Welcome to the trust deed forum karen H.

It sounds like it, so long as you meet the other criteria which you can read on our LILA page.

Even if you don't qualify, a certificate for sequestration may apply for you.

Your husbands income will not have to repay your debts, but his income may be relevant towards working out whether you can afford to contribute towards them.

Are you sure bankruptcy is right for you?

What is your gross income Karen (not including your husband's)? As long as it equates to less than £243.20 per week then you would meet the income criteria. Though as trust deed assistant says, there are other criteria too, to do with assets.

Best seek advice and consider all of your options even if you do qualify under LILA, as if your husband is working then there is a good chance that you may be asked to pay a cointribution for 3 years even in a sequestration via the LILA route.

Taking the first steps into BR through LILA and looking for some advice before I start the proceedings.
1. Should I close my bank account and open a BR friendly one before I apply?
2. If someone else has been making payments for me though BACS transfers, can my creditors capture their banking details and try to get money from it
3 same for the BR system, can they take money from anyone other than me?
4 can I renew my passport whilst bankrupt?
5 can i get insurance (car life house) whilst bankrupt?
6 Will i be protected from creditors hassle whilst my BR is going through?
7 will I have to pay anything to my creditors until the BR is dishacharged?

Sorry if these are all basic questions which are probably answered in other areas of this site - Im a bit overwhelmed by the realisation of my situation, lost and embarrased and just need pointed in the right direction.
Can I apply to AIB and really do all this myself or would I be better going through an 'agent'?

help!

just thought of an extension to q5.....can I continue with my insurances if I already have them or do I need to tell the Companies that I am with that I am going BR if I pay them monthly through DDs?

Hi Lisel,

1. Some Banks (HBOS/Airdie Savings Bank to name two) automatically freeze Bank Accounts when they become aware of a Sequestration. If you are into an overdraft with the Bank then they will become a Creditor in the Sequestration and therefore it would be advantageous to set up a new Account.
2. No - Banks should not be recovering funds from a third party
3. Ditto - unless agreed with the Third Party (e.g payment for asset realisation).
4. Yes you can renew your passport - although it may seem as "extravagance" going on a foreign holiday if you are funding it - this may result in a BRU/BRO application (Bakruptcy Restriction).
5. Insurances should be no problem - although a credit check may be completed by the Insurer if paying by installments - which could, although unlikely, become problematic. We do not see may problems in this area. Insurances can continue.
6. The Protection comes from the Award of the LILA/Sequestration
7. Any payments (Income Payment Agreement/Order) would be paid to the Trustee following and assessment of Income v Expenditure.
8. You can do all the documents yourself but ensure that they are completed correctly as on occasions the AIB will process the payment and return the application for further action. this may incur a further payment of £100 to process the application. There are free advisors to assist with LILA applications with Local Authorities and Citizens Advice Bureaux.

thanks Chris for your reply

would it be better to renew passport (not for a holiday, couldnt afford it even if I wanted one! just for my own peace of mind, change bankacounts set up new DDs for outgoings etc before I apply for BR? Or are actions before the fact taken into consideration and looked on as dishonest? (which Im not, Im just feeling my way here)

I dont have an overdraft with my present bank however i do have a credit card with them so they would automatically freeze it I think as one of my creditors (RBS)

Hi lisel

I'm not sure why you would want to change your passport as this wont have any effect.

On the other stuff, I just think its easier if you have a new account and time it so your normal S/O's & DD's are coming from the account. Just peace of mind more than anything.

Mark

Hi Mark

thanks for your reply

just wanted to renew my passport, was in the process of doing it anyway but didnt want it held up because I was applying for BR (s'ok Im not planning on running away or anything!)

re bank account - if I open one which isnt one of my creditors can it
a) be frozen when I am in BR and
b) do I have to tell them if they dont know?

ps - thanks for the info on the phone earlier re your representative about the best direction for me.

Ah! lisel That was you.

No problem. I'm just amazed that you have been in a DMP for that length of time with those sorts of payments. LILA is the natural path in your circumstances.

Re the points, thebank can always freeze your account, but it normally takes a call from the Trustee to unfreeze (defrost!!) this.

If you open the account, then you are not technically bankrupt, so the answer is no.

Mark

Hi, I have to agree with Mark that it is better to open a new account etc before hand That way you have everything in place, and will have less to worry about. On the question regarding insurance,I know someone who has had their house insurance declined because they are now bankrupt. They have been successful changing it to Direct Line ( just in case! )

Thanks Shona - all help greatly accepted!

Yes Mark - that was me ;0)
its been a struggle but as I mentioned my personal circumstances have changed and I cant afford the payments I was making.

Have managed to clear off/close a credit account I had with one of the banks I have an account with so dont owe them anything - feel I should move all my DDs over to that account before I make the application for BR.

Have an appointment with GCC money advisor so hoping all goes smoothly - will keep you posted!

Hi lisel

Fab, please let us know how you get on.

Regards

Mark

Update:

have opened new account and have transfered all my DDs over to it. Feel I am finally moving forward a little!