Ask a CCCS counsellor a bankruptcy question

CCCS_Sue

helencalla wrote: »

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?

Hi helencalla and thank you for your message

Yes. It would include these loans
If you were eligible for a DRO, you would need to include all non priority debts such as unsecured loans, credit cards , store cards catalogues, etc and the total would not have to exceed £15000.

Kind Regards
Sue

CCCS_Sue

mma83 wrote: »

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

Hi Mike

Trying to get some further information on this for you. Will respond soon.

Regards
Sue

CCCS_Sue

sunnyv wrote: »

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

Hi Sunny and thank you for your message

The Official Receiver (OR) in bankruptcy is interested in any assets you may have that could be sold to raise money towards paying off your debts.
These would include things like property, vehicles, jewellery, antiques, valuable collections etc. They would not normally include things like TVs, Hifis, radios, etc It would depend on the value.
If your car is only used for taking the children to school, the OR may discuss the possibility of using alternative transport or getting a cheaper car.

Bankruptcy is a big step to take. As you have a business, there are many things you need to take into consideration.

We can help with personal debts but as you are still trading, I would recommend that you contact Business Debtline for further advice.
They give free confidential advice and will be able to look at your situation as a whole including the business side. The free helpline number is 0800 197 6026
I have attached a link for you.
http://www.bdl.org.uk/

Kind Regards
Sue

CCCS_Sue

guccigoo wrote: »

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.

Hi guccigoo and thank you for your message


You would need to show your share of any bills you pay when filling in his SOA

The Receiver may want to know your income but only to see who pays what bills and how you are living. It gives them your whole financial situation. Your income would not be used to pay into his bankruptcy



Kind Regards
Sue

StepChange_Pavan

mma83 wrote: »

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

Hi Mike and thanks for your post.

Has your dad considered renting out the property to help pay for the mortgage?

Unfortunately the OR is likely to look at his assets in the UK to help pay towards the mortgage shortfall if he goes bankrupt

We only specialise in UK debts but if he is struggling, he can contact us for further debt advice by calling 0800 138 1111.

If they do start bankruptcy proceedings, he could contact The Insolvency Service for further clarification.

Hope this helps.

Kind regards,
Pavan

Doooford

Posted in wrong group

guccigoo

thanks sue but would i still need to put down child benefit and maintenance that i recieve on the SOA? Also because he has to open a co-op account would it be questioned if he transfered a set amount of money each month into my account for food shopping and the gas direct debit or would i have to go onto his account so i can have my own card to do the shopping and things?

CCCS_Sue

Thundercatsarego wrote: »

Hi there - I wonder if anyone can help me.
Me and my husband are going through a divorce. We still own a marital home although neither of us live there and it has been empty and one the market for 18 months now.
It is getting little interest, despite a hefty price drop. We are now in negative equity of around £15k between us at the current asking price. I am terrified as I can't really afford to pay back the negative equity and I am worried about my chances of getting a mortgage again one day.
Is bankruptcy really as bad as it is made out to be? Should I even entertain the idea or is it really a last resort?
I'm really not sure what to do for the best, as I now have a new partner and a new life, and we want to move on and buy a place together one day.
Any advice would be greatly appreciated.

Hi thundercatsarego and thank you for your message

Bankruptcy is a big step to take and you need to look at all your options before you decide on this as a solution.
In order to give you detailed advice regarding your situation, I would recommend that you call to speak to one of our specialist mortgage counsellors.

The counsellor will look at your whole circumstances and if bankruptcy is your best option will advise you on how to proceed. We also have a bankruptcy support team who can give ongoing support.

Kind Regards
Sue

CCCS_Sue

guccigoo wrote: »

thanks sue but would i still need to put down child benefit and maintenance that i recieve on the SOA? Also because he has to open a co-op account would it be questioned if he transfered a set amount of money each month into my account for food shopping and the gas direct debit or would i have to go onto his account so i can have my own card to do the shopping and things?

As long as you put down your share of everything you actually pay for on the budget, then you don’t normally need to put down any income you receive.
If the OR requires any further information, he will ask.

You are allowed to set aside money in your budget for food, utilities and other priorities, so it should be fine to transfer the money across.

Kind Regards
Sue

tigga_1961

hi, not sure where to start but im seriously considering br as an only option to get out of debt, i have recently started work after moving back north to find work and be near my family, alas i have been landed with 2 aoe's for council tax from 2005 which i have accepted and offered to pay weekly but the council have refused this as previously i had stupidly made offers to pay i couldnt keep when in reciept of £65 per week esa (i had cancer and depression) so now they are unwilling to accept any other offers at the moment i have income of £152 after the aoe from whcih i have £90 per week rent to pay and £30 per week travel then after gas and electric i have no money for food or any othe bills incl current council tax, sorry for rambling but looking for any help or advice thanks x