Ask a CCCS counsellor a bankruptcy question

CCCS_Sue

danjaq2004 wrote: »

It's forums/threads such as these that help people make informed decisions and help provide people with support.

We all owe Sue our gratitude for her advice and time to answer our questions. Thanks Sue

Thank you!

CCCS_Sue

Stayathomemom wrote: »

Hi, just wondering if we go bankrupt and we are able to keep the house, can the secured loan that is attached to the mortg be included in the bankruptcy or would we need to keep paying that as well as the mortg?

Hi stayathomemom

As JCS1 has answered previously, the mortgage and secured loan would not be included in bankruptcy and you would need to continue paying.
If you handed the property back or it was repossessed and became unsecured, it could then be included.

Regards
Sue

CCCS_Sue

evenstar2009 wrote: »

I've recently gone BR and have had my OR interview etc and got the IPO and IPA calculations through and i'm a bit confused by how they've managed to get a disposable income figure of nearly £500. The reason i had to go BR was because i was having difficulty in meeting the £300+ repayment figure per month and now its even higher. They are also going to take the income tax figure direct from my wages so in all my creditors will be getting a share of over £900 per month which is 3 times higher than what they were getting. Admittedly it will take 3 yrs instead of 7 to sort the debt out but this just doesn't seem right to me?
Also if i have a large expense to cough up for like car repairs (last year i spent over £500 on maintenance costs) or the boiler blows up I'm stuck.
I noticed that when they listed my total income they put it as net value and didn't include the fact that Nat Ins comes off that which is nearly £250.
I worked it out in great detail and my disposable income each month is £150 not £489 so something is really wrong here. If i did have a disposable income of nearly £500 p/m i'd be pretty pleased and also i wouldn't have gone BR in the first place. I'm just worried now that i won't be able to make the first payment and then they'll be taking me to court over failure to pay - can anyone advise?

:eek::eek:

Hi evenstar

The OR has to ensure that you have enough money for everyday living expenses/reasonable domestic needs.
There is no fixed amount for an IPA/IPO and each case depends on individual circumstances.

As philnicandamy said, you need to contact your OR and ask for a full breakdown of how they reached the figures, as this could be a mistake.

The OR should consider your views on what is reasonable or necessary spending for your circumstances.

I have attached a link to a booklet about IPA/IPOs from the Insolvency Service website for further information.

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/ipoipa.pdf

Regards
Sue

evenstar2009

thanks everyone for the replies - i've got my IPA information here as i have worked it out:

Income £2083 the less tax £411 and NI £235 = £1437
Child benefit £81
Tax credit £380 (to cover 80% of childcare costs)

= £1898

outgoings

Childcare £481
Mortgage and rent £443
Secured loan repayments £190
Student loan repayments £141
Groceries £320
Petrol £100
Council tax £82
Gas & electric £61
Water £24
Clothing £50
Telephone £42 (incl broadband as sometimes i have to work at home)
TV Licence £14
Car insurance £33.38
Road tax & maintainance £48
Meals at work £25
Medical / dental £25

I make this to be a total of £2065.38 which is more than my current income.

However:
The OR calculated i had an income of £2083 from salary plus £464 from tax credits and benefits (= £2547).
They then calculated my outgoings at £1849 leaving a difference of £698 which they worked out 70% for BR repayments which equals £489.

They have not shown in my income any deduction for National Insurance and have listed childcare as only £210 - these 2 missed payments alone are nearly £500.

I'm not Carol Vorderman but i can work out that there is a massive discrepancy in what they have done and what is the actuality.
In addition to the above £489 they want me to pay they are also taking the £411 income payment direct from my pay.

debtinfo

This should be fairly easy to sort out when you point out that they are using the gross figure rather than the net figure

Canarysteve

My wife and I already have a DMP set up and running with CCCS but my wife has just been diagnosed with Chronic Fatigue Syndrome and is going to have to reduce her hours which means a drop in income. We are not entitiled to any additional benefits except child tax credit but we don't receive much of that as we are repaying an overpayment by HMRC.

On top of all that our largest creditor Lloyds TSB is being very agressive and have instructed solicitors to threaten us with legal proceedings they are also constantly adding extra charges to the account even though we are trying our best to pay what we can. Our big problem is unsecured debt, we can afford to maintain our secured debt no problem.

However it's looking more and more like we will have to take the bankruptcy route to get ourselves sorted. We have little or no equity in our property and we have never missed a mortgage payment, is there any way we would be allowed to continue to pay our mortgage and remain in our home? It seems daft for all parties that the house is sold as we can afford to pay the mortgage and by the time all fees were paid the mortgage company would actually lose money.

I would be grateful for any advice you can offer.

OneHubbyOneSon4Debts

I have just read a paragraph in the t+c's of my loan, it states......

You agree(without prejudice to any other of our rights) to pay us:

you dying or applying for an interim order or having a petition for a bakrupcy order or sequestration presented againt you or entering into any agreement or composition with Creditors.

What does that mean?

I am thinking on going bankrupt, this is an unsecured loan, in my name only.

Thanks for any help.

CCCS_Amanda

evenstar2009 wrote: »

thanks everyone for the replies - i've got my IPA information here as i have worked it out:

Income £2083 the less tax £411 and NI £235 = £1437
Child benefit £81
Tax credit £380 (to cover 80% of childcare costs)

= £1898

outgoings

Childcare £481
Mortgage and rent £443
Secured loan repayments £190
Student loan repayments £141
Groceries £320
Petrol £100
Council tax £82
Gas & electric £61
Water £24
Clothing £50
Telephone £42 (incl broadband as sometimes i have to work at home)
TV Licence £14
Car insurance £33.38
Road tax & maintainance £48
Meals at work £25
Medical / dental £25

I make this to be a total of £2065.38 which is more than my current income.

However:
The OR calculated i had an income of £2083 from salary plus £464 from tax credits and benefits (= £2547).
They then calculated my outgoings at £1849 leaving a difference of £698 which they worked out 70% for BR repayments which equals £489.

They have not shown in my income any deduction for National Insurance and have listed childcare as only £210 - these 2 missed payments alone are nearly £500.

I'm not Carol Vorderman but i can work out that there is a massive discrepancy in what they have done and what is the actuality.
In addition to the above £489 they want me to pay they are also taking the £411 income payment direct from my pay.

I would contact the OR and gently point out their mistake before the IPA kicks in. They should be using your net wage and not your gross wage in the calculation.

Good luck

Amanda

CCCS_Amanda

Canarysteve wrote: »

My wife and I already have a DMP set up and running with CCCS but my wife has just been diagnosed with Chronic Fatigue Syndrome and is going to have to reduce her hours which means a drop in income. We are not entitiled to any additional benefits except child tax credit but we don't receive much of that as we are repaying an overpayment by HMRC.

On top of all that our largest creditor Lloyds TSB is being very agressive and have instructed solicitors to threaten us with legal proceedings they are also constantly adding extra charges to the account even though we are trying our best to pay what we can. Our big problem is unsecured debt, we can afford to maintain our secured debt no problem.

However it's looking more and more like we will have to take the bankruptcy route to get ourselves sorted. We have little or no equity in our property and we have never missed a mortgage payment, is there any way we would be allowed to continue to pay our mortgage and remain in our home? It seems daft for all parties that the house is sold as we can afford to pay the mortgage and by the time all fees were paid the mortgage company would actually lose money.

I would be grateful for any advice you can offer.

Hi there,

If you own a property, your Beneficial Interest in the property will form part of the estate which will be dealt with by the OR. Beneficial interest is your interest in the proceeds of sale of the property

If there is very little equity in the property or the house has negative equity a third party may be able to buy your Beneficial Interest in the home for a nominal sum, such as £1. Such a purchase would prevent a sale of the property by the trustee at a future date.

It is up to the official receiver to make the decision regarding your home after your bankruptcy is granted.

I hope that this helps.

Regards,
Amanda

CCCS_Amanda

OneHubbyOneSon4Debts wrote: »

I have just read a paragraph in the t+c's of my loan, it states......

You agree(without prejudice to any other of our rights) to pay us:

you dying or applying for an interim order or having a petition for a bakrupcy order or sequestration presented againt you or entering into any agreement or composition with Creditors.

What does that mean?

I am thinking on going bankrupt, this is an unsecured loan, in my name only.

Thanks for any help.

Hi there,

Even with the clause in your Terms and Conditions, the debt will be included in your Bankruptcy.

If this actually worked all creditors would include this in the T&C and nobody would benefit from bankruptcy.

Regards,
Amanda