Ask a CCCS counsellor a bankruptcy question

CCCS_Matthew

PabloEscobar wrote: »

Thanks for the reply. Is this pretty much a certainty that the OR will look back to November 2005? Also, the money came from a bank account I havn`t used in 3 years, and was also closed when I started the DMP.

On the bankruptcy forms you are asked to note all bank accounts you've held in the last 2 years. However I do believe that the OR has the ability to go back 6 years, as this tends to be the amount of time that bank records are held for.

As the whole deposit situation has a massive impact on the possibility of whether you would go bankrupt or not, I would strongly advise speaking to the Insolvency Service to get a definitive answer so you know where you stand.

Matthew.

CCCS_Matthew

Itsallgonepearshaped wrote: »

Hi,

Just had a solicitors letter on behalf of one of my creditors as a formal demand . If they don't receive the outstanding sum in 7 days they will be issuing a statutory demand "being the first step in Bankruptcy proceedings". Do you think this means they're going to bypass the CCJ and go straight for BR? Is there any difference between petitioning for your own BR and a creditor doing it (I assume I'd save the fees for starters?)

Thanks

Although creditors can pursue you for bankrutpcy after issuing a Stat Demand, it's very rare. More so if you don't have any assets as such, as if they were to make you bankrupt they could potentially end up with nothing! There is no difference between petitioning for your own bankruptcy of having somone else do it (other than not having to pay for the fee!)

Often this is used as a bit of a scare-tactic in order to pressure into finding enough money to clear the debt, which most people don't have.

Hope this helps,
Matthew.

PabloEscobar

CCCS_Matthew wrote: »

On the bankruptcy forms you are asked to note all bank accounts you've held in the last 2 years. However I do believe that the OR has the ability to go back 6 years, as this tends to be the amount of time that bank records are held for.

As the whole deposit situation has a massive impact on the possibility of whether you would go bankrupt or not, I would strongly advise speaking to the Insolvency Service to get a definitive answer so you know where you stand.

Matthew.

Thanks a lot. I`ll speak to insolvency service, and see what they have to say.

CCCS_Matthew

notmyrealmoniker wrote: »

Hi,

Ive been in an IVA for two years now but have just lost my job so have no way to continue paying. Before I ring the IVA company can anyone give me some advice, i am considering becoming bankrupt or letting my creditors bankrupt me as finding the fee will be hard. I rent a room in my parents house and my real worry is that my parents will be involved with bailiffs? I dont own a house and dont have much in the way of belongings, my debt when i began the IVA was around £18K. any advice would be most welcome.

Thanks

Hi there.

It's unlikely your creditors would make you bankrupt if the IVA failed. This generally only happens if you went into an IVA to protect assets such as property or vehicles. If you say you've not got either, then your creditors would end up with nothing if they were to make you bankrupt so it's not likely to happen.

On the same note though, if you were to petition for your own bankruptcy and have no assets, you won't need to worry about bailiffs as they would not be involved.

I would definitely talk to your IP before you make a decision on what you are to do though.

Regards,
Matthew.

CCCS_Sarah

Godiva500 wrote: »

Sorry to post again but didn't get a response last time.

Hi
I am going BR, and have a small surplus each month.
Am I right in thinking that if both myself and my husband are on pensions with no other income, that an IPA would not be allocated anyway?

I also would like to ask - on the BR form to fill in, it asks about tax paid in employment etc. I pay tax on my pensions. Where do I put that, or don't I?

Thank you

I have checked this with my colleague for you and this is her response, sorry for the delay.

The couple would need to make sure they were putting the maximum allowed for food and housekeeping and clothing so that the surplus is small. Under £100 surplus the OR will not look to take an ipa. Guidelines for a retired couple for food is approx £368 maximum and clothing £58. Or will not allow expenses for sports hobbies, cigarettes, misc expenses.

If the pension is paid net to you then you do not have to put the tax figure on the bankruptcy forms

Hope this helps
Sarah

CCCS_Sue

baastet wrote: »

Hi,
My mother died last year & I have just had a letter from the sols dealing with the will saying that they have done a bankrupcy search on me & have discovered the following: PA(B) from 2007. This related to a threatened bankruptcy action for my flat which was repossessed about 14 years ago & had 27,000 negative equity. At the time I was only working part time (still am) & have 2 disabled sons. The sols who originally applied for the bankruptcy have accepted that I pay the debt off 25 pounds a month which I have been doing.
The sols acting for my mother's estate have asked me to sign a declaration saying that the entry does not apply to me before they will let me have my inheritance. I am really scared & have no idea what to do - i assumed that because I had made an arrangement with them that they would not have any claim on my money. I have been penniless for so long & this was my chance to leave something to my kids when I die - please can you give me some advice?
Thank you

Hi baastet and thank you for your message

This is a legal issue and I would recommend you get some legal advice.

I have attached a link to Community Legal Advice http://www.communitylegaladvice.org.uk/

They offer free help and advice and may be able to assist you further with this.

Regards
CCCS

CCCS_Sue

wordsfan wrote: »

Hi

Hope YOU can help.

I live in scotland. Have debts of up to £15,500 (some agencies may be chasing the same debt, my advisor from citizens advice is checking into this for me) from being a student. My advisor has recommended bankruptcy (if i ever manage to save the £100 fee!)

Have a savings account and a current account with Bank of Scotland opened in 2006. My major creditor is lloydstsb who now own HBOS!!

I was working until 18 mths ago and starting to pay off debts. However now unwell and on benefits unable to work.

I was turned down for basic Co-op account in 2007 while still working on basis of credit search, despite many on here saying it hadn't been a problem for them. I also recently applied to RBS and was refused for same reason.

I am nervous of citibank as only heard of them on here and don't know anyone with an account with them. Credit unions seem to do same credit checks for current accounts and also it seems you have to be a savings member for a while before opening current account but i need this sorted asap as my best option is to go bankrupt.

I enquired today at Clydesdale bank re their basic account. perhaps i was too honest but said i had poor credit and may soon be going bankrupt and they said no way would i even get a basic account with them.

I'm terrified if i go bankrupt, my bank will close my account and i'll be stuck with nowhere for my benefits to be paid into and also i really need to be able to pay certain bills by direct debit as thats saving me money on those bills and i really can't afford to pay them any other way!

Beginning to feel very anxious and desperate. Can you advise? even according to FSA leaflet only accounts that will take you if you are BR are co-op - which I've already been turned down for! and Barclays, which i THINK i had overdraft with them over a decade ago which eventually got paid off but doubt they'd be my biggest fans!!

anyway as you're an expert I'm REALLY hoping you can help.

Many thanks
WF

Hi WF and thank you for your email

As you say, the only banks that will normally take you if you are bankrupt are the Coop and Barclays.
The only other alternative would be to have your benefits paid into a Post office account, though you would need to make other arrangements for any direct debits.
Have you tried to get an account with the Coop since 2007?
Have you tried Barclays?

Section 3.1 of the Banking Code states that banks subscribing to the code will offer a basic account if it is specifically asked for, providing the qualifying conditions are met. If a bank refuses to allow a debtor to open a basic bank account despite them meeting the qualifying criteria (listed on the basic bank account sheet) then you can make a complaint to the bank about this or directly to the Banking Code Standards Board.
Banks are obliged to check the identity of all their debtors, and are allowed to refuse you an account if they are not able to provide suitable identification. This will usually be a document proving your name (passport or driving licence) and address (recent utility bill), but each bank has slightly different criteria for this and you should consult them directly.
Hope this helps
Regards
CCCS_Sue

Widelats

Seen as bankruptcy is related to DRO can someone help me on this issue.

Am i likely to get this DRO order processed or not? These are my basic details, i have a appointment next week at the CAB to fill in the forms, i am taking my whole JSA along and paying in full up front.

Rent £16 per 2 weeks approx
Electric £10 per 2 weeks approx
Food and other household stuff £40 per 2 weeks
Catalogue £60 approx per month


I get £100 per 2 weeks JSA as the jobcentre are taking £30 per 2 weeks back in social fund loans.

I have to take last catalogue statement, proof of benefits, expenses sheet along with me. No assets or bank savings, live in council accomodation, unemployed. If anyone has already got one or know a bit about what else i would need for evidence etc please let me know.

Cheers.

CCCS_Sue

wordsfan wrote: »

Hi Matthew,

I'm also wondering if fact I am not on electoral roll and have no passport or driving licence for ID is whats causing me problems? Also only been at this address for 20 months. previous address for a year and address before that 2.5 years.

thanks

Hi again

I think I have answered this question in my last response to you.

Banks are obliged to check the identity of all their debtors, and are allowed to refuse debtors an account if they are not able to provide suitable identification.

Regards
CCCS_Sue

CCCS_Sue

Widelats wrote: »

Seen as bankruptcy is related to DRO can someone help me on this issue.

Am i likely to get this DRO order processed or not? These are my basic details, i have a appointment next week at the CAB to fill in the forms, i am taking my whole JSA along and paying in full up front.

Rent £16 per 2 weeks approx
Electric £10 per 2 weeks approx
Food and other household stuff £40 per 2 weeks
Catalogue £60 approx per month


I get £100 per 2 weeks JSA as the jobcentre are taking £30 per 2 weeks back in social fund loans.

I have to take last catalogue statement, proof of benefits, expenses sheet along with me. No assets or bank savings, live in council accomodation, unemployed. If anyone has already got one or know a bit about what else i would need for evidence etc please let me know.

Cheers.

Hi widelats and thank you for your message

Without knowing your full financial situation,I am unable to comment on whether you would be eligible for a DRO.
Ultimately,it is the decision of the Official Receiver.

However,I have attached some information on DRO's which you may find useful.

The DRO is a new form of debt relief which has just been introduced. It has been designed to be cheaper than bankruptcy and to help people who have few assets, little available income and relatively low levels of debt. The courts are not involved with an application for a DRO; instead an approved intermediary helps you complete and submit your application. This application will the either be approved or rejected by the insolvency service.

In order to be eligible for a debt relief order certain basic qualifying conditions need to be met:

• No more than £15,000 debt. Certain debts are excluded; these include student loans, secured loans, CSA arrears, criminal court fines.
• No more than £50 per calendar month surplus income, this is after your household priority bills have been paid.
• No more than £300 assets. Assets will include things like savings, shares, cars, caravans, antiques and collectables. (If you have a pension that is not in payment then the fund is an asset. Ask your CAB for more info on this when you have your appointment to fill in the forms)
• You can not be a homeowner

If your DRO is agreed, a hold is put on your accounts. This is known as a moratorium period and in most cases will last for twelve months. During this period you should not make any payments towards qualifying debts and you will be protected against further action. At the end of the Moratorium period, you would be discharged from liability for all the qualifying debts listed in the DRO.

A mandatory court fee of £90 would need to be paid before the Official Receiver will consider the application.

It is also helpful to get a copy of your credit file and up to date statements from all your creditors.

Hope this helps

Regards
CCCS_Sue