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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 8,697Posts
    • 20,977Thanks
    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 2
  • Sunshine2114
    Lots of different threads n info do wanted to ask and get done views

    I called NRAM today n asked to vutary surrender .. They ok n sending out forms .. I explained £16k negative equity etc .. I asked where I legally stood if I signed forms to surrender in Feb regarding equity as we are going to file BR in June .. Couldn't answer n apparently that team are non customer facing ...

    So if I sign these forms n then file got BR in June how does this affect me in future any ideas who I call ? I'm only wanting to sign as due to changes with concll tax etc we will have to pay this now as well as uniccupied insurance costing me £145 a month which I dont have :-( so want out ASAP ..
  • hermyam
    Hi,

    I attended the County Court today with my husband to make representations about an application for a Charging Order to be put on our property (re a CC debt in the sum of approx £10K that he ran up a few years ago). As my husband has a number of other creditors the Judge has decided the Interim Order should continue while the applicant makes contact with the other creditors. In the meantime he suggested my husband should commence making repayments at £40 a month (the amount he stated he could afford).

    All told my husband has nearly £30K worth of debt and the Judge mentioned that bankruptcy may be the only option.

    Our mortgage is on 50% of a shared ownership property. My husband pays the rent on the 50% owned by the housing association along with the council tax. However, I pay the mortgage along with all the utilities. Will this affect the OR's decision to sell the property?
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  • PurpleCalx
    Additional card holder
    I may need to go bankrupt in the near future. On one of the credit cards which is part of the debt, my partner is an additional card holder but has never used the card. Will she be liable for the debt if I go bankrupt? Also, what happens to the joint account we have? Will it be closed or will my name be removed from it? And one final question. My daughter is in a fee-paying school. Will the OR take into account her school fees?
  • StepChange_James
    Lots of different threads n info do wanted to ask and get done views

    I called NRAM today n asked to vutary surrender .. They ok n sending out forms .. I explained £16k negative equity etc .. I asked where I legally stood if I signed forms to surrender in Feb regarding equity as we are going to file BR in June .. Couldn't answer n apparently that team are non customer facing ...

    So if I sign these forms n then file got BR in June how does this affect me in future any ideas who I call ? I'm only wanting to sign as due to changes with concll tax etc we will have to pay this now as well as uniccupied insurance costing me £145 a month which I dont have :-( so want out ASAP ..
    Originally posted by Sunshine2114
    Hi Sunshine,

    Thanks for posting. It would depend on what's written in the small print of the forms, but quite often there will be something about the shortfall being excluded from bankruptcy. If this is the case then it's a usually a good idea not to sign.

    Secured debts aren't included in bankruptcy but if the house is repossessed, then any shortfall would become an unsecured debt and could be included in the bankrutpcy (providing you've not signed any forms that would exclude it from BR).

    I'd suggest giving us a call to talk things through. We can give you a second opinion on bankruptcy and also talk you through the best way to go bankrupt and deal with the property if these are the best options. Here's the contact details: http://www.stepchange.org/Contactus.aspx.

    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_James
    Hi,

    I attended the County Court today with my husband to make representations about an application for a Charging Order to be put on our property (re a CC debt in the sum of approx £10K that he ran up a few years ago). As my husband has a number of other creditors the Judge has decided the Interim Order should continue while the applicant makes contact with the other creditors. In the meantime he suggested my husband should commence making repayments at £40 a month (the amount he stated he could afford).

    All told my husband has nearly £30K worth of debt and the Judge mentioned that bankruptcy may be the only option.

    Our mortgage is on 50% of a shared ownership property. My husband pays the rent on the 50% owned by the housing association along with the council tax. However, I pay the mortgage along with all the utilities. Will this affect the OR's decision to sell the property?
    Originally posted by hermyam
    The courts would look to calculate your husband's "beneficial interest" which is the term they use for his share of the equity. If you've paid more towards buying the house than him then this may be taken into account in this calculation.

    It's quite likely that the courts will want your husbands beneficial interest, which will mean somebody giving the courts the cash to "buy" the equity from them or the house to be sold to release the money.

    Having a property doesn't stop bankruptcy from being an option but it does mean there's more to take into account when making the decision. I'd suggest getting in touch with us for advice on whether it's the right thing.

    The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

    Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

    To help you fill in the form, it’s best to gather together information about:
    • Your income
    • Your expenditure
    • The creditors you owe money to

    You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

    If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

    If you phone us it may be possible to refer you directly to a debt advisor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

    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_James
    I may need to go bankrupt in the near future. On one of the credit cards which is part of the debt, my partner is an additional card holder but has never used the card. Will she be liable for the debt if I go bankrupt? Also, what happens to the joint account we have? Will it be closed or will my name be removed from it? And one final question. My daughter is in a fee-paying school. Will the OR take into account her school fees?
    Originally posted by PurpleCalx
    Hello,

    Additional card holders on credit card accounts don't have any responsibility for debts. It's strange that the system works that way, but in this case it's probably a good thing.

    When you go bankrupt you inform the courts of all accounts you're named on, including joint accounts. The courts will then freeze the account, carry out a quick investigation (mainly to make sure there aren't huge amounts of cash in there) and usually unfreeze within a few days.

    Once unfrozen it would be down to the bank's internal policies what happens. Some would change it to a sole account in your wife's name others would close it down. There's a slim chance they may keep both of you on the account I suppose but I wouldn't bank on it (no pun intended!).

    The decision on the school fees would be down to the official receiver, so it's hard to say for certain. My instinct is that they wouldn't see this as an essential item and wouldn't include it in your budget as they would class it as a luxury.

    I'd suggest getting in touch with us for advice if you're not certain bankruptcy is your best option. We can help you plan a budget, look at the options and if bankruptcy is best we can talk you through the process.

    You can get advice from us using our online advice tool, Debt Remedy (http://www.stepchange.org/msehelp) or by giving us a call (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

  • Richierich333
    Bankrupt and have a suspended possession order...can I just walk away from my flat
    Hi all,

    Firstly, if I'm in the wrong place I'm sorry, secondly, this is my first ever post on a forum so be gentle.

    I have a question I was hoping someone could help me with.

    I petitioned for bankruptcy in sep 2010 and my flat was subjected to a suspended possession order provided I keep up my payments and repay some of the outstanding debt.

    I'm terribly unhappy in my flat, permanently struggling and stressing and just want to leave...can I simply just give the building society the keys and will the shortfall from sale still be applied to the bankruptcy leaving me free to start over?

    Any advice would be greatly appreciated,

    Rich

    Very confused, worried, extremely unhappy
  • Richierich333
    I may need to go bankrupt in the near future. On one of the credit cards which is part of the debt, my partner is an additional card holder but has never used the card. Will she be liable for the debt if I go bankrupt? Also, what happens to the joint account we have? Will it be closed or will my name be removed from it? And one final question. My daughter is in a fee-paying school. Will the OR take into account her school fees?
    Originally posted by PurpleCalx
    I had the same problems and the advice you have been given already is spot on. Card holder is just that, the holder of a card, not jointly responsible for the account. I found that my accounts where closed, they do have the option to leave your partner on alone but generally the link to yourself goes against most bank policies. Depends on which bank you are with, the only bank that would give me a new account was the co-operative...who I must add are fantastic!

    Schooling wise, the Official receiver takes into consideration many different factors and it depends which stage in their schooling they are at. If a change in schooling would be detrimental to their studies, ie in the final years of school you should be ok, otherwise you may have to consider taking them out.

    I'm new to this and don't know if that helps, just what I know through experience...and for the record, I know it's not always the best option and it does have its downsides, but bankruptcy for me gave me a new lease of life...I just need to sort my flat problems now!

    Take care
  • StepChange_James
    Hi all,

    Firstly, if I'm in the wrong place I'm sorry, secondly, this is my first ever post on a forum so be gentle.

    I have a question I was hoping someone could help me with.

    I petitioned for bankruptcy in sep 2010 and my flat was subjected to a suspended possession order provided I keep up my payments and repay some of the outstanding debt.

    I'm terribly unhappy in my flat, permanently struggling and stressing and just want to leave...can I simply just give the building society the keys and will the shortfall from sale still be applied to the bankruptcy leaving me free to start over?

    Any advice would be greatly appreciated,

    Rich

    Very confused, worried, extremely unhappy
    Originally posted by Richierich333

    Hi Rich,

    Apologies for not replying sooner, I typed out a response to your question yesterday but mustn't have pressed reply. I hope my second attempt at replying is as good as the first. (UPDATE - I responded to this question on the thread you created rather than on here. So I'm not going mad, just forgetful)

    Basically, you should be able to include any future secured lending shortfall in your bankruptcy provided you listed the borrowing in your original bankruptcy debt (thereby making it a debt that was taken out before your BR).

    The best thing to do is to speak to your official receiver and check with them before you do anything else.

    The other things to be careful of would be any forms your building society ask you to sign if you're giving them back the keys. Often there is small print that asks you to agree for any shortfall to not be included in bankruptcy. Needless to say it's best not to sign this form.

    Hope this helps.

    James
    Last edited by StepChange_James; 17-01-2013 at 11:45 AM.
    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

  • geekychik
    Hi. My partner and I are seriously considering bankruptcy to try and make a fresh start - we have considerable unsecured debt between us and my partner has been unable to work for a number of years due to illness so we never seem to make any inroads into clearing the debt. I work for a local authority and am concerned that gong bankrupt might put my job at risk - is this a valid concern?
  • StepChange_James
    Hi. My partner and I are seriously considering bankruptcy to try and make a fresh start - we have considerable unsecured debt between us and my partner has been unable to work for a number of years due to illness so we never seem to make any inroads into clearing the debt. I work for a local authority and am concerned that gong bankrupt might put my job at risk - is this a valid concern?
    Originally posted by geekychik
    Hello,

    It's definitely something that needs to be checked out before applying for bankruptcy. People who work for local councils or government offices can find that their job is affected by bankruptcy, or if it doesn't affect your current job it could rule out future career paths.

    Your employment contract should say if bankruptcy would cause any issues with your job. Sometimes it can be better to talk to someone in HR in confidence to see what the impact would be.

    If you're giving serious thought to bankruptcy I'd recommend getting in touch with us if you haven't already. You can do this online (http://www.stepchange.org/msehelp) or over the phone (http://www.stepchange.org/Contactus.aspx).

    We'll be able to tell you if bankruptcy is your best option and if it is we'll talk you through the process.

    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

  • vmedwards
    Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa
    • sammie28
    • By sammie28 19th Jan 13, 1:15 PM
    • 200 Posts
    • 60 Thanks
    sammie28
    Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa
    Originally posted by vmedwards

    Hi, I just opened one with Barclays. Just a basic account. I explained about going BR and he was fine about it. Card and pin came within a week and direct debits all set up. You have to go in to branch and all they asked for was passport or photo driving licence. I was advised to get it all set before going BR.
    Hope that helps
  • StepChange_James
    Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa
    Originally posted by vmedwards
    Hi Vanessa,

    You've got some good advice from sammie28. Barclays allow undischarged bankrupts to have a basic bank account, so they're a good choice.

    You can sort out the new bank account either before or after. I've had a chat with a colleague who speaks to a lot of people going bankrupt and she recommended doing it before.

    You'd need to mention the new account in your bankruptcy petition. The account would be frozen when you go bankrupt, for the courts to carry out a quick investigation but it only takes a couple of days. Once it's unfrozen you should then be back to normal.

    If you do it all before it minimises the time you're between bank account, so usually works out easier for bills being paid. Some people wait until afterwards though, so it's up to you really.

    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

    • tigerfeet2006
    • By tigerfeet2006 22nd Jan 13, 5:08 AM
    • 13,800 Posts
    • 29,882 Thanks
    tigerfeet2006
    Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa
    Originally posted by vmedwards
    A little reading for you
    http://forums.moneysavingexpert.com/showthread.php?t=3582093
    BSCno.87
    The only stupid question is an unasked one
    I now live in a country that is 4 hours ahead of the UK so you may now find I post at weird times
    [/COLOR][/CENTER]
  • minkysam
    Discharged and received huge bill!
    Hi, I hope you can offer some advice as I am so worried after receiving a huge bill today. I live in N.Ireland and declared myself bankrupt in January 2010. This was my only option after hanging onto a retail business for 4 years and failing to turnover enough to pay the premises costs which were extortionate!
    I have now received a rates demand for the retail unit. I have contacted the rates office and been told that the outstanding amount before my bankruptcy has been written off, but I must pay the vacant rates up until the end of the original lease date of August 2016. I have been billed £21000 for the period up until now!! I am disabled and not working. I own my home along with my husband, and the house is in negative equity of approx. £75k.
    I am praying that this can't be right.
    Thanks in advance.
  • StepChange_James
    Hi, I hope you can offer some advice as I am so worried after receiving a huge bill today. I live in N.Ireland and declared myself bankrupt in January 2010. This was my only option after hanging onto a retail business for 4 years and failing to turnover enough to pay the premises costs which were extortionate!
    I have now received a rates demand for the retail unit. I have contacted the rates office and been told that the outstanding amount before my bankruptcy has been written off, but I must pay the vacant rates up until the end of the original lease date of August 2016. I have been billed £21000 for the period up until now!! I am disabled and not working. I own my home along with my husband, and the house is in negative equity of approx. £75k.
    I am praying that this can't be right.
    Thanks in advance.
    Originally posted by minkysam
    Hello and welcome to the forum.

    I'd recommend getting in touch with the insolvency service in Northern Ireland and asking them to clarify this. Here's there contact details: http://www.detini.gov.uk/insolvency-contacts.htm.

    The key thing to clarify is if they see this bill you've received as a debt you've incurred after the bankruptcy order. If you gather up any details you have about this debt before calling they should be able to tell you where you stand.

    If it's bad news then I'd recommend that you give us a call for advice on what to do next (http://www.stepchange.org/Contactus.aspx). I do hope, in the best possible way, that you don't need to call us though.

    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

    • gibboking
    • By gibboking 31st Jan 13, 7:35 PM
    • 223 Posts
    • 87 Thanks
    gibboking
    Any Advice please
    Hi Guy's

    My Hubby (soon to be ex) and I have been seperated for more than 2 years now and I am filing for divorce.
    Originally I moved out of the house and rented (quickest way for me to get out!!) but recently he soon realised that he could'nt afford a 3 bedroom house on his own so me and the kids moved back in. He has agreed that he will keep his name on the mortgage but does'nt expect anything from it when it is of any value.

    Since I have moved back in he has decided that his only option is to go bankrupt.

    So the house is in negative equity of around 12k
    We have joint debts totalling around 12k
    and he has debts in just his name of around 14k

    So my questions are:
    Am I likely to loose the house?
    Will joint debt become my responsibilty.
    Should we sort divorce before he goes bankrupt?

    Things are reasonably amicable between us, and he does'nt want me and the kids to end up loosing our home.

    Any advice is really appreciated
    Look atfer the Pennies and the ££££'s will care for themselves
    • Sandgrownun
    • By Sandgrownun 2nd Feb 13, 2:23 PM
    • 103 Posts
    • 15 Thanks
    Sandgrownun
    Am I eligable for bankrupcy?
    Hi Guys

    Hope you can advise.

    I took out an ill fated NR Together mortgage in 2006 ish when I was very young and very naive. I owe 105,000 on a house that I don't live in and have been renting out I(not agreed by NRAM). I had to move as the house was only 1 bed, and I fell pregnant so took the opportunity to rent a lovely 3 bed house for about £100 less than the 1 bed mortgage!

    Tenants are out now, and I have realised that i do not have anywhere near enough money to be a landlord, its not agreed anyway so it would technically be mortgage fraud maybe? So I'm thinking to sell the house.

    It's been valued at £70,000 - £75,000 and I have someone poss interested. However then I would owe approx £35,000. I also have credit cards totalling £4000 and an overdraft of £2000.

    So as you can see I'm in a big mess. I have a steady secure job (more secure than most but I don't want to reveal the exact nature). I earn about £28,000 but am due to go on mat leave for a year so will earn about half of that roughly for the next year or so. I don't know if I'll be able to go back full time as childcare might make it to be no point, and it's not best for the children. I will always work part time though - I don't want to give up work.

    What are my options? Is bankrupcy the best possibility do you think? I can't see how I can pay it back, and I just have to face facts that a astronomically stupid decision when I was much less financially savvy in my early twenties has possibly ruined my entire life (financially at least!).

    Hope you can help, many thanks for reading x x
    • whichwhydoIturn
    • By whichwhydoIturn 3rd Feb 13, 5:26 AM
    • 538 Posts
    • 1,906 Thanks
    whichwhydoIturn
    Hello,I'm petitioning for BR later this month.
    I'm bit concerned about my work pensions, hope you could advice.
    I have an old work pension which is now been transferred to friends provident as my old work didn't want to carry it.
    I'm working and I pay into a works pension .
    My concern is will either be seen as an asset.
    I don't own my own home, drive or have any jewellery.
    I only have those.
    My old work one is worth 69k.
    I'm early 50 and will hopefully work for the next 15 years .
    Thank you in advance
    Last edited by whichwhydoIturn; 03-02-2013 at 5:27 AM. Reason: Typo error
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