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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 8,695Posts
    • 20,970Thanks
    MSE Andrea
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question
    • #1
    • 5th Nov 12, 5:58 PM
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question 5th Nov 12 at 5:58 PM
    StepChange Debt Charity (formerly CCCS) has several counsellors answering questions in our forum.

    There are three ways to contact them:

    1 - To ask them a question please post it below and Allen, Linsi, Kirsty Rachael or Richard will post a reply here.

    2 - If you would prefer to ask a question in private you can send a private message to StepChange Private Messages and one of the counsellors will get back to you.

    3 – StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an advisor through online chat.

    This thread continues from the previous Ask a counsellor a question thread one
    Last edited by MSE Andrea; 14-12-2016 at 1:40 PM.
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Page 1
  • StepChange_James
    • #2
    • 22nd Nov 12, 9:28 AM
    • #2
    • 22nd Nov 12, 9:28 AM
    I have a number of CC debts and loan that are being paid with token payments each month on the advice of StepChange since I lost my job last year.

    I put in a PPI claim with Lloyds, who have informed me that I am due a payment of £690. However, the loan I have is with them and I was informed over the phone yesterday that they may offset my PPI claim against the loan.

    I have heard that there is some way of asking them not to offset in the event of financial hardship (which I am experiencing). I'm not about to jet off on holiday with the money or anything, I'm actually desperate to declare myself bankrupt (again, I was advised that this was the best course of action by StepChange) and there's just no way I'm ever going to raise the fees for this. The payment from Lloyds would be a godsend and would mean I could finally get things sorted once and for all by using the payment to cover my bankruptcy fees.

    Is there some kind of template letter, or is it just a case of writing and pleading poverty with Lloyds? I should add that bankruptcy is my best and only option as my situation will not change in the next four years at least - I am unable to find a job that will cover the cost of childcare and my debts.

    P.S. When I posted this in another part of the forum, another member informed me that it would be fraudulent to use this money to pay for my bankruptcy. Is this true?
    Originally posted by Piggywinkle
    Hello,

    Thanks for posting.

    PPI refunds often are often paid towards the debt they were taken out with. Here's a link to an article about setting off, which refers to all debts, not just PPI refunds but still applies to them: http://www.moneysavingexpert.com/banking/setting-off.

    It would probably be best to put together a brief letter of your own just to explain that not giving you the PPI refund would cause you hardship.

    Using this money to fund the bankruptcy fee sounds like a reasonable idea to me, I can't really see how it would be fraud.

    Hope this helps.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • barnyfreeman
    • #3
    • 24th Nov 12, 10:51 AM
    • #3
    • 24th Nov 12, 10:51 AM
    I know someone that needs financial advice. Over the past few years her partner has convinced her to take out many loans and credit cards.
    2 loans; 10000 and 3000, at least 8% on each.
    2 credit cards; total 2500. 1800 on interest free.
    Store cards; 250

    She's a single mum now he's left her. The large loan is for a car that he has taken (all in her name), and since he paid a few hundred pounds deposit she can't report it stolen.

    She can't afford the repayments on all these agreements, pay rent and buy food for the child.

    Should she declare herself bankrupt? She has nothing of any value.
    Looks like he's gotten away with it.
  • StepChange_James
    • #4
    • 26th Nov 12, 3:12 PM
    • #4
    • 26th Nov 12, 3:12 PM
    I know someone that needs financial advice. Over the past few years her partner has convinced her to take out many loans and credit cards.
    2 loans; 10000 and 3000, at least 8% on each.
    2 credit cards; total 2500. 1800 on interest free.
    Store cards; 250

    She's a single mum now he's left her. The large loan is for a car that he has taken (all in her name), and since he paid a few hundred pounds deposit she can't report it stolen.

    She can't afford the repayments on all these agreements, pay rent and buy food for the child.

    Should she declare herself bankrupt? She has nothing of any value.
    Looks like he's gotten away with it.
    Originally posted by barnyfreeman
    Hello,

    It's hard to say if bankruptcy would be a good idea for her. Certainly there is quite a bit of debt there and if she isn't likely to be able to pay the debts back in a reasonable amount of time then bankruptcy could be a way for her to get back on top of her finances.

    One thing I would say if that paying for food and household bills should be the priority for her at the moment. We can help her sort out the debts.

    I'd suggest she gets in touch with us for more detailed advice. This could be done using our online advice service, Debt Remedy (http://www.stepchange.org/msehelp) or if she'd prefer to speak to us she could give us a call (http://www.stepchange.org/Contactus.aspx).

    Thanks for posting.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • barnyfreeman
    • #5
    • 26th Nov 12, 5:49 PM
    • #5
    • 26th Nov 12, 5:49 PM
    Thankyou. I'll pass this on and we'll get in touch with StepChange. I really hope there's something that can be done. She understands its her responsibility now but feels totally lost about how to climb out of this hole.
    • davidgmmafan
    • By davidgmmafan 23rd Dec 12, 1:21 PM
    • 1,440 Posts
    • 519 Thanks
    davidgmmafan
    • #6
    • 23rd Dec 12, 1:21 PM
    • #6
    • 23rd Dec 12, 1:21 PM
    As this thread is sort of quiet i dont feel too guilty about asking my (admittedly not vital) question.

    Why the name change? The name before stated clearly what the organisation did, the new name is based on somd different philosophy perhaps?

    Dont have to bust a gut to answer as i imagine this is a busy time of year but i am curious to know.
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
  • StepChange_James
    • #7
    • 27th Dec 12, 9:46 AM
    • #7
    • 27th Dec 12, 9:46 AM
    As this thread is sort of quiet i dont feel too guilty about asking my (admittedly not vital) question.

    Why the name change? The name before stated clearly what the organisation did, the new name is based on somd different philosophy perhaps?

    Dont have to bust a gut to answer as i imagine this is a busy time of year but i am curious to know.
    Originally posted by davidgmmafan
    Hi David,

    No change in philosophy from us, we are still providing the same service. We changed the name to help us reach out to more people.

    There's more about the reasons for the change on our website here: http://www.stepchange.org/Aboutus/Whywevechangedourname.aspx or you can watch our youtube video about it here: http://www.youtube.com/watch?feature=player_embedded&v=IsUK3-GVqTQ.

    Hope this helps

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • StepChange_James
    • #8
    • 3rd Jan 13, 11:02 AM
    • #8
    • 3rd Jan 13, 11:02 AM
    Hello everyone,

    We've written a guide to help people who're filling out bankruptcy forms. We get a lot of queries asking for help on this subject, so thought it might be worth sharing here too.

    http://moneyaware.co.uk/template-letters-court-forms/how-do-i-fill-in-my-bankruptcy-forms/

    Thanks

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • SteveyB
    • #9
    • 7th Jan 13, 9:41 AM
    • #9
    • 7th Jan 13, 9:41 AM
    I am seriously considering declaring myself bankrupt...

    I live in my own property (mortgaged in joint names with my estranged wife)

    There are charging orders on the house in the region of 30K
    The house would fetch maybe 80K if sold and there is in the region of 67K left to pay on the mortgage.

    I am also having a battle with SCM Solicitors at present over a car loan debt (which I don't deny owing and never have done)
    I filled in the financial analysis forms and could afford to pay them £50 per month (debt is 6.5K) ...

    The court have ordered I pay £150 per month and if I fail to do so they will deduct it directly from my wages...

    I've had 2 heart attacks (first one was 7yrs ago and the latest was in September 2012) and I don't much fancy my chances of surviving a 3rd....

    All the debts are down to finance taken out while I was still living with my wife and she is of the same mind as I that bankruptcy is the best option..

    Will I lose the house or will it have to be sold ?

    What is the best way of going about the process ?

    I honestly can't begin to list all the debts there are as they are so many....

    Yes.....I'm in a mess with only myself to blame but it's time it was sorted out....

    I'm not worried about credit ratings as mine stinks anyway....Even my bank wouldn't lend me 1.5K to have my boiler replaced and am currently going through my 3rd winter with no heating in the house what so ever....

    Thanks in advance....

    Steve.
  • GoingUnder
    Hi,
    If I have a change of circumstances with an IPA, are my payments frozen until it is sorted out? I only ask because Moonbeever have just told me that they will continue as already agrred until any changes are sanctioned by the OR?
    thanks
  • StepChange_James
    I am seriously considering declaring myself bankrupt...

    I live in my own property (mortgaged in joint names with my estranged wife)

    There are charging orders on the house in the region of 30K
    The house would fetch maybe 80K if sold and there is in the region of 67K left to pay on the mortgage.

    I am also having a battle with SCM Solicitors at present over a car loan debt (which I don't deny owing and never have done)
    I filled in the financial analysis forms and could afford to pay them £50 per month (debt is 6.5K) ...

    The court have ordered I pay £150 per month and if I fail to do so they will deduct it directly from my wages...

    I've had 2 heart attacks (first one was 7yrs ago and the latest was in September 2012) and I don't much fancy my chances of surviving a 3rd....

    All the debts are down to finance taken out while I was still living with my wife and she is of the same mind as I that bankruptcy is the best option..

    Will I lose the house or will it have to be sold ?

    What is the best way of going about the process ?

    I honestly can't begin to list all the debts there are as they are so many....

    Yes.....I'm in a mess with only myself to blame but it's time it was sorted out....

    I'm not worried about credit ratings as mine stinks anyway....Even my bank wouldn't lend me 1.5K to have my boiler replaced and am currently going through my 3rd winter with no heating in the house what so ever....

    Thanks in advance....

    Steve.
    Originally posted by SteveyB
    Hi Steve,

    It sounds like you've had a really rough few years. I don't have enough information about your situation to know if bankruptcy is the best option for you but it certainly sounds like it's worth considering.

    The insolvency has a really useful booklet about how properties are affected by bankruptcy: http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf which should give you a bit of guidance.

    I'd suggest giving us a call to talk through your options. When you go bankrupt the judge will usually ask if you've taken advice and they tend to be happier if they know you've considered your options before going bankrupt.

    You can get advice from us online using our advice tool, Debt Remedy (http://www.stepchange.org/msehelp) but it might be better to give us a call (http://www.stepchange.org/Contactus.aspx) so you can speak to an advisor and they'll be able to answer any questions you have.

    If bankruptcy is the best option then we'll be able to explain the process (it's basically filling in a few forms, paying the fee and arranging a meeting at your local court).

    Hope this helps.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • StepChange_James
    Hi,
    If I have a change of circumstances with an IPA, are my payments frozen until it is sorted out? I only ask because Moonbeever have just told me that they will continue as already agrred until any changes are sanctioned by the OR?
    thanks
    Originally posted by GoingUnder
    Hello,

    The question is asked on this page (http://www.bis.gov.uk/insolvency/personal-insolvency/income-payments-orders-and-agreements#3) and it seems that it is at the OR's discretion.

    If you're situation has got worse then they might freeze payments but it's down to them.

    Hope this helps.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • RAHRAH700
    Hi

    I am desperate for some advice for the sake of my marriage!!

    My husband and i have been paying a Debt Management Plan with the CCCS now for just over 5 years and whilst we have managed to pay almost £9000 off our debts so far we still have a balance of about £30000 we also have a secured loan which isnt on the plan which is another £10000 outstanding.

    We have a mortgage on our house which stands at £70000 and the value of the house is about £80000.

    We just cannot see any light at the end of the tunnel im in a frenzy everytime i see the DMP statement come through. My husband cant seem to cope with it all anymore and my nerves are in tatters!!

    Would it be easier all round if we went bankrupt? Or can the debt be written off as we have paid quite a large amount back already? And if we did would we lose our house? (if we lost the house we really would have nothing left) We do also have 2 cars worth about £500 each - i work 40 miles away from home and my husband requires his to get to work every morning.

    We arent on fantastically high incomes (we are both on £13000)

    Can anyone help or give me some advice as the best step?

    Sarah
  • StepChange_James
    Hi, a previous poster here

    I am going to declare myself BR in the near future. I am aware that the arrears on my duel fuel bill with British Gas will be included in the BR. The account with BG is in my name. My question is this: will my husband be able to start a new energy account with another provider in his name for our property? I understand that we could stay with BG but they've previously said that they may fit a prepayment meter in the house, which our private landlord doesn't like the sound of. So basically, when my debt with BG has been written off, can my husband start a new account for us in his name with a new energy provider?

    Thanks in advance.
    Originally posted by Piggywinkle
    Hi Piggywinkle,

    I can't see any reason why your husband couldn't apply to a new energy supplier in his own name. Obviously he'd be subject to their usual checks but there shouldn't be a problem.

    Feel free to contact us if you'd like anymore help with going bankrupt.

    Kind regards

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • StepChange_Rachel
    Hi

    I am desperate for some advice for the sake of my marriage!!

    My husband and i have been paying a Debt Management Plan with the CCCS now for just over 5 years and whilst we have managed to pay almost £9000 off our debts so far we still have a balance of about £30000 we also have a secured loan which isnt on the plan which is another £10000 outstanding.

    We have a mortgage on our house which stands at £70000 and the value of the house is about £80000.

    We just cannot see any light at the end of the tunnel im in a frenzy everytime i see the DMP statement come through. My husband cant seem to cope with it all anymore and my nerves are in tatters!!

    Would it be easier all round if we went bankrupt? Or can the debt be written off as we have paid quite a large amount back already? And if we did would we lose our house? (if we lost the house we really would have nothing left) We do also have 2 cars worth about £500 each - i work 40 miles away from home and my husband requires his to get to work every morning.

    We arent on fantastically high incomes (we are both on £13000)

    Can anyone help or give me some advice as the best step?

    Sarah
    Originally posted by RAHRAH700
    Hi there, Sarah

    If you’re considering something like bankruptcy then please get in touch with us and we’ll review your budget to see if bankruptcy is your best option. It may be suitable for you considering what you’ve told me about the plan stretching on for quite some time.

    The main thing in the interim is to focus on keeping on top of your mortgage and secured loan payments as best as you can.

    Kind regards

    Rachel
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

    • sammie28
    • By sammie28 9th Jan 13, 5:58 PM
    • 200 Posts
    • 60 Thanks
    sammie28
    Hi I'm currently trying to fill in the BR forms for myself and my husband. But i'm worried that if i fill something in wrong or put it in the wrong place, will they send us away on the day or even worse decline the BR?
    I'm not sure if i have filled them in correctly.

    It asks if he has sold , transferred etc a property in the last 5 years and i don't know what to put or if i should put anything. The house was reposssed in 2010 and there was a shortfall of 121,000!! But he didn't sell it or transfer it etc so should i fill that in?

    Do we have to put childrens young saver accounts and trust fund accounts on the forms?? There is only a matter of pennies in the young saver accounts but a few hundred in the trust funds. We don't pay in to them anymore.
    I assume they can't touch them, but the young saver accounts are with my bank!! Also my eldest (13) has his own account that our names are not on, will his account be ok? Again it is with my bank.
    Thanks in advance
    Last edited by sammie28; 10-01-2013 at 12:21 PM.
  • StepChange_James
    Hi I'm currently trying to fill in the BR forms for myself and my husband. But i'm worried that if i fill something in wrong or put it in the wrong place, will they send us away on the day or even worse decline the BR?
    I'm not sure if i have filled them in correctly.

    It asks if he has sold , transferred etc a property in the last 5 years and i don't know what to put or if i should put anything. The house was reposssed in 2010 and there was a shortfall of 121,000!! But he didn't sell it or transfer it etc so should i fill that in?

    Do we have to put childrens young saver accounts and trust fund accounts on the forms?? There is only a matter of pennies in the young saver accounts but a few hundred in the trust funds. We don't pay in to them anymore.
    I assume they can't touch them, but the young saver accounts are with my bank!! Also my eldest (13) has his own account that our names are not on, will his account be ok? Again it is with my bank.
    Thanks in advance
    Originally posted by sammie28
    Hello,

    It's better to get the information on your bankruptcy forms right but putting something in the wrong box wouldn't stop you from going bankrupt.

    Section 9.1 of the bankruptcy form, listed as "Properties Disposed of in the last Five Years" should have details about the repossessed property listed. The shortfall should also be listed in the section for unsecured debts.

    If you're worried that the information you've put needs clarifying and you've not space on the form then you can use section 13 "Extra information" to explain things in more detail, to avoid confusion.

    The bank accounts section should include information of all accounts in your name. Providing the children's accounts are in their names then you should be fine, even if it is the same bank. If their accounts are in your name then they should be listed on the form.

    If you've had advice from us then you're advice booklet will have contact information for our bankruptcy support line which can help with going bankrupt. If you've not spoken to us then you could contact us for an advice session where we'll check bankruptcy is definitely the best option (http://www.stepchange.org/Contactus.aspx).

    All the best

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) 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

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

    • sammie28
    • By sammie28 10th Jan 13, 4:22 PM
    • 200 Posts
    • 60 Thanks
    sammie28
    Thanks James for clarifying those things.
  • Lizardwoman1
    Hi I am currently in an IVA but am no longer working my husband now works in another country. I am considering bankruptcy as a better option but am concerned they will come and take items from the house like computer TV games console I have 3 children and this would upset them. Please can someone advise thanks ... Also as my income is solely from benefits is it likely that they will make an iPo on my husbands income
  • archived user
    Hi I am currently in an IVA but am no longer working my husband now works in another country. I am considering bankruptcy as a better option but am concerned they will come and take items from the house like computer TV games console I have 3 children and this would upset them. Please can someone advise thanks ... Also as my income is solely from benefits is it likely that they will make an iPo on my husbands income
    Originally posted by Lizardwoman1
    Hi and thanks for your post.

    As you’re already subject to an IVA which is a legally binding document your first port of call is to speak to the Supervisor of your IVA who will be a licenced Insolvency Practitioner and will be able to advise you all about how bankruptcy would impact on your personal situation.

    On a general note, in bankruptcy you deal with the Official Receiver, they would look at your situation and any assets you have such as property. They wouldn’t be interested in domestic items such as TVs or game consoles.

    I’d recommend you speak to your Insolvency Practitioner in the first instance as they have access to all your details, we can’t give you any detailed advice while you are still subject to an IVA.

    We have a blogpost on the difference between bankruptcy and an IVA, this too might be useful.

    http://moneyaware.co.uk/2011/12/bankruptcy-the-differences-between-bankruptcy-and-an-iva/

    I hope this helps.

    Kind regards,

    Mat
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