Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

timelord34 wrote: »

Hi folks,

Hoping you can help me. I was made bankrupt in 2002 covering business and personal debts and therefore discharged in 2005. I did not have a mortgage at that time. Since then I have successfully applied for credit for various things successfully(i.e. insurance & mobile tel. contracts etc. I have not applied for nor have any credit card debts or loans as such. My credit record is now clean. My income is around £32,000. I have savings of £11,000.

I want to apply for a mortgage for a house costing £85,000. The term will be 12 years as I am now 54 and will retire in 2023.

Am I right in assuming that the 12 year term is the maximum I could get?

What is the maximum I could apply for. I have read that the loan to value cannot exceed 76%, which comes to £64,600 in this example.

Am I right that this is the case?

Graham

Hi Graham and thanks for your post.

Congratulations on being debt free and turning your finances around.

Unfortunately we’re not qualified to give this kind of advice, as we are debt advisors.

I’d recommend that you seek advice from an independent mortgage broker such as Compass or speak to your bank.

Kind regards,
Pavan

StepChange_Pavan

capeverde wrote: »

Im due to be discharged in the next week or so and prior to bankruptcy had accounts with nat west rbs and barclays. I had an excellent credit history and platinum cards with all. When I was made bankrupt I gave all correct details to the OR and listed all accounts. The nat west didnt have any funds in it and throughout my bankruptcy ive been receiving statements and the account is fully operable although Ive not used it. After discharge I understand the onus is NOT on me to tell nat west as I declared everything correctly to the OR. Should I jst start using the account and carry on as normal. Would I be in breach of any regulations?

Hi capeverde and thanks for your post.

While you remain undischarged you would be in breach of the bankruptcy if there is an overdraft facility on the account and you start to use this. However once you have been discharged you are welcome to start using the account again.

You’re right that the onus is on NatWest - if you don’t have another account open already you could downgrade it to a basic account (if it isn't already) so you’re not tempted by an overdraft facility.

Once discharge has been granted you would only need to declare your bankruptcy if someone asks, and as long as you weren’t subject to a BRO/BRU you won’t be under the Bankruptcy Restrictions.

I hope this answers your questions.

Kind regards,
Pavan

csseykayle

Hi we are in financial difficulties and dont know what to do next , thinking of doing a debt management can anyone give advice please

capeverde

CCCS_Pavan wrote: »

Hi capeverde and thanks for your post.

While you remain undischarged you would be in breach of the bankruptcy if there is an overdraft facility on the account and you start to use this. However once you have been discharged you are welcome to start using the account again.

You’re right that the onus is on NatWest - if you don’t have another account open already you could downgrade it to a basic account (if it isn't already) so you’re not tempted by an overdraft facility.

Once discharge has been granted you would only need to declare your bankruptcy if someone asks, and as long as you weren’t subject to a BRO/BRU you won’t be under the Bankruptcy Restrictions.

I hope this answers your questions.

Kind regards,
Pavan

thank you for your response

System

csseykayle wrote: »

Hi we are in financial difficulties and dont know what to do next , thinking of doing a debt management can anyone give advice please

Hi csseykayle and welcome to the forum.

It’s good that you’re seeking advice and facing up to your difficulties. We can help you look at the solutions available to you.

In order for us to be able to provide you with advice on your financial situation 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. 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.

Kind regards
Mat

dmmsta

Hi,

I have downloaded the SoA & BR forms from the insolvancy site.

I have a quick question regarding one of the sections.

It asks if I have use of any other vehicles. My girlfriend has insured me on her car (as I only have a motorbike) in case I need to pick up my 5yr old.

As / when I file I obviously don't want to omit anything from the form, but what are the implications of answering this question, as it asks about value of this car, even though I have no right to it of any kind.


Thanks

Adam

kizzywoop

Hi, I really need some help.

My husband and I have decided to separate. We have approx £42k of unsecured debts, mostly credit cards and overdrafts and a loan (a previous attempt to manage debt) with around £8k remaining on it.

The £8k loan is joint, and the o/d and cc are split approx £24k in my name and the remaining £10k in his.

Due to my husband's job (government) he cannot go bankrupt- after vague enquiries it has been made clear it would severely hamper his promotion ability and also risk his current job due to the projects he currently works on.

I am in receipt of DLA and longterm incapacity benefit and cannot work. If he leaves I have checked I will be entitled to fully paid rent (have social landlord) and council tax.

Neither of us have any assets- house is council rented, my car is owned by Motability, husband's car is worth less than £1k and necessary for work.

My question is this; if we are separating anyway, can I go bankrupt and can he then take over the loan and the £10k cc in his name and roll them together and pay them off? We would both be happy with this.

Although the bulk is in my name, I cannot afford anywhere near the repayments without my husband's wages, and I understand this is my fault but I never lied about my income or asked for a rise of credit on my cc or o/d and was just given more and more credit over the least ten years. I have never missed a payment and although it has been getting more difficult, we have afforded the repayments but the credit has run out, we cannot afford the repayments (although we have still not missed any yet) and also to pay living expenses without that credit and our marriage has broken down irrepairably.

My husband thinks he could probably just about afford to pay off the £18k if rolled into a loan, as well as obviously having to find somewhere new to live etc. It would also give me a fresh start, albeit with a terrible credit rating and no access to credit, I think it would do me good to have no choice but to learn to live with what I have and start again.

If we can do this, in what order should we do things? I don't want my credit rating from bankruptcy to affect his ability to get a loan etc- we still remain friends, just don't want to be married anymore, and the stress of this debt has certainly not helped us and has severely affected his health.

Thank you and apologies for the long involved post!

brightonman123

is there a minimum amount someone can sue for, via a statutory demand?

despite failing to supply a cca / statements etc, capquest have just sent me an SD for alleged debt of £930 (most of which I fear are their pumped up charges..)

last i heard about this was their 'agents', mackenzie hall, who confirmed by email that actions were on hold, pending info..

ABSHEAR

Yes you are right
good post

System

dmmsta wrote: »

Hi,

I have downloaded the SoA & BR forms from the insolvancy site.

I have a quick question regarding one of the sections.

It asks if I have use of any other vehicles. My girlfriend has insured me on her car (as I only have a motorbike) in case I need to pick up my 5yr old.

As / when I file I obviously don't want to omit anything from the form, but what are the implications of answering this question, as it asks about value of this car, even though I have no right to it of any kind.

Thanks

Adam

Hi Adam and thanks for your post.

The official receiver will have no material interest in your partner’s vehicle as you don’t own it and it’s not your asset.

However, they will consider if your motorbike is strictly necessary in the light of you having the use of another car.

As you say it’s correct not to omit any information but you may be asked to provide evidence that you need your motorbike when the other vehicle is available to you.

I hope this helps

Kind regards
Mat