Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

gatostar wrote: »

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

Hi Gatostar and thanks for your post.

There is no requirement for you to mention this on your forms.

You could consider approaching your customer again and explain that if you go bankrupt he won’t get anything whereas this way they would receive £15K.

Kind regards,
Pavan

wildheart83

I was made bankrupt in August 2010, in Scotland. I opened a bank account prior to my bankruptcy, and contacted the bank afterwards to find out what would happen. I was told it would definitely be frozen within 24 hours of the bank receiving notice of my bankruptcy, and that at best I would be allowed to keep it open, but would have to go to a branch during working hours to withdraw cash.
9 months down the line my account is still fully fuctioning in that I have a full debit card, cheque book and internet / phone banking.

Is it possible, with 3 months left of my undischarged year to go, my account could still be frozen or closed?

Thanks!

gatostar

CCCS_Pavan wrote: »

You could consider approaching your customer again and explain that if you go bankrupt he won’t get anything whereas this way they would receive £15K.

Kind regards,
Pavan

Thats what I actually did,and he declined anyway for whatever reasons, maybe he thought I am pretending to go and petition for bankruptcy.....

Hence the important question for me:

Can a OR force the creditor to take the 15K as a kind of IVA in order to avoid bankruptcy...?

StepChange_Pavan

wildheart83 wrote: »

I was made bankrupt in August 2010, in Scotland. I opened a bank account prior to my bankruptcy, and contacted the bank afterwards to find out what would happen. I was told it would definitely be frozen within 24 hours of the bank receiving notice of my bankruptcy, and that at best I would be allowed to keep it open, but would have to go to a branch during working hours to withdraw cash.
9 months down the line my account is still fully fuctioning in that I have a full debit card, cheque book and internet / phone banking.

Is it possible, with 3 months left of my undischarged year to go, my account could still be frozen or closed?

Thanks!

Hi wildheart83 and thanks for your post.

It’s unlikely that they would freeze the account – this usually happens whilst the trustee is looking into your affairs.

I’d say provided that you made them aware of this account at the time of your bankruptcy you should be ok. However, if the account has any credit facilities such as an overdraft, this could be withdrawn and downgraded to a basic account - as you shouldn’t be using any credit whilst bankrupt.

You could double check this with your bank or trustee.

Kind regards,
Pavan

StepChange_Pavan

gatostar wrote: »

Thats what I actually did,and he declined anyway for whatever reasons, maybe he thought I am pretending to go and petition for bankruptcy.....

Hence the important question for me:

Can a OR force the creditor to take the 15K as a kind of IVA in order to avoid bankruptcy...?

Hi again,

No, the OR wouldn't do this as the creditor has already had the chance to accept your offer and you would have already declared yourself bankrupt by this point.

Kind regards,
Pavan

gatostar

Thank you very much for your quick response and your help....:T

PH1LL

Thank you Paven :-)

oliviarosejackson

Hi, I have not been on this site in a few years. I was wondering if you ay be able to help.

I am currently in a IVA with Blair Endersby and it is not working for me, it hasn't for a while. But I have just been struggling by.

How do I go about seeing about bankruptcy, if it is the best option?

I must add that I have not missed any payments in my IVA, but I have not been in touch with them for a long while. I have been avoiding their calls and letters. I know that I have gotten into a huge mess by doing this. But I need to sort it out ASAP.

Will this affect my partner. Will he need to be involved in anything. He owns the house, nothing is in my name.

Thanks for reading and any help that you can give.

isthereawayout_2

I have got myself into debt after getting loans for a business that failed last year, I would appreciate some guidance if you could, so here goes:

My partner and I bought a house 2 years ago, upon moving in I had my hours changed at work due to the cutbacks caused of the credit crunch. I then decided to start my own business to recoup the money that I lost at work as I knew if I didn't do something quickly I would fall behind in the mortgage payments

I got 2 loans, one from HSBC for £10,000 (unsecured) and the other from Sainsbury's for £10.000 (secured) to use to get the business started. I ran the business for just over a year and (I was working full time with a company and doing the business for extra income, doing two jobs) due to ill health I had no choice but to pack it in, it was labour intensive.

So now I have no extra income and with 2 extra loans to pay. I only take home £1200 after tax

Here is a breakdown of my monthly expenses, as you can see my expenses far outweigh my income

Axa Life insurance 26.92
Mortgage 773.90
Petrol 200.00
Home insurance 14.57
Car Insurance 29.00
Council Tax 151.00
Sky 30.00
Sainsbury loan 187.46
HSBC Loan 280.81
Bank Charges 12.95
British Gas 18.00

Total 1697.61

I had a bit a savings that I have been using up to now but it has been eroded away with the extra loans. As of next month June 2011 I will start defaulting on a few of the above.

Our house is worth £200,000 and owe £150,000 as we put down a £50,000 deposit. They obvious solution would be to sell the house I know, but was wondering if there was another way as we have a 4 year old that has just settled in a school on our village. Also we wouldn't qualify for a mortgage again due to low incomes.

I was wondering if the 'Mortgage rescue scheme' would be an option as we do not want to lose our house and would rather rent our house off the council and have the option to buy our house back after the loans have been paid back.

The Sainsbury secured loan is the one that will cost us our house I'm sure.

Would an appointment with the CAB be beneficial ?

Your advise would be appreciated.

Thankyou

Lionhound4

Hi,
My husband and I were in extreme financial difficulty when he lost his job two years ago. However we did the sensible thing, contacted all our debtors and offered reduced payments, then put our house on the market. Luckily our house sold fairly quickly so we went into social housing and with the proceeds of our house sale paid off each and every one of our debts. One debt was with CapitalOne for a credit card. I had a debt with Capital one for £2406.48 which I intended to pay in full, however just before the sale completed I received a letter from CapitalOne stating that if I pay £1389.68 before the 12/03/10 then they would accept that as full and final settlement of my debt with them. As we moved on the 4th March and now had the funds I wrote a cheque for that sum and posted it along with the letter and my wife's Capital one credit card statement and cheque. My wife's cheque cleared on the 11th March and my cheque cleared on the 15th March (which I have only just discovered). So thinking that we are no longer in debt I was very surprised to get a very strong letter from Fredrickson International saying that I must pay the remainder of my CapitalOne account of £1016.80 or they will prosecute me and whats more, add charges to this amount. I have written explaining the situation, but only get letters back stating that they have not received the payment. I have written again explaining in even plainer English and still I get replies saying that they have no record of my payment. They won't have a record of my payment as I have never paid anything to them but CapitalOne direct as I was dealing with them. I am at my wits end and really do not know what to do now. My wife is extremely stressed by this all as we thought we were debt clear. We feel like we have been conned by CapitalOne. Your help would be very, very appreciated.