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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 60
  • StepChange_Rachael
    Good morning and thanks for posting.

    That’s correct, when you file for bankruptcy you won’t pay tax until the following April (new tax year) or unless you change jobs, whichever comes first.

    The Official Receiver (OR) should have been in contact within 2 weeks of filing for bankruptcy for an interview, usually over the phone. At this stage you should have been made aware of having to make an income payment arrangement (IPA) each month towards the bankruptcy.

    If you’ve money left over after you’ve paid your household bills and general living costs then the OR will set an IPA. If your income increases while your not paying tax then this would be included in an IPA payment.

    The OR can set an IPA at any time within the moratorium period, the 12 months before discharge. You won't have to pay anything after being discharged from bankruptcy because of the change in your tax code.

    If you’ve not heard from the OR since you filed for bankruptcy then I’d suggest contacting them.

    You can also contact the Insolvency Service for more help.

    Thanks
    Rachael



    Good evening all my first post so go easy on me
    Well after a few silly mistakes in my past I filed for bankrucpty my order date was 10th August 2017
    I have just been payed this month from my employer and I have a NT tax code ( no tax to be paid ) so I have not paid any tax and I beleave I don’t until the start of the new tax year next year
    Does this mean I ow the tax man load of money next year I’m a bit lost on how this works am I ment to send what I was paying in tax to my O.R
    Also no one has been in contact about me paying any money to my OR every month
    Could some one please help
    Originally posted by Darrenm325
    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_Rachael
    Hi

    Thanks for posting.

    I’m not sure where you’d find the SOA calculator; hopefully someone else on the forum may be able to help with your query.

    If you’d like to complete a budget to access debt advice then you can locate the online Debt Remedy tool here.

    Thanks
    Rachael



    where is this online SOA calculator please?
    Originally posted by maxmycardagain
    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.
    • Nwoz
    • By Nwoz 19th Oct 17, 4:23 PM
    • 1 Posts
    • 0 Thanks
    Nwoz
    Hi there,
    I'm helping a member of my wife's family deal with a serious debt issue. She owes over £35000 mostly in 2 car finance deals with some associated parking issues. She was persuaded to sign up for the finance by someone who should know better and has never driven let alone benefitted from the cars she has agreed the finance on.
    Her monthly wages are just about enough for rent and normal bills (take home £1200 rent £600) and she has no savings or assets. Once her bills are paid she is left with no more than £200 for food, bus fares and other essentials.
    I have been in touch with the main creditors who say they are preparared to consider an affordable offer from their client. She can't really afford to make any offer other than the most token sum of a few pounds.
    I feel that bankruptcy is the best solution for her as long as this will not affect her housing association tenancy. The trouble is that she does not have the £680 fee and this will probably take a few months to get together.
    I'm wondering if there is any value in making the best offer she can afford (virtually zero) or if it is a viable position to tell the creditors that in 4/5 months she will go bankrupt once she has saved up for the fee.
    Any thoughts gratefully received.
  • StepChange_Kirsty
    Hello,

    Thank you for your post and welcome to the forum.

    It’s good to see that you’re trying to help your family members with their problem debt. There are many solutions for dealing with debts; Bankruptcy is just one of those solutions. I would highly recommend that you ask her to get in touch with us in order that we can give her full advice for her situation.

    There are a couple of ways she can access our service.

    First of all there is a Debt Remedy tool on our website. This is a self-help tool which will guide her through the process of putting a budget together in her own time and will offer her the best solution for her circumstances.

    Or if she would prefer to speak to us over the phone, she can call our Helpline. You can find our contact details here.

    Either way we’ll be happy to help.

    Kirsty

    Hi there,
    I'm helping a member of my wife's family deal with a serious debt issue. She owes over £35000 mostly in 2 car finance deals with some associated parking issues. She was persuaded to sign up for the finance by someone who should know better and has never driven let alone benefitted from the cars she has agreed the finance on.
    Her monthly wages are just about enough for rent and normal bills (take home £1200 rent £600) and she has no savings or assets. Once her bills are paid she is left with no more than £200 for food, bus fares and other essentials.
    I have been in touch with the main creditors who say they are preparared to consider an affordable offer from their client. She can't really afford to make any offer other than the most token sum of a few pounds.
    I feel that bankruptcy is the best solution for her as long as this will not affect her housing association tenancy. The trouble is that she does not have the £680 fee and this will probably take a few months to get together.
    I'm wondering if there is any value in making the best offer she can afford (virtually zero) or if it is a viable position to tell the creditors that in 4/5 months she will go bankrupt once she has saved up for the fee.
    Any thoughts gratefully received.
    Originally posted by Nwoz
    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.
    • Jono99
    • By Jono99 2nd Nov 17, 9:56 PM
    • 1 Posts
    • 0 Thanks
    Jono99
    Hi i need some help regarding my credit file after being bankrupt. I went bankrupt 4 years ago and only just recently requested a credit report on checking it all of my debts included in the bankruptcy now say satisfied with no balance apart from my mortgage. This still shows 10000 pounds in the amount owing . I rang them up and asked what it was n they told me it was the arrears after they sold the property. My question is as this was a part of my bankruptcy am i stil liable for this or as i think this should be wiped off my report and should it say 0 .
  • StepChange_Rachael
    Hi

    Welcome to the forum and thanks for your post.

    Any qualifying debt taken out before bankruptcy would be included in the bankruptcy and written off after the bankruptcy ended. I’m assuming the mortgage was taken out before the bankruptcy and the house formed part of the bankruptcy. If this is the case then any arrears should have been included in the bankruptcy petition and written off. This type of debt would class as a qualifying debt.

    If this is the case then you should be able to dispute this on your credit file.

    If the house wasn’t included as part of the bankruptcy due to it having little or no equity and the house was sold after bankruptcy, leaving money owed to the mortgage lender, then this might not be included in the bankruptcy and still owing.

    I’d suggest speaking with the insolvency service for a precise answer as it’s not something that can be answered without knowing more information about the terms of the bankruptcy.

    Here you can find the Insolvency Services details.

    Thanks
    Rachael


    Hi i need some help regarding my credit file after being bankrupt. I went bankrupt 4 years ago and only just recently requested a credit report on checking it all of my debts included in the bankruptcy now say satisfied with no balance apart from my mortgage. This still shows 10000 pounds in the amount owing . I rang them up and asked what it was n they told me it was the arrears after they sold the property. My question is as this was a part of my bankruptcy am i stil liable for this or as i think this should be wiped off my report and should it say 0 .
    Originally posted by Jono99
    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.
    • curtismum
    • By curtismum 4th Nov 17, 12:57 PM
    • 5 Posts
    • 0 Thanks
    curtismum
    Hi all. I have had my bankruptcy approved and had my or interview yesterday. My questions are as follows:

    1- what will the or tell my creditors about my bankruptcy?

    2- can my creditors stop the bankruptcy going ahead?

    3- How in depth will the or go regarding my finances and what's been spent?

    I am a real worrier about things like this. So much so that I have had a breakdown over doing it and am suffering with severe panic attacks.
    • Shellbob83
    • By Shellbob83 5th Nov 17, 3:15 PM
    • 3 Posts
    • 0 Thanks
    Shellbob83
    Hi

    I think this is my first time posting on here.

    I am currently helping my elderly parents who have got themselves in to financial difficulties although if I am honest I think they have been in financial difficulties all their working lives.

    My mum is 68 and still working part time and my dad is 70 and retired. They have a mortgage of just over £81,000 and outstanding unsecured debts of about £18,000.

    They have been in a debt repayment plan with CAP for about a year and a half and have been trying to sell their house for that time also, with no such luck though. The house is on the market for £90,000 and has had many viewings but no offers. It is very dated and needs lots of work doing to it.

    This situation has been going on for a long time now which is affecting their (and my) health and they now may have the opportunity to get a flat with a local housing association so they are considering voluntary repossession and then going bankrupt.

    My question is, in all the information I have read on bankruptcy it doesn’t tell you how much they may have to pay over the 3 years for an IPA. They currently pay CAP over £900 a month to cover their debts (not including the mortgage) and some money for savings. Will the IPA be more than this? Is the official receiver generous with living costs?

    Sorry for the long winded explanation but I thought it might help with understanding their situation.

    Any help would be appreciated. Thank you in advance.
    Appreciate any
  • StepChange_Rachael
    Hi

    Thanks for posting on the forum.

    I’m sorry to hear that it’s a difficult time for you at the moment. As the terms of the bankruptcy can vary I appreciate it must be very worrying until it’s all settled.

    The OR will use details of your financial situation to work out the terms of the bankruptcy such as if you have to make an income payment arrangement (IPA), an IPA can be set up as a monthly payment for 3 years.

    They’ll also check if you’ve any assets that could help form the bankruptcy. The Insolvency Service will have a better understanding of exactly what they’ll discuss with the creditors but it’s likely to be if they’ll receive anything from the bankruptcy towards the debt. They’ll also be made aware of the bankruptcy so they stop collections action.

    The OR will check back on any transactions within the last 5 years but this will be to make sure that there are no hidden assets or preferential treatment between creditors. For example paying back a family member but not paying back the creditors. This could be seen as unfair treatment and the OR has the power to reverse any transactions. As long as you’ve been honest and open with the OR then please try not to let this worry you.

    The OR is in control of the terms of the bankruptcy and it’s my understanding creditors wouldn’t be able to stop a bankruptcy application going ahead.

    If you feel you’d like to discuss your bankruptcy in more detail you can contact the Insolvency Service, here are their contact details.

    I’d suggest speaking with someone regarding your anxiety and panic attacks such as your GP. If you feel you’d just like to speak with someone to discuss your current situation, which could help ease stress then The Samaritans are a really good organisation. They are available to speak with 24/7.

    Best of luck with everything going forward.

    Take care.
    Rachael


    Hi all. I have had my bankruptcy approved and had my or interview yesterday. My questions are as follows:

    1- what will the or tell my creditors about my bankruptcy?

    2- can my creditors stop the bankruptcy going ahead?

    3- How in depth will the or go regarding my finances and what's been spent?

    I am a real worrier about things like this. So much so that I have had a breakdown over doing it and am suffering with severe panic attacks.
    Originally posted by curtismum
    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_Rachael
    Hi

    Thanks for your post.

    There are certainly options available to your parents and bankruptcy might be a good option but I’d be very reluctant to say without knowing more about their full financial situation. Particularly as they’re currently paying £900 a month into their plan, which would mean the unsecured debt could be paid back in less than 2 years and from what you’ve mentioned there is equity in the property.

    In bankruptcy the IPA can be set up to 3 years, this would be based on what is left over at the end of the month after the housing costs and general living expenses have been covered. If CAP has set a payment plan up for £900 a month and your parents are also able to set something aside for savings on top of this, then I can’t imagine the Official Receiver (OR) will set a payment for less.

    I’d suggest your parents discuss their options with an independent debt advisory service like StepChange so they can get a full understanding of how any solutions would affect them. You can always help them as a third party if they’d need extra support to do this.

    Here you can find StepChange’s contact details and information about the charity.

    Thanks
    Rachael


    Hi

    I think this is my first time posting on here.

    I am currently helping my elderly parents who have got themselves in to financial difficulties although if I am honest I think they have been in financial difficulties all their working lives.

    My mum is 68 and still working part time and my dad is 70 and retired. They have a mortgage of just over £81,000 and outstanding unsecured debts of about £18,000.

    They have been in a debt repayment plan with CAP for about a year and a half and have been trying to sell their house for that time also, with no such luck though. The house is on the market for £90,000 and has had many viewings but no offers. It is very dated and needs lots of work doing to it.

    This situation has been going on for a long time now which is affecting their (and my) health and they now may have the opportunity to get a flat with a local housing association so they are considering voluntary repossession and then going bankrupt.

    My question is, in all the information I have read on bankruptcy it doesn’t tell you how much they may have to pay over the 3 years for an IPA. They currently pay CAP over £900 a month to cover their debts (not including the mortgage) and some money for savings. Will the IPA be more than this? Is the official receiver generous with living costs?

    Sorry for the long winded explanation but I thought it might help with understanding their situation.

    Any help would be appreciated. Thank you in advance.
    Appreciate any
    Originally posted by Shellbob83
    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.
    • AdviceSought
    • By AdviceSought 16th Nov 17, 6:29 PM
    • 170 Posts
    • 16 Thanks
    AdviceSought
    So, over the last 12 months, due to losing two jobs due to depression, I've gone from having a DAS with Stepchange started and looking positive, to looking in a real mess.

    When I lost the first job, a payment break was arranged. I followed Stepchange advice and arranged a review once back into permanent work. However, I lost that job pretty quickly due to a relapse with depression and an employer with absolutely no understanding.

    I'm now awaiting my first Universal Credit payment and have been really struggling to find any kind of work.

    Due to this, I'm now behind with my car HP which was not part of the DAS - I've really been wanting to avoid bankruptcy as I really do need my car to make it easier to work, and also, to continue with the activities which help keep me on top of my mental health battle. Without it, it will get so much harder for me. My dad would possibly be able to take over the payments on this for me, but I'm not sure how acceptable that would be with the other struggles.

    As it looks as if there's no prospect of me finding work any time soon though, I'm now having to reassess and starting to wonder if bankruptcy is possibly my only/best option now.

    My DPP would have seen me debt free by March next year had I not crashed mentally, other than my car finance, so this is obviously a big blow. The value of unsecured debt that is part of that arrangement is circa 9k.

    I'm expecting to get £317.82 each month in Universal Credit, starting in a week and halfs time. Stepchange haven't been too helpful in terms of where I should go from here.

    Can anyone give me an idea of the various options that are open to me, and how they all work should I be unemployed long-term or find work unexpectedly?

    I'm in Scotland, and so far, no creditor has applied for the DPP to be revoked.
  • StepChange_Allen
    So, over the last 12 months, due to losing two jobs due to depression, I've gone from having a DAS with Stepchange started and looking positive, to looking in a real mess.

    When I lost the first job, a payment break was arranged. I followed Stepchange advice and arranged a review once back into permanent work. However, I lost that job pretty quickly due to a relapse with depression and an employer with absolutely no understanding.

    I'm now awaiting my first Universal Credit payment and have been really struggling to find any kind of work.

    Due to this, I'm now behind with my car HP which was not part of the DAS - I've really been wanting to avoid bankruptcy as I really do need my car to make it easier to work, and also, to continue with the activities which help keep me on top of my mental health battle. Without it, it will get so much harder for me. My dad would possibly be able to take over the payments on this for me, but I'm not sure how acceptable that would be with the other struggles.

    As it looks as if there's no prospect of me finding work any time soon though, I'm now having to reassess and starting to wonder if bankruptcy is possibly my only/best option now.

    My DPP would have seen me debt free by March next year had I not crashed mentally, other than my car finance, so this is obviously a big blow. The value of unsecured debt that is part of that arrangement is circa 9k.

    I'm expecting to get £317.82 each month in Universal Credit, starting in a week and halfs time. Stepchange haven't been too helpful in terms of where I should go from here.

    Can anyone give me an idea of the various options that are open to me, and how they all work should I be unemployed long-term or find work unexpectedly?

    I'm in Scotland, and so far, no creditor has applied for the DPP to be revoked.
    Originally posted by AdviceSought

    Hi there

    Thanks for posting.

    I'm sorry to hear that things have got worse with your situation and that you're suffering from mental health problems. I hope you're getting help and support with this, but if not, please speak with your GP in the first instance.

    In regards to your DPP and on-going debt situation, it's difficult to say much without having all your figures in front of me. What I will say is that our DAS team will always do their best to keep a DPP going if realistic, but sometimes if the money simply isn't there to pay into it, they can come to an end without success.

    In order to work out your options to move forward, I'd recommend giving them another call once your new income and expenses are confirmed so that they can amend your budget and re-advise you. The debt advisors in that team are qualified to discuss all other possible solutions you have.

    I note that you felt that they weren't particularly helpful last time you called; if you're not happy with our service please let them know you wish to make a complaint when you speak with them.

    Best wishes for the future.

    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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