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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 8,695Posts
    • 20,975Thanks
    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 57
  • StepChange_Linsi
    Hi

    Thanks for your post and welcome to the forum.

    I've responded to the private message you sent us about your tax rebate. If you have any other questions you can reply to the private massage or use the forum.

    All the best,

    Linsi

    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
    Originally posted by Taylomic
    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.
    • portofcall
    • By portofcall 13th Jun 17, 7:42 PM
    • 53 Posts
    • 4 Thanks
    portofcall
    I was informed by my intermediary (not Stepchange) that this exclusion (below) includes damages to my ex-landlords flat which he has made a demand for money for and could not be included on a DRO.

    However, this exclusion clearly states that this in relation to damages relating top personal injury claims, not property.

    Please confirm this. Thanks.


    46.22 Excluded debts – damages

    Where the DRO application is made on or after 6 April 2010, any debt which consists of a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages under Part 1 of the Consumer Protection Act 1987 (which deals with product liability) – being in either case damages in respect of the death or personal injury (including any disease or other impairment of physical or mental condition) to any person is an excluded debt. [note 25].
  • StepChange_Rachael
    Hi

    Thanks for your post.

    I’ve taken a look into this for you and as we are aware damages to personal injury wouldn’t be included but damages to property wouldn’t come under this exclusion and would be included in a debt relief order (DRO).

    To confirm this debt would have been included in your DRO and for advice on the next steps i’d suggest speaking with the Insolvency Service.

    Thanks
    Rachael



    I was informed by my intermediary (not Stepchange) that this exclusion (below) includes damages to my ex-landlords flat which he has made a demand for money for and could not be included on a DRO.

    However, this exclusion clearly states that this in relation to damages relating top personal injury claims, not property.

    Please confirm this. Thanks.


    46.22 Excluded debts – damages

    Where the DRO application is made on or after 6 April 2010, any debt which consists of a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages under Part 1 of the Consumer Protection Act 1987 (which deals with product liability) – being in either case damages in respect of the death or personal injury (including any disease or other impairment of physical or mental condition) to any person is an excluded debt. [note 25].
    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.
    • mamakerr
    • By mamakerr 22nd Jun 17, 10:36 AM
    • 2 Posts
    • 0 Thanks
    mamakerr
    Post Bankruptcy Advice
    Hello, thanks to this forum my husband was guided through his bankruptcy - so first of all thank you to you all.

    He was bankrupted in February 2012 and we need to know what to do now.... so here are a few questions:

    1. Do we need to get confirmation of his discharge?
    2. How do we clean up our credit scores? He obtained a credit card to help do this and uses it very wisely and pays up on time - they have increased his credit limit so they must be happy

    Any advice would be most helpful. Many thanks.
  • StepChange_Kirsty
    Hi,

    Thanks for your post. It’s good to hear the forum has been a good source of help and support for your husband.

    Has your husband now been discharged from his bankruptcy? On the assumption he was automatically discharged after 12 months, the record of his bankruptcy should already have been removed from the Individual Insolvency Register. This is a public register and you can check that it has been removed here.

    Unless your husband has been subject to a bankruptcy undertaking or order, the bankruptcy notice will be automatically removed from his credit file after 6 years from the date of entry. As all defaults should be registered before the date of the bankruptcy order, this means the bankruptcy and records of any debts would all disappear after the six years. From there your husband can look to improve his credit score and this article on the main MSE site provides some very useful information.

    You don’t necessarily need to obtain a certificate of discharge but if required, say by a future employer or mortgage lender you would need to contact the County Court when the bankruptcy was petitioned. The cost for a certificate is £70 plus £10 for each additional copy so you might only want to get this if specifically needed.

    All the best.

    Kirsty


    Hello, thanks to this forum my husband was guided through his bankruptcy - so first of all thank you to you all.

    He was bankrupted in February 2012 and we need to know what to do now.... so here are a few questions:

    1. Do we need to get confirmation of his discharge?
    2. How do we clean up our credit scores? He obtained a credit card to help do this and uses it very wisely and pays up on time - they have increased his credit limit so they must be happy

    Any advice would be most helpful. Many thanks.
    Originally posted by mamakerr
    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.
    • richieduke
    • By richieduke 23rd Jun 17, 3:23 AM
    • 5 Posts
    • 0 Thanks
    richieduke
    I am considering Bankruptcy
    I have accrued unsecured debts (credit card/overdraft and loan) of around £32,000 owed to 4 different lenders (Barclays, MBNA, Nationwide and Zopa). I have just completed a fixed term contract and presently I am out of work and my first set of missed payments (defaults) will be due by next week.

    I don't have any money to payback the debt and even when I had a job I found it difficult to meet up the payments (although I've never defaulted). I have not claimed benefits as each week the prospects of getting a job looks brighter although I am no longer solvent. I live in a Council flat and have no assets apart from a 2005 Nisan Murano.

    I have 2 current accounts with Barclays, one of them is a basic account. Will I be allowed to keep the basic account post-bankruptcy or do I need to open another basic current account for DD in preparation for my Bankruptcy?

    How long will the Bankruptcy process take?

    Does the OR consider the family size (for eg, family of 5) and increased spending/expenses listed as part of the SOA approval? (For instance, I am paying mobile phone bills for 3 dependants at a cost of £18 per month per person). The normal cost of hairdressing for my 2 daughters (is around £25-£30 per month per child-African hair).

    Assuming I get a job during the application process will I have to make payments to the OR as part of my Bankruptcy (IPA)?

    What happens when the job ends during the payment period will I still get discharged after 12 months?

    What support is there to help with the £680 fee, it is delaying my application? ( I am considering Go Fund Me as an option)

    I am in my early 50's with 3 children and on the verge of going through a divorce (my missus isn't very understanding of my situation-as she's asking me to pack out); and I need a fresh start.

    Thanks for the advice.
    Last edited by richieduke; 23-06-2017 at 1:47 PM.
  • StepChange_Linsi
    Good morning

    Thanks for your post and welcome to the forum.

    I’m sorry to hear you’ve been finding it difficult to meet the payments to your debts.

    Some basic bank accounts are available to undischarged bankrupts. These types of accounts will be frozen briefly (around two days) if you go bankrupt while the OR conducts their initial investigations. After this the account will be unfrozen and you’ll be able to continue using it.

    Barclay’s basic current account is suitable for undischarged bankrupts so if this is the type of account you have, you shouldn’t need to open a new one. You can always check with your bank if you’re unsure.

    You can find more information about the bankruptcy process and time frames involved on the gov.uk website. You’ll usually get an email or letter within 28 days of submitting your application to say if you’ve been made bankrupt. Bankruptcy usually lasts for 12 months and then you’re discharged.

    The OR will take into consideration the number of children you have when looking at your living costs. The OR will use their own guidelines called the Household Expenditure Survey (HES), which is available on the gov.uk website.

    An IPA usually lasts for 36 months and will be set up if you have any surplus income. The OR may not set up an IPA straight away, but it must be set up before you’re discharged.

    If you started working then you’d need to tell the OR and an IPA may be set up. If your job then ended you’d still be discharged but the monthly payment may be reduced or stopped depending on your situation.

    There may be trust funds/grants you can apply to for help covering the bankruptcy fees. The Turn2Us website has grants search tool you can use.

    I hope this helps.

    Linsi

    I have accrued unsecured debts (credit card/overdraft and loan) of around £32,000 owed to 4 different lenders (Barclays, MBNA, Nationwide and Zopa). I have just completed a fixed term contract and presently I am out of work and my first set of missed payments (defaults) will be due by next week.

    I don't have any money to payback the debt and even when I had a job I found it difficult to meet up the payments (although I've never defaulted). I have not claimed benefits as each week the prospects of getting a job looks brighter although I am no longer solvent. I live in a Council flat and have no assets apart from a 2005 Nisan Murano.

    I have 2 current accounts with Barclays, one of them is a basic account. Will I be allowed to keep the basic account post-bankruptcy or do I need to open another basic current account for DD in preparation for my Bankruptcy?

    How long will the Bankruptcy process take?

    Does the OR consider the family size (for eg, family of 5) and increased spending/expenses listed as part of the SOA approval? (For instance, I am paying mobile phone bills for 3 dependants at a cost of £18 per month per person). The normal cost of hairdressing for my 2 daughters (is around £25-£30 per month per child-African hair).

    Assuming I get a job during the application process will I have to make payments to the OR as part of my Bankruptcy (IPA)?

    What happens when the job ends during the payment period will I still get discharged after 12 months?

    What support is there to help with the £680 fee, it is delaying my application? ( I am considering Go Fund Me as an option)

    I am in my early 50's with 3 children and on the verge of going through a divorce (my missus isn't very understanding of my situation-as she's asking me to pack out); and I need a fresh start.

    Thanks for the advice.
    Originally posted by richieduke
    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.
    • KJ2886
    • By KJ2886 28th Jun 17, 6:19 PM
    • 35 Posts
    • 6 Thanks
    KJ2886
    Im about to submit my bankruptcy application within the next week
    I have a halifax reward current account with no overdraft, asking in branch they said that would be frozen (know all accounts are frozen to start with) and they dont do accounts for bankrupt, is that right? ive only had the account less than 12 months and idealy wanted to keep that account (set it up as originally wanted to go down the DMP route)

    Also I have a CCJ and currently at enforcement stage, Ive had the CCJ Stayed until 6th July where I was going to get it set aside as got a court date, but now Im nearer bankruptcy now, have I messed things up by getting a court date etc to defend now Im more decided on the bankruptcy?

    Also once I submit, how long does it all get processed from there?
    Once I submit will that end enforcement action?

    Sorry for all the questions
  • StepChange_Kirsty
    Hi there,

    Thanks for your post.

    As you correctly pointed out, once you enter Bankruptcy all bank accounts will be temporarily frozen to allow time for the Official Receiver to investigate your account. It’s then up to the bank whether they will decide to close the account permanently.

    With a current account it is likely that Halifax would either close this account or downgrade it to a basic account. As far as we’re aware, Halifax do have a basic account which is available if you’re an undischarged bank account so if you want to stay with Halifax it would be worth asking if you can downgrade. Alternatively most high street banks do provide basic accounts which you can open before or during Bankruptcy. You just need to make sure you use a bank which you do not currently have any credit with.

    Once your application is submitted the adjudicator has 28 days to review the application which can be extended by 14 days if they need further information. They will usually review the application much sooner than this.

    In terms of the county court judgment (CCJ), I would highly recommend you give us a call so we can discuss this further. It will depend on what type of debt it is and what type of enforcement has been taken as to how it will be dealt with. You can find our contact details here.

    We hope to hear from you soon.

    Kirsty

    Im about to submit my bankruptcy application within the next week
    I have a halifax reward current account with no overdraft, asking in branch they said that would be frozen (know all accounts are frozen to start with) and they dont do accounts for bankrupt, is that right? ive only had the account less than 12 months and idealy wanted to keep that account (set it up as originally wanted to go down the DMP route)

    Also I have a CCJ and currently at enforcement stage, Ive had the CCJ Stayed until 6th July where I was going to get it set aside as got a court date, but now Im nearer bankruptcy now, have I messed things up by getting a court date etc to defend now Im more decided on the bankruptcy?

    Also once I submit, how long does it all get processed from there?
    Once I submit will that end enforcement action?

    Sorry for all the questions
    Originally posted by KJ2886
    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.
    • KJ2886
    • By KJ2886 29th Jun 17, 7:24 PM
    • 35 Posts
    • 6 Thanks
    KJ2886
    Thank you, When bank accounts are frozen, what happens to direct debits and cheques which havent cleared yet?

    The CCJ has been transfered to the high court and I had a notice of enforcement the other week and 2 visits from the sheriffs office so far. I applied with a N244 to Stay and Set aside as i thoght that was my best option at the time, ive been granted a stay until 6th july when its due to be heard at my local county court.
    Have i messed things up by going for a set aside and now changing my mind to end up with bankruptcy?

    Just wondered if submitting a bankruptcy application will stop enforcement, or will it still be enforcable until maybe upto 28 days until the ajudicatior has reviewed my application....
    I always thought when people on here have submitted before they usually get their application approved and phone call within days usually?

    Thanks again!
  • StepChange_Kirsty
    Hi,

    Thanks for your reply.

    When the bank accounts are frozen direct debits would not be honoured and it won’t be possible to make payments into the account whether by cash or cheque. For this reason it would be best to make sure you have a basic account that you can keep once you’re in Bankruptcy as it can go back to normal once unfrozen.

    When you say sheriff’s office, is it a High Court Enforcement agent who has visited you? The process you’ve described is the process in England and Wales but sheriff’s officers are part of the Scotland enforcement process. You haven’t messed up by applying to set aside the judgment if you feel that the debt is not owed, however I do still feel it would be best for you to call us so we can discuss this with you in further detail. Here are our contact details.

    Debts are enforceable until the Bankruptcy application is approved. We are seeing that the adjudicator responds very quickly and as you say this can often be within a couple of days but they do have 28 days to respond.

    I hope this helps.

    Kirsty

    Thank you, When bank accounts are frozen, what happens to direct debits and cheques which havent cleared yet?

    The CCJ has been transfered to the high court and I had a notice of enforcement the other week and 2 visits from the sheriffs office so far. I applied with a N244 to Stay and Set aside as i thoght that was my best option at the time, ive been granted a stay until 6th july when its due to be heard at my local county court.
    Have i messed things up by going for a set aside and now changing my mind to end up with bankruptcy?

    Just wondered if submitting a bankruptcy application will stop enforcement, or will it still be enforcable until maybe upto 28 days until the ajudicatior has reviewed my application....
    I always thought when people on here have submitted before they usually get their application approved and phone call within days usually?

    Thanks again!
    Originally posted by KJ2886
    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.
    • portofcall
    • By portofcall 9th Jul 17, 1:29 PM
    • 53 Posts
    • 4 Thanks
    portofcall
    I was just on the cusp of submitting for an DRO application when I received an increase in my ESA - They have started paying my Severe Disability Premium which is an increase of 63 pounds a week.
    Please tell me if this affects my application for a DRO and should I still go ahead with the submission?
  • StepChange_Allen
    I was just on the cusp of submitting for an DRO application when I received an increase in my ESA - They have started paying my Severe Disability Premium which is an increase of 63 pounds a week.
    Please tell me if this affects my application for a DRO and should I still go ahead with the submission?
    Originally posted by portofcall
    Hi there

    Thanks for posting.

    The criteria for being eligible for a DRO are strict from the point of view of how your overall income and expenditure looks. As you now have a lot more income I'd expect there's a very good chance that you no longer fit the necessary criteria and that other debt solutions may now be available instead.

    However, I can't be completely certain, so I'd advise to contact the intermediary (organisation) that's dealing with your DRO application and explain the change to your income and they can advise you.

    I hope this is helpful.

    Allen
    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.
    • DC10
    • By DC10 11th Jul 17, 2:00 PM
    • 1 Posts
    • 0 Thanks
    DC10
    Advice concerning personal and limited company debt
    Hello. Hoping somebody can give me some advice.

    I've accumulated a lot of debt, almost all on credit cards (I have a car loan also that's almost paid off). I have never missed a payment and have always paid the amount in full or more.

    My balances have increased as I took a year off due to being unwell that resulted in me being hospitalised for a week with depression and unfortunately a mental heath disorder which I am not being treated for, and medication for ADHD. It almost resulted in me taking my own life.

    I was given medication and felt okay-ish for most of last year but I struggled and my depression became worse resulting in me having to leave my job.

    I've avoided having to claim benefits of any sort, have used my credit and finances to support me, partly due to the stigma and embarrassment and partly because I find it too upsetting to discuss with a stranger. My home situation is mostly staying with friends - alternating every few months. I am in essence homeless and have no assets, such as a car or home.

    My debt repayments monthly are now teetering over the £1000 mark and next month is going to be a struggle and thereafter I will have nothing. I am applying for work with nothing forthcoming and given my line of work, it's unlikely I will be able to return to it, given the nature and stress.

    I have a tax bill due for my limited company that I know I cannot pay in September. My debts are in total £46,000 and I know I need to do something. My problem is one day I can be fine and the next I'm on a different planet ignoring the problem. Nobody has any idea what a financial mess I am in, I know they will be shocked beyond belief - but friends and family are aware of my poor heath in the past and are supportive of that.

    Can somebody advise me what the best course of action would be given I have a limited company and huge personal debts with no assets and no real prospects of a job that will cover them. I've almost given up on my career, which means an income over £40,000. Would appreciate advice.

    Thank you.
    Last edited by DC10; 11-07-2017 at 2:03 PM.
  • StepChange_Kirsty
    Hi,

    Thanks for your post and welcome to the forum.

    I’m sorry to hear about the difficulties you’ve been experiencing and I can certainly appreciate dealing with debt on top of this can make the situation feel much worse.

    First of all your health is definitely the priority here and if you haven’t already I would recommend speaking to your GP about all of the difficulties you’re experiencing. I understand you’re on some medication at the moment but you’re not currently being treated for everything.

    If you don’t feel you can speak to your GP right now but would like to be able to talk to someone I would highly recommend giving the Samaritans a call. You can find their details here. They offer 24/7 confidential and non-judgemental support.

    I understand your reluctance in claiming benefits but there is no stigma in applying. Benefits are designed to help people through difficult situations; it doesn’t need to be permanent but could help you for now. If you don’t feel confident to speak to someone about this at the moment you could use the Turn 2 us website where you can complete an online calculator to check your entitlement.

    In terms of your debts, given that they relate to a limited company which is still active, I would recommend speaking to Business Debtline. Like us at StepChange they provide free, confidential and impartial advice but they specialise in business debts primarily. They can also give you advice regarding personal debts.

    I hope this helps, if you would like to speak to us further at StepChange please do not hesitate to contact us for further help and advice.

    All the best

    Kirsty

    Hello. Hoping somebody can give me some advice.

    I've accumulated a lot of debt, almost all on credit cards (I have a car loan also that's almost paid off). I have never missed a payment and have always paid the amount in full or more.

    My balances have increased as I took a year off due to being unwell that resulted in me being hospitalised for a week with depression and unfortunately a mental heath disorder which I am not being treated for, and medication for ADHD. It almost resulted in me taking my own life.

    I was given medication and felt okay-ish for most of last year but I struggled and my depression became worse resulting in me having to leave my job.

    I've avoided having to claim benefits of any sort, have used my credit and finances to support me, partly due to the stigma and embarrassment and partly because I find it too upsetting to discuss with a stranger. My home situation is mostly staying with friends - alternating every few months. I am in essence homeless and have no assets, such as a car or home.

    My debt repayments monthly are now teetering over the £1000 mark and next month is going to be a struggle and thereafter I will have nothing. I am applying for work with nothing forthcoming and given my line of work, it's unlikely I will be able to return to it, given the nature and stress.

    I have a tax bill due for my limited company that I know I cannot pay in September. My debts are in total £46,000 and I know I need to do something. My problem is one day I can be fine and the next I'm on a different planet ignoring the problem. Nobody has any idea what a financial mess I am in, I know they will be shocked beyond belief - but friends and family are aware of my poor heath in the past and are supportive of that.

    Can somebody advise me what the best course of action would be given I have a limited company and huge personal debts with no assets and no real prospects of a job that will cover them. I've almost given up on my career, which means an income over £40,000. Would appreciate advice.

    Thank you.
    Originally posted by DC10
    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.
    • Bellassz1
    • By Bellassz1 12th Jul 17, 11:32 AM
    • 8 Posts
    • 42 Thanks
    Bellassz1
    Hi,

    I live with my husband and the mortgage for the house is in his name only, not joint names (he bought it before we were together.)

    I'm currently facing possible redundancy, and due to the debts I have - this may mean I'm faced with bankruptcy.

    If I do go bankrupt - how will this affect my husband's mortgage and our house?

    Trying to get my head around possibilities and prepare myself before I find out the news.

    Thanks very much for your help

    Zoe
  • StepChange_Richard
    Hi Zoe,

    Thanks for your message and getting in touch.

    So in this situation the property could be affected if an OR believes that you have a beneficial interest in the property. A beneficial interest is seen as an asset in bankruptcy. If you have an asset and declare yourself bankrupt you are usually expected to relsease (sell) the asset.

    Although you do not have a legal interest (you are not on the mortgage) you may have a beneficial interest. A beneficial interest relates is the money you would be entitled to if the property was sold without needing a legal agreement in place (mortgage).

    Working this out is complicated and to give you a definite answer on whether you do or don't have a beneficial interest would require expert advice from someone involved in trust law. If you were to call and get some advice with us or any other free organisation we should be able to give you an indication as to whether we believe you may or may not have an interest. Ultimately though, the decision will lie with the OR if you decide to go for bankruptcy.

    Other factors are important in this situation though. The amount of equity in the property will be a determining factor to see if the property would be affected. If you had a beneficial interest this would only affect the property if there is equity to be released. If there is no equity, there is nothing to be released.

    The more important thing to be sure about is whether bankruptcy is the right step for you to take. If you haven't had advice on your financial situaiton already I would encourage you to go through the advice process with us. Calling would be best if you can so we can discuss your situaiton. You can use our online Debt Remedy tool if you prefer though.

    I hope this helps.


    Richard.







    Hi,

    I live with my husband and the mortgage for the house is in his name only, not joint names (he bought it before we were together.)

    I'm currently facing possible redundancy, and due to the debts I have - this may mean I'm faced with bankruptcy.

    If I do go bankrupt - how will this affect my husband's mortgage and our house?

    Trying to get my head around possibilities and prepare myself before I find out the news.

    Thanks very much for your help

    Zoe
    Originally posted by Bellassz1
    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.
    • dmcw
    • By dmcw 13th Jul 17, 11:12 AM
    • 14 Posts
    • 6 Thanks
    dmcw
    Hi Zoe

    Also, the OR will go back five years for any other joint assets such as joint vehicles etc and will look to secure the bankrupts share of these assets. Please do get all the advice you can as this affects your credit worthiness for the next six years. Hope this helps with your decision. I had
    joint debts and had filed for divorce when my husband declared bankruptcy and then I felt my hand was forced into bankruptcy. Most of the debts disappeared but the uncertainty of losing my home escalated and caused myself a lot of ill health. Please seek all the advice you need before making your decision. Step change are extremely helpful if you give them a call.
    • ll1979
    • By ll1979 19th Jul 17, 3:38 PM
    • 1 Posts
    • 0 Thanks
    ll1979
    Hi there,

    I am looking for some advice. I was sequestrated in March of this year and I have to be honest, I've really struggled financially since then. We pay a family member for looking after our children but my daughter is moving on to school and my son is going to a registered child minder. I had a look at the tax credits calculator and it looks like we might be eligible for quite a lot of our childcare costs to be covered. This would be a huge relief to us as the fee will go up from what we are paying our family member and I wasn't sure how I was going to manage to pay for it. My worry is that I am paying £140 a month to my sequestration and I have to inform them of any financial changes to my circumstances. I'm worried that they might up my payments. Over the last few months I have paid out a small fortune on school clothes, clothes for the kids, car repairs. I've had to borrow from my family and I've run out of money before pay day every month. I don't go out a lot and most of my money that is left over after bills is spent on shopping.


    I just worry that they are going to take this extra money away when we really need it. I did not foresee some of the expenses that have come up before I completed the budget for the sequestration. I'm also worried that if I approach them about how much I am struggling that they will try to take my home as my partner has not paid the £500 fee to keep that safe yet although that will be paid as a priority once we get confirmation that they are happy for this to go ahead.


    Thanks


    LL - Scotland
  • StepChange_Rachael
    Hi

    Welcome to the forum and thanks for posting.

    I’m sorry to hear that you feel you’re struggling since the sequestration was put in place. A debt solution is supposed to help you become debt free but in a way that means you’re able to keep on top of your regular household bills and general living costs.

    Any changes to your situation should be discussed with the Accountant in Bankruptcy (AIB) and amendments can be made to the current agreement. What your budget needs to show is that you’re able to maintain your household bills and general living costs so that a payment into sequestration should be realistic and affordable, also taking into account unexpected expenses.

    It’s important that any agreement made in the sequestration is maintained and if you feel this will be a struggle then contact the AIB to discuss it.

    I know it may be daunting to contact them but it’s more likely that the solution may fail if you’re struggling. The AIB will be aware that changes may happen during the term of the sequestration and the budget can be tweaked to reflect these changes.

    I’m not sure what agreement you have in place with the AIB in terms of the house, but if the £500 payment will protect the house then it’s really important that you stick within the terms of the sequestration or contact the AIB to discuss the option of an alternate agreement.

    Take care
    Rachael




    Hi there,

    I am looking for some advice. I was sequestrated in March of this year and I have to be honest, I've really struggled financially since then. We pay a family member for looking after our children but my daughter is moving on to school and my son is going to a registered child minder. I had a look at the tax credits calculator and it looks like we might be eligible for quite a lot of our childcare costs to be covered. This would be a huge relief to us as the fee will go up from what we are paying our family member and I wasn't sure how I was going to manage to pay for it. My worry is that I am paying £140 a month to my sequestration and I have to inform them of any financial changes to my circumstances. I'm worried that they might up my payments. Over the last few months I have paid out a small fortune on school clothes, clothes for the kids, car repairs. I've had to borrow from my family and I've run out of money before pay day every month. I don't go out a lot and most of my money that is left over after bills is spent on shopping.


    I just worry that they are going to take this extra money away when we really need it. I did not foresee some of the expenses that have come up before I completed the budget for the sequestration. I'm also worried that if I approach them about how much I am struggling that they will try to take my home as my partner has not paid the £500 fee to keep that safe yet although that will be paid as a priority once we get confirmation that they are happy for this to go ahead.


    Thanks


    LL - Scotland
    Originally posted by ll1979
    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.
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