Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

socialcharlotte wrote: »

I am in the late stages of Chapter 7, and and I may get some equity from my homestead exemption if my house is sold by the BK court, however I have 0 dollars left to pay for things like utilities and insurance, and so the house might go unprotected. How can I pay when all the money is gone? I am no longer living in the home as I am caring for my mother who has cancer.

Hi socialcharlotte and thanks for your post.

It sounds as though you are going through the bankruptcy process in America. Unfortunately we can only provide advice on UK debts.

I’d recommend you contact a free advice agency near you or your Trustee.

Kind regards,
Pavan

charley_babe

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StepChange_Pavan

charley_babe wrote: »

Hi guys,

I need a little advice and don't know who to ask. I would really appreciate your help.

I have been made redundant and received a lump sum from my past employer which is made up of a compensatory payment for the redundancy, cash instead of holiday taken, cash instead of pension payments and payment in lieu of notice.

I am planning on going bankrupt due to my financial mess. (I have previously spoken to Payplan and the CAB but not about this matter).

Will this money go the official receiver?

If I was to spend some of it on a holiday would they be cross?
What would they do if I did this? I am so depressed and stressed out I desperately need a holiday. I have a stomach ulcer due to stress and my chronic fatigue is getting worse by the day and think if I de-stressed on a holiday it might help. But what would the Official receiver do??

If someone could tell me where I stand I'd really appreciate it. I know I probably seem like I am being irresponsible, but in some weird way I feel the holiday money at least is something I have earned and I desperately need a break and to get away.

Thank you!!

Charlotte

Hi Charlotte and thanks for your post.

I’d recommend that you contact us for some more in depth advice as we will be able to look at your whole situation and determine whether bankruptcy is your best option. We also have a specialist bankruptcy support team that will be able to guide you through the process and answer any of your questions.

It is likely that the Official Receiver will leave you some of the money to help you with your everyday living costs. With regards to the holiday, this is a bit trickier. It would depend on the level of expense and you may also need to provide the medical evidence that a holiday would help your health.

To get in touch with us you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

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.

Kind regards,
Pavan

charley_babe

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Charlotte

ronnie123456

Hello

We are a 61 year old couple and are considering bankruptcy, our situation is as follows:-

My wife does not work, and her pension generates £400 p/m
We have an interest only mortgage which we owe £187k, the property is worth £170k.
We owe £90k on a range of loans and credit cards.
I have no lump sum available in my pension, as the orginal plan was to use a lump sum to pay off some of the debt, but due to the financial crisis my pension has dropped in value. If I retire at 65 I can draw down £1k from my private pension and £500 from public pension, thus giving us a combined income of £1900 p/m.

I work as an interim consultant, so the work has been fairly patchy, however I can earn upto £500 p/d which is paid into my limited company. I draw a salary / dividents from as well, however the actual money in the business is £9k. Clearly with my age, I will not be able to secure a permanent role so I am banking on picking up interim work in order to make the payments on my debts.

I after any advice on what to do, and the process of bankruptcy etc.
Any help mosy appreciated.

StepChange_Pavan

charley_babe wrote: »

Hi,

Thank you for your message. I have spoken to CCCS previously and they have talked me through my options. As I am unemployed I have been told this is the only option for me as my debt is too big for a DMP or anything else and I will not be accepted for an IVA due to my employment status (or lack of it!).

I guess I should talk to my doctor!!

I'll give cccs a call to talk through things further.

Many thanks

Charlotte

Hi Charlotte,

Yes, definitely give us another call – like I mentioned, our bankruptcy team will be able to support you through the process so that you know what to do every step of the way.

It’s a good idea to talk to your doctor too, especially if your health is suffering.

Best wishes,
Pavan


:xmastree:

StepChange_Pavan

ronnie123456 wrote: »

Hello

We are a 61 year old couple and are considering bankruptcy, our situation is as follows:-

My wife does not work, and her pension generates £400 p/m
We have an interest only mortgage which we owe £187k, the property is worth £170k.
We owe £90k on a range of loans and credit cards.
I have no lump sum available in my pension, as the orginal plan was to use a lump sum to pay off some of the debt, but due to the financial crisis my pension has dropped in value. If I retire at 65 I can draw down £1k from my private pension and £500 from public pension, thus giving us a combined income of £1900 p/m.

I work as an interim consultant, so the work has been fairly patchy, however I can earn upto £500 p/d which is paid into my limited company. I draw a salary / dividents from as well, however the actual money in the business is £9k. Clearly with my age, I will not be able to secure a permanent role so I am banking on picking up interim work in order to make the payments on my debts.

I after any advice on what to do, and the process of bankruptcy etc.
Any help mosy appreciated.

Hi ronnie123456,

Welcome to the forums and thank you for your post.

Are all the debts in your personal names rather than under the business? We can give advice on personal debts but if you have any business debts, you can seek help from Business Debtline.

For us to be able to determine whether bankruptcy is your best option we would need to look at your financial situation in a lot more detail. If bankruptcy is your best option, you won’t be able to be a Director of your Limited company so there are lots of things to consider. We have a specialist bankruptcy team that will be able to talk through everything with you.

To contact us you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

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. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have all of the necessary information ready, it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Kind regards,
Pavan


:xmastree:

ani_26

Hi, i wonder if you could help me please?

I am now nearing my AD from bankruptcy, in the new year. I have received a letter from the Insolvency Service this morning, requesting me to complete an IPOQ. Here is a copy of the accompanying letter :-

The letter says :-

I refer to the bankruptcy order made against you on ******* and enclose an income and expenditure questionnaire which i require you to complete and return within 7 days ( two of which have already passed ). (IPOQ ).


One of the purposes of the bankruptcy provisions of the Insolvecy Act 1986 is that those who are able to contribute money towards the payment of their bankruptcy debts should do so. Your response will let me know whether your circumstances have changed and enable me to make an updated assessment of your ability to contribute towards the payment of your bankruptcy debts. Should a payment be deemed appropriate, i will contact you again with further details.

I appreciate your co - operation in this matter and look forward to your early reply.

No mention has been made of an IPA so far, and obviously i went bankrupt before the 1st December 2010. It was agreed, there was no surplus money, and if anything, my financial affairs are in the worse state they have ever been, ( largely due to the fact i had 10 weeks off work through stress, and the cost of moving, when having my house repossessed.

My outgoings are more then my incomings at the moment, due also to the fact i'm self employed, and this is always a lean time of the year, workwise. I do realise i'm responsible for my debts, but I'm at a loss as to how i'm going to cope, when i can't even cover the costs i have. I live my life like this, constantly waiting sometimes up to 9 months to be reimbursed for work, i've undertaken, and as such there are no backup funds, in my bank account at the moment. Its virtually impossible to predict what my income will be from one week to the next, let alone, one month to the next, as each job varies in pay.

I've tried asking for advice, tried ringing the OR, and tried ringing advice agencies. All to no avail. I'm really at a loss about it all. What do i do?

Nohope

ani_26

Hi there again.

I have some advice now, and i am going to try and resolve this matter myself, ( as ever ), but i would still welcome your reply and any advice you have.

Thanks Nohope

StepChange_Pavan

Nohope wrote: »

Hi, i wonder if you could help me please?

I am now nearing my AD from bankruptcy, in the new year. I have received a letter from the Insolvency Service this morning, requesting me to complete an IPOQ. Here is a copy of the accompanying letter :-

The letter says :-

I refer to the bankruptcy order made against you on ******* and enclose an income and expenditure questionnaire which i require you to complete and return within 7 days ( two of which have already passed ). (IPOQ ).


One of the purposes of the bankruptcy provisions of the Insolvecy Act 1986 is that those who are able to contribute money towards the payment of their bankruptcy debts should do so. Your response will let me know whether your circumstances have changed and enable me to make an updated assessment of your ability to contribute towards the payment of your bankruptcy debts. Should a payment be deemed appropriate, i will contact you again with further details.

I appreciate your co - operation in this matter and look forward to your early reply.

No mention has been made of an IPA so far, and obviously i went bankrupt before the 1st December 2010. It was agreed, there was no surplus money, and if anything, my financial affairs are in the worse state they have ever been, ( largely due to the fact i had 10 weeks off work through stress, and the cost of moving, when having my house repossessed.

My outgoings are more then my incomings at the moment, due also to the fact i'm self employed, and this is always a lean time of the year, workwise. I do realise i'm responsible for my debts, but I'm at a loss as to how i'm going to cope, when i can't even cover the costs i have. I live my life like this, constantly waiting sometimes up to 9 months to be reimbursed for work, i've undertaken, and as such there are no backup funds, in my bank account at the moment. Its virtually impossible to predict what my income will be from one week to the next, let alone, one month to the next, as each job varies in pay.

I've tried asking for advice, tried ringing the OR, and tried ringing advice agencies. All to no avail. I'm really at a loss about it all. What do i do?

Nohope

Hi Nohope and thanks for your post.

I’m glad that you’ve received some helpful advice and you’re ready to resolve the issue.

From what you’ve said, it sounds as though you don’t have any surplus to offer them anyway. I’d recommend that you fill out the income and expenditure as best as you can and send it recorded delivery so that you’ve got proof that you responded within 7 days. (They’re unlikely to receive it within the timeframe because of the holidays).

If you would like some help to complete your income and expenditure, you can use our Debt Remedy or call our Helpline (0800 138 1111).

This leaflet also gives you some more information on IPAs for your interest: http://www.insolvency.gov.uk/guidanceleaflets/ipoipa/IPOIPA.htm.

Best wishes,
Pavan