Ask a CCCS counsellor a bankruptcy question

CCCS_Matthew

blind-as-a-bat wrote: »

Mathew, im disapointed, you of all people should know failure in an IVA 'MAY' mean automatic BR, by the IP not the creditors, so what you should have asked is who the IVA was through, and was there a BR clause in the agreemant.

While your answer is valid where no BR clause exists, assets have no relavence where one is presant, it will happen regardles, subject to the terms of the IVA

True, whilst the OP asked particularly about whether their creditors would make them bankrupt, I should have perhaps mentioned the possibility of the IP.

Whilst creditors are unlikely to pursue the client for bankruptcy there is a possibility that the IP could choose to go down this route if they had not recieved enough through the payments thus far to cover their fees. As this person had paid into the IVA for two years you would expect the would have paid enough to cover these costs, but of course it's never best to assume.

Matthew.

Widelats

Cheers Sue :-)

silverwings

Can you explain about bank accounts once BR is enforced .I have opened new Building Soc account as my sole present account is with bank who we owe 30,000 to. Will this new account be frozen so it cant be used or can I have salary paid into it and have some dds for utilities to come out?

silverwings

Could I have some comments please on my SOA. I will shortly be moving into a flat and filing for BR. These are the figures I will be paying. Maintenance has not been sorted yet but I will have my kids 50/50 and I feel 200 a month to my ex with her keeping child benefit is fair. I have the use of my parents car and will have to pay petrol ,maintenance and tax.

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 30
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 11
Car Insurance........................... 0
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1652


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,652
Available for debt repayments........... 348
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 348

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

CCCS_Matthew

silverwings wrote: »

Can you explain about bank accounts once BR is enforced .I have opened new Building Soc account as my sole present account is with bank who we owe 30,000 to. Will this new account be frozen so it cant be used or can I have salary paid into it and have some dds for utilities to come out?

Hi silverwings,

There are currently two banks that will openly say that they will allow an undischarged bankrupt a basic acccount. They are Co-op and Barclays. If you've already set up a new basic account prior to your bankrutpcy, it will be frozen for about 48 hours on the day you've gone bankrupt and they will then make a decision on whether they will allow you to keep the account open. You may need to check with your new bank to see what ther T&C's are when it comes to allowing undischarged bankrupts to have an account.

Hope this helps.
Matthew.

CCCS_Matthew

silverwings wrote: »

Could I have some comments please on my SOA. I will shortly be moving into a flat and filing for BR. These are the figures I will be paying. Maintenance has not been sorted yet but I will have my kids 50/50 and I feel 200 a month to my ex with her keeping child benefit is fair. I have the use of my parents car and will have to pay petrol ,maintenance and tax.

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 20
Mobile phone............................ 30
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 20
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 11
Car Insurance........................... 0
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1652


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,652
Available for debt repayments........... 348
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 348

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

There seems nothing out the ordinary here for a family of 3. However you will need to prepare for the fact that the OR may ask you to contribute 50-70% of the £348 surplus you have towards your creditors as an Income Payment Arrangement.

Regards, Matthew.

baastet

Thankyou so much for your reply. I have an appointment with a solicitor tomorrow so fingers crossed I can get this massive mess sorted. The sols dealing with the estate refuse to accept that I'm not bankrupt, but surely I'd know if I was:eek:

Kuggers

Hi. I am considering bankruptcy. Regarding assets, what household items, particularly electrical, are considered "reasonable" and which are not?

philnicandamy

Kuggers wrote: »

Hi. I am considering bankruptcy. Regarding assets, what household items, particularly electrical, are considered "reasonable" and which are not?

The receiver would only be interested in items that would raise at least £1000 at auction

Most household goods they wont be interested...unless its a 52" plasma TV

CJV_2

Hi,
My partner and I have had to start considering either BR or IVA, we have seperate debts and seperate accounts, my debt is approx 16k, and at the mo, due to looking after my son, my wage has dropped from an initial 23k three years ago to just over 4k now. This has led to obvious issues. My partners debt is greater (36k) but he has a larger income (£1550 pcm after tax, was higher but he's had an unexpected wage reduction). I am hoing to declare BR; as severe as it is, I have no assets and cannot get an IVA. My partner has been advised that he should try for an IVA rather than bankruptcy as he has a surplus of just over £300 and that he might therefore be rejected for bankruptcy, is this correct?:eek:
Lastly, we have just opened a joint account with the Co-op under advice; if I go bankrupt and my partner takes an IVA, can the OR then freeze the new joint bank account and jeapordize my partners wages going in to pay off his IVA?
Sorry if this is not all clear, I'm new to this and my head is in the shed right now.