Ask a CCCS counsellor a bankruptcy question

TanyaN29

Hi Sue,

Thanks for the info, I didnt seek legal advice when I went Bankrupt other than going to see my local CAB who didnt explain anything about the mortgage to me.

If I were to write to the mortgage people and they had my address, could they still chase me for the arrears rather than my ex even though I'm bankrupt.

I would try and talk to my ex, but just trying to talk to him about our 3yr old gets ignored and he'd only ignore me anyway.

I believe he rents to his girlfriends brother, so probably doesnt aways get his rent, but if he did he'd propbably spend it on something other than the mortgage, last time I knew he had five vehicles on the road. He is self employed so not sure whether he'd get a mortgage.

Dont want to write to the mortgage company if they are going to start bombarding me with arrears letters and debt collection agencies. Also dont have much money spare at the mo to pay for a solicitor, but will definatley consider it.

Any advice is appreciated.

TanyaN29

CCCS_Sue

TanyaN29 wrote: »

Hi Sue,

Thanks for the info, I didnt seek legal advice when I went Bankrupt other than going to see my local CAB who didnt explain anything about the mortgage to me.

If I were to write to the mortgage people and they had my address, could they still chase me for the arrears rather than my ex even though I'm bankrupt.

I would try and talk to my ex, but just trying to talk to him about our 3yr old gets ignored and he'd only ignore me anyway.

I believe he rents to his girlfriends brother, so probably doesnt aways get his rent, but if he did he'd propbably spend it on something other than the mortgage, last time I knew he had five vehicles on the road. He is self employed so not sure whether he'd get a mortgage.

Dont want to write to the mortgage company if they are going to start bombarding me with arrears letters and debt collection agencies. Also dont have much money spare at the mo to pay for a solicitor, but will definatley consider it.

Any advice is appreciated.

TanyaN29

Hi TanyaN29

Community Legal Advice offers free legal help so you could contact them for some advice. I attached a link for you in my last message.
I would also wait to see what the OR has to say. If you don’t hear from them soon, then contact them again.
You really need to see where you stand regarding the property before you proceed further regarding removing your name from the mortgage.

Some private landlords will agree to rent to you if you give some additional security.
If you are having problems renting, then try and get someone to act as a guarantor for you or try and put down a bigger bond or a few months rent in advance.

Regards
Sue

CCCS_Sue

battyboimatt wrote: »

Im quite shocked really, I did the CCCS debt remedy the other day and it said I should go for IVA, however I forgot to add something to it, went back updated it and now it suddenly says bankrupty shame I have just had my light bulb moment, I know I need to address this, but I live with paretns and dont want them finding out, I guess the chases are dwindling

Hi battyboimatt and thank you for your message


Your parents don't need to find out about your bankruptcy unless you have any joint debts with them, or they have acted as guarantor for any of your debts.
However, your bankruptcy is advertised in the London Gazette once.
It used to also appear in your local newspaper but now this is rare.

It may be advisable to try and discuss your debt situation with your parents rather than try to hide the fact you are going bankrupt. Sometimes, it’s good to get some support from your family.

If you would like to discuss bankruptcy in more detail, we do have a bankruptcy support team you can contact.

Regards
Sue

battyboimatt

Thanks Sue, I have another question, I saw on the Nation Debt Line website that, depending on your citcumstances you may be considered to have a beneficial intrest even if you are not named on the mortage. This is a complex area so phone us for advice. Is this right, I live at home with my mam and dad and they own the house not me, I just paid them board. Maybe I should move out and get my own flat with the local housing assoication before I go bankrupt, I dont want it affecting my mam and dads house.

emmys_mummy

I got myself into debt as a student and can't seem to get myself out of it. I cut up all my cards a while ago and staying well within my means, but only just meeting minimum payment on my two credit cards which are very high. Recently applied for another to get rid of some balance on interest free but was turned down.

Saw bank manager but they also turned me down for help. I am seriously considering bankruptcy due to my level of debt but worried it will affect everything in my future even once it has been cleared in 5/7 years. I am really trying and ensuring I am not getting myself into any further debt.

Problem is I was awarded a council house today, with no support for housing benefit due to what I earn, but Nursery fees for my daughter takes up most of the money that rent doesn't. Rent is high, as are bills. I'm worried there will be problems for that if I go bankrupt.

Not sure what to do for the best? Is Payplan the best idea?

Please help, I am desperate not to be in debt anymore.

SteveABC

Hi
Thanks for all your information so far. I have now made the decision to go for bankruptcy and lose my home. I have a few questions:

(1) I am in the process of securing privately rented accommodation and hope to move in around 25th March. I plan to arrange with the court to have my bankruptcy hearing on Monday 28th, or Tuesday 29th March. As the bankruptcy will be at the end of March, there will be no time to apply a nil tax code for 2010/11. Does this mean it will be applied for the whole of the following year (2011/12)? If not, what is the cut off date - is it 6th April?

(2) I am not clear about the mortgaged property I am leaving (in negative equity). I understand I need to write to the secured lenders (Northern Rock and First Plus) to let them know I can no longer make the payments and that I am bankrupt (giving them my bankruptcy reference number). Do I just leave it at that, or do I need to post them the keys and give them a forwarding address? (I had been advised NOT to specifically ask for a voluntary repossession, as they might get me to sign a "deed of acknowledgement", which would mean the shortfall would not be included in the bankruptcy)?

(3) Once I've done the above, will the secured lenders have to deal with the Official Receiver only? (I'm worried they would pursue me for payment in the time between bankruptcy and when the house is sold/repossessed).

StepChange_Pavan

battyboimatt wrote: »

Thanks Sue, I have another question, I saw on the Nation Debt Line website that, depending on your citcumstances you may be considered to have a beneficial intrest even if you are not named on the mortage. This is a complex area so phone us for advice. Is this right, I live at home with my mam and dad and they own the house not me, I just paid them board. Maybe I should move out and get my own flat with the local housing assoication before I go bankrupt, I dont want it affecting my mam and dads house.

Hi there,

Yes, you’re right that this is a complex area – the Official Receiver could consider you to have some beneficial interest in the property as you have been contributing in some way by paying board.

It could depend on how long you have been paying board and how much you pay.

You could consider renting your own place, but Like Sue mentioned, I’d recommend that you call our support team to discuss this in more detail first.

Kind regards,
Pavan

StepChange_Pavan

emmys_mummy wrote: »

I got myself into debt as a student and can't seem to get myself out of it. I cut up all my cards a while ago and staying well within my means, but only just meeting minimum payment on my two credit cards which are very high. Recently applied for another to get rid of some balance on interest free but was turned down.

Saw bank manager but they also turned me down for help. I am seriously considering bankruptcy due to my level of debt but worried it will affect everything in my future even once it has been cleared in 5/7 years. I am really trying and ensuring I am not getting myself into any further debt.

Problem is I was awarded a council house today, with no support for housing benefit due to what I earn, but Nursery fees for my daughter takes up most of the money that rent doesn't. Rent is high, as are bills. I'm worried there will be problems for that if I go bankrupt.

Not sure what to do for the best? Is Payplan the best idea?

Please help, I am desperate not to be in debt anymore.

Hi emmys_mummy and thanks for your post.

Bankruptcy isn’t necessarily your best option but we’d need to look at your situation in more detail before recommending any other solutions. If you were to go bankrupt, you would still need to ensure that you have enough coming in to cover your priorities such as your rent, council tax and nursery fees etc.

I’d recommend that you either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor so that we can explore all of the options that might be available to you.

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.

We can also do a full welfare benefits check to ensure that you’re claiming everything that you’re entitled to.

I hope this helps.

Kind regards,
Pavan

wifeofapb

i owe about 30,000 pound to various companies and i want to declare myself bankrupt, i have a DMP through cccs but i am really struggling as my tax credits have changed and my childcare has too it leaves me with nothing at all spare after bills to pay anything to my DMP.
my questions are how do i save the money to delcare myself bankrupt?
i have a hire purchase tv and washer which i still owe money on but i want to keep these after i go bankrupt can i transfer them to my partners name?
i have a basic account with lloyds that i opened for my dmp will i have to open another account?

please help any info greatly recieved

CCCS_Sue

SteveABC wrote: »

Hi
Thanks for all your information so far. I have now made the decision to go for bankruptcy and lose my home. I have a few questions:

(1) I am in the process of securing privately rented accommodation and hope to move in around 25th March. I plan to arrange with the court to have my bankruptcy hearing on Monday 28th, or Tuesday 29th March. As the bankruptcy will be at the end of March, there will be no time to apply a nil tax code for 2010/11. Does this mean it will be applied for the whole of the following year (2011/12)? If not, what is the cut off date - is it 6th April?

(2) I am not clear about the mortgaged property I am leaving (in negative equity). I understand I need to write to the secured lenders (Northern Rock and First Plus) to let them know I can no longer make the payments and that I am bankrupt (giving them my bankruptcy reference number). Do I just leave it at that, or do I need to post them the keys and give them a forwarding address? (I had been advised NOT to specifically ask for a voluntary repossession, as they might get me to sign a "deed of acknowledgement", which would mean the shortfall would not be included in the bankruptcy)?

(3) Once I've done the above, will the secured lenders have to deal with the Official Receiver only? (I'm worried they would pursue me for payment in the time between bankruptcy and when the house is sold/repossessed).

Hi steveABC and thank you for your message

When you are bankrupt, HM Revenue and Customs (HMRC) submits a claim in the bankruptcy proceedings for the whole of the outstanding tax due in that tax year.

I have found some further information regarding this on this website which may be useful for you.
http://forums.moneysavingexpert.com/showthread.html?t=1064237

As long as you don’t sign any paperwork, especially the ‘deed of acknowledgement’ after the bankruptcy, then the mortgage and all other associated debt should be included in the bankruptcy. You should not be responsible for any shortfall.
Whether you decide on repossession or handing the keys back and just walking away is something you could discuss in much more detail with one of our specialist counsellors. It is important that you consider all your options very carefully regarding your property before you go bankrupt.
The counsellor will be able to explain the procedure and give you further advice
Once you have gone bankrupt, then any dealings with the creditors should done be through the OR who is dealing with your bankruptcy.

I would recommend that you call our free helpline for further help with this. The telephone number is 0800 138 1111. Lines are open from 08.00 until 20.00 Monday to Friday.

We have a specialist bankruptcy team who can give you ongoing support

Kind regards
Sue