Ask a CCCS counsellor a bankruptcy question

System

JAIMO wrote: »

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!!

Hi Jaimo and thanks for your post.

You should be able to deal with us either online or by phone.

I’d recommend that you contact us so that we can look at your situation in detail. There may be debt solutions available to you that you hadn’t considered.

In regards repossession, you would have to have had a CCJ awarded against you then defaulted on this before any court bailiffs would be instructed, we should be able to assist you within any of this to prevent it occurring.

The first thing to do is 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,

Mat

System

torquemada wrote: »

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

Hi Torq and welcome to the forum.

In the first instance you should speak to the Official Receiver who dealt with your bankruptcy.

I hope this helps

Kind regards

Mat

System

rosie22 wrote: »

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

Hi Rosie22 and welcome to the forum.

In the first instance you should speak to the Official Receiver who dealt with your bankruptcy.

You and or the Official Receiver may have to provide some of the bankruptcy paperwork to Mackenzie Hall.

I hope this helps

Kind regards

Mat

tigerfeet2006

Rosie and Torq, also try sending this letter to them. Adjust to your needs and send it recorded delivery so you have prrof you sent it and they recieved it.

Your Address

Date:

Creditors Address.


NOTICE: Pursuit of a debt included in a bankruptcy. Do not ignore this letter. You must cease collection activity IMMEDIATELY.

Dear Sir/Madam

Account No: 4563210025897412

You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.

I would point out that the account was included in my bankruptcy which commenced on <date>.

Consequently, the debt in question is no longer my legal responsibility.

ALL contacts and claims regarding the debt MUST be addressed to the Official Receiver's Office dealing with the case.

My case was XXX of 200X, at <somewhere> County Court, and the address of the Official Receiver is below.

<Address of the OR.>

A copy of the bankruptcy order is enclosed for your convenience.

Please note that the Official Receiver has requested that all future contact from your company regarding these accounts is reported and forwarded to themselves, and that continued contact with myself may result in Official Receiver taking enforcement actions against your organisation.

Please also note that we are familiar with the ‘Office of Fair Trading Debt Collection Guidance’ which states that it is unfair to send demands for payment to an individual when the debt is not due.

In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

Furthermore, ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

In addition, your continued telephone calls are in breach of the Office of Fair Trading guidelines. If you continue with them after the receipt of this letter an official complaint, together with a log recording the times and frequency of the calls will be passed both to that office and to the Trading Standards office.

This type of debt collection method is contrary to the Consumer Protection from Unfair Trading Regulations 2008, in that it is intended to cause alarm and distress to the recipient.

Your methods will not be tolerated.

A formal complaint will be submitted to the relevant authorities. This will be relevant to questions of your fitness to hold a licence under the Consumer Credit Act, whether or not it results in a prosecution.

Take further note that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

We await your written confirmation that this matter is now closed.

We look forward to your reply.

Yours faithfully





Mr A N Other

(Letter courtesy of our lovely board guide Fermi)

Sunday_Morning

Hi Guys


Could really do with some help regarding how I proceed.....

Last year I lost my job, and, due to being a compulsive gambler, my wife announced she wanted a divorce.

I have since moved out of the house but move back into it on the alternative weekends I have the kids.

Due principally to my gambling, while there remains potentially approx 40k equity on the house, I have credt card debts of around 25k, a HSBC bank loan debt of 7k, an HSBC overdraft of 5k and an outstanding tax bill of over 10k. In addition I owe around 50k to members of my family.

I have kept going over the past few months thanks largely to my family. Rather than go bankrupt last year I have maintained making minimum payments on the credit cards (as determined by them and not the £1....but no interest is being incurred) and the payments on the loan (which started off with the interest pre-added and is roughly halfway through its 36 month period).

My income currently is jobseekers and mortgage premium protection. My mortgage is now on an interest only basis....but at 5.59% which was the rate fixed for 5 years, four years ago. My chances of getting another job which paid out more net than the MPP are very slim.....thus I am somewhat "trapped" in having no job. We did receive an offer on the house which I accepted, but my ex refused to accept it and so there was little I could do.

My MPP will last for upto 2 years, and I am nearly halfway through it now. When I last spoke to CAB we talked about me going bankrupt as it was unlikely I would ever have sufficient funds to pay back my debts. The tax office had just sent me their demand. Recently they sent a demand for a surcharge amount which was due on 15th June and which I did not make.

I am hoping that the tax office will instigate bankruptcy proceeding against me. Will this be the case? And if so, is it worthwhile at all me continuing to pay the minimum accounts on my credit cards and to keep making the payments on my bank loan?

Also, I have an M&S credit card which still has funds available in it and for which the minimum payments have been made. What will happen to this in the short term?

Your advice would be much valued

Thanks

SM

Taiko

Query regarding a situation for parents.

Parents divorced in 2003, father moved out of parental home in 2002. I've today learned that father is filing for bankruptcy, although the sale of the house had been agreed anyway. 50/50 split on the ownership between parents, and the mortgage is joint.

Would it be the case that the sale proceeds would be split equally, and the amount to pay off the remainder of the mortgage would also be 50/50?

Sunday_Morning

Taiko.....don't accept an answer from me as authoritative in anyway....but your question prompts me to add something to my post preceding yours. In my case the house is in my sole name....nonetheless I was advised by CAB that the Inland Revenue would only count half the equity of the house as my assets in a bankruptcy, accepting that the other half belonged to my ex. That being the case, I would say that it is almost certain that only half the equity would count as assets towards your father's bankruptcy.

System

Sunday_Morning wrote: »

Hi Guys


Could really do with some help regarding how I proceed.....

Last year I lost my job, and, due to being a compulsive gambler, my wife announced she wanted a divorce.

I have since moved out of the house but move back into it on the alternative weekends I have the kids.

Due principally to my gambling, while there remains potentially approx 40k equity on the house, I have credt card debts of around 25k, a HSBC bank loan debt of 7k, an HSBC overdraft of 5k and an outstanding tax bill of over 10k. In addition I owe around 50k to members of my family.

I have kept going over the past few months thanks largely to my family. Rather than go bankrupt last year I have maintained making minimum payments on the credit cards (as determined by them and not the £1....but no interest is being incurred) and the payments on the loan (which started off with the interest pre-added and is roughly halfway through its 36 month period).

My income currently is jobseekers and mortgage premium protection. My mortgage is now on an interest only basis....but at 5.59% which was the rate fixed for 5 years, four years ago. My chances of getting another job which paid out more net than the MPP are very slim.....thus I am somewhat "trapped" in having no job. We did receive an offer on the house which I accepted, but my ex refused to accept it and so there was little I could do.

My MPP will last for upto 2 years, and I am nearly halfway through it now. When I last spoke to CAB we talked about me going bankrupt as it was unlikely I would ever have sufficient funds to pay back my debts. The tax office had just sent me their demand. Recently they sent a demand for a surcharge amount which was due on 15th June and which I did not make.

I am hoping that the tax office will instigate bankruptcy proceeding against me. Will this be the case? And if so, is it worthwhile at all me continuing to pay the minimum accounts on my credit cards and to keep making the payments on my bank loan?

Also, I have an M&S credit card which still has funds available in it and for which the minimum payments have been made. What will happen to this in the short term?

Your advice would be much valued

Thanks

SM

Hi Sunday Morning and thanks for your post.

I’d recommend that you speak to us so that we can look at your situation in detail, especially in regards to the property.

It is possible that the tax office will petition for your bankruptcy but we cannot say for certain or give any time frames on this.

In regards the M&S card I wouldn’t advise using any further credit.

After speaking to our Helpline you may be referred to our specialist bankruptcy team who can give advice on the best course of action.

You can contact us on our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

I hope this helps.

Kind regards

Mat

System

Taiko wrote: »

Query regarding a situation for parents.

Parents divorced in 2003, father moved out of parental home in 2002. I've today learned that father is filing for bankruptcy, although the sale of the house had been agreed anyway. 50/50 split on the ownership between parents, and the mortgage is joint.

Would it be the case that the sale proceeds would be split equally, and the amount to pay off the remainder of the mortgage would also be 50/50?

Hi Taiko and thanks for your post.

If there is equity in the property then this would be split 50/50 after the sale is completed and mortgage paid off.

If there is a shortfall on the mortgage your mother would be liable as your father could include any shortfall in his bankruptcy.

I hope this helps

Kind regards

Mat

Taiko

Many thanks Mat, wouldn't be a shortfall, but this is as expected. Ma did have a bit of a worry on over this!