Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

bulldogandy1981 wrote: »

Hi
I have a DMP and have failed to make the monthly payment! I still have an estimated debt of £22,422.48. Im close to £700 drawn in my bank account and when i get paid next week it will only be a matter of time untill im back in the red and get another failed payment. Im another considering bankrupcy. Iv been in a mess for 7 years now and its finally come to the point where im slowly giving up. If you/anyone has any advice on what would be the best option and right direction to go it would really help.
Many thanks if you can help me out
Andy

Hi Andy and welcome to the forum.

You mention that you have a DMP but not whether this is with us or not. Either way we would need to look at your situation in a lot more detail before we can give you advice.

It can be a good idea to open a basic bank account away from your debts so that you’re in control of your money. This way you can pay towards your overdraft in the same way as your other creditors and at a rate that you can afford. It also reduces the risk of them withdrawing the overdraft facility as soon as your wage goes in, leaving you with no money to live on.

If you are unable to make the DMP payment, there must be issues in your budget which need addressing. We can look at this with you and explore all of the options that might be available to you. If you’re already a client, please call our support team and they will discuss this with you.

If your DMP is with another provider 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

I hope this helps.

Kind regards,
Pavan

sazaboo

hi,

I have been in a DMP with payplan following separation from my husband in feb 2010, there is 30k of joint debt that i have been paying alone, except a £5 monthly payment he makes to NRAM mortgage shortfall. A drop in the ocean!

I am in work full time but not making ends meet, following a legnthy court case regarding the residency of our daughter aged 4 which he instigated and i won. I was left with a 2500 legal bill that has to be paid quickly. I cant pay both the DMP and legal bills so I have reduced the DMP to £1 each creditor. I dont expect to be able to increase this for perhaps 1 year. I understand my creditors will not be happy but I am considering BC as CSSS advised this when i did the Debt Remedy. Will my creditors make me BC? i dont have 700 quid to do it myself! Is it worse if they take you to court? heeeeeeeeeeeeeeeeeeeeeeeeelp!

Payplan_company_representative

sazaboo wrote: »

hi,

I have been in a DMP with payplan following separation from my husband in feb 2010, there is 30k of joint debt that i have been paying alone, except a £5 monthly payment he makes to NRAM mortgage shortfall. A drop in the ocean!

I am in work full time but not making ends meet, following a legnthy court case regarding the residency of our daughter aged 4 which he instigated and i won. I was left with a 2500 legal bill that has to be paid quickly. I cant pay both the DMP and legal bills so I have reduced the DMP to £1 each creditor. I dont expect to be able to increase this for perhaps 1 year. I understand my creditors will not be happy but I am considering BC as CSSS advised this when i did the Debt Remedy. Will my creditors make me BC? i dont have 700 quid to do it myself! Is it worse if they take you to court? heeeeeeeeeeeeeeeeeeeeeeeeelp!

Hi sazaboo, hope you don't mind me answering your plea for help. Have you spoken to your case officer about bankruptcy or your worries? They have the full picture surrounding your creditors and your circumstances and they should be able to tell you exactly what you want to know.
Lizzy

sazaboo

Lizzy,

All i got told was that Payplan dont do bankruptcy so seek advice elsewhere, so i went to CCCS and was recommended to go BR, i dont have 700 quid to go to court...what is going to happen? CCJ what will that mean?

StepChange_Pavan

sazaboo wrote: »

Lizzy,

All i got told was that Payplan dont do bankruptcy so seek advice elsewhere, so i went to CCCS and was recommended to go BR, i dont have 700 quid to go to court...what is going to happen? CCJ what will that mean?

Hi sazaboo and thank you for your post.

Like Lizzy has mentioned you could consider speaking to Payplan about your situation.

Alternatively, as you have already completed our Debt Remedy we have all your information stored and we can advise you further. I’d recommend that you use the instant chat facility on Debt Remedy or give our support team a call. We can discuss the different options that are available to you to see what suits you best.

You should have also been given the contact number for our specialist bankruptcy support team in your advice booklet. If you’re worried about how you will raise the fee, our specialist counsellors will look into this for you to see if you are eligible for any trust funds. They can also help you through the process in terms of helping you fill out the forms etc.

With regards to the CCJ; this could happen at any time whilst your making reduced payments on a DMP. You can read more about the action that creditors can take on our website. If you did get any CCJ forms, you would only have to make payments that you can realistically afford.

It’s unlikely that your creditors will make you bankrupt if you don’t have any assets but it’s best that you discuss this when you give us a call as we will have access to all your details and can advise you properly.

I hope I’ve helped to put your mind at ease

Kind regards,
Pavan

Brulito123

Hello, I have been reading this site for a few years off and on and i think its fantastic how helpful it has been.

OK so to the point, I am going bankrupt out here in Cyprus, the reason is because we have lived here for 2 years and our main interests are here (work, home etc.) which means we can no longer declare ourselves bankrupt in the UK.

We have been to see someone to get advise but the language barrier meant that although it was a great help there are still a few queries that I need clearing up and I can't go back and see the same person as it's only free for the 1st consultation and I certainly don't have 350 euros and hour to spare.

So, if I g bankrupt here does anyone know how this will affect me back in the UK (as we plan to move back in Dec) I will be bankrupt under Cypriot law and wondered how it would affect my earnings here and being able to rent. Only reason I ask is we have a 4month old girl and so we would not be able to stay at my Mom's on a longterm basis, and also we are expecting to earn more than we do out here once back. Will I be made to pay some to Cyprus? Will It affect me renting?

I understand it is probably not most people's area of expertise as a lot of you go bankrupt in the UK, but I know the law and terms are different but just need those points clarifying for me?

Thanks for taking the time to read my ramblings!

StepChange_Pavan

Brulito123 wrote: »

Hello, I have been reading this site for a few years off and on and i think its fantastic how helpful it has been.

OK so to the point, I am going bankrupt out here in Cyprus, the reason is because we have lived here for 2 years and our main interests are here (work, home etc.) which means we can no longer declare ourselves bankrupt in the UK.

We have been to see someone to get advise but the language barrier meant that although it was a great help there are still a few queries that I need clearing up and I can't go back and see the same person as it's only free for the 1st consultation and I certainly don't have 350 euros and hour to spare.

So, if I g bankrupt here does anyone know how this will affect me back in the UK (as we plan to move back in Dec) I will be bankrupt under Cypriot law and wondered how it would affect my earnings here and being able to rent. Only reason I ask is we have a 4month old girl and so we would not be able to stay at my Mom's on a longterm basis, and also we are expecting to earn more than we do out here once back. Will I be made to pay some to Cyprus? Will It affect me renting?

I understand it is probably not most people's area of expertise as a lot of you go bankrupt in the UK, but I know the law and terms are different but just need those points clarifying for me?

Thanks for taking the time to read my ramblings!

Hi Brulito123 and thanks for your post.

You’re right that the laws are different so it is really best that you get some advice in Cyprus.

In terms of renting when you return to the UK, this would depend on the terms and conditions of the tenancy in the same way it would if you declared yourself bankrupt here. You would need to declare it if asked.

If you will be earning more when you return to the UK you would need to make them aware of this in Cyprus – like you say they may expect an Income Payment Arrangement.

If you expect to return to the UK, you could consider putting off your bankruptcy until 3 months and 1 day after this. That way you could declare yourself bankrupt in the UK.

I hope this helps a little.

Kind regards,
Pavan

PH1LL

CCCS_Pavan wrote: »

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

Thanks for the reply Pavan.

I am starting the credit file clean up and want to eventualy buy a house. If my ex wife falls behind on her mortgage and i am chased and do not pay, am i right in thinking my newly clean credit file will be defaulted and i will receive a ccj if i do not pay it?

If i do pay it where do i stand in regards to ownership of the property? I sigend it over to her in 2010 with an agreement drawn up by her solicitor.

If she falls behind enough for the property to be reposessed, after a while of chasing us both the mortgage company will sell it and then the shortfall is down to her??

I dont want my credit rating damaged any more but at the same time dont want to pay for a property i dont or can never own.

Thanks again

Phil

gatostar

Hello,

I´m about to petition for bankruptcy,because I owe a former customer around 70K Pounds.A good friend of mine wanted to help me avoiding bankruptcy and offered me 15K Pounds in order to approach my creditor and offer him this amount as a "out-of court-settlement", but he declined ( just 2 weeks ago).

Now I have 2 questions:

1.Do I have to mention this attempt of "out of court settlement" in my form 6.28 ?

2. Assuming that my friend is still offering me the amount of 15K,could the OR "force" my creditor to accept this amount as a kind of IVA, in order to avoid my bankruptcy ?

Thanks

Gatostar

StepChange_Pavan

PH1LL wrote: »

Thanks for the reply Pavan.

I am starting the credit file clean up and want to eventualy buy a house. If my ex wife falls behind on her mortgage and i am chased and do not pay, am i right in thinking my newly clean credit file will be defaulted and i will receive a ccj if i do not pay it?

If i do pay it where do i stand in regards to ownership of the property? I sigend it over to her in 2010 with an agreement drawn up by her solicitor.

If she falls behind enough for the property to be reposessed, after a while of chasing us both the mortgage company will sell it and then the shortfall is down to her??

I dont want my credit rating damaged any more but at the same time dont want to pay for a property i dont or can never own.

Thanks again

Phil

Hi Phil,

You are right that if your wife falls behind with payments and the house is repossessed this will be marked on your credit file as you are still named on the mortgage. Like I mentioned before, you wouldn’t be liable for any shortfall as this would be an unsecured debt and included in your bankruptcy.

With regards to the ownership of the property, you would need to look at the agreement that you signed and you may need to seek some legal advice.

I understand that you don’t want to impact your credit rating any further, but your bankruptcy will remain on your file for six years from when you went bankrupt. Most mortgage applications will also ask if you have ever been bankrupt in the past and you will need to declare this even after the six years have passed.

I hope this helps.

Kind regards,
Pavan