Ask a CCCS counsellor a bankruptcy question

tigerfeet2006

Wystan wrote: »

Hey I think you should go with Sieve, You can try for a Barclays Cash Card account. For more information about bankruptcy visit (bankruptcybalance(dot)com)

You won't get anyone using the website you are trying to push as we are in the UK which is a few miles away from LA so any info. you can give is not relevant to us.

catherinerose

Hi, i am struggling to pay my mortgage at the moment. i ahve looked at my options and started the process of mortgage rescue. i have been to see a debt specialist who was supposed to look over my debts.

the advice given was to get a house valuation and if it would cover the cost of mortgage only, to keep paying that and stop my non-priority debts like credit cards etc. the final plan is to possible go for bankruptcy if there is no equity in my house. i am not in arrears at the moment but after doing a recent budget calculator on here my outgoings are 328 more than my earnings.

it would seem from doing online benefit checks that if i sold my house and rented i could get a fair amount from housing benefits and utility companies are moer prepared to assist you when you have a disabled child and rent.

was the advice given correct as i really want to try and manage my bills and the idea of just not paying the credit cards etc seems ludicrous.

thanks

449926

hi wendy
i would be so grateful if you would look at my problem that i posted on the forum under credit cards my user is 449926 i am not very good with computers i do not know how to go from one forum to another but the problem i have is worrying me ??would going to c a b help me ??? steve

notbankruptyet

My financial advisor told me that as I can't afford to pay for it, if I simply stop paying credit card payments and loan payments, that eventually the bank would make me bankrupt, and that would be that. It is almost two years since I stopped repaying debt and nothing has happened. What shall I do?

davescot691

hi i'd like some advice please to a few issues i have going at the moment. i've recently divorced and have vacated the marital home which is a joint mortgage and is in negative equity to the tune of around £6K. i have personal debts of around £43K all of which are unsecured (credit cards , joint overdraft in my old joint current account and an unsecured personal loan). i cant service this debt and am considering bankruptcy as the only option left open to me. i am renting privately at the moment. how would bankruptcy affect my joint mortgage as i dont want the house to be sold off as its my childrens home and what would the effect of bankruptcy have on my status on the mortgage, i.e would my interest in the house be taken away and therefore my name taken off the mortgage leaving just my ex wife as the sole mortgagee? i'm keen to have my own mortgage again at some time in the future after the effects of BR have gone away. also i pay CSA for one of my children but also contribute over and above this for extra things such as mobile contracts and out of school stuff to the tune of around £200/per month. would this also be taken into account by the OR? would i be able to use my current bank account as normal, i have a basic account with RBS or would the OR sieze my salary? i dont know whether to go it alone on this route or try to scrape the money together to pay a separate company to do the forms etc for me
kind regards

CCCS_Sue

catherinerose wrote: »

Hi, i am struggling to pay my mortgage at the moment. i ahve looked at my options and started the process of mortgage rescue. i have been to see a debt specialist who was supposed to look over my debts.

the advice given was to get a house valuation and if it would cover the cost of mortgage only, to keep paying that and stop my non-priority debts like credit cards etc. the final plan is to possible go for bankruptcy if there is no equity in my house. i am not in arrears at the moment but after doing a recent budget calculator on here my outgoings are 328 more than my earnings.

it would seem from doing online benefit checks that if i sold my house and rented i could get a fair amount from housing benefits and utility companies are moer prepared to assist you when you have a disabled child and rent.

was the advice given correct as i really want to try and manage my bills and the idea of just not paying the credit cards etc seems ludicrous.

thanks

Hi and thank you for your message

Your mortgage is your most important priority and you need to ensure this is paid regularly each month. You also need to keep your council tax and other utility bills up to date.
If this leaves you with nothing left, then offer your non priority creditors a token payment of say a £1 a month rather then nothing at all, until your circumstances change.
Without knowing your full financial situation, I am not able to say what your best option is regarding your home.
As the decisions you make regarding your property are extremely important, I would recommend that you call for an appointment to discuss all your options in more detail with one of our debt counsellors.
The free helpline number is 0800 138 1111. Lines are open from 08.00 until 20.00 Monday to Friday.

Kind regards
Sue

CCCS_Sue

449926 wrote: »

hi wendy
i would be so grateful if you would look at my problem that i posted on the forum under credit cards my user is 449926 i am not very good with computers i do not know how to go from one forum to another but the problem i have is worrying me ??would going to c a b help me ??? steve

Hi Steve

I have looked at your previous posts as you asked, and it seems as though you have been applying for further credit to try and reduce the interest on your cards but keep getting turned down.
Tixy has already given you some really good advice regarding the reasons why this might be.

If you are looking to consolidate your debts into one payment because you are struggling with the repayments and would like some debt advice, then 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.

I have also added a link to this website which give further advice regarding your credit file and how to improve it.
As Tixy has said, the main reason you are being turned down may be that you have been making too many applications for credit.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Kind Regards
Sue

CCCS_Sue

notbankruptyet wrote: »

My financial advisor told me that as I can't afford to pay for it, if I simply stop paying credit card payments and loan payments, that eventually the bank would make me bankrupt, and that would be that. It is almost two years since I stopped repaying debt and nothing has happened. What shall I do?

Hi notbankruptyet and thank you for your message

If you have assets, then the bank could look at making you bankrupt. Otherwise, it may not be worth their while.
For example, do you have property with equity? Do you own a vehicle?
If you stop paying your debts, then it’s more likely that your creditors could issue default notices which will show on your credit file for six years and they could also go for a county court judgement (CCJ). If you ignore a CCJ, then they could take further enforcement action.

It may be advisable to get an up to date copy of your credit reference file to see if they have already issued a CCJ. I have attached a link to a booklet called ‘Credit Explained’ which will give you further information on the names and addresses of the three credit reference agencies.
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Once you have a copy and you know what your debt situation is, I would recommend that you call us for an appointment to discuss your options with one of our counsellors.
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
Sue

CCCS_Sue

davescot691 wrote: »

hi i'd like some advice please to a few issues i have going at the moment. i've recently divorced and have vacated the marital home which is a joint mortgage and is in negative equity to the tune of around £6K. i have personal debts of around £43K all of which are unsecured (credit cards , joint overdraft in my old joint current account and an unsecured personal loan). i cant service this debt and am considering bankruptcy as the only option left open to me. i am renting privately at the moment. how would bankruptcy affect my joint mortgage as i dont want the house to be sold off as its my childrens home and what would the effect of bankruptcy have on my status on the mortgage, i.e would my interest in the house be taken away and therefore my name taken off the mortgage leaving just my ex wife as the sole mortgagee? i'm keen to have my own mortgage again at some time in the future after the effects of BR have gone away. also i pay CSA for one of my children but also contribute over and above this for extra things such as mobile contracts and out of school stuff to the tune of around £200/per month. would this also be taken into account by the OR? would i be able to use my current bank account as normal, i have a basic account with RBS or would the OR sieze my salary? i dont know whether to go it alone on this route or try to scrape the money together to pay a separate company to do the forms etc for me
kind regards

Hi davescot691 and thank you for your message

First of all, you don’t have to pay someone to help you with bankruptcy forms.
The fee to go bankrupt is £600. Apart from these costs, you shouldn’t need to pay anyone else to go bankrupt. There is free help available.

The Official Receiver (OR) in bankruptcy will look to see if you have any assets when you go bankrupt.

If the house is in joint names, then he can look at your share of any equity.
If the house is in negative equity at the date of the bankruptcy, they can revisit it again after 2 yrs 3 months.
If at this date there is more equity then the trustee/OR will look at:-
1) equity buy-out by family etc
2) charging order with no instalments
3) refer to a IP with a view to selling it.
I have attached links to the Insolvency Services booklet about what happens to your home and bank account in bankruptcy.
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bankaccount.pdf


The OR will look at your income and expenditure to make sure it is a realistic budget. This means that your main living costs are covered. Your CSA would be included in your budget as a priority, but anything over and above would have to be at the OR’s discretion. Your bank account is initially frozen when you go bankrupt but you are usually allowed to take out money to pay for essential living costs.
If you would like further free help and advice, 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
Sue

sulan

Yesterday, after 12mths of burying my head in the sand, I called a debt helpline... they looked at my debts over £20,000 and pushed for bankruptcy, which i expected, and after an hour and a half on the phone came the biggy... £600 to go bankrupt (yes i expected that) and their charges came to £1,500... I fell silent and felt all the blood drain from my body... Its ok he said you can pay in installments for 6 mths and then go bankrupt... to be honest I cant remember much after that, im still shaking, and remembered Martins website and came right here... please, please help, its taken great courage to even face what mess ive gotten into and i truly want to live again.... thank you