Ask a CCCS counsellor a bankruptcy question

spacealiens

blind-as-a-bat wrote: »

Hope that helps a bit

Many thanks for your prompt reply and advice, i've just phoned the bank and have an appointment for thursday to try and work out a minimum payment plan for the time being

CCCS_Sarah

toni_halls wrote: »

Hi

Myself and OH are on the brink of going bankrupt. My OH has been made redundant 4 times in the last 5 months and have now signed on to jobseekers for the time being. He has at least £9k plus the mortgage (98k remaining) of debt in his name, I on the other hand have £300 o/d and the mortgage. The question is, do we both have to go bankrupt or just the OH? If both do we go jointly, seperately and do we have to pay seperate fee's???

Also do you think we would lose the house as I have an income of only £280 a month and would not be able to keep up the repayments and they're is no equity.

Thanks
Toni

Hello,

If you both went bankrupt you would have to pay the fees individually. The full amount would be £510, this broken down as £150 court fee and £360 for the official receiver costs. As your husband is on benefits he will be exempt for the £150 fee and would need to complete a form called an EX160A as well as the bankruptcy forms.

As blind as a bat has mentioned, houses are a grey area as the ultimate decision would be the official receivers, so you may benefit from having a quick chat with them beforehand. As general rule if there is no equity in the house a third party could buy any beneficial interest. If you went down this route the value of the beneficial interest would be £1 plus £211 fees.

If you would like the CCCS to take a look at your budget you could call 0800 138 1111, if bankruptcy is an option for you, we could also refer you through to our bankruptcy support department.

Sarah

CCCS_Sarah

elfieb wrote: »

I am currently at the end of my tether regarding applying for a DRO.

NDL have my completed application form , and I was told yesterday that I would be having an interview with my intermediary today, only to have just been told by NDL, that I wont be having my interview today, and they dont know when!!!!!

I am extremely anxious regarding my application for a DRO as alot of my debts have been formed due to gambling, and as I understand, a creditor can appeal for a DRO to be revoked for this reason. Could you please advise as to whether you find this statement to be true?
There is no point applying for a DRO, if one of my creditors can appeal, and therefore my order revoked. Is it the case as in bankruptcy, that when an order is made, that is it? I mean you are either insolvent or you are not surely!!!!?????

Hello,

Thank you for your post.

As far as I am aware your DRO would not be revoked but would work very similarly to gambling and bankruptcy. A straight forward DRO would end after the twelve month moratorium period. If the OR believes that an individual’s behaviour has been inappropriate they can apply for a Debt Relief Restrictions Order (DRRO). If a restriction is granted this could last between 2-15 years. You maybe able to agree to a Debt Relief Restrictions Undertaking (DRRU), if you agreed to the terms you would not have to attend court and it could shorten the restriction period.

Hope this helps
Sarah

CCCS_Sarah

rih09 wrote: »

i have just posted this .but havent got the anwers i was looking for .
apart from lossing our property
what are the main draw backs inbecoming bankrupt
our credit will be bad for 6 years but what else will be affected ?

Blind as a bat has put a link on her for you but some ‘draw backs’ include…

• It would be advertised in the local paper and London Gazette
• Restrictions on some careers
• Difficulty obtaining future credit

CCCS_Sarah

blind-as-a-bat wrote: »

Not sure whats happened to the CCCS posters on here hopefully they may answer soon, if not PM debt doctor;)

We are back now; it’s been manic with the good old credit crunch!

CCCS_Amanda

Gboy2 wrote: »

Hello,

I quit uni a week after starting, and i signed on the other week. I had family probs so had to leave uni. I am returning to try at uni in September. not filled out forms yet - bu the uni said they would have be back...

I am 4k in debt. Overdrafts and a credit card - that I can't pay back. I have been trying since November to get a job and nothing! It's unbelievable....

Would going bankrupt give me a fresh start since the banks are getting angry...

Would going bankrupt effect my job seekers allowance benefits? would my bank accounts and credit card be closed. will i then be able to open a basic bank account with some branch?

How much does it cost to go bankrupt, if on job seekers allowance?

How long would the process take?

Would it effect student loans come late September?

Would it be all over and done by then? and I could have a fresh start at university with no debt? I'm pretty depressed which doesn't help because of my mums illness (reason I left uni this year)

Thanks for any help

Hi Gboy2,

Thanks for your post.

The answers to your questions are as follows:

Would going bankrupt affect my job seekers allowance benefits? Would my bank accounts and credit card be closed? Will I then be able to open a basic bank account with some branch?

Going Bankrupt will not affect your Job Seekers Allowance. If you were to apply for Bankruptcy then your bank account would be frozen, you would need to get another basic bank account so that you still have access to your benefit.

How much does it cost to go bankrupt, if on job seekers allowance?

The cost of a personal Bankruptcy is £510, this broken down as £150 court fee and £360 for the official receiver costs. As you are on benefits you will be exempt for the £150 fee and would need to complete a form called an EX160A as well as the bankruptcy forms.

How long would the process take?

Once you have filled in your forms then you can apply through your local County Court for an appointment with a District Judge.

Would it effect student loans come late September?

As student loans are not included in a Bankruptcy it should have no effect on them. Just to be sure you could check with the student loan centre prior to going bankrupt. http://www.studentloans.gov.uk/

Would it be all over and done by then? and I could have a fresh start at university with no debt? I'm pretty depressed which doesn't help because of my mums illness (reason I left uni this year)

I am inclined to agree with blind as a bat. There may be a better solution for you than bankruptcy. You could contact our helpline and have some advice on your situation before you make any decisions. The advice is free and you would be advised about Bankruptcy if it is a good way for you to deal with your debts. Our helpline number is 0800 138 1111 and you can contact us between 8am and 8pm Monday to Friday.

Regards,
Amanda

CCCS_Amanda

PabloEscobar wrote: »

HI,
I have a thread open elsewhere, but would like to see what a CCCS advisor has to say about my situation.

Seriously looking at going BR now. I`m in a debt management plan anyway, and owe about £45k on this. Recent tax and VAT bills to total another £7k. ( I`m self employed, sole trader). The problem I have is regarding a house. My girlfriend bought a house in November 2005, and the deposit of £23k came from my account. The money wasn`t mine, but was leant to me by my folks. If I was to go BR, would this be looked into, and would my OH lose the house, even though it`s not mine, and my name is not on the mortgage or deeds?

All help would be appriciated, as I don`t want to enter into Bankruptcy thinking the house is safe, to later find that it could be taken away. If it makes any difference, the house is now rented out, and me and my OH are living with my folks.

Hi there,

Thanks for your post.

As it is such a large amount the OR will probably question you on the transaction.

Your interest in the property is ultimately the OR decision and you should probably direct this question at them. You can either contact the Insolvency Service at http://www.insolvency.gov.uk/ or you could contact the OR in your area.

Kind regards,
Amanda

PabloEscobar

CCCS_Amanda wrote: »

Hi there,

Thanks for your post.

As it is such a large amount the OR will probably question you on the transaction.

Your interest in the property is ultimately the OR decision and you should probably direct this question at them. You can either contact the Insolvency Service at http://www.insolvency.gov.uk/ or you could contact the OR in your area.

Kind regards,
Amanda

Thanks for the reply. Is this pretty much a certainty that the OR will look back to November 2005? Also, the money came from a bank account I havn`t used in 3 years, and was also closed when I started the DMP.

CCCS_Amanda

sycamore1 wrote: »

If i go bankrupt and my house is in negative eqitty is there a chance that i may still loosw my house having no other assets

Blind as a bat has answered this one, let me know if you need any more help.

Amanda

blind-as-a-bat wrote: »

it can happen if your mortgage is a LOT higher than rental, they wont force a sale so much as not allow more than the equivalent rental in your I&E, which is as good as:rolleyes:

But it is rare the OR does this.

CCCS_Sarah

weewillywinkie wrote: »

Hi,

Looking for some advice pls, have been advised to go down the sequested route by New Tomorrow who are dealing with my husbands trust deed.

To give you a bit of history my husband is the bread winner i stay at home to look after our 3 kids as he travels a lot with his work and is away from mon-frid, we have a jnt mtg (house value 305k, secured loan against it of 83k and mtg value of 283k) all my husbands debts are being taken care of in the trusted deed including a jnt loan we have with NR(together mtg).

My worries are that i have 2 credit cards one at 10k and the other at 12k along with the jnt loan(that we have been told they will come after me for as second name on it) as i now cant afford to pay these back(all income / expenditure has been accounted for in the trusteed deed including our child benefit)............whats the best way to go down this route??????

My husband has 2 cars in his name one that has been paid off that i use and 1 that he uses and he has have been allowed to keep thes.

Would they want our house?......this is what worries me the most.

I am going to open up a sole bank a/c and close down our jnt and my OH is going to trf the housekeeping over to my sole a/c is that safe?


PLEASE PLEASE HELP as i really dont now were else to turn cant seem to get any help anywere...........

Some advice Pls

Hello,

I’m not trained in Scottish debt so I have sent your question to my colleague in Scotland and will get back to you as soon as possible.

Sarah