Ask a CCCS counsellor a bankruptcy question

CCCS_Sue

1worried1 wrote: »

Hi,
Could you please tell the approx guidelines about how much the OR will take of overtime or bonus, delcared BR on 29th oct with no suprlus so no payments, Thanks!

Hi 1worried1 and thank you for your message

There are no guidelines as such.
Any overtime or bonus needs to be declared.
Normally, you will be expected to pay all of your disposable income every month as your IPA or IPO payment. So the more disposable income you have, the more you will have to pay. However, the OR may take into consideration any essential living costs, or home repairs, car expenses etc., but it would be at their discretion.


Kind Regards
Sue

CCCS_Sue

Hardupandfedup wrote: »

Is there any information regarding the new rules for Ipas and surplus amounts please. Also can you let me know if it only applys to anyone going br after 1st Dec or does it apply to all brs. Thanks

Hi hardupandfedup and thank you for your message

We have had no clarification on this new ruling - we are waiting for the Insolvency Service to up date us.

There is an updated leaflet on the Insolvency Service website that is supposed to explain this. I have attached a link for you

http://www.insolvency.gov.uk/guidanceleaflets/ipoipa/IPOIPA.htm

Regards
Sue

credit_crunch

on for a bit of advice please.

we started thinking about bankruptcy just yesterday so please excuse my lack of knowledge - i have no idea what is involved

we currently have around £20k of debts - loans & credit cards etc

we own our own home (mortgaged bought on a shared ownership scheme)

we paid £130k, the house is now worth approx £80k to £85k

we bought it on a 50/50 basis, out mortgage is £65k and co ownership own the other half.

what we have come to realise is, that we can pay off our £65k mortgage over the 30 yr term, but then we will still be faced with the 50% share to pay co ownership otherwise we will never own our own home or never be able to move. the house needs work, and we just arent sure that we can afford to live here anymore

can anyone give me advice on what my first step should be? how do i speak to? what are implication of bankruptcy in later life? what options are available to us?

thanks in advance & sorry for long winded post x

credit_crunch

I also meant to ask the difference between secured & unsecured debts? What happens to these once you go bankrupt? Our big debts are mortgage & credit cards. Do u continue to pay these back & any idea at what rate?

Thanks again

StepChange_Pavan

credit_crunch wrote: »

on for a bit of advice please.

we started thinking about bankruptcy just yesterday so please excuse my lack of knowledge - i have no idea what is involved

we currently have around £20k of debts - loans & credit cards etc

we own our own home (mortgaged bought on a shared ownership scheme)

we paid £130k, the house is now worth approx £80k to £85k

we bought it on a 50/50 basis, out mortgage is £65k and co ownership own the other half.

what we have come to realise is, that we can pay off our £65k mortgage over the 30 yr term, but then we will still be faced with the 50% share to pay co ownership otherwise we will never own our own home or never be able to move. the house needs work, and we just arent sure that we can afford to live here anymore

can anyone give me advice on what my first step should be? how do i speak to? what are implication of bankruptcy in later life? what options are available to us?

thanks in advance & sorry for long winded post x

Hi credit_crunch and thank you for your post.

It’s difficult to say whether bankruptcy is your best option without knowing the details of your situation. We would need to know more about your household, including income and a detailed expenditure list.

To answer your questions in your second post, examples of unsecured debts are personal loans, credit cards, overdrafts etc. A secured debt is anything that is secured against something like your house. If bankruptcy is your best option, your unsecured debts will be written off, but depending on whether you have a surplus, you may be asked to contribute towards your debts for up to three years.

I’d recommend that you either to either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor so that we can fully explore all of the options that are available to you.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Hope this helps

Kind regards,
Pavan

credit_crunch

thanks pavan.

we have a household income of around £27k to £28k - i have just had my hours cut so my salary is now approx 3k per year less.

the reason someone suggested bankruptcy to us was mainly due to the negative equity in our home, meaning the more money we spend, ie it needs double glazing, heating system needs updated, bathroom & kitchen will need replaced over the next 2-3 yrs, the more we stand to lose.

i pay out around £200 out a month to cover credit card bills - this is set to rise as most of my food & present shopping for xmas will have to go on my credit card.

my main concern is that we have just got engaged so will want to start a family and where we currently live is certainly not a family home, nor a area where i would like to raise children. looking back i just wish we had decided to rent rather than buy!

thanks again for your advice - can i just ask is that advice line applicable to northern ireland?

Hopetobefree01

Hello...total newbie needing some advice from the CCCS counsellors.
I have spent weeks reading through the posts of peoples questions and answers which have been a great help and a relief..however I have a few questions...

After years of struggling financially and mentally with the ongoing battle of my debts..I have made the decision that I am going to make myself bankrupt. I have been fortunate that for the last year I have been with ccss and making a contribution to which they have been very helpful in my situation.
I am due to start a new job with a pay cut of aprox £270.00 per month in January. This is when I want to start the ball rolling so I have a realistic amount to work my expenditure list against.
However and here is my first question....
I currently live within a shared house of 5 others.l I make one contribution per month which covers rent, utilities, council tax etc. I also live here with my partner (not married).
I pay all of the monthly outgoings = as above and food etc as he has recently started his own business -is self employed and last year didn’t make enough income to even contribute towards paying tax.
The business is rapidly changing for the better but it wouldn’t be feasible for any contribution from my partner that isn’t maybe - petrol, some groceries etc that would make any significant numbers on the paper work.
What do I need to add to my forms or when the time comes to speak with the OR?
Do I declare that we are together? Do I say as I have above?????
Any information or advice would be a great help.
My second question I have is....I have a car on HP which is only in it's second year so I have not paid the 3 year threshold on this and therefore will not be able to hand this back amicably. I understand I will loose the car but at what point would I stop paying the monthly amount to the HP company? Prior to me starting my debt plan I opened a new basic account with the Co-op where now I have my wages paid into - the car currently runs on a dd in this account. My worry is if I stop paying the car or do not pay the necessary amount I will accrue charges in the bank account for this dd - I need to keep this account keep clean and open so I can use this throughout my bankruptcy.
Sorry for any rambling - hope I have explained myself.....
Any help will be gratefully received...

CCCS_Sue

credit_crunch wrote: »

thanks pavan.

we have a household income of around £27k to £28k - i have just had my hours cut so my salary is now approx 3k per year less.

the reason someone suggested bankruptcy to us was mainly due to the negative equity in our home, meaning the more money we spend, ie it needs double glazing, heating system needs updated, bathroom & kitchen will need replaced over the next 2-3 yrs, the more we stand to lose.

i pay out around £200 out a month to cover credit card bills - this is set to rise as most of my food & present shopping for xmas will have to go on my credit card.

my main concern is that we have just got engaged so will want to start a family and where we currently live is certainly not a family home, nor a area where i would like to raise children. looking back i just wish we had decided to rent rather than buy!

thanks again for your advice - can i just ask is that advice line applicable to northern ireland?

Hi credit_crunch

You can call our advice line free on the telephone number Pavan gave you, and you would be directed to our Limavady office in Ireland.

Kind regards
Sue

CCCS_Sue

Hopetobefree01 wrote: »

Hello...total newbie needing some advice from the CCCS counsellors.
I have spent weeks reading through the posts of peoples questions and answers which have been a great help and a relief..however I have a few questions...

After years of struggling financially and mentally with the ongoing battle of my debts..I have made the decision that I am going to make myself bankrupt. I have been fortunate that for the last year I have been with ccss and making a contribution to which they have been very helpful in my situation.
I am due to start a new job with a pay cut of aprox £270.00 per month in January. This is when I want to start the ball rolling so I have a realistic amount to work my expenditure list against.
However and here is my first question....
I currently live within a shared house of 5 others.l I make one contribution per month which covers rent, utilities, council tax etc. I also live here with my partner (not married).
I pay all of the monthly outgoings = as above and food etc as he has recently started his own business -is self employed and last year didn’t make enough income to even contribute towards paying tax.
The business is rapidly changing for the better but it wouldn’t be feasible for any contribution from my partner that isn’t maybe - petrol, some groceries etc that would make any significant numbers on the paper work.
What do I need to add to my forms or when the time comes to speak with the OR?
Do I declare that we are together? Do I say as I have above?????
Any information or advice would be a great help.
My second question I have is....I have a car on HP which is only in it's second year so I have not paid the 3 year threshold on this and therefore will not be able to hand this back amicably. I understand I will loose the car but at what point would I stop paying the monthly amount to the HP company? Prior to me starting my debt plan I opened a new basic account with the Co-op where now I have my wages paid into - the car currently runs on a dd in this account. My worry is if I stop paying the car or do not pay the necessary amount I will accrue charges in the bank account for this dd - I need to keep this account keep clean and open so I can use this throughout my bankruptcy.
Sorry for any rambling - hope I have explained myself.....
Any help will be gratefully received...

Hi hopetobefree01 and thank you for your message

I would recommend that as you are already a client with us, that you call for an appointment to review your budget with one of our counsellors.

They will be able to look at all the options available for your change in circumstances.

If bankruptcy is your best option, then we do have a bankruptcy support team who can give you ongoing support and who will also help you to fill in your bankruptcy forms. They will also advise you regarding your car.

Kind Regards
Sue

Marvintheparanoidandroid

Hi,

I have been advised by CCCS that bankruptcy is my only realistic way forward.

My main concern is the flat I rent with my wife. Only my name is on the rent book. Should I change it to include my wife? What difference would it make? Surely they cannot force you out of your home, especially as the flat is modest and suitable for our needs (two bedroom - the two of us plus my teenage daughters who stay sometimes).

Many thanks

Rob