Ask a CCCS counsellor a bankruptcy question

CCCS_Sarah

Dicanio3 wrote: »

We have been in a IVA since December 2008, myself and my wife. Total debt £53,743. I am starting to realise that an IVA was probably not the best option for us. We do not own our own home, I drive a company car, my wife's car has very little value, we have no other assets.

Is it too late to do anything about my situation?

My parents have a policy maturing in September and have offered to give us £10,000 to make a F&F settelment. In September we will have 38 payments left (£18151), so don't think this is enough to satisfy creditors.

I am seriously considering Bankruptcy as an alternative. Which is the best option for my creditors/ IP, taking my parents £10,000 or Bankruptcy for myself and my wife? I would prefer to offer the £10,000 and settle things very soon but am prepared to take the Bankruptcy option.

Hello,

It may be possible to vary your IVA but you would need to speak to your IP, they will be able to look into all your options.

Sarah

CCCS_Sue

leanne6539 wrote: »

Hello there, i am hoping you will be able to give me some advice. Im in a joint IVA with my now ex partner and am living in the house we have a joint mortgage on with my three year old. I have advised the IVA company of the separation and i must say they have been very understanding, we have kept it in joint names and submitted an I&E to reflect the fact we are living apart. Recently the amicable split has turned nasty and he is telling me he wants everything split and is cutting down on the money he was providing for my daughter (he was paying £50 per week). I am now going to have to go back to the IVA company and advice this which i am not very happy about as i have done all the paperwork for the review and will no doubt have to do more work. I wont go on about how i have two jobs and he gets to go out drinking three times a week - but i am concerned about the house which i want to keep and the mortgage. He did agree that I could keep the house but i have not had this formalised by taking his name off the mortgage - will i be able to do that as my credit rating is obviously shot with being in the IVA?? I just want this sorted incase this nastyness continues and he tries to make me move out. Also, would i be able to keep the house if i were to go bankrupt? There is no equity in the property. Greatful for any advice please!!

Hi leanne6539and thank you for your message

As you are currently in an IVA, and this is a legally binding arrangement, I would recommend that you speak to your Insolvency Practitioner about your concerns.
I am not able to say whether bankruptcy would be a good option for you without knowing your full financial details, as there may be other options you could consider.
But with regards to what would happen to your home in bankruptcy, I have attached a link to a booklet issued by the Insolvency Service you may find helpful.
This gives advice on what happens to your property and the options you could consider.
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf


Regards
Sue

CCCS_Sarah

shinobi101 wrote: »

I work for a large (FTSE100) Public Limited Company. I have read that an undischarged bankrupt cannot be a director of a limited company.

Question is if I were to be promoted from engineer to manager would bankruptcy be a problem? (it would be the bottom level of management for a least a few years)

Hello,

Thank you for your message.

You would need to speak to your HR department. Bankruptcy generally affects roles if you are an MP, Police, working in the finance Industry its better to check to be on the safe side.

Have you already sought advice about your options?

Sarah

pink1310

Hi ive been to the CAB today i have 27K debts he said i have 2 options bankruptcy or negotiations with the creitiors.He said bankrupcy would go through well as i dont own a car or a house. and im very much confused and unsure what to do as he said it was my desesion.I have no one to talk to only my new boyfriend of just over 10 weeks hes very understanding ,my parents would disown me if they knew.

He wants me to go bankrupt so me and him can make a clean slate but my gut is going to negociate with the creditiors so eventualy i could get a morgage but he said it will take me years im very confused and unsure what to do any advise?
kind regards

danjaq2004

Hi,

How are you supposed to carry on receiving Job Seekers Allowance and other benefits if your bank accounts are frozen/closed down - especially if the one you're using is one that's overdrawn and you'll be including in your petition?

As far as I can remember, you can nominate someone else's account for JSA, but not sure if you can for Housing Benefit.

Is there a way or an account you can have that is unaffected by bankruptcy so you can carry on receiving BACS payments until the order is made and you are allowed to go an open another bank?

Thanks.

debtinfo

Most people on here use the co-op cashminder account or the barclays basic account

webmunky

Hi,

I got into serious debt (50K+) running a business on Credit Cards and thin air. I took some drastic cuts a few years ago to minimise all outgoings for the business - but it is still losses some money.

I managed to keep head above water as I now have another proper job and effectively run what’s left of the business as an expensive hobby.

I am now approaching the time when the business is more hassle than it’s worth and I am thinking about packing it all in and potentially declaring myself bankrupt.

I have been paying £300 against these debts in a D.M.P for over 3 years. I would probably keep paying the £300, but some of the creditors keep on hassling me and pushing for more.

I previously enquired about an IVA and was told at the time that it was not an option as I was not in regular employment.

I now have a proper job earning over 30K per annum. I rent and have few financial commitments - other than debts.

I don't want to enter an IVA now as it will probably cost me £500-£600 a month for the next 5 years.

Is bankruptcy still an option?

Jan

debtfree25

Hi can anyone please give me some much needed advice,
i am looking to go BR as this seems my only option now, i am currently unemployed and on jobseekers allowance, i`ve been in a DMP with payplan since Sep/Oct 2006 and i still am, but now only making token payments to creditors due to unemployment.. but the problem i have is back in Feb 2008 16 months into my DMP i foolishly took out a credit card without the DMP knowing, and now that has fallen into debt, and i have had to activate my repayment plan on it which freezes the account while im out of work, If i was to go BR would that now cause me problems... and would the OR take a dim view of that and give me a BRU bankruptcy restriction undertaking, or will it not be as bigger problem as im thinking, please can you advise me..

Stayathomemom_2

My husband and I have been in financial difficulties for around 2 years, we have crawled along thanks to family unexpected money etc but now I feel we just carry on like this. We are now seriously considering bankruptcy but the thought of losing our family home petrifies me as we have 3 young children. Our house is not a grand house by anymeans but it is our home, our morg is around £95k and we have a secured loan of approx £10k, what are the chances of losing the home? How do they decide if there is any equity, the house would prob be valued at £120-130k but the houses here arent selling???

CCCS_Sue

pink1310 wrote: »

Hi ive been to the CAB today i have 27K debts he said i have 2 options bankruptcy or negotiations with the creitiors.He said bankrupcy would go through well as i dont own a car or a house. and im very much confused and unsure what to do as he said it was my desesion.I have no one to talk to only my new boyfriend of just over 10 weeks hes very understanding ,my parents would disown me if they knew.

He wants me to go bankrupt so me and him can make a clean slate but my gut is going to negociate with the creditiors so eventualy i could get a morgage but he said it will take me years im very confused and unsure what to do any advise?
kind regards

Hi pink1310 and thank you for your message

Without knowing your full circumstances, it is difficult to advise which would be your best option.
What you need to consider is whether you want to be saddled with these debts for a considerably long time, or whether you want to be debt free in a short time.

If you are expecting changes to your circumstances in the near future, for example, an increase in your income enabling you to repay the debts back in a realistic time, then you could continue making reduced payments for the time being.
But if there are no changes pending, and you have been advised by the CAB to consider bankruptcy, then this may be the better option for you.
Bankruptcy will stay on your credit file for six years. It may be difficult to get credit, but would you want to get into debt again anyway?
I have attached a link to our website which gives you further advice regarding bankruptcy which may help
http://www.cccs.co.uk/InfoCentre/EnglandandWales/Debtsolutions/Bankruptcy.aspx

It really is your decision at the end of the day.

Regards
Sue