A Free Bankruptcy, IVA And Simple IVA, Insolvency Advice Forum

[Monty]

Hello all...I am seriously considering bankruptcy and am looking at all aspects. I've read conflicting views about what happens with the debt after the first year (assuming that the BR has been discharged. I have no assets now and would have none after the first year. In reality do companies pursue the debt or do they write it off? I know there is no one answer to this but any advice would be appreciated. Also if they do pursue the outstanding debt (for two years) how much can they reasonably ask for?

Thanks to you all

Monty

[Thomas]

Hello Monty
Once you are declared bankrupt all the declared debts (with a few exceptions like court fines, student loans) are permanently written off although you may have to pay a portion of your 'spare' income by way of an Income Payments Order (IPO) -thats after your essential expenses have been met. I believe the IPO payments could last for 3 years but would obviously be within your means, as arranged with the OR.

Whilst this may seem somewhat attractive, there is a price to pay in other directions such as future credit, certain employments etc so bankruptcy should be looked upon as a last resort. There may be other more suitable options so continue to look at all aspects.

What amount of debt are you talking about?

[Monty]

Hi Thomas...thanks for your answer. In all I owe about £20000 but, for complicated reasons, would probably not be able to declare them all as I moved home a few years ago and have genuinely lost contact with some of them. Most have been 'sold' to 3rd parties and they are gradually making contact with me. I am not hiding by the way! I have no assets and, as such, am very keen to 'draw a line' under my past and have a fresh start...a regular reason/thought I gather. An IVA would be an option but that would be at least 5 years in duration, being paid from limited income and I want as quick a resolution as possible. After all I have little to lose.

Thanks again....

Monty

[Thomas]

I'm not sure of the position regarding undeclared debts as I was able to list everything 2 years ago and no forgotten creditors have ever come back to me. I suppose once on is made bankrupt there is little chance of anybody else getting anything so hardly worth such creditors trying it on...Also not sure about debts that have been sold on but I assume you would only be concerned in dealing with the original creditor whose agreement you would have signed - not people you have had no dealings with although some agreements do have clauses about assignments.

HG seems knowledgable about these things so hopefully he will come in soon with more definitive advice.

[Hg]

Hello

All 'provable' debts (ie all debts apart from the sorts of things Thomas listed above) are covered by a bankruptcy order whether you remember to list them or not. The reason bankruptcies are advertised and included in the London Gazette (a legal publication) is so that creditors can be assumed to know about it. The advert includes relevant past names and addresses as well, so they should realise.

Once the year is up you are discharged from liability for these debts and you can't be made to pay anything (despite what some not so honest debt collectors might try and say to chance their arm).

However in practice you want creditors to know about it from the start, and they may not (particularly debt purchasers etc) pick it up form the adverts. If you have a drip feed of people 'finding you' in three or four years time you are getting the peace and quiet that the drastic step of bankruptcy was supposed to bring you.

My recommendation in these circumstances is, once you have save the money to go bankrupt, to get a copy of your credit record from Experian or equifax. This should give you up to date contact details and reference numbers for the majority of your creditors, so you can fill in the Court forms accurately and they receive notification direct from the Official Receiver.

[Monty]

Thank you for the reply HG...

In terms of the process is it fairly straight forward? Will I have to attend court personally?

I have made my mind up now and need to begin the process. Any advice would be appreciated.

Thanks and regards

Monty

[Hg]

Hello

It is straight froward, and although you have to attend Court personally it's more of a rubber stamping thing (literally!) and the judge may not even need to see you.

The first step is to get a date from the Court and also get the forms from the Court or fill them in online at the Insolvency Service website. Court practice varies; some might give you an appointment, some might tell you to turn up on a certain day of the week and wait.

[lyonsmc]

Hi Monty

have a read of the story of my BR it may help.

regards

lyonsmc