In 2016, an online Bankruptcy Application was introduced in England and Wales. When you submit the online Application it is checked by the Insolvency Service Adjudicator who makes the Bankruptcy Order.
The online application is a huge improvement on the old court forms! As a result, more people are now choosing bankruptcy, see Court-free clickable bankruptcy ‘removes stigma’.
The online application is pretty long and you may need to find some information for parts of it.
You don’t have to complete it all at once, you can save and come back. But there are eight parts and you can’t move from one part to the next without entering something in the current part. As a result, you can’t easily look at the whole thing before you start – or when you are just thinking of going bankrupt and want to know what you might be asked.
This article looks at the online application to give you a feel what is involved – and there is a link to a page which looks at each section of the application.
Starting a bankruptcy application
To start a bankruptcy application, you need to supply your name, email address and answers to three security questions you select:
- if this is going to be your “real” bankruptcy application, you should choose an email address which you check regularly, as this is the address the Insolvency Service Adjudicator may need to contact you on.
- if you just want to have a look around, you can use a fake name – I have used John Deer to get the screenshot on this page.
You are then emailed a 12 character application number that looks something like KZR3-HRLK-PUMG. You then use this to login to your bankruptcy application.
The Application Overview page
The Application Overview page shows you the status of each of the eight different sections and also how much of the bankruptcy fees you have paid so far. You can always go back and change or add to the answers to the sections you have already done.
Here is a screenshot showing what it looks like when the first two sections have been completed and no money has been paid towards the bankruptcy fees:
The 8 sections
See The 8 sections of the bankruptcy application for a detailed look at what you need to put in each section.
When you have completed all the sections…
When you have gone through all the section you will see the above box.
You may not actually have completed everything! You may still have bits to add to some sections, so it’s a good idea to keep a list of things you want to go back and add to, especially if it is taking a while to get all the information.
And if it has taken a few months to save up the bankruptcy fees, don’t forget to go back and check that none of the information you have put in has changed. Have you moved? Sold a car? Got a new bank account? etc
Once you have completed everything and paid the fees, when you click on the Submit your application you will be asked to verify some information including that:
- you are the are the person named in the application
- the information provided is accurate to the best of your knowledge
- you consent to a credit search being run using the details provided in the application.
What is this information needed for?
There are four main reasons for asking all these questions:
- verifying who you are. Not many people will submit a bankruptcy application and pay the fees for someone else maliciously, but the Adjudicator is going to want to spot this if it happens!
- getting the Adjudicator the information needed to decide if your bankruptcy order should be made or (very unlikely) your application should be rejected. If you have lived abroad until recently and most of your creditors are abroad, the Adjudicator will consider whether England and Wales is the right place for you to go bankrupt. The Adjudicator will look at a summary of your assets, debts, income and expenses to see if you are “insolvent”. If you are worried about whether you are, the best thing you can do is take some good debt advice before submitting your form.
- getting a full picture of your personal and business affairs. After your bankruptcy order is made, the details are passed to an Official Receiver’s office who will interview you about these. A few people try to conceal assets, debts, businesses they have been involved with, the fact they transferred their house into their wife’s name two years ago etc. The only way for the OR to spot the people who are deliberately doing this is to ask everyone a lot of questions.
- getting a fair picture of your expenses The details of who lives with you and how old they are will help the Official Receiver later in trying to decide if an Income Payments Agreement is required.
Help – I don’t have some / a lot of this
Many people won’t!
Apply a bit of perspective for old stuff. If you opened your main bank account in the late 90s and don’t have any documentation saying when, just put down Jan 1997 as the date it was opened the account, the OR isn’t going to care. Of course, your bank could probably tell you the information if you phoned them up – it would be worth doing this if the event was much recent.
The OR will also be used to dealing with people who haven’t kept details of everything for the past 5 years. You may have moved house a lot, separated from a partner, have been out of the country, had mental health problems or just not be very good at filing paperwork… Self-employed people who are going bankrupt because their business has failed often don’t have perfect business records.
Just do your best to fill in the application and make some notes about any areas where you really weren’t sure what to put down and mention them to the Official Receiver at your interview.
Problems using the application
If you find you can’t start the next section on the main Overview page, it’s probably because there is a question in the previous section you haven’t yet answered.
If you have problems, you could call the Insolvency Service on 0330 331 0020 or email them at onlinedebtsolutions@insolvency.gsi.gov.uk . They can only answer factual questions, they can’t advise you on what to put on your application.
When will your bankruptcy start?
When you have paid the fees and submitted your application it goes to the Adjudicator’s Office. They approve 95% of applications within 2 working days and many are approved the next working day.
You should check your emails regularly – it is possible the Adjudicator may want to ask something, although this is rare. When the adjudicator has made the decision, you will be informed by email.
You can check if your application has been accepted by logging into the application – if the application has been approved, there will be a copy of your Bankruptcy Order and its date – this is the date you bankruptcy starts.
Rob says
have now started the process of going bankrupt online today and let me tell you it’s so easy to do just take your time if it’s too much just log out and then come back to the page you were at. I myself is going to pay the fee in instalments as l don’t work due to ill health
Sara (Debt Camel) says
Hi Rob, it’s good you are finding this easy so far – I hope the rest of the process goes smoothly for you.
r popa says
What is the actual bankruptcy fee please?
Sara (Debt Camel) says
£655
Stung says
Hi – I am British and been out of the country for 2 and a half years. I live in the UAE. Can I apply online or do I need a solicitor?
Sara (Debt Camel) says
As you are not in the EU, you should be able to use the online application within 3 years of leaving England, see https://debtcamel.co.uk/bankrupt-england-from-abroad/ for details.
Sara (Debt Camel) says
Sorry but you have asked 4 rather unusual and very varied questions about bankruptcy on 4 different articles. I cannot give debt advice to an individual and it sounds as though your situation is too complex for general pointers to be useful. I am afraid you need to consult a debt adviser or a solicitor about your range of issues. From what you have said I think you should be taking advice before proceeding with a bankruptcy application.
Best Wishes
Lynn says
Hi I have paid the fee and submitted my application this afternoon. Could you please tell me how long roughly before the bankruptcy will be granted? Also I have a bailiff coming next week, what happens then? As I’m sure I read somewhere that I shouldn’t pay one creditor over another, or does that only apply after the bankruptcy has been approved.
Many thanks
Sara (Debt Camel) says
Most cases are pretty quick unless there are any questions about whether this is the right country for you to go bankrupt in.
re the bailiff, just keep things simple and don’t open the door.
Lynn says
Hi,
I was sent bankruptcy order by link to insolvency website today. Had bailiff text to say they were giving 24 hrs notice of intent to seize goods. This is for a council tax liability order. Told them I was bankrupt, the woman on the phone insisted that I wasn’t. As I only applied Friday, and it was accepted today, she claims nobody gets made bankrupt that quick. Emailed copy of the bankruptcy order she insists that it hasn’t come into force yet as it has a case number and not the traditional BR ref. According to her this is just stating I have applied for bankruptcy, but it states BR order. She checked online but nothing shows up yet for my name, She then went on to say that they will pursue for custodial as I have no money!! They were put in the bankruptcy, but she insists they will still pursue me. Please help, is she right? Phoned insolvency service, they say it takes a day or two to update the online insolvency register, but I am BR as I have been send the BRO. Very confused and worried.
Regards
Lynn
Sara (Debt Camel) says
You are definitely bankrupt.
Unless you have already signed a Controlled Goods Order (see https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/bailiffs/bailiff-has-issued-you-with-a-notice/bailiffs-notices/controlled-goods-agreements-bailiffs/ for what one of these looks like if you are unsure) you can ignore threats from the bailiffs and should not let them into your house. They won’t be able to send you to prison instead!
If you have signed a Controlled Goods Order things get more more complicated and I suggest you call National Debtline 0808 808 4000 this morning to discuss this.
E Camps says
Hi I have bailiffs calling tomorrow, just looked at another answer what is a controlled goods order and can I refuse to sign it looking to go bankrupt by next week when we have raised the money
Sara (Debt Camel) says
Hi, I think you should phone National Debtline 0808 808 4000 and they can talk you through the details of your debts and what to do about this threatened bailiffs visit.
A kharanjani says
Hi. Do i need to pay all £655 before i can go bankrupt or can i pay that monthly and they will still process my application.??
Sara (Debt Camel) says
I am afraid you need to pay it all before going bankrupt. See https://debtcamel.co.uk/help-with-bankruptcy-fees/ for ideas about how yo get the money!
Ella says
Hello,
Me and my husband made a scariest decision our lives- to go bankrupt. Will not go into much detail, redundancy etc., But now half way through the application there are thing that are not clear. All benefits we are receiving are in joint names ( JSA, Housing etc), paid into my account. So i am the one paying all household expenses. How do we declare our expenses and income separately on our bankruptsy applications? I have emailed Insolvency and they say split it between yourselves the way you think best reflects your current financial situation. Not very clear to me. Would greatly appreciate any help / advise. Thank you
Sara (Debt Camel) says
I suggest you divide all the income and expenses into two. Nothing you have said suggests you need anything more complicated than that.
Have you talked to a debt adviser about your decision? It may be absolutely the right thing for both of you, but I always suggest it’s worth an hour of your time to get this confirmed. National Debtline 0808 808 4000 are a good place to call.
Jamie says
Following a marriage breakup in November I had to stop making payments on 2 loans. I wrote to them asking them to take a £1 token payment while I hoped to work things out with my wife. Long story short things didn’t work out and am now going through divorce, have now moved into a rented flat and with my current income vs outgoings i’m left with no option other than bankruptcy. I’ve been paying 1 loan company the £1, the second didn’t accept (well requested further info which i sent then heard nothing back) so have paid nothing. I have however been paying the minimum payment on my only credit card since November, will this be seen a a ‘Preferential’ payment and should I include it as such on the bankruptcy form?
Thank you
Sara (Debt Camel) says
In section 8 of your bankruptcy application you are asked if you have made extra payments to some creditors but not others. You can describe there what has happened.
BUT this is (a) very small scale (it’s not as though you have repaid a lot of money to a credit card) and (b) very short term, just a few months. I would be extremely surprised if the Official Receiver is at all interested in this.
Aaron says
Hi
I’m just filling in the online form to go bankrupt, if I owe money to my bank do I give their details as a creditor or the debt collection agency they appointed
Thank you
Sara (Debt Camel) says
You list the bank as the creditor, not the debt collector.
Shango says
I would like to ask a question pertaining to Section 8 (Debt History) of the Bankruptcy Application Form.
I am planning to go Bankrupt later this year.
For 10 years I have been in a DMP with one of the “Big Three” free facilitators of this service. I have had a Vanquis Card and another loan with outstanding debts totaling 6k which they are unaware of.
The Vanquis Card has been open for 5years and the loan little over a year. Both are up to date with regard to payments but will be included in the Bankruptcy later this year. The minimum payments to the two total £300 per month whereas my DMP Payment is less than £100 per month on over 100K owed with numerous creditors.
I am worried that the OR may consider this falls into the category of “extra payments to some creditors” and I could be in for a BRO.
Sara (Debt Camel) says
I suggest you talk to your DMP provider and ask them to include the Vanquis card and the other loan and add the £300 a month to your DMP payment. At the moment that is all you can do.
A BRO sounds unpleasant but will probably make very little difference to your life. And the OR may not care much anyway – the “extra payments” that they care most about are those where you are repaying a debt to a family member and not paying other creditors anything.
Shango says
I was planning to stop paying the two of them a couple of Months before going Bankrupt using the money saved to finance most of the £680 Fee.
If you have been living in England/Wales for at least 6 Months is it true I can go Bankrupt there rather than in Scotland where I resided for the previous 6 Years.
The reason for my preference is the different way IPA’S are calculated. In England/Wales no IPA prior to discharge and that’s it whereas in Scotland it is still “live” for another three years after discharge.
Sara (Debt Camel) says
Well it’s your choice, but I would suggest that as you have decided to go bankrupt, you should be treating all your creditors equally from this point. If you do this now, the OR is less likely to care what you did before you made the bankruptcy decision. So this means adding Vanquis and the loan into your DMP asap and upping your DMP payments. Then when you need to get the money for the bankruptcy fees you stop paying the DMP – this is standard advice and whichever DMP firm you are using should confirm this if you ask them.
re living in England for 6 months – I’ll check up on this and get back to you next week.
Sara (Debt Camel) says
I am sorry for the delay in getting back to you.
There is no minimum time you have to live in England before applying for bankruptcy. However, the Adjudicator, who approves applications for bankruptcy, needs to be satisfied that you “ordinarily reside” in England. If you have only just moved from Scotland, you may be asked to provide evidence showing that you really have permanently moved. This could be utility bills, a tenancy agreement, council tax bills, evidence that you are employed etc.
Douglas says
Hi, Does the fee need to be paid in full before the application will be processed? There is the option for monthly payments so just wondering how this works. KIndly they don’t provide this information on their website.
Thanks
Douglas
Sara (Debt Camel) says
Hi Douglas, the fee does have to be paid in full before you can press the Submit button to apply . The monthly payments options is there because many people find it helps them to put the money away towards the fees.
Erika brady says
Hi
Unfortunately I’ve just failed an Iva so now going bankrupt. How do I show my termination certificate to the io as there is no option to upload it with the online application?
Thanks
Sara (Debt Camel) says
Is your IVA still showing as active on the Insolvency Service register?
Erika brady says
Yes as they are terminating it at the moment
Sara (Debt Camel) says
I think the IS will check the register when approving your bankruptcy application, they won’t need to see the termination certificate.
Rebecca feeney says
Who takes a proof of income/expenditure? Surely you have to hand that to someone to go through before you can be confirmed bankrupt 2 days after you fill in the online form.
Sara (Debt Camel) says
You have to complete I&E details as part of the online application. You don’t have to prove this before you go bankrupt – this is just the same as with the old paper-based application at court, you didn’t have to provide any proof of that. After you have gone bankrupt, you will have an interview with your someone at your Offical Receiver’s office, usually over the phone.
Rebecca feeney says
So you don’t have to give bank statements or anything in at all? I sound like I’m trying to hide something I’m not, I just had read that they will want a few months of bank statements and proof every bill that comes out and wage slips so I’ve been trying to get all of that together. Do i not need to send this off or show anyone at any point?
I had a meeting last night with someone from Christians against poverty and they were lovely, but they wanted to set something up to pay my creditors and also put aside savings for myself. I don’t really want to be handing someone money but they said they would help me complete the online appline application etc. Will I need a lot of help or is it pretty self explanatory if you have all the correct documentation?
Sara (Debt Camel) says
You will usually be asked for bank statements etc during the interview after you have gone bankrupt, not before. If you read through the article above – and the link in it to the details of the application – you should get a reasonable feel for what is involved. And if you want to look in detail, just start an application so you can access the real thing. You can do this in a false name and a junk email address if you want, or use your real name and email if you expect to take this forward at some point an actually apply.
Most people’s applications are long but straightforward. If you just work through it methodically you should be fine.
CAP are very good and help a lot of people through this process. You need to save up the bankruptcy fees, complete the application, plan when to go bankrupt, plan to open a new bank account etc. If it is going to take you a long while to save up the fees, there is the question of how much to pay your creditors whilst you are doing this – nothing may be the right answer, but not if you have priority debts – CAP can talk about these.
If you would prefer to do the form yourself and save up the money yourself, I don’t think CAP would mind, but they should be able to answer any questions.
Rebecca feeney says
Thanks Sara,
I have started to fill in the online application and it looks fairly straightforward. How many months of bank statements does the generally get asked for?
My case is relatively simple with approx 26k of debt just from credit cards/tax credit over payment little bits and bobs and haven’t got myself into any new debt in approximately 2 years.
Jane says
I was wondering if most of the credit card debts have been assigned to Debt Collection Agencies is it the name of the Credit card provider that goes down or the collection agency? Also why is a credit search done? Is this so that all of your debts are counted in the Bankruptcy?
Sara (Debt Camel) says
Hi Jane,
as I said when you commented before, you are based in Scotland and I am afraid that I know nothing about Scottish Insolvency. I am not prepared to guess. Please phone National Debtline who have Scottish experts.
Beth says
Hi Sara,
Can you tell me what I should put for the Creditors address, for credit cards that I have that are online only accounts?
Also, I haven’t worked for 3 years, but not been on benefits either. My husband has helped me out by paying my share of the bills, which isn’t supportable anymore. Do I put 50% of all the bills down as my expenditures, even though I haven’t been paying them myself?
Thanks in advance
Beth
Sara (Debt Camel) says
If you look on the card’s website, there is often address in the footer. eg MBNA’s says “Credit Card(s) issued by MBNA Limited. Registered Office: Stansfield House, Chester Business Park, Chester CH4 9QQ”. That would do for the address.
Do you have any income?
Beth says
Thanks, perfect.
No, I don’t have any income except for £137.60 a month in Child Benefit.
Sara (Debt Camel) says
OK, well if you have no income apart from benefits, you will not have to make any monthly payments. I suggest you just put down as expenses your share of the food bills as your CB isn’t going to cover much more than that.
Going bankrupt gets rid of your debts, but your husband is still going to have to pay almost all the other bills himself.
Beth says
Thanks Sara.
Beth says
Hi again,
I am ready to hit the button on the bankruptcy form now, but I haven’t yet set up a new basic bank account. Would you advise doing that before or after I apply for bankruptcy? If I do it before will I not have to list it on the form and then the account will be temporarily frozen? When I set it up should I tell the bank that I am/ about to go bankrupt?
Thanks so much for all your help.
Beth
Sara (Debt Camel) says
See this article: https://debtcamel.co.uk/bank-accounts-after-bankruptcy/
Beth says
Awesome, thank you so much. I completely missed that article. MUCH clearer than the one on the Gov.uk site.
mart says
Hi can you go bankrupt if you are paying your credit cards and loans but are struggling to do so. all the debts are in my name around £19,000. my partner works part-time we get working tax credits and child tax credits. I’m a carer for our son who has diabetes we also get DLA and carers allowance which will stop soon as we have had to apply for pip which I know we won’t get. I cant work as have cancer but will hopefully have it removed soon plus I’m waiting for an operation to have a kidney stone removed which causes a lot of pain preventing me from working. once we have been refused pip we will lose a lot of money each month which will make it impossible to keep up payments.as far as i know only the carers allowance is in my name. so I was wondering where i would stand going bankrupt and if its the best option. thanks, Mart
Sara (Debt Camel) says
yes, you can but you may have a better option – a Debt Relief Order as you owe less than £20,000. See https://debtcamel.co.uk/debt-options/dro/
I suggest you talk to National Debtline about this on Monday. Phone 0808 808 4000. They can also talk about bankruptcy and other options such as a DMP.
Baki says
Hi Sara
I have a debt of around 23K, I have left my Jon Oct last year, Now I am doing a part time Job, but the earning is not good enough. My Credit Card and Bank keep sending me letter but they have not send any letter from secondary collection company. at the moment I Missed my previous debt management payment. I also explain them , the company advice me to go to Bankruptcy.
my Question : How likely My application will be accepted? I Have only a car which value is less then £1000. If my application accept what will happen my household Property ( TV, Furniture etc). I am bit confused if they ask me why am i in part time job ?
I am not capable of paying any credit card or any Overdraft, What should I do?
waiting for your reply
Thanks
Sara (Debt Camel) says
Your application will not be refused because the Insolvency Service thinks you should get a full time job – they look at what your current income is, they don’t make moral judgments about what you should be doing.
I suggest you read https://debtcamel.co.uk/lawnmower-bankruptcy/ and https://debtcamel.co.uk/bankruptcy-qs-or-make/.
If your DMP firm has advised bankruptcy then that is very likely to be your best option. They will be able to answer any detailed questions you have.
Debra says
I had a bancruptcy petition raised by my husband In Divorce he has a trusted mobile phone on my apple and basically was me It was sent in 23.51 and by 15.00 hours I was a bancrupt. It’s not my form makes no sense to
Me either so I ve sent the evidence in from Apple and explained everything but I can’t anull as it’s not a court order yet seems like I’m stuck but I’m not a bancrupt
Sara (Debt Camel) says
Have I understood this correctly – are you saying that someone, who you assume was your ex, has entered an application for bankruptcy pretending to be you?
Marmighty says
Hi,
We are finding the wording in the online application slightly tricky. I hope this isn’t a dumb question as we already feel like we’re losing the plot, and are terrified. In Section 6, it asks for household expenses. ((I am filing for myself as my debt is 95% from before I lived with my partner)) All bills and rent are in her name seeing as she lived here already. My trouble is where it’s asking for household expenses in every section, does this include her contributions to, say for example, food, gifts, fuel, eating out etc?
Sara (Debt Camel) says
do you two earn roughly the same amount?
Marmighty says
My income is higher than the monies she receives. Which leads me to another important point. She has 2 disabled children from a previous relationship & is listed as a Carer due to their ages and needs. So her income and all monies are the following: Carers, CHB, Child Tax Credits (dramatically reduced now due to overpayment 😖), Child Maint. & DLA (for both children).
Are all of those, combined, to be considered as her income on my application seeing as some are directly for her children’s needs?
Sara (Debt Camel) says
So no Housing benefit – is that because of your income?
Disability payments complicate things here – it’s not bad for you at all, it just makes things more complicated. The OR will basically allow an identical expenses line against all the disability income. As you have more income than your partner, you would be expected to pay more of the rent and other household bills. If you haven’t been doing this to date, it’s probably because you have been trying manage your own debts!
I think you need to look go through your I&E in detail – this could be with a debt adviser eg by talking to National Debtline on the phone 0808 808 4000 or by posting on https://forums.moneysavingexpert.com/forumdisplay.php?f=136 where there are a couple of good debt advisers who often comment as well as other forum regulars. It might help if you started by posting a joint I&E and then work from that to decide what should go on the form.
Take it slowly, there is no rush. Things aren’t set in stone, if you realise something is wrong or changes later you can get it changed, but it’s better for your nerves to try to get it looking good at the start.
Marmighty says
My income is above the housing benefit £ bracket at the moment. I’m happy to hear it wasn’t just us, feeling like the circumstances made this application less straightforward. We are phoning the national helpline today to hopefully get clarity before applying.
I appreciate your advice and info, thank you very much! It’s helped us along a bit further for sure. 🌟
Marmighty says
Sorry, I forgot to add (re: section 6, household expenses)… the confusion comes with the header saying “enter household expenses …” and just below is states “if you don’t contribute, leave blank”. My partner has a car payment which of course comes out of her money but is still, from where I stand, a household expense. Are we including her bills as well (ie car payment, mobile, her credit card) so that the OR gets a complete picture of the financials? Thanks for all advice, in advance!
Nikki says
I would like clarification on this too! My husband has applied and it wants to include all my income so surely must include all my outgoings too….they cannot assume all my wages are shared with him if all the bills aren’t also shared?
Sara (Debt Camel) says
This isn’t normally complicated. The OR wants to know your income as it will determine how joint bills will be split. Normally most household bills would be joint… rent, utilities, insurance, food, children’s costs etc but you may have expenses that wouldn’t be joint – your own debts, your season ticket to work, your clothes etc.
In Marmighty s case this was complicated by the fact some children were from a previous relationship and there were a lot of disability benefits where the lenders come needs to be handled in the same way (joint or just for one) as the relevant expenses were.
If you are worried, then I suggest posting on the MSE forum I gave a link to.
Marmighty says
Hi, I’ve since had a web chat with someone at National Debtline. It was suggested to use joint expenses on the submitted application (her personal bills as well, seeing as her monthly ‘income’ was to be included). We’ve also written out on paper her monthly income, expenditures, bills, to reflect a breakdown for my Interview, should the OR benefit from seeing it. It shows a final amount left over as her contribution to household bills…& it is very minimal so It can’t hurt to have this on hand.
As far as the DLA, it’s not going to be included as her income but instead as an added line, separately marked as income/outgoings so it’s us putting it out there plus it’s automatically discounted as income.
After your advice and pointing us in the right direction, plus National Debtline, i feel reluctantly confident (says nervously, lol) to carry on with this application. Thank you again!
Sara (Debt Camel) says
That sounds good – almost everyone is nervous about submitting their application, it’s natural, I’m sure you won’t need it but Good Luck.
Jay says
Hi.
Bankruptcy is the way for myself being around £25K in debt.
I received a letter from a Solicitors representing one of my creditors that I have an unsecured personal loan from. They state that I waived the right to go bankrupt and are threatening court action.
I wasn’t aware that the application only sends once you pay the full amount. I have to reply to the solicitors by 20th March but I won’t have the money for bankruptcy until May at least.
Stressing out!
Sara (Debt Camel) says
“They state that I waived the right to go bankrupt” what exactly did they say?
Jay says
That there was a section in my contract saying that I won’t be seeking bankruptcy in the future.
Because I now am seeking bankruptcy the solicitors letter says that even I’m going bankrupt, they still have the right to take me to court.
But surely if that was a thing then no one would want to go bankrupt??
It’s like a bankruptcy waiver built into the creditor contract.
Sara (Debt Camel) says
How long ago did you take out this loan? How many loan repayments did you make?
Jay says
I took the loan out in August 2017 and made payments until late 2018. Then I went on a DMP but stopped that as I needed to have an emergency fund, during the course of the DMP my washing machine broke, needed to get a new one plus emergency dental care also. I’m going bankrupt this week just finishing up on the funds.
Jason says
Hi Sara.
I have a lot of small debts and a unsecured loan debt of 19K which all ads up to 27K. Most of my small debts are parking tickets from local councils. Would i be able to add my parking debts to my bankrupcy form? Also a lot of these debts has been given to ballifs/debt collectors, do i add the original creditor or the debt collection agencies?
My other worry is that i can’t remember every creditors or ballifs i owe. How do i come across this?
Sara (Debt Camel) says
Yes these parking debts can be included in bankruptcy. You can put them on the bankruptcy application, but if you miss some off they will still be included in your bankruptcy.
If you have let a bailiff in and they have made a list of your goods to be repossessed or they have clamped your car, you need urgent advice as there is a controlled goods agreement and the bailiff may still be able to take those after bankruptcy. Go to your local Citizens Advice or phone National Debtline on 0808 808 4000 and talk to them about this. They can also give bankruptcy advice (always a good idea no matter how obvious you think your situation is) and talk about how to list the debts on the bankruptcy application.
It’s a good idea to try to list them on the application as then the creditor is informed and you should not get more contact from the creditor.
You need to list the current creditor. That is not a bailiff, a bailiff is just trying to collect a debt for the creditor. A debt collector should make it clear if they are collecting on behalf of the council or if they have purchased the debt and so are now the creditor.
Jason says
Thanks for the reply.
My next question was actually about the controlled goods agreement. This is exactly what happened to me a few days ago. Baliffs got into my house and have made a list of things that i own. I agreed to make monthly payments to them at the time as i was nervous but now i don’t know if i would be able to make the payments. But i did not sign anything. I am really worried and stressed about this now. Is there any way around this situation after i go bankrupt? I’ll give the nation debtline a call but for some peace of mind, can you give me some advise on what i can do?
Thank you
Sara (Debt Camel) says
Sorry, phone National Debtline ASAP, they are open from 9am to 8pm. You need someone to discuss the specifics of your case.
Jason says
Thank you for advising me to contact National Debtline.
I have just spoken to someone and was told that controlled goods agreement is not valid as i did not sign it.
I had another question but couldn’t finish the conversation as the line was bad and the queue got longer. I was hoping you can answer this question
When the high court enforcement officers came to my house and i agreed to make monthly payments, they said that if i don’t make the payments they will come back with locksmith to unlock my front door and force entry. Can they do this without a valid controlled goods agreement?
Also i want to know if any ballif/debt collectors can still try to collect any debts or remove any goods after i have become bankrupt? Even if i left my front door open on a nice sunny day, would they be able to get it?
Thanks in advance
Mathew says
Hi sara,
I am a self employed UBER driver. Would it be difficult to declare my self bankrupt? I’ve been told by a few people that my application may be rejected due to being self employed, as i set my own hours of work, i may be told that i can work extra hours to cover my debt costs.
Sara (Debt Camel) says
Your bankruptcy won’t be rejected because you could in theory work more hours. But the self employed need specialist advice on whether bankruptcy is a good option and its implications, I suggest you talk to Business Debtline https://www.businessdebtline.org/.
Elle says
I’m so sorry I have a lot of questions below: If it helps I have no assets, car is in husband’s name, around 27000 personal debts and around 10000 in tax.
– if a loan is taken out in my name and then transferred to a joint account with my husband, what happens with debts that I have taken out and have been spent in a joint account?
– my husband pays his mum each month a debt he owes, will this count towards me paying family and friends?
– I made lots of additional payments on a few occasions to a credit card, it was paid of, but since the credit has all been used again, would this count toward preferencing creditors?
– my husband has put money into shares (around 2000) for his dad from that account, and also about £500 bitcoin – would this impact me and would it be seen as my money if I have added credit to the account?
– I have paid for some of his debts when he couldn’t afford it, will this cause any ramifications?
– When should I go bankrupt if I know now I won’t be able to keep my payments up when I go on mat leave? I am not currently insolvent but will be early next year when I am due to go on maternity.
– I have asked businessdebtline about savings for income tax for self employment and they said any savings for this would be shared between all my creditors, though is this preference as I won’t have paid anything to HMRC yet
Any help with any of the above would be appreciated.
Sara (Debt Camel) says
“if a loan is taken out in my name and then transferred to a joint account with my husband, what happens with debts that I have taken out and have been spent in a joint account?” I am not quite sure what you are asking, but it doesn’t matter if a loan was paid into a joint account or you made the loan payments from a joint account, if yours is the only name on the loan this is not a joint debt.
“my husband pays his mum each month a debt he owes, will this count towards me paying family and friends?” I am assuming your husband puts all his income into this joint account. In that case, no – these are not your debts that are being repaid. But your husband will have to contribute a reasonable amount to the household expenses, so he couldn’t use all his income to pay his debts and leave you to pay all the rent and bills.
“I made lots of additional payments on a few occasions to a credit card, it was paid off, but since the credit has all been used again, would this count toward preferencing creditors?” If you haven’t been paying other creditors during this time, then yes, possibly.
“my husband has put money into shares (around 2000) for his dad from that account, and also about £500 bitcoin – would this impact me and would it be seen as my money if I have added credit to the account?” if there is a trail that shows his dad put the money into the account and then it was used to buy shares & bitcoin, that should be OK.
“I have paid for some of his debts when he couldn’t afford it, will this cause any ramifications?” has he paid any of your when you couldn’t afford them? Scale matters here. If you are talking about paying the odd £70 bill once or twice, that is very different from paying a £350 a month loan payment for him every month for a long while. But it wouldnt matter if you had been paying a large loan for him if at that time you were still paying all your debts and not borrowing more yourself.
“When should I go bankrupt if I know now I won’t be able to keep my payments up when I go on mat leave? I am not currently insolvent but will be early next year when I am due to go on maternity.” Business Debtline is best placed to advise you if you are currently insolvent.
If they say you can postpone going bankrupt, one thing you could do is separate your finances now. Get yourself a bank account, don’t use the joint account any more, don’t use any more credit and treat all your non-priority creditors the same from here on. “Preference” problems in bankruptcy matter much less if they are clearly in the past.
“I have asked business debtline about savings for income tax for self employment and they said any savings for this would be shared between all my creditors, though is this preference as I won’t have paid anything to HMRC yet” this sounds confusing. HMRC debts are a priority debt – it is fine (and sensible!) to save up so you can pay these rather than use that money split across credit cards and other non-priority debts. I suggest you go back to business debtline and talk about what happens if you go bankrupt now with these savings, and what if you carry on until next year, during which time you will have had some tax bills to pay.
Sara (Debt Camel) says
I’ll add that I understand how these things can seem very worrying, but the OR isn’t there to try to catch you out, joint bank accounts are normal, the OR won’t want to spend large amounts of time analysing who paid for what from the account, and it’s easy to get too paranoid about problems with preference and what your husband has spent. Go through some figures with Business Debtline – they may be able to set your mind at rest.
Mon Mohan says
Hi Sara,
Do I need to provide bank statements when submitting the online Bankruptcy application. Or any other documents? Will the OR ask for bank statements and if so for what period would that be? Just so I can start preparing.
Thank you
Sara (Debt Camel) says
No, you don’t have to attach bank statements or other documents with your bankruptcy application.
You are asked what bank and savings accounts you have had in the last two years. The OR will usually ask to see statements for these going back two years.
Michaela says
hello, im trying to complete my application for bankruptcy but am having trouble finding account numbers/creditors etc. My debt has been passed around to pillar to post and ive tried printing my credit report off but it isn’t showing debt or account numbers anymore?? how do I get this information??? thanks.
Sara (Debt Camel) says
Just do your best. If you have had recent letters from debt collectors, the information should be on there. All debts will be wiped out by bankruptcy even if you miss them off the form.
Can I check you have taken some debt advice on going bankrupt?
Michaela says
Hi, thanks for quick reply. Yes not recently though. Its been 6 years and we are finally ready and settled. Got lots of advice the first few years but nothing lately. We have paid our fee just the case of data input for application now. So even if we miss debt off we will be covered? I thought that was the case just wanted to be as detailed as i could on the application. Thanks.
Sara (Debt Camel) says
Yes a debt is covered even if you miss it off the form. It’s good to put as much as possible on the form as then the OR informs the creditors so you don’t have to keep telling them yourself.
If a lot of the debt is very old, have you looked at the alternative of asking for CCA agreements for the debts?
Michaela says
Thank you.
Can you come and hold my hand? Lol
Been carrying this debt for over 6 years….. Feel sick actually doing it. Keep thinking they will look at our income and make us pay mega bucks and leave us with a penny to live on etc…. Lol. Imagination going wild. Lol
Our account is already credited btw… Been sat in there ready to go for ages. The debt is over 28k and we have a recent council tax bill which needs to be included as theyve sent us a court date. I dont want us to go down that road and have been preparing mentally for years to apply so going with it. We are in rented accommodation, we have no assests worth anything…. So need to start a fresh. Its got to the point i cant even speak to the creditors so once applied and granted it will be a huge weight from our minds (joint applying)
Sara (Debt Camel) says
If you post a Statement of Affairs on https://forums.moneysavingexpert.com/forumdisplay.php?f=136 the experts who post there will be able to say whether you may have to pay an IPA and if so how much. It’s like having someone hold your virtual hand…
Michaela says
Wow thanks. Will check it out….
Adam says
Hi, my partner is filling out a bankruptcy form and is unsure whether or not to include my weekly wage in the income/expenditure section. If she does it looks like there’s money left over as it doesn’t ask to say where it’s spent i.e my wage pays the rent and council tax but it says not to include items she doesn’t contribute to. So my wage is included as total household income but isn’t asked where it is to be spent as expenditure. Any help is appreciated.
Sara (Debt Camel) says
Do you and your partner earn about the same amount?
Adam says
Hi, no her only income is child tax credit and child benefit, she is currently unemployed.
Sara (Debt Camel) says
OK, then I suggest she talks to National Debtline about what to put on the form. One option in this sort of situation to put all the household expenses down and your income, but the details can be fiddly… And it’s always good for someone to get debt advice before going bankrupt, however obvious you may think it is as a solution.
Another good place to get help is https://forums.moneysavingexpert.com/forumdisplay.php?f=136 where you can post a statement of affairs anonymously. Several good debt advisers read that forum and may comment.
Roger says
I am filling in the online bankruptcy form and have a question. I have a car on HP on which I have stopped making payments and intend to return to the finance company. I have recorded the car under “Assets” as returned to finance company and shown the balance outstanding, do I need to include the car under the “Money you owe” section as well?
Thank you.
Sara (Debt Camel) says
The car is not an asset – it belongs to the finance company, not you.
List the car finance as a debt that you owe,
Roger says
Thanks Sara. One final question please. I have asked the finance company to collect the car, which they are going to do next Wednesday, have I done the right thing as I have not yet filed my bankruptcy application. I have read conflicting comments, some say bankruptcy first then return the car, others say return car first, then bankruptcy. I’m confused.
Thanks.
Sara (Debt Camel) says
It doesn’t make any difference. So having the car repossessed first then going bankrupt is fine. (I am assuming that you have taken advice and bankruptcy is a good option for you.)
Meg says
What happens during the telephone interview? I have mine tomorrow and im really anxious about it. Husband has his half hour before mine and as i deal with finances 100% I’m unsure how he will cope! Lol.
Sara (Debt Camel) says
There isn’t a set script, it very much depends what was on your bankruptcy application. So it will be much longer if you are self-employed, have sold houses or cars recently, if you have being paying debts to friends or relatives and not other debts, if some of the items on the expenses you listed look unusual or unusually high (private school fees? costs of having a pony?), if you seem to have borrowed a lot of money recently etc If you are not in work, your only income is benefits and you haven’t borrowed much recently you may find it is all very quick!
I suggest you make sure you have some paper and a pen to take notes. If you have paper bank statements and credit card statements, sort them into date order and have the piles in front of you in case you are asked a question. But don’#t worry you will be asked what you spent £90 on 6 months ago!
If you don’t remember, say so. If you think the answer is X but you aren’t sure, say this. If you can find out, ask if you should email them the answer. If your husband doesn’t know, he can say – I’ll just ask my wife as she may know.
If later you realise you forgot to say something or may have got it wrong, then email them to explain. They will be used to this!
Many people find this much less painful than they expected. The person you are talking to will be professional and not judgmental – they need to know the facts. They aren’t going to suggest taking the kids to Disney was a stupid thing and ask why you didn’t pay off your credit card bill instead …. even if you think that is what you should have done.
Alice says
Hi
I am about to go bankrupt. I have no income and my husband has been paying money into my account for the past year but cannot do so any longer. From his money, I have paid some of the household expenses and my own modest personal expenditure(e.g. petrol, toiletries). On the bankruptcy form, under expenditure, do I enter the items I have been spending the money he fed into my account? Going forward, he is going to pay all items directly out of his account apart from my personal expenditure of £150 per month.
I was going to put the expenditure of household and childrens, as well as mine down and then explain during the interview that my husband is going to pay all the household and children items directly from my account. Is that more straightforward and acceptable to the OR than putting down the state of my expenditure from here on (150 per month)? Thank you.
Sara (Debt Camel) says
The bankruptcy application should describe your current situation. If this has radically changed it is the new situation that matters, not the recent one. But you may feel it is simpler to wait a couple of months so your bank statements reflect what is on your application.
How will you pay for your £150 a month personal expenditure if you have no income? Who gets any child related benefits? Do you own any assets such as a house or car?
Have you talked to a debt adviser about bankruptcy? This is always a good idea, no matter how obvious you think it is that bankruptcy is your best option. And a good adviser can discuss how to complete the bankruptcy application – phone National Debtline on 0808 808 4000 for help.
Rose says
Hi there,
Thanks for writing this!
I’m about to go bankrupt, live alone, and am currently repaying my family 16k which they gave me at £66/week. I have other debts of credit cards, a loan and an overdraft, so in total all my debts come to £40,317. I’ve accrued this in about a year, does this mean my bankruptcy will be denied? Does my family debt play into this?
Also do I have to include any old credit cards or loans from under 2 years ago, even if they’re now closed accounts?
Do you have to go to the County Court at any point? I know someone who works there, and I don’t want her to know if I can help it.
Thank you so much!
Sara (Debt Camel) says
I have other debts of credit cards, a loan and an overdraft, so in total all my debts come to £40,317.
Have you been making the minimum payments to all these debts?
How have you acquired so much debt in just a year?
Rose says
I’ve been making the minimum payment or just above on everything on time, have no arrears, and the largest card (3,600) and the loan (9,500) I used to pay off the other credit cards, but then stupidly spent up on them again for a mixture of paying bills and keeping up appearances to friends and family with eating out and shopping with them.
I’ve had to miss work because of poor mental health, which my boss has been very understanding of, but I am not paid for time off. I’ve had a tough year mentally, but I’m scared of how I can fix my debts now. I especially dread the thought of having to appear in court to explain all this to a room of strangers in such a stressful situation.
Any advice or insight you have I would greatly appreciated, thank you.
Sara (Debt Camel) says
That sounds like a tough year – mental health problems can make it hard to deal with money sensibly especially if your income is erratic or has fallen a lot.
You are doing the right thing now by looking for a debt solution as for the last year you have been borrowing not just for over-spending which you can (and must!) cut back on, but to pay bills, the large debt to your family and your other debts. This is known as “robbing Peter to pay Paul”. It can’t go on, the only credit you can access will get more and more expensive until no-one will lend you any more money. The more months this continues, the larger your resulting debt is, so the sooner you stop the better.
I am just going here by the few sentences you have written – this is not “debt advice”, that would involve getting a list of all your debts, income and expenses and a detailed discussion with you. My aim is to answer some of your questions, give you pointers to think about AND to suggest who you can then talk to for full debt advice. EVERYONE going bankrupt should take good debt advice first, no matter how simple their situation seems. And your situation is not simple because of the large family debt.
I am assuming you are renting. If you have a house with equity you are in a very different situation.
To answer a couple of questions –
1) you won’t be refused bankruptcy because of the family debt, – but it does mean that bankruptcy may not be the best option for you at the moment, see below.
2) You don’t have to go to court any more to go bankrupt. that stopped several years ago, it is now an online application form.
When you go bankrupt, all your debts are included in it. Including the debt to your family. It sounds as though when you are being paid you have a good income? If you are earning well in the first year after you go bankrupt, you will have to make monthly payments to the official Receiver for three years. The good news is these payments are completely flexible – if you have to stop work, the payments stop. But the bad news is that you won’t be able to carry on making the repayments to your family while you are making payments to the OR – you just won’t have enough money.
There is also the problem that the Official Receiver may consider that you have been making “preferential payments” to your family, paying them and not your other creditors. That’s why I asked if you were behind with your other debts. You aren’t, so that’s good, but you have still been effectively borrowing money to be able to pay your family. I am not going to predict what the OR may do in your case.
If you hope you may be able to get back to a steady income this year, you may have better options.
One could be (and I am not recommending this, I just want you to know that you don’t have to choose between carrying on as you are at the moment or bankruptcy)a debt management plan for a few months to get your situation stablised. In a DMP you have to stop spending on your cards as they will be closed and you can’t take out more debt. But interest and charges should be frozen, so even if you can only pay a small amount to the DMP, your position is not getting worse.
A DMP will also involve you stopping making payments to your family – but they would have to stop if you go bankrupt anyway. There are VERY unlikely to be any options that will let you repay c £16000 to your family and pay little or nothing to your other debts. So you need to explain your situation to your family. A difficult conversation to have, especially if they aren’t aware of your health issues, but it has to happen at some point and removing the pressure of your debts may also help with you getting through your mental health problems.
After 6-12 months you may have a better picture of what your future earnings are likely to be. You may be able to increase your monthly DMP payments to a level which actually starts clearing the debts because the interest is frozen. Or you may decide that bankruptcy is your best option – at that point having stopped paying your family, stopped borrowing and treating all your creditors the same in a DMP.
I suggest you should now talk to National Debtline on 0808 808 4000 about your current situation, possible bankruptcy now, a debt management plan as a temporary measure, and they may be able to suggest other options. If you would find this difficult to do on the phone, they have a good webchat facility https://www.nationaldebtline.org/. If you would prefer to talk to an adviser face to face, go to your local Citizens Advice.
Rose says
Thank you Sara, I spoke to PayPlan and these were the two options suggested as well – you’ve put my mind at rest about some things I’m worried about and I think my only option is to become bankrupt. I just want to restart my life.
I’m renting, so will speak to the agency to let them know and ask if I can continue living there (never missed a rent payment so hopefully I can) and prepare myself for an uncomfortable talk with family.
I appreciate you can’t predict what the OR will do with the fact that I’ve been repaying family, but what could happen if they decided I had been paying family back preferably? Would I be taken to court? I’ve never been one to get into trouble, other than my recent debts so I’m terrified of court. A friend also works in the local county court, so would she know about it if I applied for bankruptcy?
I’ve just applied for a basic account with Nationwide, would this be frozen if I went bankrupt? Would I need to put it on my application if I’ve just applied for it?
Sara (Debt Camel) says
“what could happen if they decided I had been paying family back preferably?”
Your family might be asked to repay the money to the Official Receiver. I’m not saying that is likely or unlikely. My guess is it is less likely if you stop paying the family and have a DMP for 6-12 months and then went bankrupt. But that is a guess.
“A friend also works in the local county court, so would she know about it if I applied for bankruptcy?”
No.
Your new basic bank account needs to go on your bankruptcy application form, If it is frozen that should only be for a short while.
I understand you want to a new, clean start, and that is what bankruptcy is there for. But it feels a bit as though you may be rushing into this, unless there is no chance of your health improving and you returning to a steady income. I hope you have talked through all the choices about timing with Payplan who will be able to give you detailed advice.
Rose says
Thanks Sara!
I contract in finance too, so I’m concerned about my job, so I might take the DMP option on future reflection. PayPal said I could keep paying my family back, while doing a £50/month payment into my plan, as this is everything I have left after bills and my family payment. The plan is for 9 years and 10 months, but I don’t see how this repays all my debts – unless my payment increase after I finish repaying family as planned in 2024 with my current rate of payments. Is this common to DMPs?
Not to sound like a broken record, but again I’m desperately trying to stay away from further trouble, how often do creditors take people to court on DMP? On the plan PayPlan worked out for me I will be able to make every payment snd live minimally, but it feels like an extremely low amount for repaying such a large amount of debt?
Sara (Debt Camel) says
I’m not sure that DMP is realistic for that long. I am mainly suggesting it now to give you a breathing space so you can stop worrying about money for a while and get on with living, hopefully getting back to a regular income and a better mental health position. If that goes well, then you can think about earning more perhaps? If that doesn’t go well, or you personally feel much better but it’s harder to get work, then you can revisit your options. DMPs are very flexible.
If you are renting and going through Payplan for a DMP, it will be unusual to be taken to court for a CCJ. It’s not impossible but it doesn’t often happen. Read https://debtcamel.co.uk/worried-dmp/ which looks at common worries about DMPs.
Jonathan says
it doesn’t give me an option to say “separated” on the bankruptcy application. I’ve been separated for about 5 years, but only unofficially. My wife and I split our assets informally then, what should I tick?
Sara (Debt Camel) says
I suggest putting down “married” (as that is correct!) but make a note to tell the Official Receiver that you are actually separated and split all your assets 5 years ago.
Jonathan says
Many thanks. If I make errors filling it out can I go back and change my entries?
Sara (Debt Camel) says
Yes before you submit it. After that, contact the official receiver’s office asap and say what the problem is.
Sara (Debt Camel) says
Can I ask if you have had debt advice about going bankrupt?
Even if you think it is blindingly obvious, it is always worth 30 minutes of your time to talk to an expert. If you haven’t, phone National Debtline on 0808 808 4000.
Jo says
Can I ask, is it only debts listed on the application form that are considered under the bankruptcy order, or can I add a (historic) debt that turns up during the year?
Sara (Debt Camel) says
If you owed this money at the point you want bankrupt, but missed it off the form because you were unaware of it or had forgotten about it, then it is still included in your bankruptcy and wiped out. Read https://debtcamel.co.uk/forgot-debt-bankruptcy/ and you should inform the OR about it.
Kie says
I hope its OK to leave a question here as mind is about to explode. We’ve gone bankrupt and an NT tax code was applied to hubs wages. So now his income obviously looks higher but its not because we are paying tax to the OR. Question is, does this mean we are getting less in universal credits?? If so how do I go about sorting this? Thanks.
Sara (Debt Camel) says
I think you have the same problem as the poster here: https://forums.moneysavingexpert.com/showthread.php?t=5943852. The reply there is given by a very experienced debt adviser and I suggest you do what he recommended.
On the plus side, the NT code should end in March when this tax year ends!
Kie says
Thank again…. You’ve been a rock through this!
So I need to apply for MR…… But its been longer than a month? Can I still do it?? Is it worth bringing it to the attention of the insolvency contact to say that the payments are making us financially worse off? Was thinking they could maybe take the tax direct to save us messing with UC?? A sort of way around it? Thoughts???
Sara (Debt Camel) says
I suppose you can try. But the Insolvency Service has no mechanism in place to try to get back the tax from HMRC, and I suspect they will say this is not their problem.
I would send in that MR right away. Late MR’s can be accepted. If it is rejected, go to your local Citizens Advice and ask for help to appeal.
Kie says
Thank you xx
Aga says
Hi,
I am waiting for a telephone interview with the adjudicator. Can I ask for a translator because I do not speak English very well?
Sara (Debt Camel) says
Yes, or you can ask for a face-to-face interview at a local office if you would find that easier.
Leanne says
Hiya, I’m about to click submit on my application and am worried about bank accounts. I’ve got a joint bank account with my ex husband (he’s had no access to this since we split 5 years ago) but it had all my direct debits and stuff going into it so just left it like that. I’m going to close it tomorrow but realise I still need to list it on the application. I also have a bog standard account with Barclays that’s just in my name. How will I stop this one getting frozen during BR as I’ve changed my wages to go into that one now? Hope that made sense. Thanks
Sara (Debt Camel) says
When are you wages paid?
Danielle says
Hi, I am just filling out the online form to apply for bankruptcy and I’m a little confused about the income and expenses section. I live at home with my parents who pay all the household bills etc, the only income I have is benefits. Do I need to include my parents income in this section or would it just be a partner if I had one? I just don’t want to get it wrong!
Sara (Debt Camel) says
it’s just your income. I assume you give your pernts some money to help with bills, put that down.
If you aren’t sure, talk to National Debtline on 0808 808 4000 – and they can also make sure that bankruptcy is your best option, it is always worth checking!
Danielle says
Thanks for the reply Sara, I only give my parents money as and when I can. I only get 317 a month from universal credit and my parents have never sled me to contribute although I have previously offered :-)
Sara (Debt Camel) says
Well if you have been paying other debts, you won’t be any more, so perhaps you can give them something regular?
Szilagyine says
Hello,
I am filing bankruptcy application online and need help with section 8:
“When did you realise you cant pay back debt or something like that”?
also,
I am on benefits and my husband has a job. So they asking household income.
Our incomes are combined in one account as we pay everything out of joint account including Direct Debits etc. So how will I enlist my portion of expenses please?
Background:
We were advised by step change for IVA or BR only as DMP would take 32 years based on our situation.
So we choose to go with Bankruptcy.
Sara (Debt Camel) says
In section 8 you could say that you contacted StepChange in March (or whatever) about a debt management plan and they said it would take too long and suggested a form of insolvency. (Assuming that is correct? Just say what happened, don’t use my words!)
Your income – what benefits are you getting?
Szilagyine says
Thanks for prompt reply. I am on Universal Credit. And I have 7 months old baby. My husband is full time worker.
So UC and child benefits around = 980
Previously I was student Nurse year 1.
Now on 1 year break due to baby and may go back in September2020 for 2nd year.
Due to long term health condition I am being told by NHS to stay home and I am on high risk. Therefore wlchances for 2nd year are slim so I may continue with UC.
Sara (Debt Camel) says
so your husband must be on a low income?
Szilagyine says
Hi Sara,
I have another question please?
We have a joint account since 2012 with my husband and all household priority Bill’s are going through this account. What will happen to this account especially on my BR application I have listed that the other account is my main account not the joint one.
Would they freeze access for my hubby too on our joint account?
Sara (Debt Camel) says
Does this account have an overdraft? Or a lot of money in it?
Szilagyine says
Hi, thank you for prompt reply.
There is no overdraft in it. And moneywise we kept always enough to pay our Bill’s and bit spending. Hardly ever exceeded £500 mark etc?
Sara (Debt Camel) says
Then you should think about getting your name removed from the account before bankruptcy.
If may well be frozen, but even if it isn’t, you do not want any joint accounts with your husband or your bankruptcy will wreck his credit score for 6 years.
Szilagyine says
In this situation banks are offering key services only at the moment. Would that be ok if I enlist my joint account as main account and file for bankruptcy. If they let me keep the account, then once banking system back to normal and I will remove my name. Would that still stay on my spouse’s credit rule for 6 years?
Sara (Debt Camel) says
who is the bank?
I think it would be better to try to sort this out first before you go bankrupt. The account will be frozen. It may be closed by the bank. You don’t want a joint account. 3 good reasons to sort this first.
Szilagyine says
Thanks sara,
Its halifax. I spoke with them this morning. But they are not willing to help. In worse case scenario could we close this account but then OR want to see the bank statements too I guess.
Sara (Debt Camel) says
why can you not postpone bankruptcy for a month or two?
Halifax are VERY likely to close the account.
It will be a large amount of work for your partner to get a new account and move all the bill payments over. And then you still need the current account closed. And the OR will want to see bank statements from it.
It seems much simpler to wait a few weeks then take your name off the account which your partenr can then carry on running.
Szilagyine says
Great, I believe that’s the best option since halifax account comes with alot benefits too. My partner should keep it after my BR. And moving DDs is real pain.
Thanks for advice
Sara (Debt Camel) says
ok, just a reminder, now you have decided to go bankrupt, you should not borrow any more money and you should treat all your current creditors fairly. eg paying them all nothing or all a token payment.
Szilagyine says
Should I inform them all too? That I am intending to go bankrup?
Sara (Debt Camel) says
I wouldn’t bother. Hopefully you can get your name off the bank account in the next month or so, it shouldn’t be a huge delay. If you aren’t sure, talk to National Debtline on 0808 808 4000 about this.
Szilagyine says
Hi Sara,
I need some advice here. We have been in contact with Halifax to remove me from joint account, however it doesn’t look like going to happen anytime soon due to Covid-19 situation as this facility is only available in Branch. Even I complained them and complain manager spoke to Branch but they are not willing to go for any appointment untill further notice. And asking me that best way is to close the account and open individual one or we can contact with financial ombudsman for further complain.
Thinking of the situation, it would’ve been a month since Bankruptcy today.
So we come to final conclusion of closing down the joint account. Now question is, if we close it before filing bankruptcy application, would it raise any issue with OR?
Or else should we close it after filing BR unless Halifax close it down after finding about my BR.
In either scenario, would that affect my hubby’s credit file?
Sara (Debt Camel) says
What a hassle fir you. I think you should close the account now and open him an individual one before you go bankrupt. You will need to list the account on your bankruptcy application as being closed, the OR won’t care (assuming you didnt Have thousands of pounds in the account!) This should stop you being linked to your husband (assuming you have no other joint accounts) and also removes the problem that the joint account may be frozen when you go bankrupt, so two problems sorted.
Szilagyine says
Hi sara, thanks for reply .
We hardly have any balance in any account for years. so there is not much pain to close it apart from the benefits it comes with and moving direct debits. But it’s better to move on than keep waiting for life back to normal.
So it’s safe to assume that closed joint account will not link my husband with me anymore?
Sara (Debt Camel) says
It shouldn’t. If a link remains showing, you can ask the credit reporting agency to remove it. This can take time. But it is the best you can do if you have to go bankrupt.
Szilagyine says
Thanks again.
Szilagyine says
Thank you, very much appreciated.
Szilagyine says
Hi Sara,
I would like to update that I was declared bankrupt very next working day after filing my application. OR called me after 2 days and discussed about my situation. She was very professional and not even for a second I felt that I am being judged. Call lasted about 20 minutes and OR decided that no need for IPA and I can keep my car too due to the fact that I am on benefits. I also got email this morning that they requested my banks that OR office is not interested in my accounts so it’s ok to leave them open ( some thing like that). But so far none of my bank account is freeze at all and everything is going normal. For safe side I have opened a new basic flex account with nationwide. So thank you for all the advice and help on this forum. I am not proud of this situation but I already can feel the air and freshness of my breath. A new start and responsible mentality.
I have some questions please:
1- As I am on benefits and I have come across this ‘Help to Save’ govt saving account for those on Universal credit, my hubby suggests that I should open it and he can chip into it monthly(£1 – £50 allowed) some random amount on my behalf. Question is whether am I allowed to open a saving account and actually have some savings on my name.
2- Would my bank accounts be closed at later stage, even I have no debt with them and not much plus balance?
One is personal account – Natwest
Other is Joint account- Halifax
Thanks in advance
Sara (Debt Camel) says
I am glad it has all gone smoothly so far.
1. you aren’t forbidden to save. And having a few hundred as an emergency fund is a great idea. If you start to get thousands then the OR may think you could afford to be paying an IPA… Is your husband debt free, as paying off his debts may be a better idea.
2. Sometimes a bank does realise after a few months that you are bankrupt and close the account. but in any case you should close that joint account of get your name off it! It will harm your husband’s credit record.
Szilagyine says
Thanks for letting me know.
Yeah first thing is to get my name off from joint account. I am not sure it was a good idea but we emailed Halifax yesterday to inform them of my bankruptcy and requested to remove my name.
In terms of saving it’s not going to be much just to keep aside hardship fund as govt help to save account pays 50% bonus of highest balance every 2 years max upto 4 years. So if £10 a month or something would end up £360 in 2 years time.
Thanks again
Sara (Debt Camel) says
£10 a month will not be a problem!
Lindy says
I’m thinking seriously going bankrupt.
I have 4 debts from 10 years ago that I set up payments for at the time based on my income.( low payments) 1 I stopped paying last year and ended up with a ccj. I arranged to pay this. Small amount also.
Over the last 5 years I have created more debt 2 ccards A loan and a catalog.
My mental health has deteriorated in the last 6 months due to debt and other things.
Lost my job and now claiming benefits.
Would I get in trouble for getting in more debt on top of the other debt I had originally?
Sara (Debt Camel) says
Hi Lindy,
This article looks at this sort of situation: https://debtcamel.co.uk/bankrupt-after-borrowing/. It is very rarely a problem in practice, but that article looks at what you need to think about.
I strongly suggest you talk to National Debtline on 0808 808 4000 about bankruptcy, whether you have any better options and its implications. It may be much the best way forward for you but you need help from an expert to decide this.
Lindy says
Thank you for your reply Sara,
I’m terribly anxious about the bankruptcy.
I feel I won’t understand things properly, or the OR talk in a way I won’t understand. Does that make sense. I have spoke to national debt line
But they don’t seem to have answers to my queries. I have a couple of things on my bank statement. My family helped me out over the years So although I claimed benefits. Them helping me allowed me to get into debt and I took things for granted.My brother transferred money to me as he is an addict. I made a few transactions for him then 6 weeks later transferred what was left back to him as we had an argument. Originally was 8000. Have I done anything wrong?
Sara (Debt Camel) says
Did National Debtline agree bankruptcy was a good option for you? If they do, that is the most important thing to focus on.
Most people say the phone interview with someone from the ORs office was less stressful than they expected. It’s not an interrogation trying to catch you out. It is a polite professional trying to make sure they understand your situation and how you got here. You won’t be asked what you spent £89 on 2 years ago.
Most people who go bankrupt think with hindsight that they should have done something differently. Regrets are normal. That doesn’t mean you have done anything “wrong” to the OR.
Having had help from family is not a problem.
If your bank statements show a large amount if money from your brother then most of it being repaid to him a few weeks later, then your explanation will probably sound very reasonable to the Official Receiver.
Ffionpearl says
Hi Sara
Where there is another household member that contributes their salary to the household, do the OR assume that half of this is used for expenses?
I’m doing an application for someone- his wife earns £1000 pcm. The clients share of the expenses when listed on the bankruptcy FS makes the FS look like there is about £200 per month surplus income. But no IPA is expected from the note at the bottom. I’ve always worked on the assumption that if there is a surplus there is a possibility they can take it for an IPA BUT get terribly confused about what formula the OR uses to decide how much partner contributes. Any ideas? I’ve done a bit of research but not found anything. I’ve even checked the technical manual which is now out of date but says nothing on the matter that i can find.
Sara (Debt Camel) says
how much does your client earn?
normally the OR divides the expenses roughly pro-rata. So if your client earned 2000 a month he would be expected to pay 2/3 of them. Obviouly you can argue for exceptions. If the partner won’t say what their income is, then 50/50 is assumed.
But no IPA is expected from the note at the bottom.
at the bottom of what – the bankruptcy application form?
Ffionpearl says
Hi He earns £1400 pcm and she earns/has benefits of 1300. So i was assuming they would take half her income in to consideration,meaning the total income the OR would consider against expenditure in order to work out the surplus would be £2050. So your experience leads you to say that as their incomes are roughly the same, they would be expected to 50/50 the expenses? I get massively confused because they ask for full income of household member and then the expectant bankrupt’s percentage of spending. Which in this case LOOKS like a huge surplus. Your explanation explains why this is the case. thank you.
Sorry the note at the bottom is where it says (on the FS summary page) whether the applicant’s FS indicates whether they are likely to get an IPA or not. It can be hugely misleading as if any excluded spending like smoking has been included in the expenses, the calculator is unlikely to pick up on that. Then again that is another thing i don’t know for sure!
Sara (Debt Camel) says
if she is getting benefits related to children, are all the child expenses being shared? If she is paying for all the kids clubs and child care and clothes, then he will have to pick up more of the rent, council tax, utilities.
Kells says
I am going through the application and my partner and I have a joint Universal Credit claim (he is self employed) and I am not working. On the application it wants a break down of just MY income from benefits. As it’s a joint claim do I just half the amounts or is it done as a single amount? Sorry, I hope that makes clear what I need to know! There is another section for other household income where I would assume my partners income goes but as this is part of the same claim …. Not too sure how to proceed with that, any help would be a massive help.
Sara (Debt Camel) says
Yes I think you should halve it. And put the other half in as your partners income.
Can I check you have taken some advice about bankruptcy? It may be your best option but it is always worth taking time to talk your situation through with a debt adviser. I suggest you call National Debtline on 0808 808 4000.
Deb says
Hello
Im having to go bankrupt after 10years repaying loan/credit card debt following divorce
I’ve since remarried. all debts are in my sole name. will my new husbands income be used to repay my debts in an ipa?
We have no joint accounts and have separate outgoings (he pays his own mortgage council tax tv licence LpG and his own bills) and I pay food gas electric water and my own bills. Though due to my income only being tax credits (Im unable to work) I have no surplus
Will he be made to repay my sole debts from his own surplus? He earns 1400 pm while my tax credits is 900pm (though the tax credits is in his name also so technically he should be receiving half making his income 1900) but He allows me to use his half to pay my bills
Thankyou
Sara (Debt Camel) says
If your only income comes from benefits, including tax credits, then you will not have to pay an IPA.
I suggest you talk to National Debtline on 0808 808 4000 first about whether bankruptcy is the right choice for you – it may well be but everyone should get this checked by an expert, especially when you are living with someone who owns a property – and second about how you should complete the income & expenditure section of the bankruptcy application form.
deb says
Yes I will speak again to National debtline
I spoke with Stepchange last year and they advised bankruptcy was my only option
However they didn’t advise me on how to fill the income and expenditure for bankruptcy. I will check that.
They did advise me to speak with the insolvency service (which I duly did) in relation to my husband’s property and they told me just me paying ‘some household bills’ doesn’t give me an automatic right to any beneficial interest in my husbands property as I haven’t paid anything to the property whatsoever including maintenance as my tax credits doesn’t be allow and it is in his sole name.
I’m hoping by the time I’ve saved enough for the bankruptcy fee this info won’t have changed
I also had to sign a document drawn up by my husbands solicitor when he bought the house that
stated myself and my children understood we had no claim on the property. I assume that to mean no beneficial interest also?
Sara (Debt Camel) says
That sounds fine, I just wanted to know you had talked through your situation in detail with a debt adviser.
Caseworker K says
Hi there
I’m taking a client through the bankruptcy application next week (I work as a debt caseworker for MaPs) is there a section on the application form where I can indicate that my client is vulnerable and wants me to be her chaperone on the phone interview and also use my work email address and have me support her during the whole process? I guess I’m looking for a section that has a free text box. I assume they will be ok if I have completed the form on her behalf with her over the phone? Thanks
Sara (Debt Camel) says
I don’t think there is a section with a free text box for this. There are a few “other” boxes but they are all about specific topics and not really a suitable place to enter what you are talking about.
I suggest that as soon as your client is informed that their application has been accepted, they get in touch with the Official Receiver’s office and explaint they would like you in on the call. If you have authority to act for your client, you could contact the OR about this. It is an unusual request and any evidence of mental health problems may assist.
I assume they will be ok if I have completed the form on her behalf with her over the phone?
There is no specific way to record this on the form. Obviously you can just press Submit as though you were your client…
There is a “print this application” option. My preference would be to print off the final application and to email/post it to the client. Then if the client has a smartphone talk them through submitting it themself after they have had a chance to read this.
If this will not be possible for your client, I think you should discuss with your supervisor how you intend to evidence that your client understands what is in the application and wants you to submit it.
PS if you haven’t gone through an application with a client before, can I encourage you to set up a dummy account using a false name and your email address and then go through it all on your own first? With a vulnerable client, you need to feel confident saying “This bit doesn’t matter to you because ….”, not have to read it all through and work this out as you go along.
Jeb says
Hi Sara, I hope you can help me again please. I have spent morning filling in bankruptcy application form but not sure about a couple of things. Firstly I will be facing a HMRC bill in January of around £5-6K but cannot find anywhere to include this. Where listing creditors it does not seem to accept HMRC as I do not have an address for them. Secondly, when completing income/expenditure statement it asks for self assessment details re accounting years – I have completed SA for 2019/20 but have not worked since March lockdown and no sign of that changing, I am classed as self employed. So, if I put in last years earnings it does not reflect my earnings now – zero – apart from a few days work in the summer, which again if included skews the figures for current status.
Sara (Debt Camel) says
I suggest you talk to Business Debtline about these issues. https://www.businessdebtline.org/
Aleksandra says
Hey Sara,
I have seen you helped people answering their question a lot. I do have some also. I will be so thankful if you could help me too.
I am not sure if they request a scan/copy of payslips if they do,can I provide a yearly self emploed assessment? As i am a SE since 2013. And also are they going to check my incomes and expenses from the debit card? Or do I need to just write how much i spent on what?
Sara (Debt Camel) says
I suggest you talk to Business Debtline https://www.businessdebtline.org/. They give expert advice to the self employed and people who have small limited companies.
Aleksandra says
Hey.
Its me again.
While I am writting down my debt,I do have some in diffrent currency. And application is asking to provide all debts in british £. Do I just put approx.amount in £ ? Any suggestion?
Sara (Debt Camel) says
yes, just convert them. if you don’t know what exchange rate to use, here are a list: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/937009/exrates-monthly-1220.csv/preview