Ask a CCCS counsellor a bankruptcy question

CCCS_Sue

KYOTOBLUES wrote: »

HI, I am new to this and in a similar position with a DMP, although I have no assets apart from my NHS pension, I am considering Bankruptcy, on advice from a debt helpline. I have £13000 of unsecured debt, and trying to live on whats left after paying DMP and phone bill, is very hard. I work part time and I am a carer for my daughter who is disabled.

I am wondering if I should tell my creditors that I am awaiting my court date to declare myself bankrupt while I save for the fees, or just wait and risk the bailiffs knocking?

any advice about this is appreciated

Hi kyotoblues and thank you for your message

If it is going to take you a while to save for the fees, then you could offer a token payment of say £1 per month as a gesture of goodwill rather than nothing at all.

The creditors would need to go to court first in order to send bailiffs and I would think it is unlikely they would do this if you make them aware you are filing for bankruptcy.

Regards
Sue

CCCS_Sue

Wut@ng wrote: »

Hi,
I am due in court to go bankrupt on Friday 12th Nov 10. A good friend finally kicked my rear and helped me get the ball rolling. The biggest problem for me was the £600 BK fee. I spoke to several companies who all wanted their own fees to assist me with the process, but advice led me to the CAB office. It was the best thing I did as they had someone from The British Legion come down and see me. Being ex-forces entitles me to help from them and within 2 weeks, a Cheque for £600 was with my CAB office.
My question I need confirming is that I have an unpaid speeding fine and parking ticket both issued over 12 months ago and I have not dealt with either and need to know if they can be included in the debts (CAB office says no). If not, then when I contact them in the next day or so, will I be told to pay the full amount at once as I am not in a financial situation to be able to afford it.
Thanks in advance

Hi and thank you for your message

The CAB are correct.

You would not be able to include these fines in your bankruptcy and you need to try and negotiate a repayment plan to repay them as soon as possible as these are priority debts.
You should send a copy of your budget to support any offer you submit.
Fine officers now control the level of instalments and the enforcement steps to be taken.
Financial penalties should generally be capable of being paid within 12 months.
The key thing is to make them aware of your circumstances and pay something rather than nothing at all.
Kind Regards
Sue

Kefte

When my Mother died me and brother took on her small business, things went very wrong due to grief/depression and we didn't keep records correctly and everything went very pear-shaped - long story short the VAT bankrupted my brother and took his house off him and a big chunk of his inheritance. He had other debts which I think were taken out of it too. He has no idea how much everything stacked up too, or how much his house went for, how much and which debts were paid off.... In fact he was given very little information.

I assume there is somewhere he can write to in order to get detailed information of his bankruptcy?

CCCS_Sue

Kefte wrote: »

When my Mother died me and brother took on her small business, things went very wrong due to grief/depression and we didn't keep records correctly and everything went very pear-shaped - long story short the VAT bankrupted my brother and took his house off him and a big chunk of his inheritance. He had other debts which I think were taken out of it too. He has no idea how much everything stacked up too, or how much his house went for, how much and which debts were paid off.... In fact he was given very little information.

I assume there is somewhere he can write to in order to get detailed information of his bankruptcy?

Hi kefte and thank you for your message

I would recommend that your brother contacts the Official Receiver (OR) who dealt with the bankruptcy for further information.

They should have all the details.

Regards
Sue

bankrptct_beckoning

Firstly please excuse spelling mistakes, inc username! Typing on tiny mobile keypad.

I desperately need answers to following questions.

1) i understand my wife will be able to purchasae my beneficial interest in our home (little if any equity), but would she be able to do same in a BTL flat that we jointly have which is in negative equity? The mortgages are the only joint debts (no arrears) we have and i don't want my bankruptcy to affect her anymore than has to. I can't sell the flat before going bankrupt in the current climate.

2) not working at moment, assuming i find employment before bankruptcy, is it likely i will be able to keep my car which is worth about 2500? My wife has a nice car, for her own use, would that affect me?

3) i will probably receive a BRO for my stupidity, if so, would that mean the OR will handle my wife buying beneficial interest, any less favourably, ie. Refuse? After all its not her fault.
Thank you in advance for any help.

MARKA

I was made bankrupt in March 2003,anyway to cut a long story short at the same time I got divorced from my wife. I received a letter from her solicitor asking me if I would sign over my half of an endowment policy over to her,which I did.
Anyway earlier this year I got a letter fom my trustee saying that they'd found out that the policy had been cashed and they wanted my half,£5000 odd pounds.
I now know but didn't at the time know that they had claim to this. My ex-wifes solicitor should've informed her as she was told that I was going bankrupt. My ex-wife has spent the money,not on trivia but on the house for the kids.
Anyway I received a letter today my ex-wife also,from a firm of solicitors demanding payment of this 5000 within 14days.
My ex-wife doesn't have the means to pay and is worried she could lose the house.
I could make some offer but it would have to be low,my ex-wife would be willing for a charge to be put on the house but would interest build up or not?
Any advice would be appreciated

StepChange_Pavan

bankrptct_beckoning wrote: »

Firstly please excuse spelling mistakes, inc username! Typing on tiny mobile keypad.

I desperately need answers to following questions.

1) i understand my wife will be able to purchasae my beneficial interest in our home (little if any equity), but would she be able to do same in a BTL flat that we jointly have which is in negative equity? The mortgages are the only joint debts (no arrears) we have and i don't want my bankruptcy to affect her anymore than has to. I can't sell the flat before going bankrupt in the current climate.

2) not working at moment, assuming i find employment before bankruptcy, is it likely i will be able to keep my car which is worth about 2500? My wife has a nice car, for her own use, would that affect me?

3) i will probably receive a BRO for my stupidity, if so, would that mean the OR will handle my wife buying beneficial interest, any less favourably, ie. Refuse? After all its not her fault.
Thank you in advance for any help.

Hello bankrptct beckoning and thank you for your post.

There is a possibility that the Official Receiver could refuse you the low cost interest transfer scheme. This is entirely at his discretion and would not necessarily reflect whether or not you were given a BRO.

If the BTL flat is in negative equity your wife may be given the opportunity to buy the beneficial interest. It may depend on whether there is a tenant in the property and if you are making a profit.

Your wife’s car shouldn’t be affected by the bankruptcy. However, if you wanted to keep your own car, you would need to prove that you needed it. This article gives you more information on what happens to your car in bankruptcy

Hope this helps.

Kind regards,
Pavan

StepChange_Pavan

MARKA wrote: »

I was made bankrupt in March 2003,anyway to cut a long story short at the same time I got divorced from my wife. I received a letter from her solicitor asking me if I would sign over my half of an endowment policy over to her,which I did.
Anyway earlier this year I got a letter fom my trustee saying that they'd found out that the policy had been cashed and they wanted my half,£5000 odd pounds.
I now know but didn't at the time know that they had claim to this. My ex-wifes solicitor should've informed her as she was told that I was going bankrupt. My ex-wife has spent the money,not on trivia but on the house for the kids.
Anyway I received a letter today my ex-wife also,from a firm of solicitors demanding payment of this 5000 within 14days.
My ex-wife doesn't have the means to pay and is worried she could lose the house.
I could make some offer but it would have to be low,my ex-wife would be willing for a charge to be put on the house but would interest build up or not?
Any advice would be appreciated

Hi MARKA and thank you for your post.

Unfortunately, if your endowment policy wasn’t declared at the time of your bankruptcy, they can now chase your ex wife for the money.

Your wife could volunteer the charge and stipulate conditions such as no interest and no order for sale. Alternatively, they may go for a CCJ and ask her for affordable repayments.

Either way, I’d recommend that she comes to us for some free and impartial advice, as she is now liable for the debt. She can call our free helpline to speak to a trained debt advisor about her situation. She can call 0800 138 1111 and lines are open Monday to Friday 08:00-20:00.

Alternatively, she could use our online debt advice tool, Debt Remedy

Kind regards,
Pavan

bankrptct_beckoning

Dear Pavan,

Thank you for answering my questions. Could you possibly help me further by answering a couple more questions? Our BTL is currently empty and has been for 5 months and would like to keep it so for the forseeable future due to an unpleasant experience between my last tenant and the flats above and below. Luckily, the mortgage payments are low at the moment. Would it be more or less likely my wife could buy the beneficial interest if it continues to remain empty and earns no income?

My final question, if you wouldn't mind, is, can i get proper surveyors to value the properties and arrange the sale of the beneficial interest to my wife for both properties, before going bankrupt? Would there be any complications with the OR as long as the sales weren't below market values. Pretty confident not much, if any, equity in the house and definately not in flat. If there is any in the house it will only be due to having a conservatory built, completely out of my wife's own funds. If there is no equity will a transfer for £1 be accepted? I know can do this during bankruptcy but wife would be lot happier if arranged before.

Many thanks.

simonl79

Hoping someone can help my girlfriend with some debt advice.
She has a joint morgage with an ex partner that is about 35k negative equity. They both ran up lots of debt about 14k but it all went in her name as he was not working and bullied her into it.
He still lives in the house and pays the mortgage but can not get it transfered to his name as he doesnt qualify to have the mortgage on his own and cant get his parents on the mortgage due to their age. Question is, if she goes bankrupt which is her best option does the house get taken into account? Or if she got an IVA does the same apply. He is still applying for credit and as they are linked it shows on her credit report. She has defaulted on her debts and is in payment plans but they will only last so long.
We have a child on the way and the stress is no good for her at all so we aer really frustrated trying to find a way out for her.
Please advise