Ask a CCCS counsellor a bankruptcy question

samduggan

hello,
I have a few questions to ask, can i go bankrupt by myself, as i have been on to a company called debt relief direct, and they want to charge me 500.00 on top of the mandatory 450.00 plus 150.00 court fee.
also will bankruptcy effect me in southern ireland.
thank you for listening

StepChange_Pavan

charliewatts wrote: »

Hello

A friend at work has a mountain of debt, is having banks calling him every 5 minutes demanding money, people round the house etc. He's been disussing this with CAB and really he's waiting for someone to make him bankrupt.

The CAB have advised him to wait and keep paying the amounts they have arrange with the credit cards and mortgage company. Basically he'll never pay off the debt.

At the moment he has a CCJ regarding a credit card which is small fry to the rest of the debt he has.

What I don't understand is why he won't declare himself bankrupt? He says that there are fees to pay and that the black mark against him will be for his lifetime. Whereas if he is declared bankrupt it's only 6 years and no fees.

I'm concerned that he's waiting to be declared bankrupt for no good reason and the ongoing nature of his position is not doing him any good mentally and he's been very, very down. Also he grasp of English isn't that great so I suppose I'm looking out for him.

Does it make a difference if your made bankrupt or someone declares you bankrupt?

As an aside, he has two properties if that makes a difference.

Hello Charliewatts and thank you for your message.

Bankruptcy is not always a straightforward solution and there must be reasons why the CAB has not recommended it as his best option. It is most likely because he has two properties, although without knowing the details of his situation it is difficult to say.

It is very rare that a creditor will make a debtor bankrupt, although again, this will depend on the individual’s circumstances and his properties will affect their decision.

If he petitions for his own bankruptcy, he is right that he will have to pay his own fees. If the creditor starts the proceedings then they will pay them for him. However, in either case he will be affected in exactly the same way.

If you think that he needs further advice on his situation you could recommend that he calls our free helpline on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. Alternatively he can visit our online debt advice facility called Debt Remedy here: www.cccs.co.uk/ref/drcu


Kind regards,
Pavan

monkey2010

hi
I am recently bankrupt. I have to pay the OR £460 a month over 3 years. My question is i am probably in line for a promotion soon. If i get a pay rise i am assuming that they will take all of the salary increase from me? I am finding this quite hard as i want to move up the ladder but feel i cannot due to my circumstances.

thankyou

StepChange_Pavan

samduggan wrote: »

hello,
I have a few questions to ask, can i go bankrupt by myself, as i have been on to a company called debt relief direct, and they want to charge me 500.00 on top of the mandatory 450.00 plus 150.00 court fee.
also will bankruptcy effect me in southern ireland.
thank you for listening

Hi Samduggan and thanks for your message.

Unfortunately we don’t advise on Southern Irish debts. However you can contact the Money Advice and Budgeting Service and they will be able to help. They are free, confidential and independent. Here is a link to their website: http://www.mabs.ie/

Kind regards,
Pavan

StepChange_Pavan

monkey2010 wrote: »

hi
I am recently bankrupt. I have to pay the OR £460 a month over 3 years. My question is i am probably in line for a promotion soon. If i get a pay rise i am assuming that they will take all of the salary increase from me? I am finding this quite hard as i want to move up the ladder but feel i cannot due to my circumstances.

thankyou

Hi Monkey 2010 and thanks for your message.

You will need to inform the Official Receiver if you do have any changes to your income.

Normally, you will have to use between 50% and 70% of your real disposable income every month for your IPA or IPO payments. Generally, the more real disposable income you have, the greater the percentage of it you will have to use for the payments.

I have attached a link to a leaflet about Income Payment Agreements if you would like to read more: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/ipoipa.pdf

Kind regards,
Pavan

missyp123

Hello,
Me and my DH filed BR last month, no IPA just nil tax code.

I was'nt planning on going to uni untill next year but have been offered a place for next month, something i cannot miss out on!

From questions i have asked on here i am aware that my nhs bursary will be seen as an income on our SOA. In turn i am now really worrying about finances and what i should and should not apply for:

My questions are

1. Do they allow me to put costs of books, shoes, extra petrol and parking costs for placements?
2. If i decide to apply for a student loan (i will tell them im BR) can this be taken? (a loan would be a last resort but might be needed if i have to start paying an IPA)
3. There seem to be grants i can apply for as i have a child and my DH is on a low income, will grants be taken?
4. Lastly i am worried that me being undischarged could affect my place, is this possible?

thank you in advance,

whydidIbuyahousewithhim

I have just posted a thread regarding my situation. I own a house with an ex partner and he has disappeared I can't do anything with it, the only option open to me is repossession, in this current climate there will probably be a large shortfall. I will then have to go bankrupt for the remainder but what will happen as he has disappeared and can't be found. It is a terrible situation to be in I have spoken to a Solicitor who said there is nothing I can do without his permission.

I am stuck and the only thing I can do is have it repossessed. I want to move out of here and move on with my life but I can't. He was only in the house 10 months. We weren't married but he had lots of debt that I didn't know about, he was an absolute conman, and I was so stupid.

Can you give me any advice if I can go bankrupt and put it all behind me and start again I just want an end to it all

tombooth

Hi,

Last year my partner and I were both forced to file for bankruptcy. My partner has now been discharged and I have been told I have been marked for early discharge but am in a waiting list (typical...).

My mother has been left a property after my grandfathers death and wants to give me a significant amount of money after the sale of this property. This will be in the region of £7,500.

I would like to know if receiving this money will be problematic as I am still an undischarged bankrupt? Would the Insolvency Service want a portion of this or would I be allowed to keep the money?

Thanks

CCCS_Sue

missyp123 wrote: »

Hello,
Me and my DH filed BR last month, no IPA just nil tax code.

I was'nt planning on going to uni untill next year but have been offered a place for next month, something i cannot miss out on!

From questions i have asked on here i am aware that my nhs bursary will be seen as an income on our SOA. In turn i am now really worrying about finances and what i should and should not apply for:



My questions are

1. Do they allow me to put costs of books, shoes, extra petrol and parking costs for placements?
2. If i decide to apply for a student loan (i will tell them im BR) can this be taken? (a loan would be a last resort but might be needed if i have to start paying an IPA)
3. There seem to be grants i can apply for as i have a child and my DH is on a low income, will grants be taken?
4. Lastly i am worried that me being undischarged could affect my place, is this possible?

thank you in advance,

Hi missyp123 and thank you for your message

I have replied to your questions below, but I would recommend that you contact the OR who is dealing with your bankruptcy for further clarification. Ultimately, it would be their decision.


Do they allow me to put costs of books, shoes, extra petrol and parking costs for placements.

The official receiver will always consider your views about what is 'reasonable' or necessary spending for your circumstances.

If i decide to apply for a student loan (i will tell them im BR) can this be taken? (a loan would be a last resort but might be needed if i have to start paying an IPA)

As the bursary and student loan are needed to fund living costs whilst studying, the official receiver or trustee would not try to get an IPA, if this left you without enough money to cover the reasonable domestic needs (the day-to-day living expenses) of you and your family. See attached leaflet:

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

There seem to be grants i can apply for as i have a child and my DH is on a low income, will grants be taken?

All income is generally looked at, but speak to the OR for further advice.

Lastly i am worried that me being undischarged could affect my place, is this possible?

Unlikely, but you would need to speak to the university to confirm this.


Regards
Sue

CCCS_Sue

whydidIbuyahousewithhim wrote: »

I have just posted a thread regarding my situation. I own a house with an ex partner and he has disappeared I can't do anything with it, the only option open to me is repossession, in this current climate there will probably be a large shortfall. I will then have to go bankrupt for the remainder but what will happen as he has disappeared and can't be found. It is a terrible situation to be in I have spoken to a Solicitor who said there is nothing I can do without his permission.

I am stuck and the only thing I can do is have it repossessed. I want to move out of here and move on with my life but I can't. He was only in the house 10 months. We weren't married but he had lots of debt that I didn't know about, he was an absolute conman, and I was so stupid.

Can you give me any advice if I can go bankrupt and put it all behind me and start again I just want an end to it all

Hi and thank you for your message

I am not able to advise you if bankruptcy is your best option without knowing your full financial situation.
I would recommend that you call us for an appointment to discuss your options with one of our debt counsellors.
The free appointment number is 0800 138 1111.
Lines are open from 08.00 until 20.00 Monday to Friday.

Regards
Sue