Ask a CCCS counsellor a bankruptcy question

foolishdebt

I am now on the point of bankruptcy and I have just begun filling out the forms. Also I have opened and set up a new basic account with Nationwide in readiness. I have got the bankruptcy fee already saved.

• I owe 48k on four credit cards and one loan.
• I have no arrears of any bills or rent as I am very careful there.
• I have no overdraft on my bank account as I am careful there too.
• My DMP is up to date until 1 July with no arrears (yet).

In spite of it being a struggle, I have been making regular and timely payments for the last two years on the DMP. But now I cannot continue these repayments because I have just ended my job and my doctor gave me a sick note for the next six months. I will not be able to make my next DMP payment which is due on 1 July 2009 so I must become bankrupt before then.
Before my DMP started two years ago I was in a much better paid job and I used to meet all the minimum payments on the credit cards and loan and I never had any debt. I was foolish enough to believe I could handle anything and that spending money could do you no harm.

I am confused and keep reading different things about bailiffs. I apologise if my questions have been answered in the past but I am really not well and finding it very hard to concentrate on anything however small, so I am not up to searching all through the forums, or making myself even more confused in the process. I am feeling extremely anxious about what will happen.

- Will bailiffs come to my house after bankruptcy?
- Do they always have to let me know they are coming even if they have already been in the house before?
- Do I have to let them in?
- What if I do not let them in?
- Can they break in?
- What can they take?
- Can they still take something if it belongs to somebody else?
- Most of the furniture in my flat belongs to my brother, can he write a letter saying which things are his?

When I ended my job I rang CCCS to discuss my options they advised bankruptcy and I was told that "nobody will come to my house". But I was also told by a bankruptcy assist service that "bailiffs should only take things of value like antiques or expensive electrical goods and not usually ordinary furniture or items of little value" so in other words they will come to my house.
I AM REALLY CONFUSED.

Having watched the programme Beat The Bailiffs, I was shocked that they took everything - every single little thing - the hair dryer, toaster, microwave, kettle, iron, ironing board, hoover and even the dog's plastic basket, and things of very little value like some paperback books, or the really cheap ornaments and pictures on the wall etc, mobile phones were taken too.
They took all the furniture, even if it was cheap rubbish, like the beaten up cheap/old and not very clean three piece suite, they threw the mattress off the bed and took the bedframe, they took a cheap MFI wardobe and matching chests of drawers and threw the clothes out of those, they took a really old and cheap small TV... They said it would all be sold as a job lot by auction and admitted it would not fetch much of a price.
The house was BARE after the bailiffs had finished and the only things they did not take were the cooker, the fridge and the washing machine.
I AM REALLY FRIGHTENED.

I have nothing of real value, no antiques, I have a cheap/old 26" TV, a couple of 14" old TV's in the bedrooms, I have some cheap self assembly pine furniture in one bedroom but it looks quite decent, very old MFI stuff in another bedroom, a small pine dining table and four chairs in the kitchen diner, a pine bookcase. My living room three piece suite is fairly decent but nothing extravagant and it is old. (I did not get into debt buying things for my home, it was all there when my mum died and in her will she left "everything to my brother" although she did not specify or list the items.)
I have no car and do not own my flat or have any assets. (My tenancy agreement will not be affected by the bankruptcy.)
I live alone.

Can any of you CCCS representatives on this forum please answer my questions?

- Another question is does Employment & Support Allowance qualify for a reduction in the bankruptcy fee?

Has anyone here actually been through a visit from the bailiff and can they tell me what items were taken please?

Spammy777

Hi
After struggling for 5 years to keep making payments on my debts I have finally reached the conclusion that I can't do it any more or take the stress any more.

I am concerned that if I declare myself bankrupt it will have a detrimental effect on my landlord's credit rating etc (we are in their basement).

Do they need to know I am planning to do this before hand?

How much will my monthly payments be once I am bankrupt?

I have no assets at all to be sold. We live in a fully furnished apartment.

also we have a joint basic account will this be frozen?

Thank you

neverthesamedaytwice

Hi

After a lot of deliberation and hair-pulling, I became bankrupt in January of this year.

I've been very fortunate, as I've been able to live back at my parent's home for the past 6 months while I get myself back on my feet. So far I haven't needed to enter into an IPA, due to low income. I have been told that I might be a candidate for early discharge, as my bankruptcy was relatively straightforward. As far as I'm aware, this early discharge could happen around September / October.

My current plan is to become self-employed.

My projected income from becoming self-employed is likely to be very variable. There will be months where I make a significant amount of money, and I imagine I'll need to use money earned during these months to support me during the more difficult months.

My current expenses are very low (because I'm living with my parents). I intend to move as soon as possible, which will obviously mean that they'll increase dramatically. I'd also need to be able to save a deposit.

Because my income could vary so drastically from month to month, being tied to a payment agreement could cripple me. Also, because my future expenses are going to increase - the question of whether I'll have any surplus income seems like it's very subjective.

I'm left wondering how an OR would go about working out if I need to enter into an IPA, when:

• projected income is variable
• I'll need to save money for essential living
• expenses are due to increase drastically in coming months, but are currently low
• business expenses to consider

I feel like I'm doomed to stay where I am until discharge - which might be possible, but I'm very keen to start rebuilding my life.

Sorry for the long post - thanks for reading, any advice much appreciated.

Luke

Newbie06

Hi there,
spent a lot of yesterday and today trying to get through on the CCCS BR helpline but you are obviously very very busy...

I have a few questions.
1. After doing my income/expenditure budget with yourselves my surplus is only £3 and realistically there is no room for adjustment. If this is not enough surplus would it be ok to state that my parents will gift me £100 per month until my income increases?
2. Also another way I could up my income would be to take in a lodger, would this be an acceptable income to declare?
3. I am single and live alone, I am not fully aware of what B.I. is other than someone has to buy it... Would it be ok for my cousin to buy it (I trust here implicitly).
4. I own another house which is being reposessed next week, there is a council tax bill outstanding on this property - will I be able to include this in the BR.
5. And last but not least are there any circumstances under which I would not allowed to become bankrupt or become bankrupt and not be allowed to stay in the house I currently live (currently live in a small house mortgaged, which is in negative equity), my mortgage here is low as the house was cheap and it is actually cheaper than renting in the same area or in fact cheaper than renting in the surrounding area.

Thanks so much for answering...

spacealiens

Hello,
I was going to apply for bankruptcy but decided against after being advised not to spend the £500 pounds myself but let my creditors do it.
I owe about £16k, all with the same bank, £2k overdraft, £2k credit card (Master) and £12k unsecured loan. I have no assets, no income at present and have moved to France.
I have some work starting in September but it will barely cover my outgoings. I got made redundant in February and for the past 3 months i have requested the bank to suspend payments to the loan and credit card but they say they will do this for only 3 more payments and then hand over things to a collection agency (Metropolitan?), i'm not sure what they mean by this and they were not forthcoming when i asked. I am getting about 4/5 calls from the bank a day, but there is never a reply when i pick up the phone.
My question is, what will the bank do?

tarchin

Have posted this on BR forum but thought I would ask you also, hope this is ok

Hello, thanks for your attention and thanks to everyone whose posts have informed and encouraged me while dithering. (The SOA below is a true statement of affairs, but obviously requires some explanation due to deficit figure. I have been using "savings" to make up the difference (£395 per month), and now have only about 2/3 months worth left to go - unless I find employment, which I am trying to do. Even if I find a job I will still opt for BR (have had advice from National Debtline) - at usual rates this would increase income to 1100, increase expenditure to 1060 (council tax 65 & petrol extra 80), leaving surplus of 40 a month.

Question is how will OR view SOA: soon I will have nowhere near enough for basics if unemployed and this would be true even if I dumped the car - but that would mean could not get a job relevant to my experience.

I have actually been paying creditors about £90 a month between them for about 2 years, including one CCJ, rest are agreed. Decided to stop now as will need cash for BR and living.

Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 620 (450 housing benefit, 170 jsa)
Other income............................ 0
Total monthly income.................... 620

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 170
Clothing................................ 10
Petrol/diesel........................... 35
Road tax................................ 15
Car Insurance........................... 15
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 915


Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 1400

No Secured nor Hire Purchase Debts

Unsecured Debts (CC and loans - ccj) - no credit sought or used for over 2 years

Total unsecured debts...36600


Monthly Budget Summary
Total monthly income.................... 620
Expenses (including HP & secured debts). 915
Available for debt repayments........... -395
Monthly Unsecured debt repayments....... 0
Amount short for making debt repayments. -395

Personal Balance Sheet Summary
Total assets (things you own)........... 1,400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -36,600
Net Assets.............................. -35,200

I want to submit petition asap - local court say probably won't need appointment, not many customers at the moment. All comments welcome - sorry it's so long. best wishes.

StepChange_Private_Messages

Kuggers wrote: »

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

Hi Kuggers,

Thank you for your post.

I agree with philnicandamy, the OR is really only interested in anything that will net a significant amount if re sold. Most second hand household items do not hold significant value.

Regards,
Amanda

CCCS_Amanda

CJV wrote: »

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.

Hi CJV,

Thank you for your post.

If you are bankrupt then all of the accounts that you hold would be frozen. It may make sense for you to open separate accounts just to be safe. You may be better off waiting until after you declare yourself bankrupt to open your new account.

It’s difficult to give you detailed advice on your options as we don’t have your full financial details. In order for us to be able to provide you with advice on your financial situation you will need to 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. If you would like to get immediate advice on your situation, click here to go directly to Debt Remedy.

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.


Regards,
Amanda

CCCS_Amanda

foolishdebt wrote: »

I am now on the point of bankruptcy and I have just begun filling out the forms. Also I have opened and set up a new basic account with Nationwide in readiness. I have got the bankruptcy fee already saved.

• I owe 48k on four credit cards and one loan.
• I have no arrears of any bills or rent as I am very careful there.
• I have no overdraft on my bank account as I am careful there too.
• My DMP is up to date until 1 July with no arrears (yet).

In spite of it being a struggle, I have been making regular and timely payments for the last two years on the DMP. But now I cannot continue these repayments because I have just ended my job and my doctor gave me a sick note for the next six months. I will not be able to make my next DMP payment which is due on 1 July 2009 so I must become bankrupt before then.
Before my DMP started two years ago I was in a much better paid job and I used to meet all the minimum payments on the credit cards and loan and I never had any debt. I was foolish enough to believe I could handle anything and that spending money could do you no harm.

I am confused and keep reading different things about bailiffs. I apologise if my questions have been answered in the past but I am really not well and finding it very hard to concentrate on anything however small, so I am not up to searching all through the forums, or making myself even more confused in the process. I am feeling extremely anxious about what will happen.

- Will bailiffs come to my house after bankruptcy?
- Do they always have to let me know they are coming even if they have already been in the house before?
- Do I have to let them in?
- What if I do not let them in?
- Can they break in?
- What can they take?
- Can they still take something if it belongs to somebody else?
- Most of the furniture in my flat belongs to my brother, can he write a letter saying which things are his?

When I ended my job I rang CCCS to discuss my options they advised bankruptcy and I was told that "nobody will come to my house". But I was also told by a bankruptcy assist service that "bailiffs should only take things of value like antiques or expensive electrical goods and not usually ordinary furniture or items of little value" so in other words they will come to my house.
I AM REALLY CONFUSED.

Having watched the programme Beat The Bailiffs, I was shocked that they took everything - every single little thing - the hair dryer, toaster, microwave, kettle, iron, ironing board, hoover and even the dog's plastic basket, and things of very little value like some paperback books, or the really cheap ornaments and pictures on the wall etc, mobile phones were taken too.
They took all the furniture, even if it was cheap rubbish, like the beaten up cheap/old and not very clean three piece suite, they threw the mattress off the bed and took the bedframe, they took a cheap MFI wardobe and matching chests of drawers and threw the clothes out of those, they took a really old and cheap small TV... They said it would all be sold as a job lot by auction and admitted it would not fetch much of a price.
The house was BARE after the bailiffs had finished and the only things they did not take were the cooker, the fridge and the washing machine.
I AM REALLY FRIGHTENED.

I have nothing of real value, no antiques, I have a cheap/old 26" TV, a couple of 14" old TV's in the bedrooms, I have some cheap self assembly pine furniture in one bedroom but it looks quite decent, very old MFI stuff in another bedroom, a small pine dining table and four chairs in the kitchen diner, a pine bookcase. My living room three piece suite is fairly decent but nothing extravagant and it is old. (I did not get into debt buying things for my home, it was all there when my mum died and in her will she left "everything to my brother" although she did not specify or list the items.)
I have no car and do not own my flat or have any assets. (My tenancy agreement will not be affected by the bankruptcy.)
I live alone.

Can any of you CCCS representatives on this forum please answer my questions?

- Another question is does Employment & Support Allowance qualify for a reduction in the bankruptcy fee?

Has anyone here actually been through a visit from the bailiff and can they tell me what items were taken please?

Hi there foolishindebt,

Thanks for your post.

When you apply for bankruptcy you provide a list of your assets on your forms, if you have no significant assets, then no bailiff will come to your home. The OR is not interested in general household items as they do not fetch a significant sum at auction.

Anything that you own, with a resale value of over £1000, could be at risk. If you do not own anything like this then don’t worry!

The program ‘Beat the Bailiff’ is intended more as a wake up call to the individuals participating in the program than a factually based show.

I hope this helps.

Regards,
Amanda

CCCS_Amanda

Spammy777 wrote: »

Hi
After struggling for 5 years to keep making payments on my debts I have finally reached the conclusion that I can't do it any more or take the stress any more.

I am concerned that if I declare myself bankrupt it will have a detrimental effect on my landlord's credit rating etc (we are in their basement).

Do they need to know I am planning to do this before hand?

How much will my monthly payments be once I am bankrupt?

I have no assets at all to be sold. We live in a fully furnished apartment.

also we have a joint basic account will this be frozen?

Thank you

Hi Spammy777,

Thank you for your post.

The answers to your questions are as follows:

Do they need to know I am planning to do this before hand?
As long as there are no rent arrears, if there isn't bankruptcy clause in your tenancy agreement then you have no obligation to inform your landlord of your plans. Your bankruptcy will be put on your credit file. Credit files are intended to be a record on an individual’s financial history and not the history of a property so there should not be any affect on your landlord.

How much will my monthly payments be once I am bankrupt?
If the OR sets an Income Payment Arrangement, it would be based on your surplus income after you have paid all of your priority bills (heating, electric, rent, travel, food, water, council tax, etc.)

also we have a joint basic account will this be frozen?
The OR will freeze any account that you have, including joint accounts. To be safe then the other person on the account should open another bank account.

Before you apply for bankruptcy then you may find it beneficial to speak to us about your financial situation. If you would like an appointment with on of our Debt counsellors then you can ring our Helpline on 0800 138 1111. Alternately, you can visit our online debt advice facility called 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. Click here to go to Debt Remedy.

Regards,
Amanda