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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 8,268Posts
    • 20,325Thanks
    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 Allen, Linsi, Kirsty Rachael or Richard 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 MSE Andrea; 14-12-2016 at 1:40 PM.

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Page 56
  • StepChange_Richard
    Hi,

    I'm not familiar with this scheme so I can't say for certain if it would affect a DRO application (although I very much doubt that it would). I would suggest contacting the Insolvency Service for a definitive answer.

    It's more likely that a DRO could affect the Credit Union arrangement however. I would suggest checking this with your council. As a DRO is a method of insolvency it may affect anything which has a clause about insolvency.

    Let us know if you need anything else.


    Richard.





    I am in the process of now applying for a DRO - I meet all of the criteria.
    However, I am concerned about one thing. My local council run rent deposit scheme guarantee for the landlord. In effect they guarantee to meet any claims for damages beyond wear and tear at the end of a tenancy directly to the landlord. One of the criteria they set out is that I set up a savings account with a referred to Credit Union Scheme of a sum of £20 to put by for when I move onto another flat.
    It is not a loan repayment but I have been informed that it is mandatory, however I have not signed anything and have moved into the property - I am due to see the Credit Union person next and 'sign' some documents. I am hesitant whether this will affect my DRO application and also whether this is an agreement I have to sign.
    Please help.
    Originally posted by portofcall
    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.
    • PJCBEL
    • By PJCBEL 1st Jun 17, 11:32 AM
    • 17 Posts
    • 1 Thanks
    PJCBEL
    I have lived at address with my wife for 8 years and have moved out 6 months ago, my name is not on the mortgage but I've been reading that as I had an interest in the property there is a chance it might be included in bankruptcy, is this correct. Currently there is £4000 equity in house?
    Thanks
    • dmcw
    • By dmcw 1st Jun 17, 1:06 PM
    • 11 Posts
    • 4 Thanks
    dmcw
    Hi

    I don't know if I can answer your questions but I can tell you what happened to myself. My husband moved out of our jointly owned property (mortgage and deeds joint) 12 months before his bankruptcy. As I had the children I was in possession of the jointly owned car. They go back five years on assets so wrote and asked me for half the value to put towards his bankruptcy.They put a restriction on the title deeds of the house until they were ready to deal with the property. At 2 years and 3 months they wrote and asked for a valuation of the property. From this figure they minused 3% for fees and the remaining figure was split into two (half mine and half husbands) and from husbands was the amount owed. As the amount totalled £900 they decided not to apply for a statutory charge on the property. I also filed for bankruptcy and went through the same process. If you ring the insolvency service enquiry line 0207 737 1110 they can give advice. Hope this helps.
  • StepChange_Richard
    Hi there,

    Thanks for you message and getting in touch.

    A beneficial interest is the share of the equity in a property which a person is entitled to. This is not the same as the ownership or ‘legal title’. Even if a person isn’t named on the mortgage, they may have a beneficial interest in a property.

    I can't say for certain if it would be deemed that you have a beneficial interest. Ultimately, this will be decided by the OR. It is worth bearing in mind the amount of equity though:

    If the person’s interest is worth less than £1,000, the OR will take no immediate action, but will look again at the case after 2 years and 3 months. If the person’s interest at that point is worth more than £1,000, the OR may seek to realise it.

    If the person's interest is worth £1,000 to £10,000, the OR may sell it to a willing purchaser (e.g. family member or partner). If no third party can buy out your interest straight away (usually within 3 months), the OR will look again at the case at 2 years and 3 months. If your interest at that point is worth more than £1,000, the OR may seek to realise it.

    If the person’s interest is worth more than £10,000, the OR will usually pass the case to an insolvency practitioner to recover this within a maximum of 3 years.

    Please also bare in mind that a decision does not need to be made straight away by the OR. They can wait up to 2 years and 3 months before deciding.

    I would suggest that you contact us so we can advise you on this in more detail. You can find our contact details here.

    I hope this helps.


    Richard.




    I have lived at address with my wife for 8 years and have moved out 6 months ago, my name is not on the mortgage but I've been reading that as I had an interest in the property there is a chance it might be included in bankruptcy, is this correct. Currently there is £4000 equity in house?
    Thanks
    Originally posted by PJCBEL
    Last edited by StepChange_Richard; 02-06-2017 at 9:43 AM.
    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.
    • PJCBEL
    • By PJCBEL 1st Jun 17, 7:30 PM
    • 17 Posts
    • 1 Thanks
    PJCBEL
    Thank you Richard I will
    • G8311374
    • By G8311374 8th Jun 17, 7:59 PM
    • 129 Posts
    • 32 Thanks
    G8311374
    Mental Illness and not managing money and spending addiction
    Hello

    my daughter is an Iraq veteran with mental and physical illness which ended her career. She goes through bouts of spending like no ones business usually when she is at her lowest but it helps her to pretend she is ok, she buys expensive gifts, replaces furniture and white goods that isnt old or broke and donates to charities using the online sponsorship sites.
    This month sees the anniversary of the most traumatic she had in Iraq and rather than dealing she is spending it's like she can't stop. I have been finding her purchases hidden around the house. when I ask her about them she either gets inconsolable or storms out the house.
    I know exactly what she has coming in and out every month so I know there is no way she can repay this latest round. I know that when she gets past this anniversary she will be mortified and won't remember doing a lot of it. I know that she has often got up in the night and bought stuff online and then doesn't remember ordering it. We return what we can but sometimes things can't be returned.
    I am worried for my daughter. I know she is worried too but other feelings are getting in the way of it. What should she do? Can she go bankrupt? Can I have something out on her credit file to deter would be lenders?

    Thanks
    • Gibbo81
    • By Gibbo81 8th Jun 17, 9:51 PM
    • 2 Posts
    • 1 Thanks
    Gibbo81
    Hi, I was declared bankrupt in July 2010, and I'm looking to obtain a mortgage after a offer as been accepted on a house. I was wondering if you could tell me which credit reference agency a company would use for a bankrupt person? I have done an Experian check and my credit rating is showing as excellent! There is no bad debt or any previous debt on it. Any advice would be great. Thank you
    • Gibbo81
    • By Gibbo81 8th Jun 17, 10:32 PM
    • 2 Posts
    • 1 Thanks
    Gibbo81
    I'm sorry for our daughters phlight, it's not nice at all. Does your daughter see a councillor? Of not maybe it might help, and also to see a financial advisor? Depending on how much your daughter owes I wouldn't overly recommend bankruptcy.
    • G8311374
    • By G8311374 8th Jun 17, 11:02 PM
    • 129 Posts
    • 32 Thanks
    G8311374
    It's in the thousands. I had a pm suggesting Debtors Annoymous who can help her deal with the spending and getting help with the debt. Local mental health teams have been absolutely no help at all.
  • StepChange_Richard
    Hi there

    Thanks for your message. I'm sorry to hear of the issues your daughter is going through. As the previous poster has suggested I would recommend speaking with a professional to help with her health and her GP would be a good start if she hasn't already done so.

    We can give advice on how she can deal with any debts she has. We'll need to see a budget for her to show her financial situaiton before we can make a recommenedation. There are two ways to do this with us. She can use our Debt Remedy tool on our website to build a budget in her own time or she can speak with an advisor who will help over the phone, contact details are here.

    Credit reference companies can help by adding notes to a person's file. Your daughter can write to each of the companies (Experian, Equifax, Call Credit) and request that they add a note to reject any future applicaitons for credit. Creditors will see this when they access her credit file when checking for suitability.

    If you feel it necessary, you could consider becoming a Deputy for her. You can read about this on the gov.uk website here. In this capacity you'll become responsible for making decisions about your daughters financial affairs. You can then notify the credit reference companies of this and they will make notes to consult you before any credit applicaitons are approved.

    I hope this helps.


    Richard





    Hello

    my daughter is an Iraq veteran with mental and physical illness which ended her career. She goes through bouts of spending like no ones business usually when she is at her lowest but it helps her to pretend she is ok, she buys expensive gifts, replaces furniture and white goods that isnt old or broke and donates to charities using the online sponsorship sites.
    This month sees the anniversary of the most traumatic she had in Iraq and rather than dealing she is spending it's like she can't stop. I have been finding her purchases hidden around the house. when I ask her about them she either gets inconsolable or storms out the house.
    I know exactly what she has coming in and out every month so I know there is no way she can repay this latest round. I know that when she gets past this anniversary she will be mortified and won't remember doing a lot of it. I know that she has often got up in the night and bought stuff online and then doesn't remember ordering it. We return what we can but sometimes things can't be returned.
    I am worried for my daughter. I know she is worried too but other feelings are getting in the way of it. What should she do? Can she go bankrupt? Can I have something out on her credit file to deter would be lenders?

    Thanks
    Originally posted by G8311374
    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_Richard
    Hi there,

    Thanks for the message and welcome to the forum.

    The notification of the bankruptcy should appear on all three of the agencies (Experian, Equifax, Call Credit) reports for six years. The notification is automatically removed after six years (dependant on restrictions). If you had no extended restrictions, given you were bankrupt in 2010 the notices should have been removed from all three reports by now.

    I hope this helps.


    Richard.



    Hi, I was declared bankrupt in July 2010, and I'm looking to obtain a mortgage after a offer as been accepted on a house. I was wondering if you could tell me which credit reference agency a company would use for a bankrupt person? I have done an Experian check and my credit rating is showing as excellent! There is no bad debt or any previous debt on it. Any advice would be great. Thank you
    Originally posted by Gibbo81
    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.
    • Taylomic
    • By Taylomic 12th Jun 17, 7:45 PM
    • 5 Posts
    • 0 Thanks
    Taylomic
    Hi I made myself bankrupt 27 march 17 and I have an IPA for a small amount each month. I have received a cheque for tax rebate today 12 June 17 and need to know if I will be allowed to keep it it is for the tax years 2005-2008 will the trustee know about this cheque I have received ?
    Thanks
    • Flyright
    • By Flyright 12th Jun 17, 8:10 PM
    • 297 Posts
    • 163 Thanks
    Flyright
    You are required to disclose this to the Official Receiver.
    • Taylomic
    • By Taylomic 12th Jun 17, 8:13 PM
    • 5 Posts
    • 0 Thanks
    Taylomic
    What would happen if I didn't disclose it
    • Flyright
    • By Flyright 12th Jun 17, 8:16 PM
    • 297 Posts
    • 163 Thanks
    Flyright
    That would be breaking the law. HMRC will eventually notify the Official Receiver in any case.
    Last edited by Flyright; 12-06-2017 at 8:20 PM.
    • Taylomic
    • By Taylomic 12th Jun 17, 8:19 PM
    • 5 Posts
    • 0 Thanks
    Taylomic
    As part of bankrupcy I had to sign a TNIDIS form so I thought any tax rebate I wasn't entitled to would be paid direct to the (OR) trustee and I thought that because the rebate was from so long ago that hopefully I could keep it
    • Flyright
    • By Flyright 12th Jun 17, 8:22 PM
    • 297 Posts
    • 163 Thanks
    Flyright
    I'm afraid not. It's likely that HMRC have not actioned the OR notification but you are legally bound by the requirement to inform the OR of the refund.
    Last edited by Flyright; 12-06-2017 at 8:28 PM.
    • Taylomic
    • By Taylomic 12th Jun 17, 8:26 PM
    • 5 Posts
    • 0 Thanks
    Taylomic
    Thanks I did think that myself that maybe the OR hasn't been informed yet I was planning on informing them but just wanted to know if I could possibly plead a case to keep at least some of the refund before I told them I searched on the internet and some information is conflicting thank you for your input anyway 😀
    • Taylomic
    • By Taylomic 12th Jun 17, 8:59 PM
    • 5 Posts
    • 0 Thanks
    Taylomic
    I read this that's what led me to believe I might be able to keep the refund can anyone interpret it in simple terms for me


    3. Tax refunds - bankruptcy

    Tax refunds may be payable to a bankrupt for periods both before and after the making of the bankruptcy order. Refunds due for tax years prior to the date of the bankruptcy order and for the tax year in which the bankruptcy order was made can be claimed using the bankrupt’s duly completed Income Tax and National Insurance disclosure authority form TNIDIS. Any refund in respect of tax years after the tax year in which the bankruptcy order was made may be claimed by means of an income payments agreement/income payments order (IPA/IPO) where the bankrupt remains undischarged. The IPA/IPO application should clearly state what is being claimed. It must also be borne in mind that an IPA can only be entered into prior to the discharge of the bankruptcy and therefore the bankrupt must agree to and the official receiver must accept the IPA prior to discharge. Where the bankrupt does not consent to the IPA or there is insufficient time to obtain an IPA prior to discharge the official receiver has the option of applying for an IPO, since an IPO may be made on an application instituted before the date of discharge (OROS Bulletin2/05).
    • Flyright
    • By Flyright 12th Jun 17, 10:25 PM
    • 297 Posts
    • 163 Thanks
    Flyright
    Your refund relates to tax years prior to the bankruptcy order and is an asset in your bankruptcy estate. It just so happens it was generated before HMRC processed the TNIDIS form. Nontheless it belongs to the OR and you are required to disclose it.
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