Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

mamakerr · 22 June 2017 at 10:36AM

Hello, thanks to this forum my husband was guided through his bankruptcy - so first of all thank you to you all.

He was bankrupted in February 2012 and we need to know what to do now.... so here are a few questions:

1. Do we need to get confirmation of his discharge?
2. How do we clean up our credit scores? He obtained a credit card to help do this and uses it very wisely and pays up on time - they have increased his credit limit so they must be happy

Any advice would be most helpful. Many thanks.

StepChange_Kirsty · 22 June 2017 at 5:16PM

Hi,

Thanks for your post. It’s good to hear the forum has been a good source of help and support for your husband.

Has your husband now been discharged from his bankruptcy? On the assumption he was automatically discharged after 12 months, the record of his bankruptcy should already have been removed from the Individual Insolvency Register. This is a public register and you can check that it has been removed here.

Unless your husband has been subject to a bankruptcy undertaking or order, the bankruptcy notice will be automatically removed from his credit file after 6 years from the date of entry. As all defaults should be registered before the date of the bankruptcy order, this means the bankruptcy and records of any debts would all disappear after the six years. From there your husband can look to improve his credit score and this article on the main MSE site provides some very useful information.

You don’t necessarily need to obtain a certificate of discharge but if required, say by a future employer or mortgage lender you would need to contact the County Court when the bankruptcy was petitioned. The cost for a certificate is £70 plus £10 for each additional copy so you might only want to get this if specifically needed.

All the best.

Kirsty

mamakerr wrote: »

Hello, thanks to this forum my husband was guided through his bankruptcy - so first of all thank you to you all.

He was bankrupted in February 2012 and we need to know what to do now.... so here are a few questions:

1. Do we need to get confirmation of his discharge?
2. How do we clean up our credit scores? He obtained a credit card to help do this and uses it very wisely and pays up on time - they have increased his credit limit so they must be happy

Any advice would be most helpful. Many thanks.

richieduke · 23 June 2017 at 3:23AM

I have accrued unsecured debts (credit card/overdraft and loan) of around £32,000 owed to 4 different lenders (Barclays, MBNA, Nationwide and Zopa). I have just completed a fixed term contract and presently I am out of work and my first set of missed payments (defaults) will be due by next week.

I don't have any money to payback the debt and even when I had a job I found it difficult to meet up the payments (although I've never defaulted). I have not claimed benefits as each week the prospects of getting a job looks brighter although I am no longer solvent. I live in a Council flat and have no assets apart from a 2005 Nisan Murano.

I have 2 current accounts with Barclays, one of them is a basic account. Will I be allowed to keep the basic account post-bankruptcy or do I need to open another basic current account for DD in preparation for my Bankruptcy?

How long will the Bankruptcy process take?

Does the OR consider the family size (for eg, family of 5) and increased spending/expenses listed as part of the SOA approval? (For instance, I am paying mobile phone bills for 3 dependants at a cost of £18 per month per person). The normal cost of hairdressing for my 2 daughters (is around £25-£30 per month per child-African hair).

Assuming I get a job during the application process will I have to make payments to the OR as part of my Bankruptcy (IPA)?

What happens when the job ends during the payment period will I still get discharged after 12 months?

What support is there to help with the £680 fee, it is delaying my application? ( I am considering Go Fund Me as an option)

I am in my early 50's with 3 children and on the verge of going through a divorce (my missus isn't very understanding of my situation-as she's asking me to pack out); and I need a fresh start.

Thanks for the advice.

Former_StepChange_Linsi · 27 June 2017 at 9:39AM

Good morning

Thanks for your post and welcome to the forum.

I’m sorry to hear you’ve been finding it difficult to meet the payments to your debts.

Some basic bank accounts are available to undischarged bankrupts. These types of accounts will be frozen briefly (around two days) if you go bankrupt while the OR conducts their initial investigations. After this the account will be unfrozen and you’ll be able to continue using it.

Barclay’s basic current account is suitable for undischarged bankrupts so if this is the type of account you have, you shouldn’t need to open a new one. You can always check with your bank if you’re unsure.

You can find more information about the bankruptcy process and time frames involved on the gov.uk website. You’ll usually get an email or letter within 28 days of submitting your application to say if you’ve been made bankrupt. Bankruptcy usually lasts for 12 months and then you’re discharged.

The OR will take into consideration the number of children you have when looking at your living costs. The OR will use their own guidelines called the Household Expenditure Survey (HES), which is available on the gov.uk website.

An IPA usually lasts for 36 months and will be set up if you have any surplus income. The OR may not set up an IPA straight away, but it must be set up before you’re discharged.

If you started working then you’d need to tell the OR and an IPA may be set up. If your job then ended you’d still be discharged but the monthly payment may be reduced or stopped depending on your situation.

There may be trust funds/grants you can apply to for help covering the bankruptcy fees. The Turn2Us website has grants search tool you can use.

I hope this helps.

Linsi

richieduke wrote: »

I have accrued unsecured debts (credit card/overdraft and loan) of around £32,000 owed to 4 different lenders (Barclays, MBNA, Nationwide and Zopa). I have just completed a fixed term contract and presently I am out of work and my first set of missed payments (defaults) will be due by next week.

I don't have any money to payback the debt and even when I had a job I found it difficult to meet up the payments (although I've never defaulted). I have not claimed benefits as each week the prospects of getting a job looks brighter although I am no longer solvent. I live in a Council flat and have no assets apart from a 2005 Nisan Murano.

I have 2 current accounts with Barclays, one of them is a basic account. Will I be allowed to keep the basic account post-bankruptcy or do I need to open another basic current account for DD in preparation for my Bankruptcy?

How long will the Bankruptcy process take?

Does the OR consider the family size (for eg, family of 5) and increased spending/expenses listed as part of the SOA approval? (For instance, I am paying mobile phone bills for 3 dependants at a cost of £18 per month per person). The normal cost of hairdressing for my 2 daughters (is around £25-£30 per month per child-African hair).

Assuming I get a job during the application process will I have to make payments to the OR as part of my Bankruptcy (IPA)?

What happens when the job ends during the payment period will I still get discharged after 12 months?

What support is there to help with the £680 fee, it is delaying my application? ( I am considering Go Fund Me as an option)

I am in my early 50's with 3 children and on the verge of going through a divorce (my missus isn't very understanding of my situation-as she's asking me to pack out); and I need a fresh start.

Thanks for the advice.

KJ2886 · 28 June 2017 at 6:19PM

Im about to submit my bankruptcy application within the next week
I have a halifax reward current account with no overdraft, asking in branch they said that would be frozen (know all accounts are frozen to start with) and they dont do accounts for bankrupt, is that right? ive only had the account less than 12 months and idealy wanted to keep that account (set it up as originally wanted to go down the DMP route)

Also I have a CCJ and currently at enforcement stage, Ive had the CCJ Stayed until 6th July where I was going to get it set aside as got a court date, but now Im nearer bankruptcy now, have I messed things up by getting a court date etc to defend now Im more decided on the bankruptcy?

Also once I submit, how long does it all get processed from there?
Once I submit will that end enforcement action?

Sorry for all the questions

StepChange_Kirsty · 29 June 2017 at 3:34PM

Hi there,

Thanks for your post.

As you correctly pointed out, once you enter Bankruptcy all bank accounts will be temporarily frozen to allow time for the Official Receiver to investigate your account. It’s then up to the bank whether they will decide to close the account permanently.

With a current account it is likely that Halifax would either close this account or downgrade it to a basic account. As far as we’re aware, Halifax do have a basic account which is available if you’re an undischarged bank account so if you want to stay with Halifax it would be worth asking if you can downgrade. Alternatively most high street banks do provide basic accounts which you can open before or during Bankruptcy. You just need to make sure you use a bank which you do not currently have any credit with.

Once your application is submitted the adjudicator has 28 days to review the application which can be extended by 14 days if they need further information. They will usually review the application much sooner than this.

In terms of the county court judgment (CCJ), I would highly recommend you give us a call so we can discuss this further. It will depend on what type of debt it is and what type of enforcement has been taken as to how it will be dealt with. You can find our contact details here.

We hope to hear from you soon.

Kirsty

KJ2886 wrote: »

Im about to submit my bankruptcy application within the next week
I have a halifax reward current account with no overdraft, asking in branch they said that would be frozen (know all accounts are frozen to start with) and they dont do accounts for bankrupt, is that right? ive only had the account less than 12 months and idealy wanted to keep that account (set it up as originally wanted to go down the DMP route)

Also I have a CCJ and currently at enforcement stage, Ive had the CCJ Stayed until 6th July where I was going to get it set aside as got a court date, but now Im nearer bankruptcy now, have I messed things up by getting a court date etc to defend now Im more decided on the bankruptcy?

Also once I submit, how long does it all get processed from there?
Once I submit will that end enforcement action?

Sorry for all the questions

KJ2886 · 29 June 2017 at 7:24PM

Thank you, When bank accounts are frozen, what happens to direct debits and cheques which havent cleared yet?

The CCJ has been transfered to the high court and I had a notice of enforcement the other week and 2 visits from the sheriffs office so far. I applied with a N244 to Stay and Set aside as i thoght that was my best option at the time, ive been granted a stay until 6th july when its due to be heard at my local county court.
Have i messed things up by going for a set aside and now changing my mind to end up with bankruptcy?

Just wondered if submitting a bankruptcy application will stop enforcement, or will it still be enforcable until maybe upto 28 days until the ajudicatior has reviewed my application....
I always thought when people on here have submitted before they usually get their application approved and phone call within days usually?

Thanks again!

StepChange_Kirsty · 30 June 2017 at 12:07PM

Hi,

Thanks for your reply.

When the bank accounts are frozen direct debits would not be honoured and it won’t be possible to make payments into the account whether by cash or cheque. For this reason it would be best to make sure you have a basic account that you can keep once you’re in Bankruptcy as it can go back to normal once unfrozen.

When you say sheriff’s office, is it a High Court Enforcement agent who has visited you? The process you’ve described is the process in England and Wales but sheriff’s officers are part of the Scotland enforcement process. You haven’t messed up by applying to set aside the judgment if you feel that the debt is not owed, however I do still feel it would be best for you to call us so we can discuss this with you in further detail. Here are our contact details.

Debts are enforceable until the Bankruptcy application is approved. We are seeing that the adjudicator responds very quickly and as you say this can often be within a couple of days but they do have 28 days to respond.

I hope this helps.

Kirsty

KJ2886 wrote: »

Thank you, When bank accounts are frozen, what happens to direct debits and cheques which havent cleared yet?

The CCJ has been transfered to the high court and I had a notice of enforcement the other week and 2 visits from the sheriffs office so far. I applied with a N244 to Stay and Set aside as i thoght that was my best option at the time, ive been granted a stay until 6th july when its due to be heard at my local county court.
Have i messed things up by going for a set aside and now changing my mind to end up with bankruptcy?

Just wondered if submitting a bankruptcy application will stop enforcement, or will it still be enforcable until maybe upto 28 days until the ajudicatior has reviewed my application....
I always thought when people on here have submitted before they usually get their application approved and phone call within days usually?

Thanks again!

portofcall · 9 July 2017 at 1:29PM

I was just on the cusp of submitting for an DRO application when I received an increase in my ESA - They have started paying my Severe Disability Premium which is an increase of 63 pounds a week.
Please tell me if this affects my application for a DRO and should I still go ahead with the submission?

StepChange_Allen · 10 July 2017 at 1:04PM

portofcall wrote: »

I was just on the cusp of submitting for an DRO application when I received an increase in my ESA - They have started paying my Severe Disability Premium which is an increase of 63 pounds a week.
Please tell me if this affects my application for a DRO and should I still go ahead with the submission?

Hi there

Thanks for posting.

The criteria for being eligible for a DRO are strict from the point of view of how your overall income and expenditure looks. As you now have a lot more income I'd expect there's a very good chance that you no longer fit the necessary criteria and that other debt solutions may now be available instead.

However, I can't be completely certain, so I'd advise to contact the intermediary (organisation) that's dealing with your DRO application and explain the change to your income and they can advise you.

I hope this is helpful.

Allen

Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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