Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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  • lee1985
    lee1985 Posts: 204 Forumite
    Hello

    I went bankrupt in 2009 because I lost my job. Three years later in 2012 I had a DRO for a single debt because I felt it was fraud and the bank wouldn't play fair. Basically I refused to pay it because it was fraud and the bank didnt agree with me. However now in 2014 I've racked up a few debts such as mobiles I can't pay for and catalogue accounts, probably about 5K overall.
    I'm still unemployed and I can't afford the payments. I cannot work due to a disability for life and I only have about 400 a month benefits to live on.
    My income and expenditure sheet when taking into account my bills shoes that I am -50 so theoretically I don't even have a pound left over should I pay the bills. However I can't see anything changing in terms of income I.e e a job in the near future.

    I doubt that I would be accepted for yet another administration order as i believe you can only have 1 or 2 if you're lucky. What do I do?
    I have worked at HSBC Bank in various departments both customer facing and process-related for six years. However, any advice given is my own.
  • Hi. I currently have around £60 k worth of debt, to which I am paying the debtors token payments each month after consultation with the old CCCS. The bulk of the debt is from the negative equity of our former house which we had to give up to the mortgage lender, which is jointly in my estranged wife's and my names.


    I would like to know if it is possible to have my wife's name taken from the mortgage debt as I am not only morally obliged to take full responsibility for that debt but also willing to take sole responsibility in order for her to become debt free and proceed on her way in life with a clean slate.


    Many thanks in advance.


    Jason.
  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
    lee1985 wrote: »
    Hello

    I went bankrupt in 2009 because I lost my job. Three years later in 2012 I had a DRO for a single debt because I felt it was fraud and the bank wouldn't play fair. Basically I refused to pay it because it was fraud and the bank didnt agree with me. However now in 2014 I've racked up a few debts such as mobiles I can't pay for and catalogue accounts, probably about 5K overall.
    I'm still unemployed and I can't afford the payments. I cannot work due to a disability for life and I only have about 400 a month benefits to live on.
    My income and expenditure sheet when taking into account my bills shoes that I am -50 so theoretically I don't even have a pound left over should I pay the bills. However I can't see anything changing in terms of income I.e e a job in the near future.

    I doubt that I would be accepted for yet another administration order as i believe you can only have 1 or 2 if you're lucky. What do I do?


    Hi,

    Sorry to hear about your struggle to deal with your debts, hopefully I can clarify things for you.

    It really depends on your whole financial situation as to what solution would be best for you now, everyone’s situation is different and we’d need to look at your budget and talk about what’s happened previously to make sure we’re offering the best advice.

    It’s a little bit unclear which solution you took as you’ve mentioned that you had a debt relief order (DRO) but also mentioned an administration order (AO) which are two different debt solutions.

    If it was a DRO that you entered into back in 2012 then you can only re-apply for this solution once every 6 years. This doesn’t mean that other solutions aren’t available for you though and my advice would be to seek some free, independent debt advice.

    We’d be happy to talk to you about your options now and as a charity our advice is free, impartial and confidential. You can complete our online Debt Remedy tool or visit the StepChange website for details of how to get in touch with us over the phone.

    I hope this helps, we look forward to speaking to you soon.

    Rory
    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 [url="http://www.needtosleep.org]Need to Sleep[/url]

  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
    Hi,

    We went bankrupt in Dec 2008 with a number of properties in our portfolio.

    I recently discovered that a CCJ was registered against my name in March 2011 for unpaid Service Charges while 2 of our properties were under LPA care.

    For all our other properties any outstanding Service Charge was paid by the lender and now the LPA Receiver is saying the only things you are liable for after you go bankrupt is Council Tax ( which I knew ) and Service Charge / Ground Rent.

    I wasn't aware of this until today.

    Please can you confirm is this is, in fact, the case and, if so, if there's anything I can do about it ?

    Thanks.

    Hi there,

    If the Official Receiver (OR) has explained that the county court judgement (CCJ) wasn’t included in your bankruptcy then it’s likely that the debt is still outstanding.

    There could be a number of reasons for this depending on the situation, so my advice would be to speak to the OR to query why this is the case.

    If the debt is outstanding and you’re liable for the payments then it’s important that you complete the necessary forms and make an offer of payment towards the CCJ.

    If you’re not sure how to do this then we’ll be happy to talk to you and offer you plenty of advice on what to do next. You can find details of how to get in touch with us on the StepChange website.
    I hope this helps,

    Rory
    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 [url="http://www.needtosleep.org]Need to Sleep[/url]

  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
    Wulfman wrote: »
    Hi. I currently have around £60 k worth of debt, to which I am paying the debtors token payments each month after consultation with the old CCCS. The bulk of the debt is from the negative equity of our former house which we had to give up to the mortgage lender, which is jointly in my estranged wife's and my names.


    I would like to know if it is possible to have my wife's name taken from the mortgage debt as I am not only morally obliged to take full responsibility for that debt but also willing to take sole responsibility in order for her to become debt free and proceed on her way in life with a clean slate.


    Many thanks in advance.


    Jason.


    Hi Jason,

    It can be very difficult to remove a liability for a debt as it’s written into the agreement at the time that you are both liable for the debt and any repayments or shortfalls.

    I understand the situation can be quite difficult and you can feel that it’s your responsibility to take control of the situation. You’ve mentioned that you’re still making temporary ‘token’ payments to creditors which in some cases is a more short-term solution until your situation hopefully improves.

    Why not talk to us again and see what other options are available to you? We can take a look at your budget, situation and debts and help you find a solution that can help deal with your debts.

    We’ll be happy to talk to you about things and details of how to get in touch are available on the StepChange website. Alternatively you can use our free, anonymous, online Debt Remedy tool available here.

    I hope this helps,

    Rory
    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 [url="http://www.needtosleep.org]Need to Sleep[/url]

  • Hi there

    I am new to forums so I'm sorry if this has been asked and dealt with elsewhere.

    After taking advice from CAB I will be declaring myself bankrupt later this year.

    After some calculations it is possible I will be asked to set up an IPA as I expect to have surplus income of approximately £50 per month.

    Is it allowed to enter an outgoing monthly figure to help cover the cost of xmas and birthday for my son?

    I will also be changing vehicles to a used car approx 12 years old. Is it allowed to enter a figure for repairs and if so what would be classed as reasonable? It scares me going to an older vehicle as so much can go wrong and i don't want to find myself seriously out of pocket.

    Thanks
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    Hi there

    I am new to forums so I'm sorry if this has been asked and dealt with elsewhere.

    After taking advice from CAB I will be declaring myself bankrupt later this year.

    After some calculations it is possible I will be asked to set up an IPA as I expect to have surplus income of approximately £50 per month.

    Is it allowed to enter an outgoing monthly figure to help cover the cost of xmas and birthday for my son?

    I will also be changing vehicles to a used car approx 12 years old. Is it allowed to enter a figure for repairs and if so what would be classed as reasonable? It scares me going to an older vehicle as so much can go wrong and i don't want to find myself seriously out of pocket.

    Thanks

    Hi there,

    When you go bankrupt you'll usually be allocated an Official Receiver that will deal with your case. It will be them that agrees your budget with you, so these sorts of issues will be decided upon at that point. So it will depend on the Official Receiver.

    Having said that, I think it's saving for car maintenance should be fine if you're keeping the vehicle, as you'll need to keep it running. I know that estimating car repairs isn't easy but making an estimate of what you'd reasonably expect it to cost you and dividing it by 12 would be a sensible way to estimate this cost.

    The Christmas and birthday savings might be trickier to have on your budget, as it's hard to argue that they are essential costs. However there's usually scope for a small "sundries and emergencies" allowance which, if not needed for emergencies, could be used for occasional gifts.

    Much of this will depend on what else if in your budget and the Official Receivers do have some discretion, which allows them to decide what they think is reasonable.

    If you'd like more in depth advice you could get in touch with our helpline and we can help you put together a budget. We'll also be able to check all the other debt solutions as well as bankruptcy, to make sure it's definitely right for you. Our contact details are in my signature below.

    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

  • I entered into a joint shorthold tenancy with my partner. A week after signing the agreement he absconded whilst I was overseas without telling me and went back to his ex-girlfriend. The next day he went bankrupt and included the future 6 months rent in his bankruptcy.
    There is no get-out clause on this tenancy agreement and despite the unbelievable heartache, I am now left with a 6 months tenancy agreement that I cant get out of.
    I have spoken to the Examiner and she reckons that because he signed the agreement before he went bankrupt and he is not living at that address anymore, he can include it in his bankruptcy as a future debt.
    Does anyone know if there is anyway I can claim from this man - such a coward to leave when I was away and to date he has not explained himself other than to gloat.

    PS - I am a discharged bankrupt - 6 years now - and I would never have been so callous as to inflict this on a partner.
  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
    poppie01 wrote: »
    I entered into a joint shorthold tenancy with my partner. A week after signing the agreement he absconded whilst I was overseas without telling me and went back to his ex-girlfriend. The next day he went bankrupt and included the future 6 months rent in his bankruptcy.
    There is no get-out clause on this tenancy agreement and despite the unbelievable heartache, I am now left with a 6 months tenancy agreement that I cant get out of.
    I have spoken to the Examiner and she reckons that because he signed the agreement before he went bankrupt and he is not living at that address anymore, he can include it in his bankruptcy as a future debt.
    Does anyone know if there is anyway I can claim from this man - such a coward to leave when I was away and to date he has not explained himself other than to gloat.

    PS - I am a discharged bankrupt - 6 years now - and I would never have been so callous as to inflict this on a partner.


    Hi,

    I’m really sorry to hear about what’s happened, I can’t begin to imagine how you must be feeling about all of this.

    Unfortunately because the tenancy agreement is in joint names then it’s quite likely that it’s now your responsibility to repay the remaining contract.

    There might be other options open to you such as a new tenant, discussing your options with your landlord/landlady or agency or trying to come to an agreement. If you’re looking for some extra help with this then Shelter are a housing charity who may be able to provide more support.

    It’s obviously been very difficult and if you've exhausted all of your options and you’re still struggling then as a debt advice charity we can offer our help.

    By looking at your situation and budget we can see if there are any ways that you might be able to afford the rest of the payments and discuss other solutions with you. You can get in touch by visiting the StepChange website.

    I hope this helps,

    Rory
    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 [url="http://www.needtosleep.org]Need to Sleep[/url]

  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    Hello everyone,

    We're all going to be in training on Monday and Tuesday next week (20th & 21st October). We'll be back in on Wednesday and will answer any questions then.

    If you've got an urgent query then please call our Helpline on 0800 138 1111 (Mon-Fri 8am-8pm; Sat 8am-4pm) or use our online Debt Remedy tool (http://www.stepchange.org/Debtremedy.aspx) for full debt advice.

    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

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