Ask a CCCS counsellor a bankruptcy question

CCCS_Amanda

robbond55 wrote: »

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

Hi Rob,

Sorry that we did not answer your query prior to you making your Bankruptcy application.

I would advise talking to the Official Receiver about this as you could still be liable for this amount.

Regards,
Amanda

CCCS_Amanda

DevonLass wrote: »

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

Hi Devonlass,

If you were to pursue Bankruptcy a second time the court may extend the amount of time that you spend in Bankruptcy through a Bankruptcy Restriction Order. It would not be forever but could last up to 15 years.

If you are on a DMP all of your credit facilities have to be included on a DMP. The only exception is a credit card that is in an individual’s name, but cleared in full monthly with payments from a company via expenses.

We do not normally allow for savings without a specific purpose and they have to be absolutely necessary. It is very difficult to get agreement from creditors if savings is included on a budget.

I would recommend that you give us a call on our helpline and book an appointment to speak to a counsellor about your concerns. The helpline number is 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process.

Regards,
Amanda

CCCS_Amanda

jovirock29 wrote: »

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

Hi jovirock29,

As your house has negative equity you would be probably be given a couple of choices (at the Official Receivers discretion).

One, you may be given the chance to buy your husbands ‘Beneficial Interest’ in the property. Beneficial Interest is your interest in the proceeds of sale of the property. It is different from the legal title to the property, which is held by the owners. This is usually sold for £1 plus costs.

Two, you may have to hand the keys back to the mortgage company. This usually happens if the house is unaffordable, or you could find alternate accommodation for significantly less money in your area.

As far as credit rating goes, if you have a financial link (ie. joint account, mortgage, etc) his bankruptcy could show on your file. I have attached a booklet that will give you information on credit files and the information that they hold.

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

I hope that this helps.

Regards,
Amanda

CCCS_Amanda

guccigoo wrote: »

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.

Hi guccigoo,

We usually recommend changing bank accounts if you are struggling financially, especially if your bank will continue taking payments for a loan. As you have said, this will give him an opportunity to save up for his bankruptcy fee.

When he does go bankrupt, his new account may be frozen. He should make sure that he goes bankrupt when he has little money in the account and is not due to have income go into it. It may make sense to have his wage paid into your account for a month or so, so that you are not inconvenienced by this. If shopping around for a basic bank account, you could choose a bank that will allow you to bank with them if you are an undischarged bankrupt. I have attached a bank account list to help you choose.

http://www.moneymadeclear.org.uk/pdfs/bank_accounts_table.pdf

I hope that this helps.

Regards,
Amanda

LibbyLoo

CCCS_Sarah wrote: »

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.

HI, sorry I feel like a bit of an idiot but I don't really understand what that means, does it mean a third party can buy our house for a token payment|?

NittyGritty

hi, i,m thinking of going bankrupt, i just have a few questions, i,ve been living with my mother for quite a number of years, shes bought the house in 1991, my first question is if i go bankrupt will my mothers house be touched in anyway shape or form, and also what if any assets in the home will they take away from me, i mean will it just me my things like a pc not worth much as its about 4 years old, will any furniture, appliances, like tvs, fridges etc be taken out of my mothers house that wasnt bought by me? stressfull time for me at the moment

fermi

NittyGritty wrote: »

hi, i,m thinking of going bankrupt, i just have a few questions, i,ve been living with my mother for quite a number of years, shes bought the house in 1991, my first question is if i go bankrupt will my mothers house be touched in anyway shape or form, and also what if any assets in the home will they take away from me, i mean will it just me my things like a pc not worth much as its about 4 years old, will any furniture, appliances, like tvs, fridges etc be taken out of my mothers house that wasnt bought by me? stressfull time for me at the moment

Unless you have paid something significant into the property (e.g. mortgage, major repairs/upkeep etc), then the OR/trustee could not possibly touch the property.

If things in the house are not yours, then they can't be claimed. If they are yours, then furniture, appliances etc are 'exempt property' and so also cannot be claimed by the OR.

Other items (PC, TV etc...) that you might own should only be declared on the bankruptcy forms as 'assets' if they have a significant value at auction. Typically over £1,000.

So unless you have a brand new plasma screen TV, or a brand new ridiculously high spec computer, then you don't even list them on your forms, let alone worry about the OR claiming them.

guccigoo

my husband has decided to go BR but the thing is he brings home a different wage each month. He wants to try and avoid an IPA but to do this he will have to ask his work if his overtime can be paid as extra holiday instead of extra income. As part of his job he cannot get out of doing extra hours. If he done this would the O R allow this? thankyou

unluckyinmoney

Hello, i am new to this and a first time poster so not sure if i am doing this correctly. I have added SOA hopefully filled in correctly.

Some questions to ask.

All debts in my name apart from one loan in my partners name, he is paying this loan but is does come out of a joint account, how does this stand in Bankrupcy?

I have taken advice from CCCS what would happen with his loan and the joint account which is overdrawn by £2000.00 when it is only myself applying for bankrupcy?

We have 2 cars both of which are registered in my partners name and have always been. i pay both car insurances/tax/cost from my account as i am main wage earner, can i continue to do this if i were to go bankrupt?

My partner has his own business which with hard times at the moment hes not making enough profit apart from the money to pay the loan previously mentioned and company costs.. If i go Bankrupt would the OR thinks it was strange that he doesn't pay towards household costs?

I am so confused and really struggling to get my head round everything, i would so appreciate any help.

Thank You




Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 800
Partners monthly income after tax....... 0
Benefits................................ 1028.98
Other income............................ 0
Total monthly income.................... 1828.98
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 348.16
Management charge (leasehold property).. 0
Council tax............................. 76.39
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 33.61
Telephone (land line)................... 0
Mobile phone............................ 15
TV Licence.............................. 12.18
Satellite/Cable TV...................... 18
Internet Services....................... 42
Groceries etc. ......................... 600
Clothing................................ 90
Petrol/diesel........................... 150
Road tax................................ 27.5
Car Insurance........................... 54.23
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 21
Buildings insurance..................... 0
Contents insurance...................... 21.37
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 25
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 30
Total monthly expenses.................. 1774.44

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly.. .APR
TSB LOAN.......................14626.....339.3.....0
MBNA CREDIT CARD...............2639......60........0
TSB CREDIT CARD................2556......60........0
FAMILY.........................3000......10....... .0
ADDITIONS CATALOGUE............533.29....20........0
TSB OVERDRAFT .................1000......0.........0
BARCLAYS CC....................1817......40.89.....0
MARKS AND SPENCERS CC..........1525.94...38.14.....0
Total unsecured debts..........27697.23..568.33....-

Monthly Budget Summary
Total monthly income.................... 1,828.98
Expenses (including HP & secured debts). 1,774.44
Available for debt repayments........... 54.54
Monthly UNsecured debt repayments....... 568.33
Amount short for making debt repayments. -513.79
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -27,697.23
Net Assets.............................. -27,697.23
Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using IE browser

CCCS_Sue

rainbowj63 wrote: »

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

Hi Rainbowj63

Thank you for your message.

I would recommend that you call us as soon as possible for another appointment to speak to a counsellor.
We need to update your budget and look at your options again to see if you are still eligible for the DRO. We would need up to date copies of statements and you may need another recent copy of your credit file.
With regard to the bailiff, you should have received a document titled ‘warrant of execution’ and then a county court bailiff can visit you.
Other types of private bailiff or high court enforcement officer may visit for unpaid magistrates’ court fines, council tax arrears or high court enforcement. Their powers are different to county court bailiffs and their charges are higher.
A bailiff has the power to take goods from your property and will then sell them at auction to pay off your debt.
You should not let the bailiff in.A bailiff cannot break into your property unless you have already allowed them in or they entered through an unlocked door or window, on a previous visit. This is called ‘walk in possession’. Once the bailiff has ‘walk in possession’ they can use force to enter again in future.
If a bailiff enters your property, they will not take any goods on the first visit. They will usually make a list of items in your house which they can take in future.
Your counsellor will explain in more detail how to deal with the bailiff and help you to put together a budget.
To make an appointment, the free phone number is 0800 138 1111. Lines are open Monday to Friday, 08.00 to 20.00.

Regards
Sue