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Question about Bankruptcy, benefits & Council Housing.
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# 1
Old 26-10-2006, 3:54 AM
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Join Date: Mar 2006
Posts: 188
Default Question about Bankruptcy, benefits & Council Housing.

I'll make this quick, at the moment I've sent proposals to my 5 creditors for token payments while I get back on my feet, my worry is one in particular, will not accept, Barclays, who I owe 20k on a sole trader business overdraft.

I think they will refuse my offer and go for bankrupcy, TBH I don't care what they do to me, they'll save me the 450 but my concern is at the moment we don't claim housing or CT benefit and me and the Mrs have a joint assured tennacy with the council (we don't claim because we can pay the rent and CT ok - my debts are from a bad business deal 3 years ago and they've finally caught up with me due to recession).

If I am declared bankrupt, what will happen with the tenancy?
Will it be affected by the Bankrupcy? will we get kicked out? (It doesn't say anything in the agreement about it)
If I am bankrupt, can we claim housing and council tax benefit - or is that my wife's entitlement?

At the moment, all we get is working tax credit and my income from self-employment, which ironically is enough to live, but not enough to satisfy the payments to the creditors (1x bank, 4 x cc).

These are my biggest concerns, we have a 3 year old son and the last thing I want is my mistake costing him his home.
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# 2
Old 26-10-2006, 4:58 AM
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Join Date: May 2006
Posts: 1,355

I was in the same palce you are . I had a ltd company and heath probs wich where working against each other. I went to the councill and asked them I would sugesst you do the same ., in case the rules have changed .In my case though we kept the house and where able to count the h/benfit aginst the bankcruptttcy. They cant harm you for thinking about it can they ?? if they say no at least you know where you are . or theres always the cab
devizes18193 is online now
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# 3
Old 26-10-2006, 8:10 AM
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my oh is bankrupt and we got housing benefit this year when oh was off sick for two weeks
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# 4
Old 26-10-2006, 10:49 AM
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Join Date: Mar 2006
Posts: 188

Thanks, I'll ring the Council when I find out if Barclays are going to be nice or nasty.

To their credit, they have been quiet nice up to now (apart from the termination notice of course), they said they wanted a proposal in 5 days which wasn't practical, so I asked for 14 and they gave me 28 which was nice.

Now I have to deal with HBoS, smallest creditor by far, and the one causing the most trouble.
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