Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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  • willunhappy
    willunhappy Posts: 7 Forumite
    edited 30 January 2017 at 3:31PM
    Hi rachael
    Thank you for an answer to the council tax. So just to understand the council tax will still be taken out as such if the council wants to.
    The loan was to tide me over to the end of the month as it was what my wagers are in a month. (if that sounds right?) haha.

    will
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    I am considering bankruptcy due to my circumstances and am going through a budget etc just now.

    My question and I apologise if it's been asked or may seem a bit stupid. But I am a single parent and would need to plan for events like Xmas and birthdays am I allowed to have a savings account with money in for these events during bankruptcy or not due to the debts etc? Not talking about huge amounts of money as of course I don't have anything like that. Just wondering if it would possible for me to set aside any money?
    (I am in Scotland)

    Hello

    Thanks for your post.

    It's not a silly question at all, don't worry. I can't say for definite whether an allowance can be made for this on a budget put together for bankruptcy in Scotland, but we have advisors at the charity who can give a clearer answer. We have a team in Glasgow dedicated to Scottish debt advice and solutions, so if you were to register for our help we'll be able to say with a little more certainty.

    My general understanding of sequestration (Scottish bankruptcy) is that a your budget would be put against the 'common financial statement' to see how your costs compare to that, and any spare money would need to be paid into the bankruptcy. However I'm not sure as to whether sundries for things like Christmas are permitted.

    If you'd like some advice on whether bankruptcy is right for you, what other alternatives there could be, and more information on your question here, you can register with us free of charge; details are on our website.

    I hope this is helpful.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    Hi rachael
    Thank you for an answer to the council tax. So just to understand the council tax will still be taken out as such if the council wants to.
    The loan was to tide me over to the end of the month as it was what my wagers are in a month. (if that sounds right?) haha.

    will


    Hi Will

    Thanks for your post.

    If you declare yourself bankrupt, the attachment of earnings will stop. The council would be able to use enforcement agents to try and enforce the debt whilst you were bankrupt (but not once discharged) but in practice this is rare.

    I'm not 100% sure what the loan is or who lent it you still so can't answer that I'm afraid. If it's a payday loan it'd go into bankruptcy. If your employer gave you an advance I don't think it'd be affected as they'll probably take the money back from future pay packets as I assume was agreed with you at the time.

    If you decide to register us we can get more details on this and give a more definite answer.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • hi allen
    The loan was to go from weekly pay to monthly.
    will
    and thanks, this is a great help, not feeling like a stupid fool anymore wanting to get sorted.
  • willunhappy
    willunhappy Posts: 7 Forumite
    edited 1 February 2017 at 5:48PM
    hi just thought of this, where can you go to check what other debts you have. This is to make sure you get all your debts in the BR

    will

    Also on the side where my name is there are Post which i have 4 and then thanks. Does the thanks work when i say thanks or when i help someone else?

    will
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    hi just thought of this, where can you go to check what other debts you have. This is to make sure you get all your debts in the BR

    will

    Also on the side where my name is there are Post which i have 4 and then thanks. Does the thanks work when i say thanks or when i help someone else?

    will


    Hi Will

    Thanks for your post.

    All qualifying debts (in other words all debts that are covered by bankruptcy, as one or two types aren't) are written off in bankruptcy - you don't have to list them in order for them to be included. However, you can usually find most or all of your debts by doing a credit check. You can get a free credit report from Noddle.

    In terms of this forum, the 'thanks' show when people have thanked you for your post.

    With your employer loan/advance, I imagine that in this scenario they'll just amend your next wage packet(s) to take back the advance you were effectively given, so is unlikely to be affected by any debt solutions.

    I hope this all makes sense.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • Hi,
    The DWP is attempting to force a DEA (Direct Earnings Attachment) on me for crisis loans I took out back in 1999/2000. These debts formed part of my bankruptcy which took place shortly after I took out these loans. Can they still take this action even though the debts were part of my bankruptcy? They first contacted me around 2009/2010 - almost 10years after I took out these loans! I informed them at that time that the debt was part of my bankruptcy and heard nothing from them until about 2014. I contacted them again to say that I had already contacted them regarding this and explained again about the bankruptcy. It is now 2017 and they are now attempting to setup DEA deductions direct from my employer! I am reluctant to speak them again as I have repeated myself so many times with them, so would rather get the right advice before contacting them again. Any help you can give me would be greatly appreciated.


    Thanks in advance
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    Hi,
    The DWP is attempting to force a DEA (Direct Earnings Attachment) on me for crisis loans I took out back in 1999/2000. These debts formed part of my bankruptcy which took place shortly after I took out these loans. Can they still take this action even though the debts were part of my bankruptcy? They first contacted me around 2009/2010 - almost 10years after I took out these loans! I informed them at that time that the debt was part of my bankruptcy and heard nothing from them until about 2014. I contacted them again to say that I had already contacted them regarding this and explained again about the bankruptcy. It is now 2017 and they are now attempting to setup DEA deductions direct from my employer! I am reluctant to speak them again as I have repeated myself so many times with them, so would rather get the right advice before contacting them again. Any help you can give me would be greatly appreciated.

    Thanks in advance

    Hi Dan

    Welcome to the forum and thanks for your message.

    Social Fund (crisis) loans were provable and included in bankruptcy applications before 19th March 2012. It seems from what you've said that your bankruptcy was before that, and if so, you're right that they should have been included.

    I recommend speaking with them to explain this and advise you're not happy at being contacted again about this debt. If they insist they will carry on with action, ask them why and let us know. If they agree they won't chase the debt, consider asking them for something in writing to confirm this.

    I hope this helps.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • to allen from stepchange
    Thank you for your help, Its great to know there are good people willing to give advice. Now feeling a bit more in control.

    will
  • StepChange_Allen
    StepChange_Allen Posts: 352
    First Anniversary First Post
    Organisation Representative
    to allen from stepchange
    Thank you for your help, Its great to know there are good people willing to give advice. Now feeling a bit more in control.

    will


    Hi Will

    Thanks for your kind comments.

    It was my pleasure to help and I wish you all the best with everything moving forward.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
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