Ask a CCCS counsellor a bankruptcy question

skintbint08

Hi... big breath and here goes. My OH and I had a joint business that failed in Dec 08, it was a pub and when we realised that there was no way we could keep going we spoke to the brewery rep for our area and he advised us to cease trading, hand the keys back and the brewery would instigate bankruptcy proceedings against us. Not what we envisaged when we started but it seemed like a lifeline at the time. We duly did our bit, then when it came to handing the keys over it was a new rep, he assured us that everything was in order and would proceed as agreed, took our contact details and wished us luck. Over the next year we heard nothing and just assumed these things take time! About 6 months ago we started getting threatening letters from some of our creditors so contacted the brewery to find out what was happening only to be told that because we only owed them £25000.00!! we were very low on their list of people to deal with!!
Yesterday OH went to court after recieving a commital summons, this was ajourned for a month on condition that we make ourselves bankrupt. We are both on benefits due to ill health so I know we qualify for a reduction but other than that I have no real idea of what to do next. We still need to find £900 which just seems impossible. I know I need to speak to one of the helplines but can anyone tell me what sort of things I will need to have to hand when speaking to them, will the court accept that we have instigated bankruptcy proceedings within the month even if we haven't managed to complete them?
Sorry for long post, appreciate you are very busy.

skintbint08

CCCS_Sue

skintbint08 wrote: »

Hi... big breath and here goes. My OH and I had a joint business that failed in Dec 08, it was a pub and when we realised that there was no way we could keep going we spoke to the brewery rep for our area and he advised us to cease trading, hand the keys back and the brewery would instigate bankruptcy proceedings against us. Not what we envisaged when we started but it seemed like a lifeline at the time. We duly did our bit, then when it came to handing the keys over it was a new rep, he assured us that everything was in order and would proceed as agreed, took our contact details and wished us luck. Over the next year we heard nothing and just assumed these things take time! About 6 months ago we started getting threatening letters from some of our creditors so contacted the brewery to find out what was happening only to be told that because we only owed them £25000.00!! we were very low on their list of people to deal with!!
Yesterday OH went to court after recieving a commital summons, this was ajourned for a month on condition that we make ourselves bankrupt. We are both on benefits due to ill health so I know we qualify for a reduction but other than that I have no real idea of what to do next. We still need to find £900 which just seems impossible. I know I need to speak to one of the helplines but can anyone tell me what sort of things I will need to have to hand when speaking to them, will the court accept that we have instigated bankruptcy proceedings within the month even if we haven't managed to complete them?
Sorry for long post, appreciate you are very busy.

skintbint08

Hi skintbint and thank you for your message

I would recommend that you call us for an appointment to discuss your situation with one of our debt counsellors as it is difficult to give you detailed advice without knowing your full financial situation.
The counsellor with help you to prepare a budget showing your income and expenditure and then discuss all the options available for your situation.
They will also help with any questions you have regarding preparing for the bankruptcy.
To book an appointment with one of our trained counsellors you would need to contact our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Regards
Sue

skintbint08

Thank-you for the quick reply, we will phone the helpline together when OH gets in. (I'm not good on the phone) 1 quick question we have only been contacted by two of our creditors so far is there anywhere we can get a list of who we owe money to? Wouldn't want to go through this and find we've missed anyone out.

TIA

SB

CCCS_Sue

skintbint08 wrote: »

Thank-you for the quick reply, we will phone the helpline together when OH gets in. (I'm not good on the phone) 1 quick question we have only been contacted by two of our creditors so far is there anywhere we can get a list of who we owe money to? Wouldn't want to go through this and find we've missed anyone out.

TIA

SB

You could get a copy of your credit file. I have attached a link to a booklet called 'Credit Explained 'which gives the addresses of the three credit reference agencies.
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

This will show any outstanding debts you have.

Regards
Sue

CCCS_Sue

shellyk1 wrote: »

Hi, Please can someone give me advice on a few things. I have just completed online forms and booked at apointment to go Bankrupt. At the moment I am claiming JSA and have been for about 12 weeks. I am actively seeking a job and hope to get one soon. My 1st question is - when I filled in the forms i took into account my JSA so when they ask me for a income order will this agreed amount then change when I get a job. Will I then have to pay all the extra money I earn to creditors. Also do they take into account all the money my partners earns due to us having a joint bank account?? Also our car is regeistered in my husbands name - can they make us sell it, its worth about 6k??? Thanks

Hi and thank you for your message.

Your Official Receiver will need to know of any changes to your circumstances during bankruptcy. If you have extra money available, then the OR could look at an Income Payment Arrangement (IPA). They could take a percentage of any surplus available after paying all your priority living costs.
I have attached a link to a booklet from the Insolvency Services Website which will give you further details on IPAs:-

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

You will need to complete a budget showing your income and expenditure.
Your husband’s contribution to the household budget will be taken into account.

If you have joint debts, then you are both joint and severally liable for the repayment. So, if you were to go bankrupt, then the creditor could still pursue your husband for the outstanding amount.

The OR will also look at any joint assets such as cars which are of value.
Whether you can keep it would be at the discretion of the OR. If a car is needed for work, they will usually allow a cheaper car.

Have you had any advice regarding going bankrupt?
If you are hoping to find work shortly and your circumstances may change, there may be other options you could consider.
If you would like to make an appointment to speak to one of our debt counsellors for further advice on your options, you can call free on 0800 138 1111.
Lines are open from 08.00 until 20.00, Monday to Friday.

Regards
Sue

Birkonian

I am unemployed, have debts totaling around £11,000 and have been advised to consider Bankruptcy.

However, I also have around £9,000 in a Retirement Investment Account which I am unable to access by Trivial Commutation until 2012 when I am 60. I also opted out of the state pension scheme when I started this account.

Do I have to declare this amount as part of a Bankruptcy application?

Can this amount be siezed as part of a Bankruptcy order?

If so would a Debt Relief Order be more appropriate?

I would appreciate some advice on this. Thanks

CCCS_Sue

Birkonian wrote: »

I am unemployed, have debts totaling around £11,000 and have been advised to consider Bankruptcy.

However, I also have around £9,000 in a Retirement Investment Account which I am unable to access by Trivial Commutation until 2012 when I am 60. I also opted out of the state pension scheme when I started this account.

Do I have to declare this amount as part of a Bankruptcy application?

Can this amount be siezed as part of a Bankruptcy order?

If so would a Debt Relief Order be more appropriate?
I would appreciate some advice on this. Thanks

Hi Birkonian and thank you for your message

You would need to declare everything to the Official Receiver, even though you are not able to access this until you are 60.

I have attached a link to a leaflet issued by the Insolvency Services website which gives you further information regarding what happens to pension provision in bankruptcy.
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/pension.pdf

If you require further information, then you would need to contact the Trustee dealing with your bankruptcy, or your Retirement Investment Account provider.

You would not be eligible for a Debt Relief Order as this lump sum would take you over the £300 limit for assets.

Regards
Sue

LouR

Hello again.

OK I'm ready to pay the £90 fee but a problem has just come to my attention I own a car on my drive which has a blown engine and will soon be scrapped. Although the value of my car is -£40, the Parkers used car guide says it's valued at £1800 because of the model/year (2001).

As it's being scrapped within 2 days shall I still say I own the car or ammend the application to state it has/will be scrapped?

Does the receiver value the cars based on condition (-£40) or just google search the current prices which will show the value being around 1200/1800?

I understand you're very busy and a speedy reply is very much welcomed.

Thanks again,
Lou

CCCS_Sue

LouR wrote: »

Hello again.

OK I'm ready to pay the £90 fee but a problem has just come to my attention I own a car on my drive which has a blown engine and will soon be scrapped. Although the value of my car is -£40, the Parkers used car guide says it's valued at £1800 because of the model/year (2001).

As it's being scrapped within 2 days shall I still say I own the car or ammend the application to state it has/will be scrapped?

Does the receiver value the cars based on condition (-£40) or just google search the current prices which will show the value being around 1200/1800?

I understand you're very busy and a speedy reply is very much welcomed.

Thanks again,
Lou

Hi Lou and thank you for your message

To do a DRO you should not have any assets worth over £300. Cars are allowed up to £1000.
The OR will take into account the value of your car at the time of your application.
If the car is about to be scrapped, then you should mention this on your application. If the scrap value is now £40, then you need to mention this also, but you will need to get a written valuation from a couple of garages to back this up.
When you submit your application form to the DRO team, if there are any problems, they will inform you before the DRO application goes ahead.

Hope this helps!

Regards
Sue

Raki_2

Hi,

I am very confused as to what happens when you go BR. Here is our situation....

We had DMP with CCCS. All tickety boo, until hubby became very ill, and couldn't work. We were given options of DRO or BR. DRO out of the question, as our car is worth £2500. We are in rented accomodation with just £26 spare after living expenses taken out. I work p/t.

I have read here that all accounts are frozen, and you shouldn't open a new one until bankruptcy order has been made. So here is Q #1 What happens to direct debits for the likes of rent, council tax, water, electricity, etc?
Q#2 What about money going in, such as my p/t wages, WFTC, CHB, HB?
Do we clear accounts, so we can pay these prior to the order? I don't want to go into arrears with anything, as we have avoided this to date.
Q#3 Does our landlady automatically get told, or is it up to us?

Thankyou in advance.