Preparing for Bankruptcy
As Bankruptcy is a court procedure I decided to take it very seriously. If you are unsure about bankruptcy or are worried about debt then seek advice. It is important to remember that not all debts are wiped out in bankruptcy and if you are unsure then take advice. Bankruptcy is a very serious matter.
Before petitioning for my bankruptcy I had to complete two forms - “The Statement of Affairs” and “The Bankruptcy Petition”. The petition was required to request the bankruptcy and the statement of affairs form required me to detail assets and liabilities, contact details of creditors and declare my insolvency.
Further to completing the forms I had to raise £310 for the deposit and £150 for the court fee. Considering I was unemployed this proved to be a hurdle although I did establish that the court fee may be waived but this is means tested. Instead of thinking can I afford to go bankrupt it was more of a case can I afford not to.
When completing these forms I was very careful to ensure I was accurate and included the details of all creditors and told the truth and nothing but the truth. The reason being that if you are found to be dishonest during your bankruptcy you may be asked to accept a bankruptcy restrictions undertaking where the restrictions of bankruptcy are prolonged.
The statement of affairs form required me to disclose details of income and expenditure to assess my ability to make payments to the creditors via an income payment agreement. Although I was unemployed at the time I had been offered a job and decided to include the salary details and start date in fear of missing out vital information and being wronged.
When calculating my expenditure it was difficult to second-guess what would be acceptable. For example, would I be allowed a mobile phone, Internet access or indeed to save for a holiday the same as everyone else? What about money for clothes?
I was concerned about this because after all I was going through bankruptcy to get a fresh start. When I sought advice the message was clear. I was informed to put down what I consider my domestic living expenses to be. The Official Receiver will probably pick up on any anomalies and request I add, remove or change the expense.
Before I petitioned for my bankruptcy I knew that the Official Receiver would interview me after the bankruptcy order had been made. As one of the purposes of this interview is to establish the reasons for my bankruptcy I decided it would be a good idea to prepare so that I could answer any questions with accuracy. This hopefully saved time and avoided the need for a second interview.
Unsure of which court to present the petition for my bankruptcy I was advised to call my local County Court. Upon doing so I was advised to make an appointment in consideration of the recent sharp increase in personal insolvencies. This would ensure I get an appointment to suit me and ensure that the Judge sees me.
From the advice I received I knew that once the bankruptcy order had been made my bank account would probably be closed. I managed to get a list of the banks offering basic bank accounts and decided on the Co-operative Cashminder account.
Bankruptcy Court
Before petitioning for my bankruptcy I had to complete two forms - “The Statement of Affairs” and “The Bankruptcy Petition”. The petition was required to request the bankruptcy and the statement of affairs form required me to detail assets and liabilities, contact details of creditors and declare my insolvency.
Further to completing the forms I had to raise £310 for the deposit and £150 for the court fee. Considering I was unemployed this proved to be a hurdle although I did establish that the court fee may be waived but this is means tested. Instead of thinking can I afford to go bankrupt it was more of a case can I afford not to.
When completing these forms I was very careful to ensure I was accurate and included the details of all creditors and told the truth and nothing but the truth. The reason being that if you are found to be dishonest during your bankruptcy you may be asked to accept a bankruptcy restrictions undertaking where the restrictions of bankruptcy are prolonged.
The statement of affairs form required me to disclose details of income and expenditure to assess my ability to make payments to the creditors via an income payment agreement. Although I was unemployed at the time I had been offered a job and decided to include the salary details and start date in fear of missing out vital information and being wronged.
When calculating my expenditure it was difficult to second-guess what would be acceptable. For example, would I be allowed a mobile phone, Internet access or indeed to save for a holiday the same as everyone else? What about money for clothes?
I was concerned about this because after all I was going through bankruptcy to get a fresh start. When I sought advice the message was clear. I was informed to put down what I consider my domestic living expenses to be. The Official Receiver will probably pick up on any anomalies and request I add, remove or change the expense.
Before I petitioned for my bankruptcy I knew that the Official Receiver would interview me after the bankruptcy order had been made. As one of the purposes of this interview is to establish the reasons for my bankruptcy I decided it would be a good idea to prepare so that I could answer any questions with accuracy. This hopefully saved time and avoided the need for a second interview.
Unsure of which court to present the petition for my bankruptcy I was advised to call my local County Court. Upon doing so I was advised to make an appointment in consideration of the recent sharp increase in personal insolvencies. This would ensure I get an appointment to suit me and ensure that the Judge sees me.
From the advice I received I knew that once the bankruptcy order had been made my bank account would probably be closed. I managed to get a list of the banks offering basic bank accounts and decided on the Co-operative Cashminder account.
Bankruptcy Court
You may also like to view my bankruptcy website.
If you have any questions regarding my experience then please feel free to E-Mail me.
posted by Piggy Bankrupt at
9:45 PM
3 Comments:
I can not belive how helpfull this has been for me Thank You so much.x
By
Anonymous, at 12:42 AM
tks
By
Anonymous, at 12:46 AM
Thanks Piggy, my husband and I have our petition heard tomorrow and are expecting to see the O R straight after (thats the way it works here apparently). I can't tell you how helpful your blog is and how much better it makes me feel to know that facing bacnkruptcy as result of my husband's long-term illness it is not going to be so bad.
Thanks again, H xx
By
Anonymous, at 12:32 PM
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