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StepChange_Pavan

Stinkyfeet wrote: »

Hi All

Firstly, thank you for letting me be apart of the forum.

Im looking for a bit of assistance if possible and will keep it all as short as possible.

In 2005 due to illness got behind with credit items and fell really far behind. I entered into a IVA in Jan 2006 and made payments to this for little under 3 years, due to credit crunch and redundancy, I ask IP if could reduce payments for short period of time till got back into full employment. He refused and failed arrangement late 2008 and petitioned for my Bankruptcy in Jan 2009.
There was no new creditors within the bankruptcy that werent already a part of the IVA.
I had meeting at OR offices, no IPO made and I was discharged in Jan 2010. OR advised my 2 banks they could re-open my accounts (Nationwide & Halifax).

My IVA on my credit file is due to come off in Jan 2012, defaults from credit accounts start to come off my credit file from Nov 2011 to Feb 2012.

When these have gone I be left with Bankruptcy only till Jan 2015 which is disapointing as in theory this means that I would have had a insolvency present on my credit file for 9 years for the same debts as IVA.

Therefore, im wondering if it at all possible for me to have bankruptcy removed from my file at time of IVA (Jan 2012) so that ive had 6 year period?

To add further, at the OR meeting they where somewhat disapointed that I was there as (not in so many words) I had paid so much into IVA arrangement and was half way into it. I think what they where saying is that if I was given half chance and reduced payment during my patch I could have continued IVA to completion, that was my original goal.

Any help regarding this would be brilliant as really want to push forward with life now and would really like the option of moving home next year.

Big thank you for all your help

Hi Stinkyfeet and thanks for your question.

Unfortunately there is no way of removing the bankruptcy from your credit file as it isn’t incorrect information. If asked, you would legally have to disclose your bankruptcy any time in the future too.

However, if you feel that you were not treated fairly, you could make a complaint about your IP. I have attached a link to the Insolvency Service's website which tells you how to do this: http://www.insolvency.gov.uk/howtocomplain/complaininssip.htm

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Maizy wrote: »

Hi there, I hope someone can offer a bit of advice. I would rather not ring the helpline at this stage, have rang other debt lines in the past, one of whom said BR was the better option, the other tried to tell me I should have plenty left over out of our salaries. For now I shall just put some details on here if ok as I think after almost 3 years paying a DMP recently reduced but now over a 20 year period, we are looking at taking the BR plunge.

Basically, we have now resorted to pay day loans and are really struggling as the interest alone is around £350 per month. This was when a couple of essential expenses came around. I was promised a promotion earlier in the year which didnt come off and truly thought the pay rise could get us back on track but its not happened.

We owe 114k mortgage, 29k secured loan, 26k dmp (which is about half and half), 5k to a family member, £500 overdrafts, £750 other credit cards, £1400 pay day loan, £700 arrears on utilities and I think thats about it. When I look at those figures and we take home £2800 per month, (mortgage council tax and dmp is one full wage, I just cannot see how any of it will get paid and the thought of going on for all those years in circles is really affecting this household, which at one time was a happy and contented place. Sorry for going on but really am at a loss what to do. I dont know what we do wrong but our finances are so out of control. Does anyone think my BR would be granted?

Also if my BR is granted, what kind of thing would extend a discharge period, what does the official receiver look for. If a BRO is placed for any reason, does that just mean restrictions are in place or are the incoming funds/overtime still taken into account for the length of the BRO. I'm just asking out of curiosity as it may be deemed that our spending was totally unnecessary on some occasions. At what point can pay rises and overtime belong to the debtor?

My main concern is where the heck do I start, I/we have opened a basic account and picked up the BR papers and of course now this month our mortgage will miss (it went to court and we pay £50 for previous arrears), the payday loan is going to miss which Ive paid ok since Jan and I just feel completely weighed down by it all and I know its affected my husband more so. Hes so ashamed etc etc.

We have gathered some funds together and in two weeks time will have enough either for the BR or the rent on a new house and I have no idea which to do first, can anybody help. Of course if I go into private rent which all around here are through estate agents, what am I meant to say when the credit report fails which it will, I feel Im in a catch 22. The thought of being debt free and able to start again after years of struggling is obviously appealing, but its those initial steps we are afraid of, the main one being the embarrassment and upheaval of having to move and what the heck to tell folk.

Anyway, if anyone can offer any advice as to what steps to take, I would be grateful. Many thanks in advance.

Hi Maizy and thank you for your post.

It definitely sounds as though bankruptcy will be your best option, so even admitting this may be the biggest step you have to take. I appreciate that you don’t want to call anyone for further advice at this stage, but your situation is slightly more complicated as there is a house involved.

I will try to answer your questions as best as I can, but we would need to discuss your situation in more detail to be able to advise you properly. To reassure you, we have a bankruptcy support team who give advice on bankruptcy daily (and they’re all very friendly!). They can help you to fill out the forms and guide you through the whole process.

From what you’ve mentioned, it sounds as though your bankruptcy would be granted. It’s only likely to be rejected if you had enough surplus to clear your debts within a reasonable timescale or if you were in a deficit situation – that is if you didn’t have enough income to cover your priorities.

This leaflet from the Insolvency Service gives you more information on BROs: http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bro.pdf. It’s unlikely that this will affect you, unless you’ve acted dishonestly in some way. The leaflet goes into more detail about what this could include and what would happen if you were affected.

In terms of where to start, it sounds as though you’re already on the right track. I’d recommend that you check that the bankruptcy wouldn’t affect your tenancy or your employment first.

Are you also aware that the money owed to your friend will also be included in your bankruptcy?

If you are certain that bankruptcy is your only option and you have sought some impartial advice to confirm this, you could stop paying your creditors straightaway. This will help you to save towards your fees and your rental deposit.

I’ve tried to pick out your specific questions but I’m sorry if I’ve missed anything. If you’d prefer not to speak to anyone at this stage, you could use out online advice tool, Debt Remedy. This will confirm whether bankruptcy is your best option and will give you tailored advice on your next steps.

You still may need to speak to someone about your situation at a later stage but this should help you to get the ball rolling in the first instance.

I really hope this helps.

Kind regards,
Pavan

Stinkyfeet

CCCS_Pavan wrote: »

Hi Stinkyfeet and thanks for your question.

Unfortunately there is no way of removing the bankruptcy from your credit file as it isn’t incorrect information. If asked, you would legally have to disclose your bankruptcy any time in the future too.

However, if you feel that you were not treated fairly, you could make a complaint about your IP. I have attached a link to the Insolvency Service's website which tells you how to do this:
I hope this helps.

Kind regards,
Pavan

Hi Pavan

Thank you for your reply. It is pretty much as thought but worth checking.
The only thing im bit confused about is where you state I have to legally tell others if asked? This really doesn't make sense as surely after discharge and even more so after six years when the BR comes off my credit file, why would it really need disclosing?

That would be similar if a insurance company asked if you had points on your driving licence, at this time maybe no but 15 years you did have for minor speeding etc.

Similar to a person who spent short time in jail 20 years ago for petty theft but who's CRB etc is clear as time has been spent and they been punished for there crime.

Surely when you have done your time you dont have to continue living in the past as if you do, then others would need warning that basically bankruptcy will haunt you for the rest of your life, forget cheap mortgage rates etc as you will have to always tell them, even if it was somewhat 15 years ago.

Please could you clarify this for me as at this moment in time, really think it pointless hoping that life will get better?

Many thanks

debtinfo

Im afraid that you do need to disclose it if asked directly forever, But only if directly asked have you ever been bankrupt, So for instance if they asked are you bankrupt you could say no as you are no longer bankrupt, or if they said as some do have you been bankrupt in the last 6 years you could again say no after the 6 years is up. Each lender has slightly different criteria, some it matters to some it does not if it was years ago.

I see your point about criminal convictions but that is not as straight forward as it is spent either, for instance if say you applied to visit the USA, the conviction is never spent and always has to be declared.

You will find that the bankruptcy matters less and less as time goes bye even if you are asked to declare it

Stinkyfeet

debtinfo wrote: »

Im afraid that you do need to disclose it if asked directly forever, But only if directly asked have you ever been bankrupt, So for instance if they asked are you bankrupt you could say no as you are no longer bankrupt, or if they said as some do have you been bankrupt in the last 6 years you could again say no after the 6 years is up. Each lender has slightly different criteria, some it matters to some it does not if it was years ago.

I see your point about criminal convictions but that is not as straight forward as it is spent either, for instance if say you applied to visit the USA, the conviction is never spent and always has to be declared.

You will find that the bankruptcy matters less and less as time goes bye even if you are asked to declare it

Hello Again :-)

Thank you matey for clarifying that, so if not asked then doesn't matter. Greatly appreciated, thank you.

arrowarra

A couple of questions. Both my wife and I are going to go bankrupt. As we are doing it individually do we need to list assets on both BR paperwork? Also it states we must disclose items of particular value, any idea what that value is ie a £400 computer (now used!) £150 TV x2. A watch worth £250 new?

StepChange_Pavan

arrowarra wrote: »

A couple of questions. Both my wife and I are going to go bankrupt. As we are doing it individually do we need to list assets on both BR paperwork? Also it states we must disclose items of particular value, any idea what that value is ie a £400 computer (now used!) £150 TV x2. A watch worth £250 new?

Hi arrowarra and thanks for your post.

If you jointly own an asset, such as a house, you would both need to list it. If for example it’s a car that is in your name only, you would list is your asset and if your wife also uses it she would need to note that she has use of the car.

With regards to assets of value, it’s difficult to say what the Official Receiver might be interested in. It’s unlikely that they would take any of the things that you have mentioned as they wouldn’t sell for much at auction. However, collectively it could add up to a considerable amount. It’s up to you whether you include them on the forms, but if they are used items that are worth less than £500 it probably won’t be included anyway. They wouldn’t take items such as fridges, washing machines, microwaves etc so don’t include these.

I hope this helps, but if you’d like more detailed advice, we have a bankruptcy team that can help you to fill out the forms and support you through the process. You can call our free helpline on 0800 138 1111 for an appointment.

Kind regards,
Pavan

StepChange_Pavan

Stinkyfeet wrote: »

Hi Pavan

Thank you for your reply. It is pretty much as thought but worth checking.
The only thing im bit confused about is where you state I have to legally tell others if asked? This really doesn't make sense as surely after discharge and even more so after six years when the BR comes off my credit file, why would it really need disclosing?

That would be similar if a insurance company asked if you had points on your driving licence, at this time maybe no but 15 years you did have for minor speeding etc.

Similar to a person who spent short time in jail 20 years ago for petty theft but who's CRB etc is clear as time has been spent and they been punished for there crime.

Surely when you have done your time you dont have to continue living in the past as if you do, then others would need warning that basically bankruptcy will haunt you for the rest of your life, forget cheap mortgage rates etc as you will have to always tell them, even if it was somewhat 15 years ago.

Please could you clarify this for me as at this moment in time, really think it pointless hoping that life will get better?

Many thanks

Hi again,

Debtinfo has already kindly given you a full answer to this question – like I mentioned, you would only need to disclose it if asked; but you need to answer truthfully.

However, you’re right that after it has dropped off your credit file you wouldn’t need to disclose it if you weren’t asked.

Kind regards,
Pavan

Maizy

Hi Pavan

Thanks a lot for your post, it is a great help. I have called a few estate agents and they say its down to the landlord. I thought I could just say I had left my last property and that was that but when we arranged to view a property they asked if we owned our house of course I said it was mortgaged so where do I go from there when I tell them the reasons for moving. I feeling totally stuck and just do not seem to be able to put one foot in front of the other.

Rang a helpline last night who said they were reluctant to advise a way forward as I could do bargaining with creditors (would take at least 20 years to pay), I could look at an interlocking IVA? or could do BR and its down to us the route we should go. If I didnt have children it wouldn't seem such a bigger deal but I have to rehouse us all as a matter of urgency. Thanks again, I may ring cccs br team as when I do the debt remedy it refers me to the helpline as we are behind with bills. Cheers

Ps, the EState Agent also said it was commonplace for repo's or BR's to look via estate agents which was good to hear.

StepChange_Pavan

The CCCS MoneyAware team are now out of the office until Tuesday 3rd May. Please accept our apologies for any delay in replying to your question.

In the meantime you can still get debt counselling through our online service Debt Remedy 24 hours a day.

Kind regards,
Pavan