Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 7,841Posts
    • 19,653Thanks
    MSE Andrea
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question
    • #1
    • 5th Nov 12, 5:58 PM
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question 5th Nov 12 at 5:58 PM
    StepChange Debt Charity (formerly CCCS) has several counsellors answering questions in our forum.

    There are three ways to contact them:

    1 - To ask them a question please post it below and James, Mat or Rachel will post a reply here.

    2 - If you would prefer to ask a question in private you can send a private message to StepChange Private Messages and one of the counsellors will get back to you.

    3 – StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an advisor through online chat.

    This thread continues from the previous Ask a counsellor a question thread one
    Last edited by Former MSE Wendy; 12-11-2012 at 12:57 PM.

    Follow MSE on other Social Media:
    MSE Facebook, MSE Twitter, MSE Deals Facebook, MSE Deals Twitter, Forum Twitter, Instagram, Pinterest
    Join the MSE Forum
    Get the Free Martin's Money Tips E-mail
    Report inappropriate posts: click the report button
    Point out a rate/product change
    Flag a news story: news@moneysavingexpert.com
Page 48
  • StepChange_Rachael
    Hi

    Thanks for your post.

    I know of that type of mortgage and as part of it is an unsecured debt itís my understanding that itíd be included in your Bankruptcy and the mortgage company wouldnít be able to collect for the debt.

    As youíve mentioned during your Bankruptcy you received inheritance which went to the Official Receiver (OR) and would have formed part of the Bankruptcy. This is also something to bear in mind as Iíd assume some of this debt would have been paid in to it.

    As the terms are agreed with the OR and without knowing the details of the Bankruptcy I wouldnít be able to advise accurately.

    Iíd suggest contacting the OR as theyíll be able to tell you exactly what the terms of the Bankruptcy are and how to proceed with the mortgage company.

    You could also contact the Insolvency Service whoíll be able to give you further advice on the terms of insolvency.

    Thanks
    Rachael


    Hi there,

    I went BR back in 2009 and was discharged in September 2010. I bought my house in 2005.

    I had an unsecured loan that was part of my mortgage. The legal department of my mortgage company has just written to me asking that I resume payments on that loan.

    I kept my house, when I went bankrupt, because of the recession (negative equity), instead, the OR has put a 10k charge on the house for when I sell it in the future.

    The total bankruptcy was 60k, that included the OR fees, which were 10k in themselves. Most of it I repaid through an inheritance I received during my bankruptcy that went directly to the OR. What wasn't repaid this way was put on the house as the charge.

    The house was paid for by a combined product which was common in the mid naughties (2005 in my case). It was split into two parts. Most of it was a normal repayment mortgage, but about 15k was an unsecured loan. It amounted to about 105% of the house price (extra used for some fixing up and appliances).

    The letter I just got from my mortgage company is from their litigation department and refers to the unsecured loan part of the debt.

    When I went bankrupt, I continued paying my mortgage and this loan. But after a couple of years I was advised that I did not need to repay the loan as it would have been automatically included in my BR. So I stopped paying this part of the debt in 2011, 20 months after my bankruptcy. The mortgage company didn't chase then.

    I don't understand why, after six years they are trying to get me to repay this loan from before my bankruptcy? They have worded it very politely, like it is just an overdue payment, not something they haven't even been chasing for years and years and is crazily overdue!

    What should I do? Write to them telling them to speak to the OR?

    Thanks for any help you can give.
    Originally posted by SivEd
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • wayneunique
    • By wayneunique 19th Sep 16, 10:03 AM
    • 86 Posts
    • 29 Thanks
    wayneunique
    Good morning,

    I'm in the process of deciding whether an IVA or Bankruptcy is best for me. I've got just over £25,000 of debt and after paying everything out (bills, travel etc), I will have about £100 free per month towards any payment.

    Regarding Bankruptcy and assets - I don't really have any, apart from say a blu-ray player and LCD TV (not that expensive). My wife has a car, which is in her name and that she has a loan for, so I gather that my wife's car is not an asset for me.

    Today I'm going to go through my finances etc with a Stepchange IVA adviser but part of me feels Bankruptcy might be the best option.

    Many thanks.
    Remember, an Aardvark is not just for Christmas....
    • Teddyuk85
    • By Teddyuk85 19th Sep 16, 11:22 AM
    • 21 Posts
    • 2 Thanks
    Teddyuk85
    Hi everyone,

    I could really really do with some advice as I am constantly thinking about this.

    I have gotten myself into a right mess financially from being stupid over the years.

    I have the following debts

    Loan that ends next year with £3800 outstanding

    Loan with £12500 outstanding for another 4 years

    Credit card with a balance of £9500

    Credit card with £2700 on it

    Credit card with £1900 on it

    My car which has 1 years finance left on it £120

    And finally I pay my mum £320 a month for £11000 she lent me.

    My payments equate to over £1300 a month.

    With my line of work I get a bonus some months, however when I don't, my wage does not over my outgoings (including rent, bills etc) and o rely on money that my partner gives me to cover half the household bills. However if I get paid my basic salary that leave me with £50 a week to live off, for food, petrol etc etc.

    I am on a good salary, just short of 30k a year and my partner works part time but takes on extra hours where possible.

    I really don't know what to do.

    I am registered diabetic, and I am worried they will tell me I can't have the gym membership (£20 a month) or take my car away which I rely on for work. My car is worth less than £2000 but would they take it away with a years left on the finance?

    Also the £320 I pay my mum each month for the loan she gave me will that be considered?

    Am I able to declare bankruptcy and still pay my mum, and for my car.

    Also I was wondering what amount they would consider to leave me with to live on after being accepted for bankruptcy? What is the norm? As I'm on a good wage I don't know how it would work?

    Would you consider my case as a BR case?

    I would appreciate any help were possible. Part of me thinks wait a year until one of my loans is clear and my car is paid as it frees me up £400 a month but it's really a struggle at the moment that I cannot have any sort of quality of life on the money I am left with.

    Plus it worries me my health will be affected being diabetic?

    Any advice is appreciated
  • StepChange_Rachael
    Good morning and thanks for posting,

    Itís always a good idea to research all options available to you so you know exactly how a debt solution will affect you and your partner.

    For some people one solution will be the best option and for others another option would benefit them more. It comes down to a personís individual situation.

    In any form of insolvency assets that are the person going insolvent would be taken into account but not assets of family members even if they reside in the same property. So under the circumstances your wifeís car is unlikely to be affected.

    Iíd suggest discussing both options with us further before making a decision.

    Youíve mentioned speaking with the IVA department yesterday but you can also discuss Bankruptcy with a StepChange debt advisor before deciding.

    You can find our contact details here and weíll be able to get you through to an advisor to discuss both options further.

    Thanks
    Rachael



    Good morning,

    I'm in the process of deciding whether an IVA or Bankruptcy is best for me. I've got just over £25,000 of debt and after paying everything out (bills, travel etc), I will have about £100 free per month towards any payment.

    Regarding Bankruptcy and assets - I don't really have any, apart from say a blu-ray player and LCD TV (not that expensive). My wife has a car, which is in her name and that she has a loan for, so I gather that my wife's car is not an asset for me.

    Today I'm going to go through my finances etc with a Stepchange IVA adviser but part of me feels Bankruptcy might be the best option.

    Many thanks.
    Originally posted by wayneunique
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Rachael
    Hi

    Thanks for your post.

    Iím sorry to hear youíre struggling with debt at the moment as youíve mentioned itís clearly affecting your ability to cover your living costs on a regular basis.

    There are many different solutions available for people struggling with debt and itís important to take your full situation into account before making a decision.

    Itís likely there are options that youíre not aware of. Iíd suggest getting some accurate debt advice for your situation.

    If you follow this link you can complete our Debt Remedy tool. Once youíve completed Debt Remedy youíll be able to access your personal action plan which details our advice and recommendations and how to take the next steps with any debt solutions weíve recommended.

    Debt Remedy is anonymous and you can also get in touch with us if you have questions whilst completing it.

    You can access our Debt Remedy tool here.

    Thanks
    Rachael



    Hi everyone,

    I could really really do with some advice as I am constantly thinking about this.

    I have gotten myself into a right mess financially from being stupid over the years.

    I have the following debts

    Loan that ends next year with £3800 outstanding

    Loan with £12500 outstanding for another 4 years

    Credit card with a balance of £9500

    Credit card with £2700 on it

    Credit card with £1900 on it

    My car which has 1 years finance left on it £120

    And finally I pay my mum £320 a month for £11000 she lent me.

    My payments equate to over £1300 a month.

    With my line of work I get a bonus some months, however when I don't, my wage does not over my outgoings (including rent, bills etc) and o rely on money that my partner gives me to cover half the household bills. However if I get paid my basic salary that leave me with £50 a week to live off, for food, petrol etc etc.

    I am on a good salary, just short of 30k a year and my partner works part time but takes on extra hours where possible.

    I really don't know what to do.

    I am registered diabetic, and I am worried they will tell me I can't have the gym membership (£20 a month) or take my car away which I rely on for work. My car is worth less than £2000 but would they take it away with a years left on the finance?

    Also the £320 I pay my mum each month for the loan she gave me will that be considered?

    Am I able to declare bankruptcy and still pay my mum, and for my car.

    Also I was wondering what amount they would consider to leave me with to live on after being accepted for bankruptcy? What is the norm? As I'm on a good wage I don't know how it would work?

    Would you consider my case as a BR case?

    I would appreciate any help were possible. Part of me thinks wait a year until one of my loans is clear and my car is paid as it frees me up £400 a month but it's really a struggle at the moment that I cannot have any sort of quality of life on the money I am left with.

    Plus it worries me my health will be affected being diabetic?

    Any advice is appreciated
    Originally posted by Teddyuk85
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • Piggywinkle
    • By Piggywinkle 22nd Sep 16, 10:33 AM
    • 36 Posts
    • 17 Thanks
    Piggywinkle
    Hi,


    I'm on the verge of submitting my BR form online (paid up). However, my salary gets paid directly into my husband's account as that's where our DDs all come from.


    I have provided estimated breakdowns on my income and expenditure but will this be enough? If the OR wishes to see my bank account, they will only see the £75 per week standing order my husband transfers back to me for grocery shopping.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    Itís worth providing the Official Receiver (OR) with as much information as possible regarding your finances.

    Itís likely the OR will want to see details of your finances once youíve applied for Bankruptcy and your bank account is normally frozen for a short period of time for the OR to view your finances.

    Itís possible the OR will ask to see details of your partnerís finances if youíre living together to make sure you both pay a fair share of the household expenditure. So it could be worth sending either a pay slip or your employment contract stating what your full income is and a note to explain it goes into your partners bank account as this is where the Direct Debits are set up.

    I hope this helps.

    Rachael


    Hi,


    I'm on the verge of submitting my BR form online (paid up). However, my salary gets paid directly into my husband's account as that's where our DDs all come from.


    I have provided estimated breakdowns on my income and expenditure but will this be enough? If the OR wishes to see my bank account, they will only see the £75 per week standing order my husband transfers back to me for grocery shopping.
    Originally posted by Piggywinkle
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • Olieng
    • By Olieng 23rd Sep 16, 9:20 AM
    • 1 Posts
    • 0 Thanks
    Olieng
    Hi,
    Wondering if you can help.

    I voluntarily became bankrupt in July 2012.
    I have recently looked on Noddle credit score site and saw that there are 2 debts that are showing in default with a red mark on them every month since the BR.
    One was my bank/current account at the time, I have been to the bank and they referred me to the relevant dept and that has been sorted out.
    The other however is to British Gas, it was on my residential property and is not a huge amount of money.
    Question is, I just cannot manage to get the name of the relevant dept. to send proof that the BR is discharged. I have tried all their debt and payment telephone numbers and emailed their customer services dept, who referred me back to one of the phone numbers that I have spent 30+ minutes on.
    Can you help as I am going in circles?

    Thanks in advance.
    • Piggywinkle
    • By Piggywinkle 23rd Sep 16, 9:54 AM
    • 36 Posts
    • 17 Thanks
    Piggywinkle
    Hi

    Thanks for posting.

    Itís worth providing the Official Receiver (OR) with as much information as possible regarding your finances.

    Itís likely the OR will want to see details of your finances once youíve applied for Bankruptcy and your bank account is normally frozen for a short period of time for the OR to view your finances.

    Itís possible the OR will ask to see details of your partnerís finances if youíre living together to make sure you both pay a fair share of the household expenditure. So it could be worth sending either a pay slip or your employment contract stating what your full income is and a note to explain it goes into your partners bank account as this is where the Direct Debits are set up.

    I hope this helps.

    Rachael
    Originally posted by StepChange_Rachael
    My husband is unwilling to share his financial details with the OR. He had told me how much he earns per month so I could put the total into the income and expenses bit on the form,but I know he will refuse to cooperate with the OR if they want to see his bank account details or his wage slips.
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

118Posts Today

1,422Users online

Martin's Twitter
  • If you know you're bust you must declare it asap. So no firm ever says "yes we plan to go insolvent". So you never? https://t.co/w8aIKOqHzq

  • Some people misreading... it's NOT the rumours of insolvency of the Monarchy! Its Monarch airlines (again tho I've no idea of its validity)

  • Also re #monarchinsolvency rumours it's important to state Monarch are firmly denying it... https://t.co/N27MENRjY9

  • Follow Martin