. I know that adverse entries drop off credit reports after six years, and also that lenders have to backdate defaults to the bankruptcy date (if applicable), meaning, theoretically, that six years from the date of bankruptcy your report is clear.
However, do you happen to know if the ‘six year’ thing is an actual law? In legislation somewhere?
Many thanks.
Beth
Sara (Debt Camel) says
Hi Beth, this article looks at repairing your credit record after bankruptcy https://debtcamel.co.uk/credit-file-after-bankruptcy/.
Karen says
Hi my bankrupty is due to end on December 12th but my OR is applying to court for a BRO or said I can agree to a BRU for 5 years. They have not set up an IPA with me yet. If I accept the BRU does it mean they can extend the IPA payments to the 5 years also?
Thanks
Sara (Debt Camel) says
No. A BRO/BRU means you have additional restriction imposed on you (see https://www.gov.uk/government/publications/bankruptcy-restrictions-orders-and-undertakings/bankruptcy-restrictions-orders-and-undertakings) but it does not affect any IPA that is set up – that can only ever be for 3 years – and it doesn’t affect your discharge from bankruptcy.
Michelle Miller says
My query is regarding my property. As it stands the current equity in my property is approx 13-15k. My OR case worker is not very helpful and told me to wait a few weeks to get valuations and then she has mentioned 2 years 3 months?
So basically do I have over 2 years before my property is considered for sale or will the suddenly tell me to sort it in the next few weeks for preparation for sale now.
Very unsure and concerned as I am the sole owner and live with my husband and 2 children whom I do not want to suddenly make homeless, can you please advise.
Michelle
Sara (Debt Camel) says
The OR (or more likely a Trustee that will be appointed) has to take action within three years from your bankruptcy starting if they want to sell the family home. So 2 years and three months has probably been mentioned as the point at which you should really have a plan for what you want to do… the whole idea is that nothing sudden is going to happen so you have time to find a good option for your family.
You don’t have to wait that long. If you would rather sell the house now and rent, talk to the OR about this. If someone else in your family can buy the equity from the OR so you can stay in the house, then tell the OR about this.
S Jones says
Hello, I have just been made bankrupt. Can the OR use my Attendance Allowance, lower rate, as income or should it not be included? I have a paper form to fill in. Thanks
Sara (Debt Camel) says
Sorry to hear you have been made bankrupt. Do you have any assets, eg a house with equity? If you do, you need some good debt advice very fast as you may have some options if you have just been made bankrupt.
To answer your question, your Attendence Allowance will be treated as income, but it is intended to cover costs that you may have because of your health, so those costs should also be included… If you aren’t sure how to complete this form, your local Citizens Advice is a good place to get help or if you would rather do it on the phone, call national Debtline on 0808 808 4000.
Fiona says
HI, I have just submitted my bankruptcy application so the balls rolling. I have no assets and a very low income, so this ‘should’ be straightforward. My question: I live alone with my son who is 15 in private rented accommodation. Last year I met my current partner and we have talked about living together, however, he is understandably wary because he’s worried that my bankruptcy may affect him. He owns his house and has a mortgage. He earns a lot more than I do. If my son and I were to move in with him, would his income/house affect what I would then be able to pay towards IPA if I have one? For instance, my living costs will go down (utilities etc now shared). In my mind, I would expect to pay half of everything even though I earn less, but could the OR decide that my partner could afford pay all or most of my living costs, meaning that more of my income would then go to the OR? Thanks
Sara (Debt Camel) says
Your bankruptcy won’t affect him directly unless you get any joint accounts – that would be a VERY bad idea until 6 years after your bankruptcy, when it will all have dropped off your credit record. If he is worried about whether his house will be safe, this article https://debtcamel.co.uk/partner-bankrupt/ covers that point.
He should expect to pay all the mortgage, but it’s fair if you pay a proportion of the bills. This would normally be divided according to your incomes but if he refuses to provide information on his to the Official Receiver, then a 50/50 split is normally used. Also it’s fair that you should pay for your son’s costs (food, clothes, school clubs etc). I am not sure how much better off you will be, because you are likely to find that your tax credits drop, probably to nothing.
Sasha Kamenetski says
Hi there, I’ve been discharged from bankruptcy in October 2017 and are now negotiating with the trustee for a settlement. My equity share is £60K and my husband’s is £150K. We need to free up some of his equity to pay off the trustee – any advise on where to go? Our mortgage lender haven’t been very helpful so far… thank you in advance.
Sara (Debt Camel) says
Unless there are relatives that can help out, selling the house may be your best option here unless your husband’s income and credit rating are good enough for him to get a larger mortgage in his own name.
Sasha Kamenetski says
thank you, Sara, we have 2 children so don’t really want to sell the house and disrupt their routine. Plus we won’t be able to get a mortgage for now, so renting is the only option, which isn’t great. What about a second charge mortgage?
L. Leitch says
Lynne says
When my bankruptcy ends after 12months, will my debtors still try to get at me. I worry about this.
Thank you.
Sara (Debt Camel) says
No. It is VERY rare that anyone is contacted after bankruptcy and if you are, you just tell them your bankruptcy number. This isn’t a problem to worry about.
nigel says
hi, i was made bankrupt in 2011 and this is now removed from my credit file I’m now buying a house with my partner and the solicitor is asking if i was ever bankrupt do i have to tell him as i took it as it no longer being on my files?
Sara (Debt Camel) says
Yes you do have to answer this sort of question honestly. But there are plenty of high street lenders that will give you a mortgage at a reasonable rate as it was so long ago.
James says
Hi, forgive me if this sounds like I’m being a bit stupid but my bankruptcy order was given in February 2013 and discharged in February 2014. Will the order drop off my file in February 2018 or will it be 2019? Many Thanks.
Sara (Debt Camel) says
6 years from the date of the bankruptcy order, so 2019. See https://debtcamel.co.uk/credit-file-after-bankruptcy/ for how to repair your credit record.
Sarah says
hi Sara
I am currently 7 months away from finishing my Ipa and would like to
go self employed with my new business teaching First Aid.
As I may run a whole lot of courses one month but none the following,
how would the ipa be worked out?
I was also lent some money from my parents in order to buy equipment,
a website etc, would OR take into consideration the fact that I need
to pay my parents back?
I very much look forward to hearing from you and thank you so much in
advance!
Sara (Debt Camel) says
You need to tell the OR when you cease employment and that you are expecting an irregular income from your new self-employment for the rest of the year. Ask how your IPA will be calculated. The repayments to your parents will be one of the expenses of your new business – any IPA can only be paid from the profits you make.
Make sure you tell HMRC when you start your business: https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed.
Good luck – it sounds an interesting and exciting change for you!
Iain says
Hi
First of all thank you for the previous advice re my fathers will being changed which we have done. I have recently became bankrupt and my question is – can I be added to a credit card as an authorised user. Do I have to let the OR know? This is only to pay for hotels when on a holiday. Many thanks
Sara (Debt Camel) says
A second card holder on a credit card usually has no liability for the debt, so this wouldn’t be a problem if that is the case.
Donna says
Hi, my husband is about to submit his bankruptcy form I just have a question about his income. He has a basic salary but sometimes makes more but it’s not guaranteed he always knows he will make his basic weekly pay. But wouldn’t know until that week if he’s going to make any extra, the type of work he does it’s very up and down. We have £120 left a month when he gets a basic wage would this be taken off us as a ipa payment? And what happens if he makes a lot more than his basic wage. I’m just a bit concerned as to how it works? Thanks
Sara (Debt Camel) says
“We have £120 left a month when he gets a basic wage would this be taken off us as an ipa payment?” That depends on the details of your expenses. You could try posting on https://forums.moneysavingexpert.com/forumdisplay.php?f=136 and they will give you a feel for whether an ipa is likely. 7 out of 8 people don’t pay one.
You need to work that out before the problem about his variable income. Does he have to do the extra work or cab he refuse?
Sara says
wonder if you could advise
Unfortunately I am in a poor financial position I hoped to never be in again. Previously bankrupt 15 years ago due to immaturity and frivolity, since rebuilt credit to good score until about 18morths ago. My debts have become huge again as I tried to push through completion of a degree (divorce/debt from escaping bad marriage with young son, debt from everyday living costs and childcare whilst studying, compounded by repeat study years due to my health). Initially had hoped would be manageable with new partner, but they had poor health, left job 2years ago, and last year no income to keep them at all, so I can no longer balance the books and for now I am stuck. I have no assets. I rent. No guarantors. Personal debts as well as bank/store/credit card. I’ve been declined for consolidation loans, although that would have made payments manageable and I could have quite happily repaid debts that way. I can’t afford commute to work or food if I pay minimum payments so something has got to give. I’ve balanced things whilst I was hoping to get consolidation by working 2 jobs plus extra shifts resulting in excess of 80hrs a week often and am starting to burn out
My concerns are
1 – am I likely to be placed under more restrictions or even declined because of past bankruptcy?
2 – I have loan with company which is based in EU. It doesn’t show on credit in UK. Presumably this can’t be included in bankruptcy, but can it prevent bankruptcy from going through?
3 – if the EU loan is not included, my debt is under 20k, and DRO would apply in having less than 50 a month after meeting expenses if i go back to working just 46hrs a week, is that a better path to follow?
4 – is a DMP better if I can get all debtors to agree to freeze and lower payments? It would take me at least 10 years to pay off.
5 – Should I be putting personal loans on official forms? Not repaying them at moment as people understood my circumstances
I appreciate any advice you can offer. Working the hours I do means I don’t get to money advice services during their opening hours.
Sara (Debt Camel) says
1. Your bankruptcy can’t be declined because of the previous one. After 15 years I would be surprised if there are any extra restrictions, but if there are, so what? You probably don’t want to be a company director or an MP, do you…
2. This loan can be included.
3. DRO would be a better route but the EU loan rules this out.
4. see https://debtcamel.co.uk/hard-choices/long-dmp-vs-bankruptcy/
5. personal loans – do you mean from friends and family?
“Working the hours I do means I don’t get to money advice services during their opening hours.” I am sorry but I really think you have to find/make the time for this. It is a VERY big decision, you need to be able to discuss all your queries. National Debtline is phone advice,https://www.nationaldebtline.org/EW/Pages/contactus/debtadvice.aspx opening hours:
Monday – Friday 9am – 8pm, Saturday 9:30am – 1pm
Sara says
Thank you for such a prompt response.
Can I clarify the EU loan rules out the DRO because of the balance trigger?
Personal loans are from friends.
I’d much rather consolidate but it’s simply not been possible.
Unfortunately I cannot make telephone calls very easily, however I do plan to use annual leave to seek advice in person once I have everything gathered together and a clearer idea of where to go next.
Sara (Debt Camel) says
EU loans are the same as any other debts – you cannot choose to leave them out of a DRO application. It is irrelevant where the creditor is based and that the debt doesn’t show on your credit record. And you said the EU debt takes you over the DRO limit, so a DRO is not possible. A debt adviser will be able to talk this EU debt through with you in detail.
If you have little to pay to your debts, which is the DRO limit, then there is no chance of being able to consolidate large debts as the consolidation loan would be unaffordable.
National Debtline also have an excellent webchat service if you would prefer that to the phone.
Anne says
Hi Sara
My partner went bankrupt in January 2011. He has two properties and has continued to make mortgage payments as agreed with the mortgage company. His mortgage payments are up to date.
A Trustee in Bankruptcy was appointed in April 2012. She took no action with the properties although a bankruptcy restriction is filed with Land Registry on both properties. She has not registered as proprietor.
However, she has not contacted him or taken any action at all since her appointment. My partner has not signed anything.
I really do not know where he stands with regards to the two properties (one of which is the family home). Seven and a half years have passed and we do not know if she is ever going to make contact about the two properties or what she plans to do with them. I understand the family home is now protected because no action was taken within 3 years.
Sara (Debt Camel) says
I suggest your partner asks the Trustee what is happening to both of the properties.
Paul says
Hi Sara
I’m finally applying to go bankrupt after years of burying my head in the sand
All of the debt is from 2010 or before i.e. Credit cards or bank loans I took out
Collection agencies have added charges since but I haven’t taken any credit out or used any since then
REading up I’m very worried that I will be turned down for bankruptcy as I have some online gambling transactions on my current account from the last year ,
Gambling didn’t get me into the debt problem and the amounts are only small amounts and only a very small percentage of what I owed in total but I’m concerned that I won’t be able to be made bankruptcy
Probably talking -£500 over 12 month period
Sara (Debt Camel) says
To answer your question, your bankruptcy application can not be rejected because you have gambled – even if it was a lot of money and the main cause of your debts. All that could happen is that you might get a Bankruptcy Restriction Order- but in your case that sounds very unlikely.
Can I ask when you last made any payments to your debts?
Kiri says
I applied to go bankrupt in April 2017 and had no problems. I have Two questions the first being that I fell last month and have suffered a great deal of pain and have now been referred to a specialist regarding further treatment and possible operation. Is it worth me putting a claim in with a solicitor or will the money go direct to my bankruptcy as a ppi claim did. Also sadly my mum passed away in Feb 2018 and although she left all her assets to my dad, he is now poorly and struggling with her death and if he dies will any money due from the will be allowed to me?
Thank you in advance for any reply.
Sara (Debt Camel) says
Have you been discharged from bankruptcy?
Lucy says
Hi Sara
A couple of questions regarding the IPA timeline; do you know if there is a timeframe for arranging an IPA? My OR mentioned something about having 15 days to sort everything out.
I had my interview 3 weeks ago and haven’t heard anything yet.
I know that if I don’t hear anything that means I’m not going to have to pay an IPA.
Secondly if my wages go up within the year, I know I have to tell the OR/trustee but can they start an IPA say February next year that lasts for 3 years?
Thanks in advance
Daniel says
Hi Sara. My question is this. If I go bankrupt and as a result have my tax code put to NT I will have to pay my tax to OR. If i have no surplus income and therefore will not have to make any payments during the first year will i then be discharged from ever having to make payments even if my income then goes up. Or does the fact that i paid my tax to OR during that first year mean i would have to pay surplus income for the full 3 years. Thanks.
Sara (Debt Camel) says
The NT tax payments are don’t count as being an Income Payments Arrangement. So if you don’t have any surplus income and no IPA is set in the first year, one can’t be started after that, even if you paid the OR some tax in the first year.
Duncan says
I was declared bankrupt in June 2017 and was told that over the coming 12months of bankruptcy I would not have to pay any tax due to the complications it gives HMRC. I am a soul trader so self employed and came out of bankruptcy in June 2018. I appreciate I have to submit tax returns as usual but can you tell me if I should expect to have to pay any tax or would it be the following year when I start paying tax again? many thanks
Sara (Debt Camel) says
You should have been told that you would not have to pay any tax to HMRC during the tax year that you went bankrupt, so 2017/18. From April this year you will have to pay tax.
As you are self-employed, I suggest you talk to Business Debtline who will be able to say when you should send in a tax return for which year.
A.Hunter says
I am bankrupt, on benefits and have 2 small children. I qualified for Warm Home Discount on application. Does anyone know if I should be paying for water during a bankruptcy period. Someone told me that in the year i’m bankrupt I don’t have to pay for water. Is this correct?
Sara (Debt Camel) says
When did you go bankrupt? Is your water metered?
I assume you are a single parent?
Did you get debt advice before going bankrupt, if yes, who from?
A.Hunter says
Yes I got advice from CAB who told me I wouldnt have to pay for water whilst undischarged from bankruptcy. Is this correct
Bankrupt Nov 18, yes single parent, yes water metered (i think)
Sara (Debt Camel) says
An unmetered water bill for the full year is included in bankruptcy – that wouldn’t be for the year you are undischarged, it would be for the remainder of the current water bill years which runs April-March. So you would always have to pay water bills from April 2019.
I don’t know if this applies to metered water bills, I haven’t seen a client in this position. I suspect it may not. I think you should return to CAB and ask about this – if they aren’t sure then they may want to consult the national Expert Advice Team (they will know how to do that).
CAB can also look at whether you will qualify for Water Sure or any other lower social water tariff in your area.
Debs says
I went bankrupt on 2003 and have been discharged. How long do I have to keep the paperwork?
Sara (Debt Camel) says
It’s pretty unlikely you need any of it! You went bankrupt after 2000 so there won’t be any problems with pensions. Unless there is something you are concerned about, or some assets the Official Receiver didn’t sell but still could (foreign property? any unusual insurance policies? you would know about this sort of thing – they are rare and would have been discussed with you at the time) I think you are all clear.
But I would still keep a record of the date and court you want bankrupt and your bankruptcy number.
Vee says
This is SO HELPFUL AND CLEAR. I think I love you!
I went bankrupt 10 years ago due to ongoing chronic illness. I find myself in the position of potentially having to do the same, though I am exploring every other possible avenue: it’s not a good feeling. Do you know if the OR will look unfavourably if I do apply for bankruptcy and imagine I wilfully accrued the debts planning to declare again?
Sara (Debt Camel) says
After 10 years I doubt this will matter. If a debt adviser recommends bankruptcy is the best option for you, I suggest you go for it.
Cheryl says
Can I get some advice please is there a contact number
Sara (Debt Camel) says
Sorry no. I suggest you call National Debtline on 0808 808 4000.
AVS says
Hi,
I went Bankrupt in 2011, and am now steadily rebuilding my credit and finances. I never had to make any payments post bankruptcy.
Two questions: I can see people have had issues with claiming PPI, is this something I should leave completely alone, or should I suggest to the Official Receiver that they should pursue it? I was charged heftily with a lot of things that, at the time, I didn’t know how to deal with, and this was a large part of the reason behind the bankruptcy.
Secondly, I’m considering a mortgage soon, do I have to tick the ‘have you ever been declared bankrupt’ box, or can I request dispensation in order to not tick this?
Many thanks, advice appreciated!
Sara (Debt Camel) says
Forget about PPI. It would all go to the Official Receiver, nothing to do with you.
Sorry uou have to answer Yes to the bankruptcy/insolvency question on a mortgage application. make sure you do not apply directly to a lender, go through a broker. After 8 years you should not have a problem finding a lender at an OK rate (assuming your affordability and deposit are OK of course!) but a good broker will make sure you avoid any lenders that might decline you.
Andrea says
We’re trying to weigh up bankruptcy v’s significantly reducing payments to our creditors until so time that hopefully the debt gets sold and we can get a low full and final payment. We’re confident that our home won’t be at risk through bankruptcy because of low equity and accessibility requirements already built into our home. A main concern is the length of time the default stays on file as we would like to move house ASAP.
We’re unsure how ‘guaranteed’ it is that our debt will be sold on, with the prospect of a lower F&F settlement, also roughly how long do will that take? Does this period affect the 6 year rule?
Sara (Debt Camel) says
How low is the equity?
How easy is it going to be to move if you have accessibility requirements?
Have you already defaulted on these debts?
You say “we” – do you both have a lot of debt? Is the house in joint names? Are you both working?
Henry says
What happens if a creditor has a charging order against a person and then successfully has an order for sale awarded only to then find the creditor has applied to make themselves bankrupt? The force of sale will be applied within the 12 week window given for the bankruptcy application. Will that still go through?
Sara (Debt Camel) says
Is this a theoretical question? Orders for sale are incredibly rare…
J says
Hi there,
I am considering going bankrupt as I am struggling pay creditors every month without using other credit as I don’t have enough left after paying bills etc.
I have therefore not yet defaulted on anything as yet as I have 0% interest on 9K of credit card debt and 3.8% on a 21k loan so I have been trying so hard to pay it off as I’m not paying much interest but I think the size of the debt is just too much now.
My question is that I don’t know what to do next really. I have just paid £465 monthly payment to my loan this month but after reading some of your articles you mention to stop paying creditors now if I am having to increase my debt (by using other credit cards) in other ways to pay other debt. I hope that makes sense? Another thing I’m not sure about is for example I need to get my car fixed as it has major engine oil leak. I haven’t been able to afford to do it but I could afford it if I don’t pay my credit card minimum payments this month (or wait til next month to default on loan and use that spare money?!?) But a) is it not worth fixing the car if I will have to sell it in the bankruptcy anyway or b) will the OR think I should have paid my debts rather than fix my car and therefore impose a BRO or something? I am going to ring Step Change in the morning (or is National Debt Line better) but was just wondering if you had any advice please? Thank you 🙏
Sara (Debt Camel) says
Some pointers – StepChange or National Debtline ( either is fine) will look at the specifics if your case which may mean these generalities aren’t right for you…
1) it’s always good to check you don’t have any better options. Then if bankruptcy is right, look at the practicalities and timing of it.
2) from here on treat all your creditors the same. Don’t stop paying the loan and still pay the cards, or the other way round,
3) except for priority debts! A debt adviser will say if there are any yiu should still be paying.
4) I don’t know if you need a car or if you do and your current one is worth too much to be able to keep in bankruptcy. If you can keep it needs to be functional!
5) it’s pretty normal to stop paying creditors to save up the bankruptcy fees. I don’t know how long that will take for you.
6) BROs aren’t common.
Alex says
Good afternoon, I made myself bankrupt in April last year, and was discharged late April 2020. My trustee was appointed mid Jan 2020 . I have heard very little in the way of questions from him. My solicitor has received a letter from the trustees solicitors stating that they requested answers to and RX1 and RX3 (Land Registry ) that were registered on the house that I live as the house is owned and has been for 17+ years by my son these were registered due to an issue between my son and I and were mainly from the fact of stopping him From selling the property to protect my wife and I having a roof over our heads my wife and I are in our early 70s and I am suffering with diabetes and my wife suffering with arthritis but at no time have I had any interest in the house that we live in the solicitors have asked why this was put on and just want to know what your thoughts are the RX1 and RX3 were put in place before I was bankrupt and also Therefore my wife and I were no longer beneficiaries I have no assets . Why ask questions like this over three months from my discharge
Sara (Debt Camel) says
I can’t really make any comment on the beneficial ownership situation – I don’t know who advised you to get an RX1, they may be able to write a letter explaining the situation to your trustee.