Ask a CCCS counsellor a bankruptcy question

System

Bella132 wrote: »

Hi There,

Hope someone can help......

I partner went backrupt quite a few years ago due to a business failing.
It is now 6 years on, and we are getting married and desperately want to buy a house. Will he be able to get a mortgage. He has the proof that his bankruptcy has ended and he has no debts at all.
He has a bank account and a mobile phone contract in his name.
He is on a good salary with very little outgoings due to moving back to his parents during the bankruptcy.

Will he get a mortgage??? Where do we start to look??

Hope someone can be of assistance

Thanks

Bella132

Hi Bella132 and welcome to the forum

On some mortgage applications you are specifically asked if you have ever been bankrupt and it’s important to answers this truthfully.

I think you probably need to take some independent advice in order to see what mortgage products are available to you both.

I hope this helps.

Kind regards
Mat

StepChange_Pavan

CarolAnn49 wrote: »

Hi, Pavan,
My daughter has serious health problems and I am her full-time carer. As she frequently spends long periods in hospital, she asked me some years ago to be a co-signatory to her bank accounts (not a joint account holder) so that I could sort out any problems that might arise and save her running up charges for going over her overdraft limits if necessary.
Over Christmas, 2009, she was moved into a disabled flat more suited to her needs, and was promised financial help and grants to refund removal costs, decorating, rental costs and other expenses, which failed to materialise after she'd overspent on her overdraft. To cut a long story short, she struggled to pay her bills over much of last year, eventually resorting to a repayment plan set up by the CAB, and most of her creditors, including Lloyds TSB and Natwest, accepted payment at £1 per month.
However, Natwest have continued to send out demands for full payment of £1780, charging £30 a time for each letter they send. On top of that, they also insist that I have a joint account with my daughter, and that I am equally liable for payment, so I'm also receiving £30 letters from them, demanding that I also pay £1780. Within the last week, Lloyds TSB have now decided to demand full payment of their credit card debt, some £8000, although both banks have been paid monthly by direct debit, as arranged.
My daughter now feels her only option is bankruptcy, but we are both concerned about my position in this. We have never had a joint account, we had no need for one and were not aware that Natwest had somehow signed us up to one, when my daughter specifically said that she did not require a joint account.
Hope you can advise us, my daughter is on benefits, I receive a state pension and we have no way to find such amounts of money.

Hi CarolAnn49 and thank you for your post.

Have you investigated why your daughter wasn’t entitled to any reimbursed costs? It could be worth getting a full benefits check to ensure that she’s claiming everything that she’s entitled to.

It’s difficult to say what agreement you signed when you became a co-signatory. If you signed to be a guarantor then they can chase you for the debt. I’d definitely recommend that you request a copy of the agreement that you signed to check the terms and conditions and find out whether or not you are liable to pay. You could also get a copy of your credit reference file to see what is listed on there.

It does sound as though bankruptcy could be a solution for your daughter but we would need to look at her situation in more detail first, as there may be other options available to her.

If you did sign a guarantor agreement, the creditors could still chase you for the outstanding amount after your daughter’s bankruptcy.

I’d recommend that you both get in touch with us so that we can advise you fully. To do this 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 based on your current circumstances.

Alternatively if you would prefer to talk to a debt counsellor, 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 hope this helps.

Kind regards,
Pavan

System

technofish wrote: »

Hi, my wiife and I are seperating and our financial situation is pretty damn bad. We've already split and living with each owns parents although we still own the house at the time of writing, tho due to the situation iit's only a matter of time.

I've been to Citizen's Advice (after a month of waiting!) and genuinley feel I'm no further forward and am getting more and more frustrated and desperate to make progress. Because I was a few Ref numbers short he's claiming he can't do anything until I retrieve them from the companies. My main problem is my wife destroyed the letters and stuff and I was blissfully unaware any of this was happening.

I'm getting more and more to the point of just giving up and waving the white flag as I really can't see a way out of this however from reading these forums, the first sentence on the bankruptcy board is if you haven't been given advice to do so you may be refused. CAB never advised me anything and feel this saga will be going on forever if I leave it in their hands.

I really don't know where to turn next.

Please help

Cheers

Hi technofish and thanks for your post

It is important that you’ve taken advice regards bankruptcy and we have a specialist team that can support you in this.

You would still need to know account numbers and balances but at this stage it’s important to make sure that bankruptcy is your best option. You might want to get a copy of your credit file if you’re having trouble finding out balances and account numbers. This booklet should explain how to do that.

I’d recommend that you contact us for some further advice. To get in touch 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

monkeyw_2

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I went Bankrupt in October 2009 and I've just got a credit report which says my Bankruptcy order was SATISFIED in October 2010?

Is this normal?
Or should it say I was discharged in October 2010?

I'm a bit confused can anyone clear this up for me

Many thanks in advance

StepChange_Pavan

PH1LL wrote: »

Hello I went BR just under a year ago.

I jointly owned a property with my (soon to be) ex wife. Before i wenty BR i signed the deeds over to her and have not lived there in 2 yrs. Abbey still have my name on the mortgage and refuse to take me off unless she re applies for a new mortgage - which wont happen as there is neg equity and her salary is low. I i had this mortgage before going BR, does this mean that i am no longer repsonsible for the outstanding balace? I am under the impression that once you go BR all outstanding debts are wiped - does this apply to property and secured debt too?

Thannks

Phil

Hi Phil and thanks for your post.

Even though you transferred the deeds into your wife’s name, you are still responsible for the mortgage whilst the debt is secured on the house. For example, if she started to get behind with payments, they could chase you as you’re named on the mortgage. However, if the house was sold and there was a shortfall (which would now be an unsecured debt) you would not be liable for this as it would be included in your bankruptcy.

I know you mentioned that the house is in negative equity, but the Official Receiver has up to 2 years and 3 months after the bankruptcy to realise any equity. If your wife decides to sell in between this time frame, the OR may be interested in some of the proceeds.

I hope this clears up your question.

Kind regards,
Pavan

StepChange_Pavan

dom7777 wrote: »

I am six years out of bankruptcy and all have disappeared from my record. There was one debt £400 that was 18 months later that is still outstanding as default. I am sure it is stopping me get credit. If I paid it would my rating still be rubbish as it defaulted or would I best better off waiting until next year and the six year rule would apply...

Many thanks - Much appreciated in advance - DB

Hi Dom7777 and thank you for your post.

It’s a bit unclear as to whether this debt was taken out 18 months after your bankruptcy or you mean that there is a default on your file 18 months after everything else has come off your file.

If the default has been on your file for less than 6 years, this will drop off after this time elapses. If the debt was included in your bankruptcy you shouldn’t make any payments towards the debt. But if it was taken out after your bankruptcy you would need to clear the debt.

Kind regards
Pavan

StepChange_Pavan

sarm24 wrote: »

Hi,
I am in about £26,000 worth of debt which is solely in my name. I am married with 3 children and we live in a council house. I am self employed bascially doing computer clerical work at home, I earn about 600pm, my husband is a self employed plumber currently still going to college once a week. My husabnd currently pays towards the finance for his work van and credit cards which he uses for his business. We have managed to get back on track with our rent arrears and are not outstanding with any priority debts. We have a family car which is in my husbands name which I use for shopping and weekly to goto the office for work. We moved from a flat to a house over 2 years ago and this and my husbands lack of work forced us to get behind with bills. So when we put a budget plan together, we concentrated on paying priority debts and wrote to my creditors which we could no longer pay. These include loans,credit cards,catalogues, store cards and over draft(The large amount is with Lloyds whom I bank with and have the overdraft). I've since not used my bank, and all monies and direct debits now come out of my husbands account. We receive working tax and child tax credits. According to our budget planner with all our ingoings and outgoings there is no spare cash to pay my bills, although I've agreed since having a ccj filed against me to pay a £1pm to my creditors. I have a soloctitor helping me with this matter, but would like some further advice and your opinion whether you believe bankruptcy is a option for me ? My solicitor thinks I should not go down this route she believes I'm still young (34) and have the means in the furture to pay it back. After her feedback I'm left feeling quite scared about this option but at present can not see any light at the end of the tunnel, a £1 pm will take a lifetime to pay off and still I receive phone calls and letters. Not all the creditors have agreed to £1pm so they constantly call. We don't currently have enough to pay into a IVA, but if we did is this any better than bankruptcy...I'm confused to know what to do and what are my alternatives...I'd welcome any advice you have.
Many Thanks

Hi Sarm24 and thanks for your post.

It certainly sounds as though you’re on track in terms of keeping up to date with your priorities and you’ve done the right thing by putting together a budget and offering your creditors what you can afford.

With regards to bankruptcy, it sounds as though this could be an option for you but it’s difficult to say without looking at your situation in more detail. One of the main reasons we would discourage bankruptcy is if you thought that your circumstances would improve in the near future, but from what you’ve said this doesn’t sound the case. We would also need to consider the value of your car.

An IVA is still a form of insolvency but you would need a significant surplus and there are other qualifying criteria that you would need to meet.

I’d really recommend that you come to us for some more detailed advice so that we can look at your situation as a whole and recommend the best solution for you. If bankruptcy is the best option, we have a specialist team that can support you throughout the whole process.

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.

I hope this helps.

Kid regards,
Pavan

StepChange_Pavan

monkeyw wrote: »

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I went Bankrupt in October 2009 and I've just got a credit report which says my Bankruptcy order was SATISFIED in October 2010?

Is this normal?
Or should it say I was discharged in October 2010?

I'm a bit confused can anyone clear this up for me

Many thanks in advance

Hi monkeyw and thanks for your post.

This shouldn't pose a problem as it means the debts are cleared and nothing is outstanding.

It should drop off after six years as normal either way.

Hope this helps.

Kind regards,
Pavan

donnaw30

Hi, I was wondering if anyone could shed any light for me-I'm going to have to file for bankruptcy (I have spoken to CAB last year, but due to the unpleasant nature of the issue at hand have been rather effectively procrastinating for some time!)

I have 3 young children (aged 6, 4 and 3) and though their school is only about a 10 minute walk (though more like 15+ with them walking-my youngest walks ok, but he falls over ALOT as he is pigeon toed)
I do regularly use my car, and am worried about losing it in bankruptcy.
I have to do 4 school runs every day One finishes at 11:45am, the other has to be back for 12:30, and they have to have lunch in between that time, and once a week I have to do a 5th run at 4pm.

Plus I also use the car to drop the kids off to visit their Dad's family every Friday which is about 10 miles away-I know that everyone has the same issues, but I'm really worried about how I'd cope should I lose my car. My car is worth less than £1000 and I'm not working at the moment, as I always have one of the kids around at the moment (

Any information would be extremely helpful!

Thanks in advance,
Donna

BeasleyJones

Hi,
Long story short - We are about to file for bankruptcy - Scotland. We are self employed and our income fluctuates grealty . In the summer we won't have enough to meet all our bills. What we have been doing is setting aside in the good months to cover our rent etc in the bad ones. Can anyone tell me whether it is allowed in bankruptcy to set aside monies for future expenses - like rent etc.

Thanks