Ask a CCCS counsellor a bankruptcy question

SteveABC

vines68 wrote: »

Hi

Need advice on my ex-wife's bankruptcy and effects it has on the house we both own. The property is standing empty and the moment and im still paying the mortgage which is in joint names. I understand that the Official Reciever has applied for a Register of Restriction at the land registry office which they have now obtained.
My ex-wife has also had Purchase order's placed against the property of over 50K. The outstanding mortgage is currently 160K and the property recently valued at 180K.
If after three years of the registered bankrupcty if there is still not enough equity in the property, do the purchase orders in her name get written off or do they stay?
I'm also now considering bankruptcy myself as im paying a mortgage on an empty property just to keep an interest for a bankruptcy that has nothing to do with me. are there any other options for me?
If i did go bankrupt, would i still have to pay the mortgage?

Hi there Vines 68.
Your situation sounds similar to mine. My wife left me and declared bankruptcy (without telling me!). She moved out of our jointly mortgaged property and included the mortgage and a secured loan in her bankruptcy.
I remained in the property and became solely responsible for the mortgage and secured loan, which I struggled to pay for 18 months. When I could no longer afford to continue, I had to leave the property, stop making the repayments, and move into rented accommodation and then declared bankruptcy myself.
The shortfall on the mortgage and the secured loan are now included in my bankruptcy.
My regret (with hindsight) is that I carried on paying the loans for so long before deciding to go bankrupt - had I know the end result would be bankruptcy for me, I would have done it much sooner, as in the end I continued to pay for 18 months for nothing.
Had loads of advice from CCCS, who were really helpful, knowledgeable and non-judgemental.
Good luck.

System

andyben wrote: »

Hi All

Could anybody offer some advice on the following please.

I got into a lot of Financial trouble back in 2007/2008 learnt my lesson the hard way.

I have a charging order on my home i had to go to court for it but the question i have is should they have done this as the Mortgage is in joint names and the debt i have is in my name only.

The debt was for 11k and i have been paying it since then to which i owe approx 7k

Is the above correct

Regards

Andy

Hi Andy and thanks for your post.

The creditors have secured the charging order against your share of the property. Your partner’s share of the property is not affected.

They are within their rights to do this.

I hope this helps

Kind regards

Mat

System

vanmanmate wrote: »

hi all,
currently going for an iva. been told to make token £1 payments on all credit cards. what do i do about unsecured loans?

Hi vanmanmate and thanks for your message.

I would assume you would need to treat all the unsecured creditors equally, so the loans would need to be paid £1 too.

If you are unsure I would contact your Insolvency Practitioner as they have access to all your details.

Kind regards

Mat

StepChange_Pavan

MrsSmitch wrote: »

Hi,

After much discussion, my husband and I are planning to declare ourselves bankrupt. We are currently in an IVA which is failing as we have been unable to make the payments for the last 3 months. We have £60,000 worth of debt in the IVA which is both individual and joint which has accrued after university, purchasing a house at the wrong time and starting a family.

We own a house which is currently about £20,000 in negative equity. We have been renting it out for over a year and a half as we moved for me to take a job but we are now planning to return to our house for my husband's job.

My questions are as follows:

1. Will we be able to keep our house?
2. I am due to return to university in September to train to be a teacher - will I be allowed to do this and if so, will I be allowed to apply for funding from the student loans company?
3. If we declare ourselves bankrupt now, are we allowed to change our situation? For example, we currently only use childcare for one child part time but would need to place both children in childcare full time in September.

We are trying very hard to start a new life for ourselves and our two children but I am terrified of going into the bankruptcy without being aware of all of the cold hard facts. Any advice would be gratefully received.

Many thanks

Hi MrsSmitch and welcome to the forum.

It’s difficult to give detailed advice without knowing more about your situation, but I will answer your questions as best as I can.

Have you already received a notice of breach letter? If not, you could contact your Insolvency Practitioner to terminate the IVA. They may also give you some more detailed advice on bankruptcy.

You should be able to keep your house if you move back, especially if it is in negative equity.

There is nothing to stop you from going to university and your bankruptcy shouldn’t affect your eligibility for a student loan as there criteria is different to a standard loan.

If your situation changes after you have declared yourselves bankrupt, you would need to contact your Official Receiver. I would just be mindful that you will need enough money coming in to sustain your priority expenditure including childcare costs when they increase.

Once your IVA has failed, you can always get back in touch with us and we can refer you to our specialist bankruptcy team that can support you throughout the whole process.

I hope this helps.

Kind regards,
Pavan

foxysilver73

Hi
I am currentlly living on disability allowence due to mental
issues, and have been for a while now, my problems are getting steadily worse as when i was working I saved up some money, then i became ill and naturally started living off my savings which ran out then applied for dissability and got the maximum allowable which is not nearly enough, so i had to use credit to stay afloat now i'm at the point of £14000 in debt and I can no,longer pay the the interest and feed myself never mind anything else. Needles to say I am in a hole and cannot get out. The good person who was helping me can no longer help support me so the benefit that i was using to pay for all this i now need for rent and food as thats all it will cover literaly, what can i do? WHat should I do?
thank you

StepChange_Pavan

foxysilver73 wrote: »

Hi
I am currentlly living on disability allowence due to mental
issues, and have been for a while now, my problems are getting steadily worse as when i was working I saved up some money, then i became ill and naturally started living off my savings which ran out then applied for dissability and got the maximum allowable which is not nearly enough, so i had to use credit to stay afloat now i'm at the point of £14000 in debt and I can no,longer pay the the interest and feed myself never mind anything else. Needles to say I am in a hole and cannot get out. The good person who was helping me can no longer help support me so the benefit that i was using to pay for all this i now need for rent and food as thats all it will cover literaly, what can i do? WHat should I do?
thank you

Hi foxysilver73 and welcome to the forum.

It’s important that you draw up a sustainable budget so that know where you money goes each month.

We can help you to do this and look at the solutions that are available to you. From what you’ve mentioned it sounds as though you can’t afford to pay towards your creditors, but we would need to look at your situation in more detail before we can advise on your options.

You can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

If you phone us 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.

You’ve taken the first step to sorting out your money worries and we can support you with free and impartial advice along the way.

Kind regards,
Pavan

JAIMO_2

hi,
i'm currently in a bit of a pickle with my finances and hope you can give me some advice.
i was made unemployed around 2 years ago due to stress/depression and was given ESA benefits. fortunately, i was living with family so i was able to afford my credit card repayments but i now have a place of my own from the local authority. i informed both my creditors of the situation and told them that i was not longer able to afford repayments due to my severe lack of money. although they were nice about it, they're still hounding me for repayments i cannot afford and have passed the debts on to a collection service.

i've contacted the CAB for help but am unable to go and see them due to also suffering from agraphobia and they won't come out to see me. is there anything i can do solely via email?? i really need to get this sorted before the collection service turn up and reposses what little i have!!

Penelope_Penguin

JAIMO wrote: »

i've contacted the CAB for help but am unable to go and see them due to also suffering from agraphobia and they won't come out to see me. is there anything i can do solely via email?? i really need to get this sorted before the collection service turn up and reposses what little i have!!

CAB should have the facilities to help you by phone, post and e-mail Did you ask them?

torquemada

Hi guys,
Im looking for advice about tax and vat, It all started when me and the ex took over a pub lease in 2005, we split up 5 months later with me just walking away and leaving the with the business with the ex. The business folded a few years later leaving mountains of debt. As a result I was regestired bankrupt and was discharged last November, however I still have letters coming from HMRC looking for Tax and Vat payments, I have tried phoning them but they are not very understanding or helpful. Does my bankruptcy cover these debts?? I dont know what to do next, Its like bangin my head off a brick wall.

Regards Torq

rosie22_2

hi i was made bankrupt in may 2005 i took out a loan in nov 2004 with welcome i was discharged in may 2008 thing is now i have mackenzie hall chasing me for the loan from welcome this was included in my banckruptcie can they do this this is the first i have heard anything about it since i was made banckrupt any help would be great