Ask a CCCS counsellor a bankruptcy question

tigerfeet2006

If you go BR then they will not be able to come after you for the other money.

You can be SE as a BR.

You will be allowed a decent standard of living.

Being in rented accomodation shouldn't be a problem.

Get in touch with Business Debtline, links and no. in my sig. and they will go through all your options with you.

CCCS_Sue

langfor wrote: »

Hi there.

I was sequestrated 4 year ago after my wife and i had split out. All my debts before this was taken into consideration. My wife wasn't included and we have now got back together and she is now going to get sequestrated shortly to cover all these debts.

What i need to know is... Is my income taken into consideration even though my sequestration covers these debts. Also isn't it illegal for me to make payments to creditors that were included in my sequestration?

Thanks

Hi langfor and thank you for your message

The trustee will look at how much money your wife earns and how much you need for a reasonable standard of living for you and your family.

The trustee can claim any money your wife does not need to live on as a voluntary contribution to her sequestration.

Family members and household income will be taken into account by the trustee in assessing whether any contributions are to be made. For example, if you were a high earner, it will be expected that you will cover a higher proportion of the household costs.

If you have any further queries, you could contact the trustee.

Regards
Sue

langfor

CCCS_Sue wrote: »

Hi langfor and thank you for your message

The trustee will look at how much money your wife earns and how much you need for a reasonable standard of living for you and your family.

The trustee can claim any money your wife does not need to live on as a voluntary contribution to her sequestration.

Family members and household income will be taken into account by the trustee in assessing whether any contributions are to be made. For example, if you were a high earner, it will be expected that you will cover a higher proportion of the household costs.

If you have any further queries, you could contact the trustee.

Regards
Sue

Thanks Sue,

one other question if you don't mind. I am a reasonable high earner and pay all the bills as my wife has been at college and is currently looking for work.

Therefore will any of my wages have to go towards the contributions. Or can't they take any of my money for contributions?

Thanks again.

Your doing a great job...

CCCS_Sue

nursejo wrote: »

Hi, am hoping someone can help me. I went bankcrupt in2007 and was discharged jan 2008. During this period i used my husbands accounts to have my wages paid into. We then moved a couple of times and when applied for accounts was turned down. After joining experian realised that we were still on electoral role in a former house where somebody was now being investigated for fraud. Eventually it seems, according to Experian, that everything looks up-to-date and ok on report, although the only problem might be that there is no evidence of finances on my report.I have recently applied for lLOYDS tsb AND HAVE BEEN TURNED DOWN AGAIN. pLEASE CAN YOU ADVISE ME of the best way to procedd, I really dont want to have to pay for a bank account, but dont know what else to do???????? Kind regards nursejo.

Hi nursejo

As philnicandamy said, the best banks to try are the Coop or Barclays basic accounts.
I have attached a link to a booklet which has a list of other banks you could try.

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

Regards
Sue

CCCS_Sue

SarahNeedle1872 wrote: »

Hi all,

Two questions that have come up during my research... My options are going BR or a 12 year DMP...

1) I have a car worth approx £5k. What's the likelihood that I will have to sell it - I do a 40 mile round trip to work 5 days a week...

2) I already have a current account and a basic bank account with the Halifax - not one of my creditors. Would I need to open another basic account during BR?

Thanks

Sx

Hi SarahNeedle1872


Official receivers will need to use their discretion and consider each case according to its merits within the guidelines issued to official receivers, as to whether or not a vehicle is exempt property in bankruptcy

You would need to convince the official receiver that any motor vehicle is necessary within the exemptions.

You may be able to keep a car, but because of the value of the car, you may be asked to downsize to a cheaper vehicle.
But again, it would be down to the discretion of the official receiver.

I have attached a link to a thread from MSE which has lots of useful information on vehicles in bankruptcy you may find helpful.
https://forums.moneysavingexpert.com/discussion/1056247

With regard to your bank account, all accounts are initially frozen when you go bankrupt.
Some banks may allow you to keep using your existing bank account. But even if your bank agrees to this, they will freeze the account when they first hear about the bankruptcy order.

I have attached a link to a booklet from the Insolvency Services website which gives you further advice regarding bankruptcy and bank accounts.

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

Hope this helps

Regards

Sue

CCCS_Sue

marfan_not_martian wrote: »

Just wanted to ask a counsellor. I have been on DMP for a while but my DLA income stopped and I had to go to a tribunal so a DRO was applied for and granted and I was told that if the DLA was ever reinstated then although I had to inform the insolvency office that it would not be used to pay for debts as it is given to help me pay for care costs etc for my needs. What I wanted to ask is - if the DLA is reinstated and back pay is due what would happen to the back pay - do the Insolvency office take it from you or is it still classed as income to use for care needs etc also if they granted mobility - would this be taken as excess income or again would it be classed as money for my needs. I would be grateful for any advise as I would like to buy a mobility scooter should the tribunal go in my favour. Many thanks

Just wanted to add in my income/exp it is a joint income etc
we have made no allowance for clothes, medicines, dentist, hairdressing, emergency sundry, activities, vehicle servicing all of which we have had to pay for but have been helped out by family which we cannot do forever

Hi marfan not martian

Thank you for your message.

I have forwarded your query to our DRO team and I will get back to you shortly with a reply.

Regards
Sue

CCCS_Sue

DTB6453 wrote: »

Hi,

I am 25 and been to uni and on top of my uni debt i managed to rack up £5,500 worth of credit cards and overdraft debt (stupid and irresponsible i know and have truly learnt my lesson!!) Iit may not sound like a lot but it serious hangs around my neck like a noose!

2 and half years ago i decided to do something about I was missing payments every where so no credit rating to be able to move them around to a low interest card so went to my one and only option the CCCS they are government funded and help you make a minimum payment that you can afford and with most companies they even get them to stop the interest and you are basically holding your hands up saying im in trouble, I know I need help, let me pay off the debt.

3 out of my four debts cancelled the interest and are on the decrease and looking like im going to be paying them off within the year! But there is on credit card where on my CCCS statement should be £1.490 and on my actually credit card statement its £3740 so in in 2 and half years i have paid off £60 when I pay that particular credit card about £70-£80 a month! I dont even think I am hitting the minimum payment anymore and really dont know what to do. I have wrote letters been in to speak to them and they just say its has to be paid and basically its my fault or offer me a loan where I will have to pay back £11,000 which personally i think is a joke! I accept that im in trouble, im holding my hands up but surely there must be a way around this that I can get help to stop them charging the interest so it can start to go down! I have tried not paying them anything so it goes to debt collection but when I start making regular payments the bank must buy the debt back and start racking on that interest again.

Im in real need of some good advice cause at this rate im never going to be able to save build my credit rating up and buy a house my car is breaking and in dire need of a new one but until this is gone my life cannot change! I pay every penny i can so this debt but nothing changes £60 in 2 n half years when I have paid them nearly £2000 to me is a absolute joke!

I hope you can help

Hi DTB6453 and thank you for your message.

Unfortunately, the creditors do not have to stop all interest and charges. It is entirely at their discretion.
However, I do understand that you are concerned about how much of this debt is actually being paid off, especially when the other three creditors have accepted your payments and those debts are reducing.
I would recommend that you call our client support team and discuss your situation with them.
It may be that you are due for a review and an update of your budget, especially if you have new priority needs.

Regards
Sue


CCCS is a registered charity, and there is no charge whatsoever for the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and the possible implications, but not make them for you.

CCCS_Sue

mkgilly wrote: »

I have recently called in RTA business sales to help me sell my business. I havn't yet sent the the final form back to them but they have taken £500 plus VAT off me for advertising etc as I was told.
Now having lost a large part of the work I do due to a company pulling out of UK and going home to Spain, I feel my only option is too keep the business and work myself also cutting back on employees hours.(I only have 2 employees) Taking on more work for my cleaning business isn't an option as nobody wants cleaners and my work has steadily declined since the credit crunch started.
My business was going on the market for £29950 to drop to £25000.
I know I will loose the £500 plus VAT but they will also apparently want the £3000 that they were going to take from the sale. we know this from reading complaints from other companies selling with them.
One of my options is to consider bankruptcy as we were selling the business to pay off cards which all together stand at about £16000.
We live in a private rent as we can't have a mortgage due to my partner's debt which he handles through 'Payplan', so therefore private rent is our only optin at £750 a month.
I basically need to know where we stand if I declare bankruptcy as we need to keep a roof over our heads. Credit cards I don't need so that doesn't worry me. Just day to day living.


Thank you
Gill

Hi Gill

Thank you for your message

Before you decide on bankruptcy as your best option, you need to seek professional advice.
Bankruptcy can affect certain tenancies and you would need to check your tenancy agreement to make sure your tenancy would not be terminated if you were to go bankrupt.

I would recommend that you contact Business Debtline for further advice.
The give free confidential advice to self employed people in financial difficulties.

http://www.bdl.org.uk/


Regards
Sue

CCCS_Sue

marfan_not_martian wrote: »

Just wanted to ask a counsellor. I have been on DMP for a while but my DLA income stopped and I had to go to a tribunal so a DRO was applied for and granted and I was told that if the DLA was ever reinstated then although I had to inform the insolvency office that it would not be used to pay for debts as it is given to help me pay for care costs etc for my needs. What I wanted to ask is - if the DLA is reinstated and back pay is due what would happen to the back pay - do the Insolvency office take it from you or is it still classed as income to use for care needs etc also if they granted mobility - would this be taken as excess income or again would it be classed as money for my needs. I would be grateful for any advise as I would like to buy a mobility scooter should the tribunal go in my favour. Many thanks

Just wanted to add in my income/exp it is a joint income etc
we have made no allowance for clothes, medicines, dentist, hairdressing, emergency sundry, activities, vehicle servicing all of which we have had to pay for but have been helped out by family which we cannot do forever

Hi marfan not martian

I would suggest that any DLA lump sum is likely not to be treated as an asset and that usually current DLA cost can be disregarded as it is used for care needs.
However, if the DLA is reinstated I would advise that you come back to us so we can give you further advice.

Regards
Sue

0scar123

This is my situation. I am 76 years of age and in receipt of State pension, pension credits and council housing benefit.
My total income is about £600 per month.
My credit card and overdraft debts total £7000, and I am currently making repayments of £200 per month which is one third of my income and means that I have no hope of reducing my debts in the near future.
My utility payments (gas, electricity and water) are in the region of £130 per month. Virgin cable (phone, TV) is another £40 per month, leaving very little remaining for groceries, etc. Holidays are out of the question.
My car is a 12 year old Corsa worth about £400 and I have no other assets.
I am now seriously considering bankruptcy as the only way out of this mess.
My question is, in view of my current financial state, how much would I have to pay in court fees, etc?
Can the bank touch my state pension income?
Your reply appreciated.
0scar