Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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  • Raspberry_Ripley
    Raspberry_Ripley Posts: 4 Newbie
    edited 8 August 2014 at 12:56PM
    Hi again,

    I've spoken to an adviser at Step Change who was really helpful and it's looking like bankruptcy is the way to go. Just a few more questions that have popped into my head:


    1. I'm going to remove my name from the account I hold jointly with my partner. All of my debts are paid from this account and my DLA (and salary for now - I'm going to hand my notice in) paid into it. I understand I can continue to use this account but will the OR want to see bank statements for it even when I'm removed?


    2. I have a PayPal account and am selling items on E-Bay to help with the financial situation mainly clothes. I have a lot more to sell for autumn/winter as there is no point listing them now. The current account I currently share with my partner is linked to it. Is the OR going to want to know about this and/or take any of the money I make from it? I'm not a business seller, just a regular Joe selling unwanted items.


    3. Can we use one of my partner's credit cards to pay the bankruptcy fees?


    Thank you.
  • FrankProp
    FrankProp Posts: 14 Forumite
    Hi
    Standard Letter
    We have been declared bankrupt ( voluntary bankruptcy) and the Bankruptcy Trustee is now sorting out the claims and the assets.
    I have several times told Birmingham Midshires that the Buy-t-Let is now part of the Bankruptcy estate but they still keep demanding arrears from me and threaten to put the BtL into LPA Receivership – even though I have told them that the property is now part of the Bankruptcy Estate.
    Is there a standard legal letter that I can use to tell them that they need to present their claim to the Bankruptcy Trustee? I couldn’t find one such on the MoneyAware/StepChange website.
    Would be grateful for comment. Thank you.
  • Former_StepChange_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    Hi,

    Quick question (hopefully).

    I was declared bankrupt in 2010, discharged in 2011 the house was repossessed in 2013 (whilst still with the Official receiver)

    My credit file shows a shortfall between the amount outstanding and the auction price, and a default date of approx 3 months ago.

    I'm trying to get my file cleared up but am worried this default will be with me for an additional 5 3/4 years. The bank has said that as they were secured (mortgage was being paid) from the date of bankruptcy until repossession that the default date is correct. Is this correct ? (I have got them to agree that the balance should be 0)

    Thanks

    Hi there, thanks for posting.

    It's likely that this was logged automatically on your credit file as a default notice. Please don't worry too much. You can ask to have your file corrected, or Experian can make amendments for you too.

    Hope this helps

    Best regards

    Rachel
    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_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    edited 8 August 2014 at 2:30PM
    Hi again,

    I've spoken to an adviser at Step Change who was really helpful and it's looking like bankruptcy is the way to go. Just a few more questions that have popped into my head:


    1. I'm going to remove my name from the account I hold jointly with my partner. All of my debts are paid from this account and my DLA (and salary for now - I'm going to hand my notice in) paid into it. I understand I can continue to use this account but will the OR want to see bank statements for it even when I'm removed?


    2. I have a PayPal account and am selling items on E-Bay to help with the financial situation mainly clothes. I have a lot more to sell for autumn/winter as there is no point listing them now. The current account I currently share with my partner is linked to it. Is the OR going to want to know about this and/or take any of the money I make from it? I'm not a business seller, just a regular Joe selling unwanted items.


    3. Can we use one of my partner's credit cards to pay the bankruptcy fees?


    Thank you.

    Hi there, thanks for posting

    1. The OR will very likely want to see records of this bank account as you've used it quite recently. ORs have to do some digging into your finances as part of a person's bankruptcy petition to make sure that they have all the necessary information to hand.

    2. Even if you're making a small amount from selling clothes on eBay, we strongly recommend that you make the Official Receiver aware. If this isn't mentioned and comes to light down the road, the OR could interpret it as concealment and this may lead to a tougher time during your bankruptcy.

    3. I would clarify this with the court, but I would err on the side of paying the fees with cash if possible. You can find more information on the GOV.UK website: https://www.gov.uk/bankruptcy/declare-bankruptcy

    Hope this helps

    Best regards

    Rachel
    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]

  • debtinfo
    debtinfo Posts: 7,012 Forumite
    FrankProp wrote: »
    Hi
    Standard Letter
    We have been declared bankrupt ( voluntary bankruptcy) and the Bankruptcy Trustee is now sorting out the claims and the assets.
    I have several times told Birmingham Midshires that the Buy-t-Let is now part of the Bankruptcy estate but they still keep demanding arrears from me and threaten to put the BtL into LPA Receivership – even though I have told them that the property is now part of the Bankruptcy Estate.
    Is there a standard legal letter that I can use to tell them that they need to present their claim to the Bankruptcy Trustee? I couldn’t find one such on the MoneyAware/StepChange website.
    Would be grateful for comment. Thank you.

    If it is a BTL mortgage then the lender does usually have a right to appoint an LPA receiver even if you are bankrupt
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • Hi , I'm looking for some advice
    I have 2 properties that I rent out while I live with my partner. The properties mortgages each month are more than the rental achieved , I top up the payments each month as I am treating it as my pension pot, rightly or wrongly.
    I have recently been put on short time hours at work and despite trying to get more work ,I am getting deeper into debt, my cards are now maxed out to the sum of 48k .
    The properties do not have any equity .
    I'm not sure of the best way forward? Some people say bankruptcy but I don't sit easy with that. I'm not trying to be a saviour but if I go bankrupt then the 6 people that currently live there will have to find somewhere else to live . Its my fault I've lived beyond my means and I want to resolve it , I just need some sound advice.
    The reason I have two properties is that in 2006 I had a small flat and remortgaged to put a deposit down on a new build flat ,planning to sell the old flat near the time of completion of the new build, however complications on the new build meant the build dragged on & on , the market stalled and I was in too deep to back out as I would lose my 30k deposit , I was advised to complete & in a few months when the market improved to sell my flat, at the time I could sustain two mortgages, however I lost my job & had no option but to rent out both flats & rent a room in a shared house, I then found work hundreds of meals away living on site. If I could sell the flats and clear the mortgages & estate agents fees & solicitors fees , then I would , but asking the local agents for valuations , the both flats are only just on the cusp of break even on the mortgage fronts, so I would have to find the selling fees. So I cannot see any sense in selling those as it would put me another 12k or so in debt ?
    Then I would still have the card debts.
  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
    Hi , I'm looking for some advice
    I have 2 properties that I rent out while I live with my partner. The properties mortgages each month are more than the rental achieved , I top up the payments each month as I am treating it as my pension pot, rightly or wrongly.
    I have recently been put on short time hours at work and despite trying to get more work ,I am getting deeper into debt, my cards are now maxed out to the sum of 48k .
    The properties do not have any equity .
    I'm not sure of the best way forward? Some people say bankruptcy but I don't sit easy with that. I'm not trying to be a saviour but if I go bankrupt then the 6 people that currently live there will have to find somewhere else to live . Its my fault I've lived beyond my means and I want to resolve it , I just need some sound advice.
    The reason I have two properties is that in 2006 I had a small flat and remortgaged to put a deposit down on a new build flat ,planning to sell the old flat near the time of completion of the new build, however complications on the new build meant the build dragged on & on , the market stalled and I was in too deep to back out as I would lose my 30k deposit , I was advised to complete & in a few months when the market improved to sell my flat, at the time I could sustain two mortgages, however I lost my job & had no option but to rent out both flats & rent a room in a shared house, I then found work hundreds of meals away living on site. If I could sell the flats and clear the mortgages & estate agents fees & solicitors fees , then I would , but asking the local agents for valuations , the both flats are only just on the cusp of break even on the mortgage fronts, so I would have to find the selling fees. So I cannot see any sense in selling those as it would put me another 12k or so in debt ?
    Then I would still have the card debts.

    Hi dannyboybath

    Thanks for getting in touch and welcome to the forum.

    From what you've mentioned it sounds like you might benefit from some practical debt advice on the best way forward. Bankruptcy is just one of many debt solutions and we can look at the whole financial situation and offer ways of dealing with your debts.

    We would first ask you to put together a budget that we'll use to offer tailored and specific advice once we've got a better understanding of your situation. As a charity our advice is free, confidential, impartial and always based on what's best for you.

    You can get help from us in two ways:

    Using our anonymous, free Debt Remedy tool which will guide you through the process of creating a budgeting. Once you've entered your figures we'll create a personal action plan and offer a debt solution.

    You can also speak to us over the phone if you prefer and details of how to contact us are available here.

    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]

  • I've been trying to deal with my debt for over 2 years now and feel like I'm never going to be debt free. I've been in touch with my local welfare rights to try and get some advise and tally up the full debt which comes in at an eye watering £62k. My husband lost his job 18 months ago and even tho his has applied for 100's of jobs he has been able to get anything work wise and is starting uni soon to retain for another profession. We have not been able to repay any of the debt since he lost his job due to me not earning enough in my job. Our income has been assessed and agreed that there is no spare money to repay anything. The welfare rights have wrote to my creditors explaining the situation, however the demands and letters/phone calls are never ending. I've been advised to pay my mortgage and only essential debts, which I've been doing. However I'm starting to think about sequestration (bankruptcy) to put an end to it as I can't see us being able to repay anything in the next few years.

    There's about 14k equity in my house, apart from that out car is on HP and we own nothing else. Spoke to the welfare rights about this and they don't think it's a good idea. But I don't really see any other way to stop everything.
  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
    Digby16 wrote: »
    I've been trying to deal with my debt for over 2 years now and feel like I'm never going to be debt free. I've been in touch with my local welfare rights to try and get some advise and tally up the full debt which comes in at an eye watering £62k. My husband lost his job 18 months ago and even tho his has applied for 100's of jobs he has been able to get anything work wise and is starting uni soon to retain for another profession. We have not been able to repay any of the debt since he lost his job due to me not earning enough in my job. Our income has been assessed and agreed that there is no spare money to repay anything. The welfare rights have wrote to my creditors explaining the situation, however the demands and letters/phone calls are never ending. I've been advised to pay my mortgage and only essential debts, which I've been doing. However I'm starting to think about sequestration (bankruptcy) to put an end to it as I can't see us being able to repay anything in the next few years.

    There's about 14k equity in my house, apart from that out car is on HP and we own nothing else. Spoke to the welfare rights about this and they don't think it's a good idea. But I don't really see any other way to stop everything.



    Hi Digby16,

    Thanks for getting in touch with us.

    I’m sorry to hear about the difficulties you’ve had. It sounds like it’s been a pretty tough time and the added pressure of debts can often make things worse.

    Sequestration (bankruptcy) is just one of the many debt solutions available to help you and your partner and we would be more than happy to offer our help and support.

    As a charity our advice is free, impartial and confidential and we can have a look at your whole situation and offer expert advice on the best way to deal with your debts.

    If bankruptcy is the best way forward then we’ll offer continued support through this and also advice on what to expect, how to do this and any other considerations and questions.

    We’ll also look at a range of other solutions too, with the aim of making sure we offer advice that’s right for you.

    To speak to us, visit the StepChange website for details on how to get in touch.

    If you’d prefer to get help with us online then you can also use our Debt Remedy tool which will offer the same expert and tailored advice. If you get stuck or have questions you can speak to us at any time.

    I hope this helps, we look forward to hearing from 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]

  • After struggling for a long time and due to ongoing health issues we have made the decision for my husband to go bankrupt. He owes around £65,000 and I owe around £20,000. We were on a dmp which we paid for around 3 years. But had to stop this 4.5 years ago when my husband became ill again. We then sold our house and cleared our mortage and secured debt. We have since then been renting and making token payment as our income and benefits only cover our basis living costs. But we think we could restart the dmp to repay my debts.

    I earn a wage and we receive housing benefit, child benefit, child tax credit and working tax credit.

    My husband has no income and is a stay at home husband. As he has no income would we need to provide proof of my income and as I pay all the bills would they need to see my bank statements. Due to husbands illness it has been easier and less stressful for him for me to deal with it all.

    The only assets he has is motorbike worth about £750 and we have a computer worth about £1000 but over 2 years old.

    Also is there any help we could get with the bankruptcy fee.

    Thank you for your help
    Willbedebtfree1day
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