You can pay your bankruptcy application by debit card or cash. If you are paying by card, you can do this in instalments. The payment methods are all explained in the new online application. I'm going through it in detail here as you might like to understand how this will work but don't yet want to start a bankruptcy application. If you want to know more about the rest of the bankruptcy … [Read more...]
Getting out of debt
Practical articles about the different debt options, which might work for you and different ways of dealing with creditors
Choosing a debt management company – free or pay fees?
If you want a debt management plan (DMP), where your creditors are asked to freeze interest and accept a lower monthly payment, which debt management firm should you use? This article looks at the things to consider. It is a big decision as you are going to have to deal with this company - including discussing the details of your personal expenses and income - for several years. Pick the right … [Read more...]
Must I tell Official Receiver what I spent money on
A reader asked if he has to give the Official Receiver details of his expenditure. If the expenditure is before he went bankrupt, the answer is "Yes, definitely - but this probably won't be in a huge amount of detail". But if he is worried about whether he has to report to the Official Receiver about his spending while he is bankrupt, the answer is "No, not normally". Expenditure before you … [Read more...]
Unknown debts on your credit file
A reader asked: I have recently signed up to Experian and Equifax. Experian's is what I was expecting to see but Equifax's has debts that I have no recollection of. I have taken this up with Equifax and all but two of the companies have responded by saying that the debt stands, please get in touch to discuss. Equifax say that they can’t remove anything from my report unless these companies give … [Read more...]
Bankruptcy, IVA, DRO & your credit rating
If your debts are so bad that you are going to have to choose one of the three types of insolvency, you know this will wreck your credit rating, but how long will this continue? This article answers this and other you may have about the effect of insolvency on your credit record such as Will you ever be able to get credit again? What about a mortgage? Is bankruptcy worse than an IVA or a DRO for … [Read more...]
Is your pension safe in a DRO?
You may be worried about whether your pension will be safe if you are already in, or have finished, a Debt Relief order (DRO), or if you are thinking about applying for a DRO. The 2015 pension changes mean that many people over 55 can now withdraw some or all of their pension. so what happens if you take money out? Can you lose your pension? Can you get a DRO if you have a good pension? I … [Read more...]
Will my pension be safe in a DMP?
The pension changes that came in in 2015 gave many people over 55 a new option for paying off their debts, by taking money from their pension pot. I've looked at whether this is generally a good idea in Should you use your pension to pay your debts? but in this article I focus on people who are already in a Debt Management Plan (DMP). This article is relevant for people who are over 55 (or … [Read more...]
Should you use your pension to pay off your debts?
More people than ever are retiring with significant amounts of debt. One in three people planning to retire now expects to have debts - an average of over £17,000. And annuity rates have been low for a long while, although they should be starting to rise as interest rates edge up in 2022. So with more debt to pay and their likely pension income getting less, it's not surprising that many people … [Read more...]
Is your pension safe in an IVA?
Many people who are over 55 can take some or all of their pension pot in cash before they actually retire. You need to know how this may affect you if you are considering an IVA. If you already have an IVA, you may be wondering if your pension is safe. First a warning: IVAs are individual arrangements and it is possible for almost anything to be included or excluded in the detailed terms and … [Read more...]
Repossession after bankruptcy – be careful!
What do you need to do if you want your house to be repossessed after you go bankrupt in England, Wales or Northern Ireland? Perhaps the house is unaffordable, has negative equity, or it's the wrong size for you. For whatever reason, you want to move out, are happy for the mortgage lender to repossess and may want to "hand back the keys" as fast as possible to get it all over with. The … [Read more...]