Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan · 14 March 2011 at 3:53PM

cherrieschick wrote: »

I lent an ex-partner £8000 last November 2010 which i took from a credit card as he had recently been made insolvent and had an idea for a business venture to get him back on his feet. It was on the agreement that he would make the monthly repayments on the card and clear it as soon as possible. He lost his scaffolding job in December and has not been able to get work since and now i am left trying to cover the repayments as he has no money. He has got very depressed and see's no work in the future and has told me this money debt is now my problem!! I am struggling to cover my own outgoings without this massive debt and i am hoping you can offer some suggestion as to what i can do please?

Hi cherrieschick and thanks for your post.

Unfortunately as you signed for the credit card you are liable to repay it. If you’re struggling I’d recommend that you get in touch with us so that we can look at your situation in more detail and explore all of the options that are available to you.

I think the reason debtinfo was asking whether you knew or not is more to do with the consequences for your ex partner. He shouldn’t have borrowed money from you without disclosing it to his Official Receiver and if he was to find out, it’s likely that they would put a Bankruptcy Restrictions Order on him.

If you’d like us to give you some detailed advice you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan · 14 March 2011 at 4:30PM

nopottopi**in wrote: »

Hi there,

Can you please tell me if your house is likely to be repossessed / sold by the AiB if you go bankrupt, even though there is no equity in it?

My house was valued last year when I entered a Trust Deed (which later failed) and it was proven to have no equity. But from what I read, and given that my mortgage provider NRAM were one of the creditors to reject the TD, I'm scared if going bankrupt will mean I will lose my house.

I was made redundant 3 times during the recession, each time with no redundancy wage due to length of service so was told to apply for the TD. When it failed I was then told I should apply for bankruptcy which I've put off applying for, as I am in a new role and have been trying to get back on track. But I haven't managed, and now have a Sheriff's Charge for Payment to deal with (within 14 days) and prior to that they put a decree on my house. So I think now I will have no choice but to go bankrupt. They need 2.6k or will arrest my wages / push me into bankruptcy. I do not have that money, they know this. And if they arrest my wages my mortgage situation will become even worse than it already is.

Many thanks

Hi there and thanks for your post.

The simple answer to your question is that if there’s no equity in the property, it’s unlikely that you will lose your house.

However, it seems strange that your mortgage provider rejected the TD, when it wouldn’t include secured debts anyway.

Either way it’s very important that you get in touch with us so that we can give you some detailed advice. We would need a lot more information from you and the charge needs dealing with as soon as possible.

I’d recommend that you call our free helpline on 0800 138 1111, lines are open Monday to Friday 08:00-20:00. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process.

I hope this helps.

Kind regards,
Pavan

0191jrd · 21 March 2011 at 4:18PM

I have started a thread before with our predicament before i came across this one.

my father runs a buisniess but as times have got harder he has got well behind on his paperwork and payments and has practically stuck his head in the sand.

He now has the IR after him for many thousands which he has until the 5th of april to pay. He has no money and very little assets of any value.

He lives with my mother, but they have led seperate lives for many years, the house and mortgage were both put in her name about 5 years ago.

Im looking for some advice from those of you who have far more understanding than i do, to settle my mind too, that 1, he needs to make an appointment with an insolvancy practitioner, and 2, that my mothers house would be safe?

Another thing i have just thought about is that our vehicles are registered in his company name for insurance pourposes, what should we do there, should i now change them back to our names or can that be sorted at a later date??

Im guessing that BR is the only option?

Thanks

Maxnana · 21 March 2011 at 9:25PM

I am hoping someone may be able to offer me some advice. I have contacted CCCS with the same question, but they just said talk to Payplan, and come back to us if your IVA fails, which is no help as Payplan won't advise either! I really do not know what to do anymore, and this is all I ever think of.
To put things in a nutshell, just so as you can see what the problem is:
I am married and live with my husband and non-dependent son. We are home-owners and are only a couple of hundred pounds behind with the mortgage which Santander have agreed to be paid at £50 a month. However, we have a massive 2nd charge with First Plus from about 10 years ago, when we stupidly consolidated all our debts. This repayment is more than double our mortgage repayment! Just First Plus payment takes up my whole salary. We are a couple of thousand pounds behind with this payment and they have referred us to their debt collection agency. We have contacted them and offered to pay £50 a month off the arrears (we will continue to pay First Plus the usual rate too) which they wouldn't accept. They said £150 is the minimum. Payment is due 1st of next month and I don't know if we'll be able to pay the £150.
We also have an IVA with Payplan which we are struggling to pay. They now say we are in breach of the IVA.
I know the situation is all our fault and we made some really bad choices in the past, but I don't think I can carry on like this anymore. Sometimes I think I just want them to take the house and let the money problems disappear with it. Other times losing the house fills me with morbid fear - it's all I've got, and I would rather do anything other than lose it!
I am having this fight with my conscience almost every minute of every day now. Somtimes I can't sleep because of it.
I have been advised to go to CAB - done it before, they put us in touch with the Debt Counselling Service and they put us in touch with Payplan, that's how the IVA came about. We went again recently and they said we have 2 choices - continue to pay our bills and keep the house, or don't pay them and lose it. Is it really just that? Is there no other option? Because I don't know if we can do either!
I can't see our income getting any better - my husband is in car sales, and the bottom is falling out of it at the moment. My position has cut it's hours recently.
We have no life - there is nothing left if we pay all the bills (in fact we are in negative equity so Red Castle told us, but still want more money off us from nowhere!)
I just wanted a person to look at our position and tell us what is best to do. I can't think straight anymore, I'm so confused and consumed with this. I know I need to get a grip and sort things. I have been looking at 'sell to rent' schemes today, in a bid to be able to stay in our house, but the information is confusing. Anyway, I don't know if we could even do that as our house is in negative equity with both the mortgage and the First Plus.
Can you help at all? Or can you tell us of a financial advisor we can go to? CAB have done all they can for us, and Payplan don't want to advise, they just want their money. I don't know whether to go bankrupt (we are not currently at risk of losing the house though), carry on struggling for as long as possible, or just let nature take it's course.
What I really want, is to talk to someone, like a financial advisor, who can look at all our finances and give us the best advice, but there doesn't seem to be anyone like that available - tried CAB, CCCS, National Debtline (all vague, nothing specific). Looked at IFAs, but they only advise if you've got money, not when you haven't! Who can help me?!
Please - any advice would be appreciated.
Thank you in anticipation.

StepChange_Pavan · 22 March 2011 at 11:29AM

0191jrd wrote: »

I have started a thread before with our predicament before i came across this one.

my father runs a buisniess but as times have got harder he has got well behind on his paperwork and payments and has practically stuck his head in the sand.

He now has the IR after him for many thousands which he has until the 5th of april to pay. He has no money and very little assets of any value.

He lives with my mother, but they have led seperate lives for many years, the house and mortgage were both put in her name about 5 years ago.

Im looking for some advice from those of you who have far more understanding than i do, to settle my mind too, that 1, he needs to make an appointment with an insolvancy practitioner, and 2, that my mothers house would be safe?

Another thing i have just thought about is that our vehicles are registered in his company name for insurance pourposes, what should we do there, should i now change them back to our names or can that be sorted at a later date??

Im guessing that BR is the only option?

Thanks

Hi 0191jrd and thanks for your post.

As your father is still running his business he would need to speak to Business Debtline as we can only advise on personal debts.

Kind regards,
Pavan

StepChange_Pavan · 22 March 2011 at 11:29AM

Maxnana wrote: »

I am hoping someone may be able to offer me some advice. I have contacted CCCS with the same question, but they just said talk to Payplan, and come back to us if your IVA fails, which is no help as Payplan won't advise either! I really do not know what to do anymore, and this is all I ever think of.
To put things in a nutshell, just so as you can see what the problem is:
I am married and live with my husband and non-dependent son. We are home-owners and are only a couple of hundred pounds behind with the mortgage which Santander have agreed to be paid at £50 a month. However, we have a massive 2nd charge with First Plus from about 10 years ago, when we stupidly consolidated all our debts. This repayment is more than double our mortgage repayment! Just First Plus payment takes up my whole salary. We are a couple of thousand pounds behind with this payment and they have referred us to their debt collection agency. We have contacted them and offered to pay £50 a month off the arrears (we will continue to pay First Plus the usual rate too) which they wouldn't accept. They said £150 is the minimum. Payment is due 1st of next month and I don't know if we'll be able to pay the £150.
We also have an IVA with Payplan which we are struggling to pay. They now say we are in breach of the IVA.
I know the situation is all our fault and we made some really bad choices in the past, but I don't think I can carry on like this anymore. Sometimes I think I just want them to take the house and let the money problems disappear with it. Other times losing the house fills me with morbid fear - it's all I've got, and I would rather do anything other than lose it!
I am having this fight with my conscience almost every minute of every day now. Somtimes I can't sleep because of it.
I have been advised to go to CAB - done it before, they put us in touch with the Debt Counselling Service and they put us in touch with Payplan, that's how the IVA came about. We went again recently and they said we have 2 choices - continue to pay our bills and keep the house, or don't pay them and lose it. Is it really just that? Is there no other option? Because I don't know if we can do either!
I can't see our income getting any better - my husband is in car sales, and the bottom is falling out of it at the moment. My position has cut it's hours recently.
We have no life - there is nothing left if we pay all the bills (in fact we are in negative equity so Red Castle told us, but still want more money off us from nowhere!)
I just wanted a person to look at our position and tell us what is best to do. I can't think straight anymore, I'm so confused and consumed with this. I know I need to get a grip and sort things. I have been looking at 'sell to rent' schemes today, in a bid to be able to stay in our house, but the information is confusing. Anyway, I don't know if we could even do that as our house is in negative equity with both the mortgage and the First Plus.
Can you help at all? Or can you tell us of a financial advisor we can go to? CAB have done all they can for us, and Payplan don't want to advise, they just want their money. I don't know whether to go bankrupt (we are not currently at risk of losing the house though), carry on struggling for as long as possible, or just let nature take it's course.
What I really want, is to talk to someone, like a financial advisor, who can look at all our finances and give us the best advice, but there doesn't seem to be anyone like that available - tried CAB, CCCS, National Debtline (all vague, nothing specific). Looked at IFAs, but they only advise if you've got money, not when you haven't! Who can help me?!
Please - any advice would be appreciated.
Thank you in anticipation.

Hi Maxnana and thanks for your post.

Have you maintained payments to your IVA with Payplan or have you already breached the arrangement?

If you were on an IVA with us and you were struggling with payments, we could propose various solutions such as a variation to the arrangement or a payment holiday for example. This would obviously depend on your circumstances, and possibly be subject to the agreement of creditors and with the guidance of our Insolvency Practitioner.

However, your IVA is with Payplan and we are not aware of their policies and procedures. This is why we have suggested that you need to speak to them as you have both signed a legally binding document which ties you into the agreement.

Did you contact Payplan as soon as you had a reduction in your income? As your mortgage arrears accrued since the start of your IVA, this must mean that your current budget is unsustainable.

Like we’ve already mentioned, if you’re not happy with the service and advice that Payplan are providing, you could in the first instance call them and ask to speak directly with your IP. You should be able to discuss your situation with them to come to a mutual agreement.

If they don’t provide you with enough guidance, The Insolvency Service gives you more information about what you could do next.

As we’ve said previously, Payplan are the only people that can vary the terms of your IVA. We would only be able to advise you further if you had already terminated the legally binding arrangement with Payplan.

I hope this explains why we can’t advise you further.

Kind regards,
Pavan

davidgmmafan · 24 March 2011 at 2:52AM

Not sure if this thread is still active but I do have a couple of questions for CCCS advisors. Why does the online debt advice thing now give a different recommendation to what it did some months ago when I am putting in the same info?

Before it said bankruptcy is the best option, not it says temporary payment plan. I DO NOT believe this is the correct answer. This is my second question.

Why, when I owe around 20,000, and I the system has calculated that I have a shortfall of fifteen pounds per month, does it recomment a temporary payment arrangement (paying creditors one pound per month). I have a SHORTFALL so that would need to become a surplus before this is even viable, but in any event this does NOTHING to tackle the debt.

Any input gratefully recieved because the logic escapes me.

StepChange_Pavan · 24 March 2011 at 12:39PM

davidgmmafan wrote: »

Not sure if this thread is still active but I do have a couple of questions for CCCS advisors. Why does the online debt advice thing now give a different recommendation to what it did some months ago when I am putting in the same info?

Before it said bankruptcy is the best option, not it says temporary payment plan. I DO NOT believe this is the correct answer. This is my second question.

Why, when I owe around 20,000, and I the system has calculated that I have a shortfall of fifteen pounds per month, does it recomment a temporary payment arrangement (paying creditors one pound per month). I have a SHORTFALL so that would need to become a surplus before this is even viable, but in any event this does NOTHING to tackle the debt.

Any input gratefully recieved because the logic escapes me.

Hi davidgmmafan

Thanks for your message,

There must be a reason why Debt Remedy has suggested a different solution. However, we don’t have access to your information so we can’t check this for you.
[FONT=&quot]
[/FONT]I’d recommend that you contact our web support team who will be able to discuss this with you. Their contact details are in your advice booklet.

I hope this helps.

Kind regards
Pavan

CCCS_Sue · 25 March 2011 at 5:55PM

Today is sad day as I have to say goodbye to everyone here on the forums. I am hanging up my debt advice book and retiring after 10 years working with CCCS.

Pavan and Mat will still be here continuing to offer expert advice on your debt queries

I just wanted to say goodbye to you all and to wish you a speedy debt free future.

Sue x

confused76 · 25 March 2011 at 9:25PM

CCCS_Sue wrote: »

Today is sad day as I have to say goodbye to everyone here on the forums. I am hanging up my debt advice book and retiring after 10 years working with CCCS.

Pavan and Mat will still be here continuing to offer expert advice on your debt queries

I just wanted to say goodbye to you all and to wish you a speedy debt free future.

Sue x

bye Sue and good luck...i'm sure you have helped lots of people over the years! enjoy your retirement x

Ask a CCCS counsellor a bankruptcy question

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