Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

Kimbles76 wrote: »

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

Hi Kimbles76 and thanks for your post.

If you are in a deficit budget, you may not be allowed to bankrupt. Your budget is currently unsustainable and suggests that you may need to borrow more money to be able to live which leaves you in an ever worsening situation.

I’d recommend that you call our free helpline so that we can look at your budget in more detail and confirm that bankruptcy is your best option. There may also be other ways on which you can improve your budget which we will discuss with you.

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

mma83

Hi all, 1st time poster.

My father purchased a property just before the recession and now is struggling to maintain mortgage payments. The house they own and live in the U.K is more or less payed for, maybe £20,000 left to pay.

This property is in Cyprus and I believe the mortgage is with a Cypriot bank.
Will try sell property and look at all other options available, but as a last resort they might be forced into being made bankrupt by the Cypriot bank.........if this is the case(As I believe EU countries liaise with each other other Bankruptcy) Will any assets they own in the U.K be at risk???? The house is not down on the Cypriot mortgage.

I know this is a little vague, but if help/assistance is available I can get more information.

It's just that he has taken it pretty bad and blames himself(Couldn't foresee recession etc that what I have told him)

Many thanks in advance, Mike

symesd

Hi

I have been with CCCS since Oct 2008. paying regularly, struggling to cope emotionally now and have strayed when had emergencies, have a couple of pay day loans, which are against the rules, so I am now worried about the DMP failing - which technically it is doing, I cannot face doing the phone call to reiew and just want it all to go away. Everything I do to try to sort anything out always results in more debt and more mess. I am close to giving up on everything. I do not want to go to work anymore as all the money I earn ends up going to debtors, I am virtually walking around in rags, my children only get new clothes when other people buy them or give them, I am gettingupset with the kids when they ask for something - because I have to keep saying no we have no money for it.

I changed banks to make sure all the money for bills goes on bills, when I did this obviously had to cancel direct debits, set them all up again in the new account. When I asked BT to set up new direct debit they said I had cancelled my services and refused to set up new direct debit and demanding £500+ to pay for 12months services & return of the set top box. I relinquished my agreement on my car as it as starting to cost a fortune to get it fixed all the time - the agreement states you can give the car back and voluntarily end agreement if you have paid so much - just got a letter from them saying I owe them over £1000 due to damage - the car is worth about £300, it works fine, and I cannot afford this. My house is falling to peices - infested with mice - which stops me sleeping, windows are rotten, kitchen is uncleanable as it is so run down, carpets are dirty & not able to clean them, hoover broken, heating bills sky high as no double glazing to rear of the address - Gas/Electric company have increased the Gas to £135 for 3 month after me breaking down on phone - they wanted us to pay £290 a month at first (usually pay £83 gas £72 Electric) they have sent a form for us to get their debts written off but I cannot fill in the form - I have lost track of who I owe money to and how much. Creditors keep changing who I owe the money too, I am getting letters every day now about money I own. I am going mad I am sure and just cannot cope anymore.

We have our house up for sale at £142500, estate agents told me it is only worth £132500 (was up for £147000 origonally) but was advised to reduce it. We need £147000 to cover the mortgage (including 5% fee) and £20000 Second mortgage...

Over £30,000 personal debt with CCCS DMP, £1200 & rising with WONGA - who refuse to enter into an agreement (£400 taken out in May 2010 - I have paid about £1000 back to them in interest & fees but have now stopped paying them as they are being unreasonable & I cannot face dealing with them anymore - one of the reasons for changing bank accounts was to stop them taking money from our bank account as we got into arrears with our mortgage because of them - mortgage now back up to date since changine bank account) Also had 4 other payday loans - 2 of which I have managed to pay off - have an agreement with the other 2 - but we are obviously struggling)

I also have 2 credit cards which have not been included in the DMP - do not know why I did not include them - £100 Capital One, £500 with Vanquis, paying £5 & £50 to them but pay off then spend again - so not actually paying off.

I just want to stop paying everything - just stop everything.

I do not know what to do

I do not want to speak to anyone about this over phone as I just get upset. I am so ashamed about all this - I know that if I have no debts now I would never get into debt again. But I do not see a time when I will ever be out of debt & I do not know if I can carry on being in debt - it will take over 30 years to clear the debt on DMP if I continue paying what I am paying now - that means I will b 70 years old. If I live to this age

Basically my life is over - how can I be a mother and wife with all this going on

If I could get rid of my house (£468 mortgage & £392 second mortgage) we would have more money to pay off debt - but nowhere to live.

I am stopping now as I do not know what to do

Also forget - 2 contract phones now in arears - £140 & £197, and about 12months left on the contracts so they will want all of the money for this too

I probably more but I cannot keep track of everything anymore -

I WANT TO GO BANKRUPT AND STOP IT ALL BUT DO NOT WANT TO LOSE MY JOB - NOT BOTHERED ABOUT LOSING HOUSE IT IS HORRIBLE, JUST WANT TO GIVE MY CHILDREN BETTER LIFE

symesd

Is anyone else online right now ..

StepChange_Pavan

andywey wrote: »

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.

Hello andywey and thank you for your post.

The Official Receiver that deals with your girlfriend’s ex husband will want to know whether he has any beneficial interest in the property.

If the deeds have been signed over and your girlfriend has been making the payments to the mortgage it is unlikely that he will have any Beneficial Interest at all.

However, ultimately it will be at the discretion of the Official Receiver. You could seek legal advice through Community Legal Advice.

Hope this helps.

Kind regards,
Pavan

StepChange_Pavan

symesd wrote: »

Hi

I have been with CCCS since Oct 2008. paying regularly, struggling to cope emotionally now and have strayed when had emergencies, have a couple of pay day loans, which are against the rules, so I am now worried about the DMP failing - which technically it is doing, I cannot face doing the phone call to reiew and just want it all to go away. Everything I do to try to sort anything out always results in more debt and more mess. I am close to giving up on everything. I do not want to go to work anymore as all the money I earn ends up going to debtors, I am virtually walking around in rags, my children only get new clothes when other people buy them or give them, I am gettingupset with the kids when they ask for something - because I have to keep saying no we have no money for it.

I changed banks to make sure all the money for bills goes on bills, when I did this obviously had to cancel direct debits, set them all up again in the new account. When I asked BT to set up new direct debit they said I had cancelled my services and refused to set up new direct debit and demanding £500+ to pay for 12months services & return of the set top box. I relinquished my agreement on my car as it as starting to cost a fortune to get it fixed all the time - the agreement states you can give the car back and voluntarily end agreement if you have paid so much - just got a letter from them saying I owe them over £1000 due to damage - the car is worth about £300, it works fine, and I cannot afford this. My house is falling to peices - infested with mice - which stops me sleeping, windows are rotten, kitchen is uncleanable as it is so run down, carpets are dirty & not able to clean them, hoover broken, heating bills sky high as no double glazing to rear of the address - Gas/Electric company have increased the Gas to £135 for 3 month after me breaking down on phone - they wanted us to pay £290 a month at first (usually pay £83 gas £72 Electric) they have sent a form for us to get their debts written off but I cannot fill in the form - I have lost track of who I owe money to and how much. Creditors keep changing who I owe the money too, I am getting letters every day now about money I own. I am going mad I am sure and just cannot cope anymore.

We have our house up for sale at £142500, estate agents told me it is only worth £132500 (was up for £147000 origonally) but was advised to reduce it. We need £147000 to cover the mortgage (including 5% fee) and £20000 Second mortgage...

Over £30,000 personal debt with CCCS DMP, £1200 & rising with WONGA - who refuse to enter into an agreement (£400 taken out in May 2010 - I have paid about £1000 back to them in interest & fees but have now stopped paying them as they are being unreasonable & I cannot face dealing with them anymore - one of the reasons for changing bank accounts was to stop them taking money from our bank account as we got into arrears with our mortgage because of them - mortgage now back up to date since changine bank account) Also had 4 other payday loans - 2 of which I have managed to pay off - have an agreement with the other 2 - but we are obviously struggling)

I also have 2 credit cards which have not been included in the DMP - do not know why I did not include them - £100 Capital One, £500 with Vanquis, paying £5 & £50 to them but pay off then spend again - so not actually paying off.

I just want to stop paying everything - just stop everything.

I do not know what to do

I do not want to speak to anyone about this over phone as I just get upset. I am so ashamed about all this - I know that if I have no debts now I would never get into debt again. But I do not see a time when I will ever be out of debt & I do not know if I can carry on being in debt - it will take over 30 years to clear the debt on DMP if I continue paying what I am paying now - that means I will b 70 years old. If I live to this age

Basically my life is over - how can I be a mother and wife with all this going on

If I could get rid of my house (£468 mortgage & £392 second mortgage) we would have more money to pay off debt - but nowhere to live.

I am stopping now as I do not know what to do

Also forget - 2 contract phones now in arears - £140 & £197, and about 12months left on the contracts so they will want all of the money for this too

I probably more but I cannot keep track of everything anymore -

I WANT TO GO BANKRUPT AND STOP IT ALL BUT DO NOT WANT TO LOSE MY JOB - NOT BOTHERED ABOUT LOSING HOUSE IT IS HORRIBLE, JUST WANT TO GIVE MY CHILDREN BETTER LIFE

Hi symesd and thank you for your post.

There’s always a solution and I know it must be really difficult to muster up the courage to call us for your review. However, if you carry on like this your situation won’t get any better.

I can reassure you that when you call, we will offer you all the support and advice you need – even if you do get upset, you wouldn’t be the first and at least we’d be in a position to help.

Unfortunately we don’t have access to your information but from what you have mentioned, bankruptcy may be your best option. Our support team will look at your situation as a whole, including the debts that aren’t included on your DMP and discuss your options with you.

If bankruptcy is your best solution, we have a specialist team that can give you ongoing support and help you through the process.

I understand that you feel there’s no way out at the moment, but you need to let us help you and we can only do this if you call us.

Kindest regards,
Pavan

helencalla

I have been considering bankruptcy but think a debt relief order is probably a better solution, I am just trying to find out if a DRO would cover doorstep collection loan companies?

sunnyv

Dear CCCS

Please could you help on this situation I have with the sale of my business and me declaring bankrupt.

In a (nutshell)

* I have a business on a mortgage with Natwest (outstanding balance of £205,000), on the deed are my father & myself.
* I have lost a large portion of my income 50% and havent been able to service the repayments not for 2 years.
* Natwest has first and only charge on the property.
* Property value is £220,000 for business and £70,000 for the flat above.
* The business accounts are under my wife & me.
* Trading as a partnership.

Myself
I have a personal debt of £53,444.00
Owns a vehicle (value £2,500)
Owe Inland Revenue £16,000 (estimated)

Wife
Has a debt of £12,983.00
Owns a commercial vehicle (value £1,000)

I haven’t been able to pay my mortgage for 2 years now and it’s come to the time where Natwest have given my till the 18th Feb to make some payment arrangements. I have found a buyer who has raised the £220,000 to take the business over on a 999year lease which pays the mortgage, leaving the flat above freehold ( father 50% & myself 50%), around £35,000 each.

I have been advice to declare Bankrupt, this is my best option as I have a large personal debt.

My father originally out of £140,000 when we purchased the business back in 2004. and the rest was a mortgage of £340,000. After selling the business in Feb 2011 ( next month ), I will have a debt to my father of £105,000. However Natwest would have no interest on the property.

My questions are

1) How would this affect my wife in the future if I was to declare bankrupt ? She is financially linked to my credit file due to the business.
2) How does bankruptcy effect my personal belonging, not that we have much in the way of value items. The car £2500, which we only use to drop kids off to school. A few bits like TV , Hifi , radio etc total value around £3,000 max ?
3) Would Natwest transfer the business just in my fathers name as he put the money up when it was purchased, we are planning on moving out to rented accommodation. I believe he will be renting the flat out for income to pay the money he raised. I’m worried he will get dragged into this, although the bankruptcy in solely for me ?

Thank you for in advance for all your help and assistance.
Sunny

guccigoo

hi my oh is finally going to go bankrupt but i need to know if i have to put down what i earn on the SOA as its only him going BR, also will i need to put down CB and Child maintenance as these are in my name and paid into my account. I work part time so dont earn a lot.

debtinfo

no you dont have to, but if you dont then they will just assume that you pay 50% of the bills