Ask a CCCS counsellor a bankruptcy question

CCCS_Sue

uptomyneckinit123 wrote: »

Hi

Am new to this forum but desperately need some help and advice. I will briefly outline to you guys my circumstances. I am a single parent with three children 16, 7 and 3 and am self employed hairdresser and on Tax credits. I own my own property which has a mortgage of approx £187,000 and there is approx £20k in equity.

I have a whole load of credit card debt and have spent the last 3/4 years trying to write to my creditors to agree a repayment scheme. Most have settled for pro-rata payments which I pay by SO from my bank account but some are causing real hassle and grief. Last year I was signed off work with depression due to the stress and worry over all of this. I would imagine I have in the region of £50k of debt and I can't ever see it getting better. Alot of my debt has been brought off by other companies and this week I have received 2 claim forms for Northampton County Court and worried that other creditors may follow suit. The first was for £1762 from Hillesden Securities acting for MBNA even though I have been paying them £2 per month for the last 4 years - I filled in the paperwork and sent it back - They have rejected my offer of repayment and are seeking an Order from Court for payment so that they can apply for a Charging Order. They have said in their letter that they have no intention to seek to enforce this order but so that they can secure their debt.

Then yesterday, I have had another one from same Court - this time from Nelson Guest & Partners acting for Westcott for Lloyds TSB for the sum of £6,423. I have yet to fill in the paperwork as am now in despair.

Please can someone help me, I would willingly go bankrupt as this debt is only going to chase me my whole life but worry greatly for my children. I so don't want to loose my home which at present, although one month behind my mortgage has no Charges attached to it. Is there anyway I can go bankrupt and somehow keep my home?

Every day more letters come through the door and I worry that I will become ill again with the stress of it all. Can bailiffs come and take our possessions?

Please help me.

Hi uptomyneckinit and thank you for your message


Welcome to the forum


In order to give you detailed advice regarding your situation, I would recommend that you call us to speak to one of our debt counsellors about your situation. The counsellor will then be able to look at all the options available for your situation.
Bankruptcy is the last resort and there may be other solutions you could consider.
If your best option was to go bankrupt and you have equity in the property, then this would be classed as an asset and the OR could use this to pay towards your debts.
It is important to try and keep up your mortgage payments, as this is your main priority if you want to keep your home.
If your property has over £1000 equity at the date of a bankruptcy, then the case is referred to an IP who will either:-
1) Ask you to get a friend or family member to buy out your equity
2) Sell the house to release the equity

I have attached a link to a booklet from the Insolvency Service which explains in more detail what happens to your home in bankruptcy
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf


To speak to a counsellor and get further help and advice, you can call for an appointment free on 0800 138 1111.

Kind Regards
Sue

CCCS_Sue

barloo69 wrote: »

Hello, hope I can be put in the right direction here as getting sick of it all.

Ive been u/e for 1 year now and considering going it alone and setting up my own business.

However my problem is I have about 20k worth of unsecured debt and mortgage arrears. Im considering about going bankrupt in the future to try and sort out my personal finance.

If I set up the sole trader small business say tomorrow and months later went BR, will the business be affected by the BR ?

Or is it best to go BR say tomorrow and register the business after the BR ?

Hi barloo69 and thank you for your message

If you are struggling with substantial debts and mortgage arrears, it may not be a good foundation for starting a business.
You could end up in a much worse position if the business didn’t generate enough money for you to get by and you had to resort to living off credit to keep you afloat.


Without knowing your full financial situation, I can’t say whether bankruptcy is your best option.


Before you make a decision on setting up a business, I would recommend that you contact us to discuss your options further.
If you would like to further help 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

clanger69

Hi

The company I work has a sharesave scheme where a set amount is taken from your wage and after your selected term of saving is over, (in my case 3 years), you have the opportunity to buy the company shares at their market price when the 3 year term is up. I have £50 a month taken from my wage towards the scheme and the term is up in 2012. if i were to go bankrupt, would i have to stop these payments and hand the money over that i have saved into the scheme since March 2009, or will the OR only find out about it as it shows on my wageslip?

I am also allowed 2 'holiday payments' so was contemplating not paying into the scheme for 2 months so it doesn't show on my wageslip. I know some might be thinking what a cheek but the shares have risen 7 times the option price so i will be looking at a payout, if i cash them in next March, of £8000+ if they stay at their current price.

The other alternative would be to cancel the scheme and withdraw what i've put into the scheme before i apply for the bankruptcy.

Any advice would be greatly appreciated.

StepChange_Pavan

clanger69 wrote: »

Hi

The company I work has a sharesave scheme where a set amount is taken from your wage and after your selected term of saving is over, (in my case 3 years), you have the opportunity to buy the company shares at their market price when the 3 year term is up. I have £50 a month taken from my wage towards the scheme and the term is up in 2012. if i were to go bankrupt, would i have to stop these payments and hand the money over that i have saved into the scheme since March 2009, or will the OR only find out about it as it shows on my wageslip?

I am also allowed 2 'holiday payments' so was contemplating not paying into the scheme for 2 months so it doesn't show on my wageslip. I know some might be thinking what a cheek but the shares have risen 7 times the option price so i will be looking at a payout, if i cash them in next March, of £8000+ if they stay at their current price.

The other alternative would be to cancel the scheme and withdraw what i've put into the scheme before i apply for the bankruptcy.

Any advice would be greatly appreciated.

Hi clanger69 and thanks for your post.

It’s always best to be honest in these situations. Unfortunately you’re right that you won’t be allowed to continue paying into the scheme.

It’s not advisable to hide it from the Official Receiver or withdraw the money before your bankruptcy as they will investigate your situation thoroughly and it’s likely that they’ll find out anyway. You could face a restriction order or they could ask for the money to pay towards your debts.

If you are due a payout next year, could you avoid bankruptcy and use this to settle your debts instead? If you’d like more detailed advice on your situation, please get in touch.

Kind regards,
Pavan

CarltonF_2

I have been made bankrupt without knowing by Nottingham City Council for unpaid council tax debts. They have passed the matter onto a solicitor and the letter that arrived on my doormat was the first that I was made aware of my bankruptcy status.

I have been given options of:
- Voluntary sale of the property
- Re-financing the property (I'm bankrupt so this option isn't available)
- A third party paying the debts and expenses (There are no third parties that can help)

I want to keep my family house. What should I do? The solicitor handling the bankruptcy has failed to provide me with the details of the monies owing - I asked them for the information on 3rd Feb and still haven't had any info.

I want to pay it or come to an arrangement but where can I go?

skintmumof2

Hi
I did the CSCS debt remedy last month and it told me debt relief order.
I already thought this or bankruptcy-but cant afford bankruptcy.
However ive just been informed by the council i have been overpaid housing benefit of just over £2000 and council tax of £656 which now puts me over £15,000!!! Plus fell behind with water now. If i catch up with the water repayment plan and as the benefit is being taken of my current entitlement can i not include these in my total debts??? As i was really pinning my life on this DRO and am now totally gutted my debts have crept over the £15,000 mark....oh and my mobile bill has been cut off so ill have near on 18months line rental to pay up for aswell!! Tryed to ring the helpline but its constantly busy!! Any help much appreciated aaarrrgggghhhhhhh:(

StepChange_Pavan

CarltonF wrote: »

I have been made bankrupt without knowing by Nottingham City Council for unpaid council tax debts. They have passed the matter onto a solicitor and the letter that arrived on my doormat was the first that I was made aware of my bankruptcy status.

I have been given options of:
- Voluntary sale of the property
- Re-financing the property (I'm bankrupt so this option isn't available)
- A third party paying the debts and expenses (There are no third parties that can help)

I want to keep my family house. What should I do? The solicitor handling the bankruptcy has failed to provide me with the details of the monies owing - I asked them for the information on 3rd Feb and still haven't had any info.

I want to pay it or come to an arrangement but where can I go?

Hi CarltonF and thanks for your post.

It seems strange that they could have made you bankrupt without knowing – you should have received court papers prior to this?

Bankruptcy is usually the last resort and they would generally try other collection tactics first – such as bailiffs or applying for an attachment of earnings (where they deduct an amount from your monthly salary or benefits).

If you haven’t received any other court paperwork from them, you could consider contacting the council to confirm that this is the action they are taking.

I would recommend that either way you should contact us for some more in depth emergency advice. That way we can look at your situation in more detail and discuss your options.

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.

I hope this helps.

Kind regards,
Pavan

BaldEagle

I will be filing for bankruptcy in a couple of weeks time. Already have a Barclays Cash Card account. What is likely to happen to this? Will it get frozen?

I've deliberately picked a date which falls in between regular outgoings from the account but am concerned if it does get frozen that my housing benefit won't get paid in.

Any advice?

Shiva

Last June, I was unable to make the minimum payments (over a thousand a month). I defaulted on 35K of debt. I have been in California since then - I got married at Niagara Falls to my true love, whom I had met July 4th 2009. This is a marriage of love, not arrangement.

My long-suffering parents have been fending off calls and returning the letters to the Credit-Card companies. I was living with my parents when I took out the credit cards. My Barclays account (3K of debt) directs their mail to me in California, which I ignore, along with the rest of the letters back home. I know from their letters - of course I read them - that this debt has been passed to a debt-collecting agency. I have not responded or tried to contact any of my creditors - I am unsure if this is wise - I would welcome any advice. I have no green card, so do not earn any money, although my support for my wife"s work helps her earn a great deal more than previously - we are just about making it through and we have no credit cards or debts.

My Orange phone was disconnected and they demanded I pay the 600 remaining on the contract - I had tried to work out arrangements but they could not shift from protocol, despite me being a Premier level 5 customer. So I am uncontactable by phone.

I have had no contact from any of them. I am returning to England in April and must stay for 5-9 months while my wife files papers to petition for my change of status in the US after which I can live in the US and get a green card.

What is my status when I return to England in April? Am I a fugitive? Am I a criminal? The money was borrowed with the genuine intent of paying it back, so there was not an attempt to gain money by deception? Do I have to declare bankruptcy? I would welcome any and all advice as to my legal status - and thank you in advance for not judging me.

Many thanks,
Shiva

StepChange_Pavan

skintmumof2 wrote: »

Hi
I did the CSCS debt remedy last month and it told me debt relief order.
I already thought this or bankruptcy-but cant afford bankruptcy.
However ive just been informed by the council i have been overpaid housing benefit of just over £2000 and council tax of £656 which now puts me over £15,000!!! Plus fell behind with water now. If i catch up with the water repayment plan and as the benefit is being taken of my current entitlement can i not include these in my total debts??? As i was really pinning my life on this DRO and am now totally gutted my debts have crept over the £15,000 mark....oh and my mobile bill has been cut off so ill have near on 18months line rental to pay up for aswell!! Tryed to ring the helpline but its constantly busy!! Any help much appreciated aaarrrgggghhhhhhh:(

Hi skintmumof2 and thanks for your post.

Even if your housing overpayment is currently being deducted from your benefit, this would need to be included in your list of creditors.

As your circumstances have changed, we would need to look at your situation as a whole again. I’m not sure which of our teams you’re trying to get through to, but you really need to speak to someone who has access to your information.

If you email them with your reference number, they will arrange to call you back.

Kind regards,
Pavan