Ask a CCCS counsellor a bankruptcy question

bluesbro28

Hi guys i am just about to resign from my job as i have now been signed off with stress for the 3rd time since my employment (4yrs) and have had enough, was wondering if i could go bankrupt as i have about 15k of debt plus my wife who is a housewife has the same.

I have been under debt management for the last 3 years and its not been moving anywhere and am totaly fed up with life in general as i have always had this debt following me about. I been stuck in a viscious circle of needing to borrow when i have had anything expensive to pay. e.g my car blew up before xmas so i ended up having to get a provident loan £1000 to get a new car.

My work has now informed me they are cutting my pay/hours and i will not survive and am stressing my self ill so want to go bankrupt and start over.

Can i do this and what would provident say as i dont want to be accused of fraud since it`s a really recent loan?

Any help will be great and thanks for reading

Joe

CCCS_Sue

Katie1981 wrote: »

Hi, Wondering if you a ( CCCS Debt Counsellor ) would be able to answer some questions for me...

I have an £8 k loan with Barclay, a £3k credit card bill and my £500 overdraft is maxed out, after years of trying to pull myself out of this deep pit, my partner and I have now parted! I work 15 hrs a week and now the overtime that I severly rely on has been cut! My partner previosly helped me significiantly with my bill repayments. I will now bring home £240 per month and that needs to pay for my 2 children and general living expences. I have no pocessions worth any money to help pay my debts.

I'm looking into Bankruptcy as my only option, My question to you is how do I go about declaring myself Bankrupt. Is it the right thing to do? What will happen to my wages? Will my employer find out?
Thank You in advance for any replies.

Hi Katie1981 and thank you for your message

It can be extremely difficult trying to cope when a relationship breaks up as there is usually a big reduction in income.
Bankruptcy is a big step to take and I would recommend that you take some professional advice before going down that road. There may be other options you could consider. For example, a DRO might be a better alternative if you don’t own any property, have no assets (car allowed up to £1000) and your debts total less than £15000. The surplus in your budget would also have to be less than £50 in total. The fees are £90 compared to £600 to go bankrupt. (This can be reduced to £450 if you are on certain benefits)

http://www.cccs.co.uk/InfoCentre/EnglandandWales/Debtsolutions/Debtrelieforder.aspx

Before you look at the solutions, you would need to make sure that you had enough money to cover your priority bills and general living expenses.
You need to make sure you are getting all the benefits you are entitled to.
Are you getting the single persons reduction on your council tax for example?
I would recommend that you call for an appointment to speak to one of our debt counsellors. The counsellor will put together a budget with you showing all your income and expenditure and then discuss your options.
The free helpline number is 0800 138 1111. Lines are open from 08.00 until 20.00 Monday to Friday.
Alternatively, you could use our online debt advice facility, Debt Remedy

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.
We can give you advice regarding benefits as we do have a specialist welfare benefits team.
We also have a bankruptcy support team who can offer ongoing support if bankruptcy was your best option

Hope this helps

Kind Regards
Sue

CCCS_Sue

meemomo wrote: »

My husband was made bankrupt in 2008 for just over £3,000 , we have today received a subject to contract letter about selling the house? Can anyone tell me what it means as I don't understand

Hi meemomo and thank you for your message

When dealing with the potential sale of your property when you are bankrupt, any related correspondence is headed ‘subject to contract’.
This means that the parties are not contractually bound until another document is signed which will normally occur on the formal exchange of contracts. In effect, the matter is left open until it is concluded formally and if the matter is delayed, the official receiver is not bound to complete at a previously agreed price. In a small number of cases, the completion of the transfer has been delayed sometimes for several years and when the matter is revived the property interest has increased in value.
More information can be found on the following link from the Insolvency Services technical guide (section 6)
http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/S/SaleBankruptsInterestSolelyOwnerProperty.htm

It may be advisable to seek legal help regarding this.
You could either contact your own solicitor or you could ask Community Legal Advice for advice
They give free confidential advice and may be able to help you further.
http://www.communitylegaladvice.org.uk/

Kind Regards
Sue

StepChange_Pavan

Thespian wrote: »

My wife and I have been on an IVA for 2 years but in August my hours were cut and my wife became ill and has been off sick since October.

Due to these changes in our circumstances we are now behind with our IVA and mortgage payments

Currently with our IVA, Mortgage and bills we have more going out than is coming in and are finding it extremely difficult to meet any of our living expenses.

We think that declaring ourselves Bankrupt is the only way to start again.

Is being unable to afford living expenses the time advisors would suggest Bankruptcy as the right option?

Thanks

Hi Thespian and thank you for your post.

An IVA is a legally binding solution and you would need to discuss your options with your Insolvency Practitioner. If you are unable to meet your priorities, they may be able to vary your IVA or you are right that bankruptcy may be your other option.

If your IVA does fail, you can contact us so that we can look at your situation in more detail and give you tailored advice. However, we cannot give you advice whilst you are still in your IVA.

Hope this helps.

Kind regards,
Pavan

CCCS_Sue

bluesbro28 wrote: »

Hi guys i am just about to resign from my job as i have now been signed off with stress for the 3rd time since my employment (4yrs) and have had enough, was wondering if i could go bankrupt as i have about 15k of debt plus my wife who is a housewife has the same.

I have been under debt management for the last 3 years and its not been moving anywhere and am totaly fed up with life in general as i have always had this debt following me about. I been stuck in a viscious circle of needing to borrow when i have had anything expensive to pay. e.g my car blew up before xmas so i ended up having to get a provident loan £1000 to get a new car.

My work has now informed me they are cutting my pay/hours and i will not survive and am stressing my self ill so want to go bankrupt and start over.

Can i do this and what would provident say as i dont want to be accused of fraud since it`s a really recent loan?

Any help will be great and thanks for reading

Joe

Hi Joe and thank you for your message

Going bankrupt is a big step to take, so in order to give you advice on your options, I would recommend that you call for an appointment to speak to one of our counsellors about your situation.
The counsellor will put together a budget with you and then discuss all possible solutions.
If bankruptcy was your best option, then we do have a specialist bankruptcy team who could give you ongoing support.
If the loan you obtained before Christmas was taken out for emergency reasons as you had no car, then this may be taken into consideration.
Incurring debts that you knew you had no reasonable chance of repaying means you could get a bankruptcy restriction order (BRO). I have attached a link to the Insolvency Services website which will give you further information on BROs
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bro.pdf


If you would like 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.

Alternatively, you can 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.

Kind Regards
Sue

Filmstar_2

Hi

I’m hoping for some advice,

I have been in quite a lot of debt for some time, just a variety of things but it has always been fine because I’ve always earned quite well and therefore been able to keep up payments. However my job is now looking a little shaky and so my wife and I have decided to sit down work it all out.

I recon I have debts of around 45K which has always been OK to service but if I loose my job I’ll struggle very quickly.

My main question right now is how that effects my wife. She has quite a lot in savings (always been very sensible with money) but a very low income as she is disabled and only works part time. Because of this her savings represent a lot of security to her and I don’t want me sorting out my debts to cause her to loose this.

What effect does my debt effect her?

Thanks a lot in advance,

Kimbles76

Hi all

I have a court date booked for 1st February 2011. I'm very nervous about it but keen to start a fresh and sleep better at night! I am the one going BR, my husband is not.

Since booking my BR court date, my husband who is a tradesman has been laid off. With very little work around, we are going to have to claim benefits until something comes up. Those benefits are housing benefits and Job Seekers Allowance. We are unable to apply for tax credits, they say my husband has already earned too much this financial year.

This obviously completely changes our financial circumstances as I although I work, I don't earn very much!

I have looked at our income and expenditure so that I can be as accurate as possible on the BR forms; however, with this loss of income, the accurate financial picture means that after our essential living costs and bills are covered we have no disposable income at all and there is actually a shortfall of - £414.98.

How will the OR react to that?

Any help would be very much appreciated.

Many thanks x x x

andywey

Hi new member here who has a question for the bankruptcy experts.

My girlfriend has just been informed that her ex husband intends to go bankrupt. They are divorced and I note that this does not effect child maintenance ... however ... the big issue is the fact that although the house deeds have been signed over to her in the divorce agreement, they still have a mortgage that still has both names on it, therefore effectively joint, as the bank will not let her have it in her name alone due to income etc, but they are fully aware that she pays all the mortgage.

How will him going bankrupt effect the mortgage, as it has both names on it. Does the fact she pays for it all have any bearing ?? Is the important issue that both names are on the mortgage and the fact that she pays it is irrespective to the bankruptcy. I am not sure so need advice.

Thanks in advance for any help but she is clearly quite worried now about the house she has deeds for and pays for.

StepChange_Pavan

cymonguk wrote: »

I am starting to wonder if bankruptcy is a good idea with the point that if i go bankrupt then

a) I will only be allowed half the bills and probably not mortgage payments for my girlfriends house.

b) The new rules stipulating that BR must pay 100% of remaining surplus.

I expect that due to the two things above OR might want such a big proportion it would be pointless and with all the other restrictions in place on BR (i.e. small car), and I might be better trying to repay over 6/7 years?

under BR:

Household bills @ half of total and no mortgage payments: 600
Child maintenance for first daughter:380

Income: 2700 (cannot have company car?) or is it more like 3500 with no tax code??

to OR: 1800 or 2600

and no room for emergencies/issues but I might pay off in 2 years 5 months?


under DMP:

Household bills, etc: 1100
Child maintenance for first daughter:380

Income: 2500 (including company car?)

to DMP: 900

I would pay off the DMP in about 7 years? But I could pay more toward the family bills, mortgage, etc.

Hi cymonguk and thanks for your questions.

Based on an income of £35 - £45K, a DMP would be your better option as you have sufficient surplus to be able to repay your debts within a reasonable timescale.

You are right that the Official Receiver would take 100% of your surplus. Also, the OR has the ability to watch a property for 2 years, 3 months to see if equity increases. If you will be contributing towards the mortgage and household bills, it is likely that you will have some BI after this time.

The OR cannot take goods that don’t belong to you so you would not need to worry about this.

I would say that a lot depends on whether you get a job in the near future or not. If you do, a DMP would be a more flexible and a more appropriate option for you.

I’d recommend that you call our web support team if you want to discuss the reasons why a DMP was your recommended solution. They have access to all your information and will be able to go into a lot more detail.

Kind regards,
Pavan

StepChange_Pavan

Filmstar wrote: »

Hi

I’m hoping for some advice,

I have been in quite a lot of debt for some time, just a variety of things but it has always been fine because I’ve always earned quite well and therefore been able to keep up payments. However my job is now looking a little shaky and so my wife and I have decided to sit down work it all out.

I recon I have debts of around 45K which has always been OK to service but if I loose my job I’ll struggle very quickly.

My main question right now is how that effects my wife. She has quite a lot in savings (always been very sensible with money) but a very low income as she is disabled and only works part time. Because of this her savings represent a lot of security to her and I don’t want me sorting out my debts to cause her to loose this.

What effect does my debt effect her?

Thanks a lot in advance,

Hi Filmstar and thanks for your post.

Your debts would only affect your wife if you are financially associated through joint accounts or joint debts.

Provided that her savings are in her sole name, she should not be affected.

If you’d like us to look at your situation in more detail, 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.

Hope this helps.

Kind regards,
Pavan