Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

StepChange_Rachael · 20 September 2016 at 10:22AM

Good morning and thanks for posting,

It’s always a good idea to research all options available to you so you know exactly how a debt solution will affect you and your partner.

For some people one solution will be the best option and for others another option would benefit them more. It comes down to a person’s individual situation.

In any form of insolvency assets that are the person going insolvent would be taken into account but not assets of family members even if they reside in the same property. So under the circumstances your wife’s car is unlikely to be affected.

I’d suggest discussing both options with us further before making a decision.

You’ve mentioned speaking with the IVA department yesterday but you can also discuss Bankruptcy with a StepChange debt advisor before deciding.

You can find our contact details here and we’ll be able to get you through to an advisor to discuss both options further.

Thanks
Rachael

wayneunique wrote: »

Good morning,

I'm in the process of deciding whether an IVA or Bankruptcy is best for me. I've got just over £25,000 of debt and after paying everything out (bills, travel etc), I will have about £100 free per month towards any payment.

Regarding Bankruptcy and assets - I don't really have any, apart from say a blu-ray player and LCD TV (not that expensive). My wife has a car, which is in her name and that she has a loan for, so I gather that my wife's car is not an asset for me.

Today I'm going to go through my finances etc with a Stepchange IVA adviser but part of me feels Bankruptcy might be the best option.

Many thanks.

StepChange_Rachael · 20 September 2016 at 10:36AM

Hi

Thanks for your post.

I’m sorry to hear you’re struggling with debt at the moment as you’ve mentioned it’s clearly affecting your ability to cover your living costs on a regular basis.

There are many different solutions available for people struggling with debt and it’s important to take your full situation into account before making a decision.

It’s likely there are options that you’re not aware of. I’d suggest getting some accurate debt advice for your situation.

If you follow this link you can complete our Debt Remedy tool. Once you’ve completed Debt Remedy you’ll be able to access your personal action plan which details our advice and recommendations and how to take the next steps with any debt solutions we’ve recommended.

Debt Remedy is anonymous and you can also get in touch with us if you have questions whilst completing it.

You can access our Debt Remedy tool here.

Thanks
Rachael

Teddyuk85 wrote: »

Hi everyone,

I could really really do with some advice as I am constantly thinking about this.

I have gotten myself into a right mess financially from being stupid over the years.

I have the following debts

Loan that ends next year with £3800 outstanding

Loan with £12500 outstanding for another 4 years

Credit card with a balance of £9500

Credit card with £2700 on it

Credit card with £1900 on it

My car which has 1 years finance left on it £120

And finally I pay my mum £320 a month for £11000 she lent me.

My payments equate to over £1300 a month.

With my line of work I get a bonus some months, however when I don't, my wage does not over my outgoings (including rent, bills etc) and o rely on money that my partner gives me to cover half the household bills. However if I get paid my basic salary that leave me with £50 a week to live off, for food, petrol etc etc.

I am on a good salary, just short of 30k a year and my partner works part time but takes on extra hours where possible.

I really don't know what to do.

I am registered diabetic, and I am worried they will tell me I can't have the gym membership (£20 a month) or take my car away which I rely on for work. My car is worth less than £2000 but would they take it away with a years left on the finance?

Also the £320 I pay my mum each month for the loan she gave me will that be considered?

Am I able to declare bankruptcy and still pay my mum, and for my car.

Also I was wondering what amount they would consider to leave me with to live on after being accepted for bankruptcy? What is the norm? As I'm on a good wage I don't know how it would work?

Would you consider my case as a BR case?

I would appreciate any help were possible. Part of me thinks wait a year until one of my loans is clear and my car is paid as it frees me up £400 a month but it's really a struggle at the moment that I cannot have any sort of quality of life on the money I am left with.

Plus it worries me my health will be affected being diabetic?

Any advice is appreciated

Piggywinkle · 22 September 2016 at 10:33AM

Hi,

I'm on the verge of submitting my BR form online (paid up). However, my salary gets paid directly into my husband's account as that's where our DDs all come from.

I have provided estimated breakdowns on my income and expenditure but will this be enough? If the OR wishes to see my bank account, they will only see the £75 per week standing order my husband transfers back to me for grocery shopping.

StepChange_Rachael · 23 September 2016 at 8:41AM

Hi

Thanks for posting.

It’s worth providing the Official Receiver (OR) with as much information as possible regarding your finances.

It’s likely the OR will want to see details of your finances once you’ve applied for Bankruptcy and your bank account is normally frozen for a short period of time for the OR to view your finances.

It’s possible the OR will ask to see details of your partner’s finances if you’re living together to make sure you both pay a fair share of the household expenditure. So it could be worth sending either a pay slip or your employment contract stating what your full income is and a note to explain it goes into your partners bank account as this is where the Direct Debits are set up.

I hope this helps.

Rachael

Piggywinkle wrote: »

Hi,

I'm on the verge of submitting my BR form online (paid up). However, my salary gets paid directly into my husband's account as that's where our DDs all come from.

I have provided estimated breakdowns on my income and expenditure but will this be enough? If the OR wishes to see my bank account, they will only see the £75 per week standing order my husband transfers back to me for grocery shopping.

[Deleted User] · 23 September 2016 at 9:20AM

Hi,
Wondering if you can help.

I voluntarily became bankrupt in July 2012.
I have recently looked on Noddle credit score site and saw that there are 2 debts that are showing in default with a red mark on them every month since the BR.
One was my bank/current account at the time, I have been to the bank and they referred me to the relevant dept and that has been sorted out.
The other however is to British Gas, it was on my residential property and is not a huge amount of money.
Question is, I just cannot manage to get the name of the relevant dept. to send proof that the BR is discharged. I have tried all their debt and payment telephone numbers and emailed their customer services dept, who referred me back to one of the phone numbers that I have spent 30+ minutes on.
Can you help as I am going in circles?

Thanks in advance.

Piggywinkle · 23 September 2016 at 9:54AM

StepChange_Rachael wrote: »

Hi

Thanks for posting.

It’s worth providing the Official Receiver (OR) with as much information as possible regarding your finances.

It’s likely the OR will want to see details of your finances once you’ve applied for Bankruptcy and your bank account is normally frozen for a short period of time for the OR to view your finances.

It’s possible the OR will ask to see details of your partner’s finances if you’re living together to make sure you both pay a fair share of the household expenditure. So it could be worth sending either a pay slip or your employment contract stating what your full income is and a note to explain it goes into your partners bank account as this is where the Direct Debits are set up.

I hope this helps.

Rachael

My husband is unwilling to share his financial details with the OR. He had told me how much he earns per month so I could put the total into the income and expenses bit on the form,but I know he will refuse to cooperate with the OR if they want to see his bank account details or his wage slips.

Former_StepChange_Richard · 26 September 2016 at 8:46AM

Deleted_User wrote: »

Hi,
Wondering if you can help.

I voluntarily became bankrupt in July 2012.
I have recently looked on Noddle credit score site and saw that there are 2 debts that are showing in default with a red mark on them every month since the BR.
One was my bank/current account at the time, I have been to the bank and they referred me to the relevant dept and that has been sorted out.
The other however is to British Gas, it was on my residential property and is not a huge amount of money.
Question is, I just cannot manage to get the name of the relevant dept. to send proof that the BR is discharged. I have tried all their debt and payment telephone numbers and emailed their customer services dept, who referred me back to one of the phone numbers that I have spent 30+ minutes on.
Can you help as I am going in circles?

Thanks in advance.

Hi there

Thanks for your message and welcome to the forum.

All I can really do in this case is offer you reassurance. You're already taking the right course of action by contacting British Gas about the matter. You will just have to persevere unfortunately. Once you have got through you should be able to get the help and proof you need to amend your credit file.

If you feel the service you have been getting is not satisfactory you could make a complaint to them in writing which they will acknowledge and should respond to. Details of their complaints proceedure are available here.

Best of luck.
Richard.

Former_StepChange_Richard · 26 September 2016 at 9:24AM

Piggywinkle wrote: »

My husband is unwilling to share his financial details with the OR. He had told me how much he earns per month so I could put the total into the income and expenses bit on the form,but I know he will refuse to cooperate with the OR if they want to see his bank account details or his wage slips.

Hi there

Thanks for your reply.

As with all cases in bankruptcy, the OR will have their own decision making process that they will follow for any given case. We can't say for certain what they will or won't do. We can only comment on what seems likely given the facts.

Is this case, I would assume that the OR would want to see details of the bank account you are are using so they can confirm how much money you have. This is one of the key parts of any bankruptcy case as you can imagine.

To prove this I would expect they will ask for bank statements as evidence. Should you not provide this informaiton you could be seen as being non-compliant with the OR. Non-cooperation with the OR after a bankruptcy order is an offence and there can be serious consequences.

You don't have to explain to me why your partner is not willing to cooperate, but I would expect the OR will ask about this if you're not able to provide the proof they require.

Having your wage slips will certainly help, but I do think its worth thinking about that you could be asked for further details too.

Take care
Richard.

Piggywinkle · 26 September 2016 at 1:26PM

StepChange_Richard wrote: »

Hi there

Thanks for your reply.

As with all cases in bankruptcy, the OR will have their own decision making process that they will follow for any given case. We can't say for certain what they will or won't do. We can only comment on what seems likely given the facts.

Is this case, I would assume that the OR would want to see details of the bank account you are are using so they can confirm how much money you have. This is one of the key parts of any bankruptcy case as you can imagine.

To prove this I would expect they will ask for bank statements as evidence. Should you not provide this informaiton you could be seen as being non-compliant with the OR. Non-cooperation with the OR after a bankruptcy order is an offence and there can be serious consequences.

You don't have to explain to me why your partner is not willing to cooperate, but I would expect the OR will ask about this if you're not able to provide the proof they require.

Having your wage slips will certainly help, but I do think its worth thinking about that you could be asked for further details too.

Take care
Richard.

My husband will be really unhappy with this - all of my debts are my own and were incurred before we even met, let along got married. I feel really stupid to have let things get this far and now it's ruining my relationship as well

Former_StepChange_Richard · 27 September 2016 at 9:05AM

Piggywinkle wrote: »

My husband will be really unhappy with this - all of my debts are my own and were incurred before we even met, let along got married. I feel really stupid to have let things get this far and now it's ruining my relationship as well

Hi

I can understand your concern over this especially given the impact you feel it could have on your relationship.

If you're in doubt about proceeding with the bankruptcy you could use our service to explore any other options that might be available to you. Our Debt Remedy tool on our website is a free and anonymous tool that will look at your finances and then recommend the best solution for you. The outcome could be bankruptcy, but if there's any better options, these will be suggested to you.

Either way, it will at least let you know if there are any better alternatives that could avoid what we've been discussing so far.

If you have any other questions, please let us know.

I hope this helps
Richard.

Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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