Ask a CCCS counsellor a bankruptcy question

breezerockz

CCCS_Sarah wrote: »

Hello,

Thank you for your message.

It’s unlikely that a creditor would make you bankrupt if you have no assets as they would have nothing to gain. If you were on benefits, these would not be stopped if you went bankrupt.

I would recommend that you have an appointment with the CCCS and then we can help you complete a detailed budget and look at your options. If bankruptcy is your best option then we will discuss the process with you and let you know your next steps.

If you would like an appointment, please call 0800 138 1111.
Sarah

HI
Thanks for reply.

I know benefits wouldnt be stopped. i was worried if i'd have to make payments when bankrupt. and really dont have spare from benefits. its hard enough living on what i do get. although i am grateful to receive any money.

Bankruptcy is my only option unfortunately.
Thanks for phone number.

CCCS_Sarah

breezerockz wrote: »

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HI
Thanks for reply.

I know benefits wouldnt be stopped. i was worried if i'd have to make payments when bankrupt. and really dont have spare from benefits. its hard enough living on what i do get. although i am grateful to receive any money.

Bankruptcy is my only option unfortunately.
Thanks for phone number.

If you only have enough income to cover your priority costs then you wouldn’t be expected to pay an income payment arrangement. When you apply for bankruptcy, complete a form called an EX160 this is an exemption form so you will not have to pay the court costs. You would then just pay an up front fee of £450.

Sarah

NittyGritty

dont you mean £450 up front costs, the EX160 only exempts you from the £150, the court costs of 450 are payable no matter what, unless its changed now

CCCS_Sarah

NittyGritty wrote: »

dont you mean £450 up front costs, the EX160 only exempts you from the £150, the court costs of 450 are payable no matter what, unless its changed now

Yip, sorry my fault - nearly home time

breezerockz

thanks. now to try and find the £450.

philnicandamy

breezerockz wrote: »

thanks. now to try and find the £450.

might be a few ideas here?....

https://forums.moneysavingexpert.com/discussion/1056083

philnicandamy

one thing to bear in mind as well....if your claiming the reduction in court fees you need an up to date proof of benefits letter from the jobcentre, IF you are enttled then as others say its just the £450 left...BUT some courts charge an oath swearing fee (around £7 or so) ring the court and check if you need this extra

Umbertide

In Sept 2008 our business ceased trading. It has been a fairly successful Limited Company (turnover £4m per year) but was massively hit by the downturn and the company overdraft stood at 35,000 on the day we informed the bank and our 40 staff. Also we had two credit cards with a total of about 10,000 on them. My wife and I (both directors and shareholders) had a joint personal guarantee to the bank for debts of up to 72k through the Ltd Co.

After a year of hearing nothing, we were approached by Indian guy working our of Mumbai for HSBC asking for repayment of £48.950. He was OK, at the time we had nothing to pay him back with so sent him income and expenditure numbers, also told him we were considering bankruptcy and we have been speaking with CCCS as well.

On taking bankruptcy advice we were told by our accountants, that because the PG was joint then both myself and my wife would need to go bankrupt and we would lose our home. There isnt enough equity in it any more (380k mortgage on 425k valuation) This wasn't a very attractive option! We have two children (9 and 7) so wanted to avoid the disruption as much as we could.

Recently we have been approached by Apex who have taken the debt on. We already are speaking to them about another 7k debt and have had interest and payments frozen. Apex are contacting me only, not my wife about the 49k debt. In fact all of our debts are in my name not hers.

So my question is this, now that Apex are chasing me, is it an option for me to go bankrupt having transferred my interest in our house to my wife?

Or if that happens are they likely to go after repayment from her once I get declared bankrupt? In terms of income I have set up another business but the money I am making from this is OK as the business grows but still just enough to keep our noses above water and we aren't really paying many of our debts back. I am also building up a personal tax liability I am starting to really worry about. Its also a limited company that I understand will need to close if I opt for personal bankruptcy.

What are my options? I could really use some helpful advice. We're in a right mess!

CCCS_Sarah

Umbertide wrote: »

In Sept 2008 our business ceased trading. It has been a fairly successful Limited Company (turnover £4m per year) but was massively hit by the downturn and the company overdraft stood at 35,000 on the day we informed the bank and our 40 staff. Also we had two credit cards with a total of about 10,000 on them. My wife and I (both directors and shareholders) had a joint personal guarantee to the bank for debts of up to 72k through the Ltd Co.

After a year of hearing nothing, we were approached by Indian guy working our of Mumbai for HSBC asking for repayment of £48.950. He was OK, at the time we had nothing to pay him back with so sent him income and expenditure numbers, also told him we were considering bankruptcy and we have been speaking with CCCS as well.

On taking bankruptcy advice we were told by our accountants, that because the PG was joint then both myself and my wife would need to go bankrupt and we would lose our home. There isnt enough equity in it any more (380k mortgage on 425k valuation) This wasn't a very attractive option! We have two children (9 and 7) so wanted to avoid the disruption as much as we could.

Recently we have been approached by Apex who have taken the debt on. We already are speaking to them about another 7k debt and have had interest and payments frozen. Apex are contacting me only, not my wife about the 49k debt. In fact all of our debts are in my name not hers.

So my question is this, now that Apex are chasing me, is it an option for me to go bankrupt having transferred my interest in our house to my wife?

Or if that happens are they likely to go after repayment from her once I get declared bankrupt? In terms of income I have set up another business but the money I am making from this is OK as the business grows but still just enough to keep our noses above water and we aren't really paying many of our debts back. I am also building up a personal tax liability I am starting to really worry about. Its also a limited company that I understand will need to close if I opt for personal bankruptcy.

What are my options? I could really use some helpful advice. We're in a right mess!

Hello,

Thank you for your email.

I would recommend that you have another appointment so we can review your situation. As there is some equity in the house, there maybe other options available such as an IVA or selling and looking at full and finals.

The problem with transferring the house to your wife’s name is the Official Receiver may class this as a “transaction at an undervalue” plus if the debts are joint it would mean your wife is liable for the full amount so would not really solve the household problem.

If you would like an appointment, please call 0800 138 1111.

Sarah

ellieharry

advice needed last year my wife & i were declared bankrupt, we came off the bankruptcy this april. i will keep it short & sweet, our property was reposessed and we moved out on the 1st may 2009. we have just had a letter from our council telling us that we have to pay council tax on the home that we had reposessed. i have been into the council offices and they have told me until the property was sold which was only 3 weeks ago we are liable for the council tax on this property. they will give me 6 months which i don't have to pay for. has anyone else had this problem or any advice that may help us.