Ask a CCCS counsellor a bankruptcy question

afewmorehurdles

Hello. I am hoping to phone the court asap to make my BR date. i just have a couple of last minute questions.
I am very worried i about a ipa/ipo. i have heard that is unlikely that they will make an order if most of income is benefits, i recieve full housing benefit, council tax credit and my main income is tax credits. my surplus is roughly £25 per month but i am worried i will not be allowed some things i have included, such as presents and holiday.

my next main concern is that i am self employed and at present have about £700 in my business account. i know that this will be closed and frozen temporarily but i am concerned that this money will be taken. i have to buy materials etc for my work and will be unable to continue if i do not have this resource. if this is the case would it not be batter that i use this money to pay my fees? rather than borrow from a family member?

my other concern is whether the OR will force me to end my self employment as at present i am only just scraping an income from it. i would be forced onto jobseekers allowance or income support as i am a single parent living in the country, holiday childcare is non exisitant so i am limited to work within schools (like every other single mom!). i am seeking work like this but no luck so far.
thankyou!

CCCS_Sarah

afewmorehurdles wrote: »

Hello. I am hoping to phone the court asap to make my BR date. i just have a couple of last minute questions.
I am very worried i about a ipa/ipo. i have heard that is unlikely that they will make an order if most of income is benefits, i recieve full housing benefit, council tax credit and my main income is tax credits. my surplus is roughly £25 per month but i am worried i will not be allowed some things i have included, such as presents and holiday.

my next main concern is that i am self employed and at present have about £700 in my business account. i know that this will be closed and frozen temporarily but i am concerned that this money will be taken. i have to buy materials etc for my work and will be unable to continue if i do not have this resource. if this is the case would it not be batter that i use this money to pay my fees? rather than borrow from a family member?

my other concern is whether the OR will force me to end my self employment as at present i am only just scraping an income from it. i would be forced onto jobseekers allowance or income support as i am a single parent living in the country, holiday childcare is non exisitant so i am limited to work within schools (like every other single mom!). i am seeking work like this but no luck so far.
thankyou!

Hello,

We have answered this one in the private messages for you, let me know if you have any other questions.

Sarah

LibbyLoo

We are facing involuntary br-sequestration. there is no equity in our property so as i understand it, it is unlikely to be sold to pay our debt. However i found this info on the ScotDebt website and am concerned by the implications (and also don't reallyunderstand how it works) can you please offer any clarification?

What happens to my assets after I am discharged? Assets which exist as at date of sequestration, or come into your ownership and remain unsold for whatever reason by the time you receive your discharge, are not returned to you but remain the property of your trustee. This includes your house or your share of it if it is owned jointly. Only assets acquired after your discharge belong to you.

CCCS_Sarah

LibbyLoo wrote: »

We are facing involuntary br-sequestration. there is no equity in our property so as i understand it, it is unlikely to be sold to pay our debt. However i found this info on the ScotDebt website and am concerned by the implications (and also don't reallyunderstand how it works) can you please offer any clarification?

What happens to my assets after I am discharged? Assets which exist as at date of sequestration, or come into your ownership and remain unsold for whatever reason by the time you receive your discharge, are not returned to you but remain the property of your trustee. This includes your house or your share of it if it is owned jointly. Only assets acquired after your discharge belong to you.

Hiya,

Just checked this with my colleague in Scotland and this is her response.

Regards
Sarah

If indeed there is no equity in your property then your trustee will seek a nominal payment from a third party usually £500. However, if there is any equity you must contact your trustee for further clarification.

robbond55

Hello I'm due to delare myself bankrupt at court on Monday (17th May) but I have just received a letter from the tribunal service with a date of an appeal against a housing benefit overpayment.
The housing overpayment is £566 relating to a HB office error and I have included this amount on my bankruptcy petition. I can include the overpayment as it relates to a previous year and a different local authority.
With the tribunal happening so soon after declaring BR what would be the best course of action for me?
Any help would be appreciated
regards
Rob

DevonLass

Hi,

I am looking for advice. Hopefully this is the best place to start.

I was discharged from bankruptcy in 1999. Since then I moved on with my life, had a mortgage with an ex, then we separated and the house was sold. I completed a university course but couldn’t get a student account so ended up in lots of debt again as had to live on working like a trojan and using credit cards. I then got cancer so couldn’t work, so the debts escalated again. My current situation is am cancer free, working, but £21K in debt, not behind on any payments, but the debt figure is increasing slowly, as I have to use credit to buy food or other essentials often.

So here I am in 2010 looking to improve my situation for the long term. Is a DMP available to a discharged bankrupt? I seem to remember that a second bankruptcy would leave me undischarged forever. On a positive note, I am very organised, with spreadsheets (each line highlighted as payments go out of my account with a accumulative balance total) showing me that if my job and income stay the same, and I spend nothing else on credit, I should be debt free by 2017 (7 years). I have looked at Pay Plan and CCCS and the debt free estimation from them is 4 years. I appreciate that this estimation is with the interest being stopped and that is why the different end dates.

I am concerned that there are ramifications because I am a discharged bankrupt. I am also concerned about my job. I need to buy drinks/lunches and claim back as part of my job, and not having a card would make that difficult, especially if I didn’t have any available cash because the plan left things so tight. Is the best plan to withdraw a fund to use as a float now, before I start a DMP?

I understand that a DMP has future credit implications. I seem to have a very low credit rating anyway as have tried several times over the last few years to get a consolidation loan in the past and have been refused. So I have no imminent opportunities to protect and probably wouldn’t until my debts were all clear anyway, but I am in my early 40’s and have thought about buying a house when I am debt free. This is probably a pipedream but it’s important to have a dream! I have mostly rented all my life and had to move address more than 20 times all together! It would just be nice to have a base. Which brings me to my final point. I currently rent from a private landlord. He has said that he may sell the house in a year or so. In my pre-thinking-about-dmp-budget, I had budgeted for savings to build up house moving costs and rental deposit for one years time as without those savings to prepare for it, I would be in a very difficult situation. How would this situation fit into the DMP scenario?

Any advice would be gratefully received,

DevonLass

jovirock29

i need some advise- i parted from my husband nealry 2 years ago, we are still married but both have moved on and have new partners, i still have my name on the morgage even though he still lives there and i do not, he has said he may have to go bankrupt, and my question is what happens to the house? morgage? as my name is on the morgage and they wont give him or myself the morgage on our own, what will happen to the house and the morgage, the house is in negative equity also,will my credit rating be affected? please help as im worried this will effect me, i have 2 boys and recieve no maintaince from my ex either

guccigoo

hi my husband has decided to go bankrupt after receiving advice, my question is he has a loan with lloydstsb for £22,000 thats before interest is added and also banks with them so the payment on the loan comes out 2 days after he gets paid. He needs to save the fees for the BR so ive told him to stop paying and change bank account, was i right to advise him on this? As he banks with them he will be unable to stop them taking the money out for the loan.

guccigoo

also would my child maintanance and CB be taken into account even though this gets paid into my account and would my husband need to put this down on his SOA?

rainbowj63

apologies i have spoken to CCCS with regard to a DRO but as i have well been unwell recently due to relationships breakdown i have let things slip a bit and feel overwhelmed as i am seem to always be getting different letters from different debt collection companies and cannot keep track of who own which debt so am having problems getting up to date paperwork together to send to CCCS. I did get my credit report but it is now a couple of months old. Does this matter or do i have to get a new one to send. I wrote to all my creditors telling them i was seeking a DRO via CCCS and it seems that prompted them all selling my debts on further confusing me.

I dont know what to expect next throught thedoor, I had a letter from Phillipps saying they were bailiffs and debt collectors for the overpayment of Housing Benefit (not my fault and not entirely correct as i was due a lot of it) now panicking as i have no money to pay them of and terrified they will come in and take my stuff.

I am already dealing with Chandlers as the council would not accept my payment for the arrears of council tax also stuffed up because of the HB stuff so am paying them off i had to give them what food money i had left till next week, well they are collecting it tomorrow at half nine after i have finished night shift. I have to pay the costs 25.00 then they will allow me to make a deal with their office to pay monthly have to say the bailiff was really nice on the phone the one from Chandlers but when i called Phillipps it was a different story i said i was unable to pay anything until the 25th when i get paid and they said that i had to ring them then but it was up to the agent if they visited my house to seize goods in the interim. They wanted 100 downpayment which i have nt got i have nothing till the 25th. Can they come in and seize goods for HB overpayment, I dont think they have a liability order I know chandlers had one for the Council Tax.

Can anyone help with how i 1,. proceed with the DRO and 2. how i deal with Phillipps as i find it all very daunting. I am very upset and cross with myself for burying my head in the sand again just cant seem to get back on an even keel.
any advice welcome
thanks in advance
desperate here