Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

desperate100 wrote: »

Sorry couldn't find where to put a question.
Hi, just some general advice would be very much appreciated.
My boyfriend has been advised to go for the bankruptcy option re his old debts with tax and insurance many years ago. It is a long and complicated story, he was just a teenager at the time. He has been paying back through is wages for the past approx 4/5 yrs. However he is struggling, depressed and unable to get back on his feet financially.
This was all before i met him and we try month after month to make ends meet and only manage through the help of family.
We both work full time now. I have a mortgage on a property and since moving in he pays half to all the bills etc. He has one dependent child and we have a baby due in the next few months. Basically we desperately need a new start and without having to pay his previous debt could do so without any help from anyone.
Not sure what to put on all the forms, are we classed as co-habiting and does all my income and assets need putting on there?
Ther is no agreement as such about what he pays but he does transfer a block amount each month for half of bills etc. it shows on both our statements. When it comes to outgoings do we just show half or whole amounts. Sorry all just seems really daunting.

[FONT=&quot]Hi there,[/FONT]
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[FONT=&quot]Thanks for getting in touch.[/FONT]
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[FONT=&quot]It’s best to be completely honest about your whole situation when filling out bankruptcy forms. The Official Receiver (OR) will need to know about your partner’s financial situation to get complete clarity before the bankruptcy goes ahead. It’s their job to know the full picture beforehand, for the benefit of all concerned.
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[FONT=&quot]When it comes to the budget your partner has two options. He could include a single budget that lists only his income and then half of the bills as his outgoings. If he decides to complete the form this way, it’s useful to add notes to section 13 of form 6.28 explaining this, along with any other notes you think are relevant.
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[FONT=&quot]The second option is for your partner to list his income and then include any contributions from you. For example he could enter the total of the household bills and then enter your contribution towards them. Some people budget this way but it depends on your situation.[/FONT]
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[FONT=&quot]If you are unsure about anything you can always give us a call http://www.stepchange.org/Contactus.aspx and an advisor would be happy to have a chat about your options.
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[FONT=&quot]I hope this helps. Please let us know if you’ve got any more questions.[/FONT]
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[FONT=&quot]Thanks,[/FONT]
[FONT=&quot]Jen[/FONT]

Hi,

first time post so be gentle with me.

without going into pages of detail, due to the unexpected loss of a loved one i have suffered with depression for a number of years, the term burying my head in the sand couldn't be more appropriate as i have ignored debt for years feeling like i couldn't face it. i am now struggling to hold a job down and feel like the pressure im under is making me worse.

after lots of advice from different charities and companies it looks like bankruptcy is the right option for me.

i am in a fortunate situation of no partner or children and a sibling who lives in Italy wants to help. once i have my bankruptcy order i will be going to stay with him to try and get through some of the issues i am facing. i wont be working over there and my stay is indefinite at this point.

I am aware of all the usual requirements to keep in contact with the receiver. my question relates to bankruptcy restriction orders/undertakings. i may have read too much and scared myself into thinking i may a candidate for a BRO/BRU, but as i have tried to continue my life pretending the debt was not there (something i feel huge amounts of guilt about) i think there is a possibility no matter how small, that this may happen.

my question is if i receive a BRO/BRU of 5 years (as an example) and i start work whether in Italy or the UK before the BRO/BRU expires do i still have to contact the receiver about any income i receive?

i understand that if i work in Italy during the 12 months i am undischarged i will need to tell the receiver of any income. my concern is the possibilty of a payment income order or agreement which may follow me for years after my discharge.

if i came back to the UK and started work but was say 4 years into a 5 year BRO/BRU (as an example) would it be possible for the receiver to start a new income payments order? or does the right for an IPO stop after the 12 month automatic discharge? and does the automatic discharge still apply to someone subject to a BRO/BRU?

i may be over thinking things but this is one question that keeps me a wake at night!

all your help and advice is greatly appreciated

dhcooper78 wrote: »

Hi,

first time post so be gentle with me.

without going into pages of detail, due to the unexpected loss of a loved one i have suffered with depression for a number of years, the term burying my head in the sand couldn't be more appropriate as i have ignored debt for years feeling like i couldn't face it. i am now struggling to hold a job down and feel like the pressure im under is making me worse.

after lots of advice from different charities and companies it looks like bankruptcy is the right option for me.

i am in a fortunate situation of no partner or children and a sibling who lives in Italy wants to help. once i have my bankruptcy order i will be going to stay with him to try and get through some of the issues i am facing. i wont be working over there and my stay is indefinite at this point.

I am aware of all the usual requirements to keep in contact with the receiver. my question relates to bankruptcy restriction orders/undertakings. i may have read too much and scared myself into thinking i may a candidate for a BRO/BRU, but as i have tried to continue my life pretending the debt was not there (something i feel huge amounts of guilt about) i think there is a possibility no matter how small, that this may happen.

my question is if i receive a BRO/BRU of 5 years (as an example) and i start work whether in Italy or the UK before the BRO/BRU expires do i still have to contact the receiver about any income i receive?

i understand that if i work in Italy during the 12 months i am undischarged i will need to tell the receiver of any income. my concern is the possibilty of a payment income order or agreement which may follow me for years after my discharge.

if i came back to the UK and started work but was say 4 years into a 5 year BRO/BRU (as an example) would it be possible for the receiver to start a new income payments order? or does the right for an IPO stop after the 12 month automatic discharge? and does the automatic discharge still apply to someone subject to a BRO/BRU?

i may be over thinking things but this is one question that keeps me a wake at night!

all your help and advice is greatly appreciated

Hi there,

Welcome to the forum, I’d be happy to offer some advice.

Firstly, bankruptcy restriction orders or undertakings (BRO/BRU) are often a big worry for people who are declaring bankruptcy.
Usually they are nothing to worry about but ultimately it’s the decision of the Official Receiver (OR) who makes these decisions.

Generally BRO’s or BRU’s are put into place if the OR finds evidence that you’ve acted dishonestly or irresponsibly before or after the bankruptcy. Our advice would be to be completely honest with the OR when you declare your bankruptcy.

If you plan on living abroad, you should make the OR aware of this prior to bankruptcy as sometimes bankruptcy can affect your immigration status. You might need permission from the OR to leave the UK.

You will need to contact the OR about any income you receive during the bankruptcy and also if you are subject to a BRO or an income payment arrangement (IPA) which is the normal process with bankruptcies.

With an income payment arrangement (IPA) these usually have to be applied within 12 months from the date of your bankruptcy and only last for a maximum of 36 months.

If you were subject to a BRO and came back to the UK to start work, the OR wouldn’t be able to apply a new IPA as they still only have 12 months to put this into place.

I hope that answers your questions, it sounds like you’ve still got lots of worries about bankruptcy which we’d be happy to talk to you about. If you’d like to see if bankruptcy is the best way for you to deal with your debts and for more advice please visit https://www.stepchange.org/contactus.aspx.

I hope this helps,

Rachel

asdf12 wrote: »

Dear sir,
I am a british from warrenpont(North Ireland).Currently staying in Ireland. I have UK Debit 26K WITH 6 creditors.All are Unsecured debit.I Have no asset,no deposit .No jobs in UK in the last 2 years.I used to go to warrenpont for every weekend to see my family.But Now nobody living there from my family member.Recently(End Dec-2014), I was informed my Irish address to HMRC,UK.Also Iinstruct to stop my child benifit and child allowance.But not yet informed to my dmp provider(with DMP,27month,.30pound per month).So far UK DMP is going Good.My Irish job is High level of Uncertainity.Currently I am thinking Bankruptcy. My UK Landlord does not like me go Bankrupt by using his home.Please advice me for my next move.Your advice is more helpful at this stage.Thank you.
With regards,
Nan

Hi Nan,

Thanks for posting.

It’s important to tell your DMP provider about your change in circumstances. Especially as your benefit and child allowance are being stopped and this will affect the money you have coming in.
This way they should be able to amend your DMP payments to reflect the changes to your income.

Declaring bankruptcy is a big decision and it could be that there’s an alternative solution to help you deal with your debt.
If you do decide to declare bankruptcy, it won’t affect your landlord’s home however he may no longer let you stay there as a tenant. This is just one of the things you’d need to consider before making the decision.

We’d advise you to talk to one of our advisors first so they can use details from your budget and income to create a free action plan.

To find out how to get in touch with our helpline and information about our opening hours, please use this link:

http://www.stepchange.org/Contactus.aspx


I hope this helps,

Jen

scaredaboutdebt wrote: »

Hi i'm new to this forum and would really appreciate some advice please.

I have had credit for several years now but at the stage where i can not afford to repay we both jointly have about £50,000 of debt.

However to obtain the credit as we were on benefits i lied about working on the forms. I'm now scared if i go bankrupt that i will be arrested for fraud.

Also i tried to set up a small round last year in order to gain some income and try to hopefully get of benefits, my friend was going to do the work as i couldn't. In order to get going we needed public liability which i paid. However it never took of but i noticed on the form it asks about businesses, i recieved literally a couple of payments and that was it, so there are no accounts as was not any to keep but it will obviousbly show that last year i took out business insurance on my bank account. But there was no business please help, these reasons are all stopping me going bankrupt but i know i so desperately need to.

Hi there,

Thanks for posting.

It's understandable that these debts are causing a lot of stress and worry. My experience of talking to people in similar situations is taht the fear of what might happen is usually worse than taking steps to work out what is going to happen.

I'd suggest giving us a call and talking to one of our debt advisors. It's free, confidential and we don't make any judgements about our callers. We just try to help. Here's our contact details: http://www.stepchange.org/Contactus.aspx


You mentioned that you started a new business last year that didn't take off. It may still be something that you need to register officially to make sure that there are no loose ends.

We don't really give advice about setting up businesses or tax issues from being self employed but I'd expect you wouldn't have to pay any tax if your business didn't actually make any money. However, it's always important to make sure you're notifying the right people with this sort of thing.

There's a bit more about setting up and registering a small business here: https://www.gov.uk/set-up-sole-trader.

I'm afraid I can't offer very much advice about whether your case would be viewed as fraud by your creditors. If you talk to one of our advisors they may be able to offer more advice once they know more about your full situation.

Kind regards

James