Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

skintasusual wrote: »

Hi,

I think I have decided that bankruptcy is for me, I have taken advice from national debtline, I owe about 17000 and now have two children and no income to pay for the forseeable future. Have been struggling with debt for the past 13 years or so!

Just a question, I have read the info on 'what happens to your car' but am still not sure...

4 years ago my husband took a loan (in his name) for 7500 and we got a car.
After having 2 children we needed a bigger car and found one for 3500 that the trader was willing to do a direct swap for our old car, as we didnt have any money to put towards it, as ours was a year newer than the one we traded for but a bit battered! So it was a fair swap and we both got what we wanted ( I have receipts)
The thing is it is registered in my name, as i dealt with it, but I have never paid for it, and this isnt the original car my husband took the loan for.

So if it is registered in my name does that mean I own it and it would be part of my BR?
or because my hubby paid for the car in the first place is it his and won't form part of my BR?

I need it for my work, and the parkers guide says it will be worth about 2700ish by now.

How do you think the OR will view this?

Many thanks!!

Hi skintasusual and thanks for your post.

Its best that you explain this to the Official Receiver but you will need to list it on your forms as the car is registered in your name. If you’ve kept all the paperwork it should be ok.

There shouldn’t be any problem if you need a car of that size for your family and to get to and from work – you may need to justify this. If the loan is in your husband’s name, this wouldn’t be included in your bankruptcy.

I hope this helps but you could call us to speak to our specialist bankruptcy support team if you need any more detailed advice.

Kind regards,
Pavan

andrew2011

Wondered if anyone could shed any light on my query here.

Basically I'm worried about my partner's income being taken into account when it's nothing to do with her.

---

About to petition for BR, but confused about the income / expenditure section of the form.

I currently have zero income and expenditure. I'm unemployed, not receiving any benefits, living in my partner's home, and my partner pays all expenses (including my haircuts etc!).

Section 6.7 of the form asks how much other household members contribute: my partner contributes 100%, about £1500 a month.

This gives a total "household income" of £1500 in box 6.8

Section 7 then asks for my expenses: this is obviously Zero, because my partner pays everything!

But "income" minus "expenditure" then looks like I have a surplus income of £1500 a month, when in fact I have zilch! What do I do?!

StepChange_Pavan

Stress_Puppy wrote: »

Hi,

I'm currently with a debt management company and am about to contemplate BR, I have a quick question surrounding bank accounts. I'm aware of the Barclays and Co-op accounts suggested. The thing is, I'm already with the Co-op, would anyone know if I could still stay with them and open up the "basic" account prior to being declared BR? I read somewhere on the forum that the Co-op is one of the most "BR-friendly" banks out there so short of actually asking them, does anyone here have any idea if I can do this ?

The thing is, amongst everything surrounding the prospect of me going BR, I'm on jobseekers' allowance and was hoping the transition of being declared BR wouldn't affect having my dole money being paid in.

Any advice is gratefully received in these quarters....

Hi Stress Puppy and welcome to the forum.

I’d say that this should be OK as long as you don’t have any existing debts with the Co-op. If you do, you still run the risk of them emptying your account to pay towards your debts.

I’d recommend that you seek some detailed advice before going bankrupt to ensure that this is your best solution.

If you’d like to speak to our specialist bankruptcy support team you can call our free helpline on 0800 138 1111. Alternatively you can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu).

I hope this helps.

Kind regards,
Pavan

Stress_Puppy

CCCS_Pavan wrote: »

Hi Stress Puppy and welcome to the forum.

I’d say that this should be OK as long as you don’t have any existing debts with the Co-op. If you do, you still run the risk of them emptying your account to pay towards your debts.

I’d recommend that you seek some detailed advice before going bankrupt to ensure that this is your best solution.

If you’d like to speak to our specialist bankruptcy support team you can call our free helpline on 0800 138 1111. Alternatively you can visit our online debt advice service Debt Remedy .

I hope this helps.

Kind regards,
Pavan

Thank you Pavan, it does!

Actually, my debt woes started in excess of 5 years ago. Long story short-ish: racked up loads of debts, got a decent paying job, took out a consolidation loan, lost the job, got another job paying THOUSANDS less in salary, the payment protection on my loan didn't cover me because instead of going on the dole, I got a job a month later. Went to a debt management company who set up a debt repayment plan which I struggled but kept up with, then lost THIS job. The debt management company (fair finance) suggested BR a few years ago but I as I was working I thought it fair to try to keep up repayments. I'm unemployed and have no way out other than BR so the debt management people are helping me (they were recommended by my local citizen's advice and don't charge as they are funded by local govt. etc).

I had a meeting today with my debt advisor, she said I should speak to the bank, and explain that I am looking at BR and wish to set up a basic account with the Co-op. I don't have any debts with the Co-op but a nominal amount (the equivalent of about 6 weeks wages) which I will have to withdraw before filing, etc. My debt advisor said, if in the event I get no joy from the Co-op, I could apply to another high street bank OR the debt management company could set up a basic account for me with the RBS.

System

andrew2011 wrote: »

Wondered if anyone could shed any light on my query here.

Basically I'm worried about my partner's income being taken into account when it's nothing to do with her.

---

About to petition for BR, but confused about the income / expenditure section of the form.

I currently have zero income and expenditure. I'm unemployed, not receiving any benefits, living in my partner's home, and my partner pays all expenses (including my haircuts etc!).

Section 6.7 of the form asks how much other household members contribute: my partner contributes 100%, about £1500 a month.

This gives a total "household income" of £1500 in box 6.8

Section 7 then asks for my expenses: this is obviously Zero, because my partner pays everything!

But "income" minus "expenditure" then looks like I have a surplus income of £1500 a month, when in fact I have zilch! What do I do?!

Hi Andrew 2011 and thanks for your post.

I can see your question has been answered on the other thread.

To clarify the OR will see that your partner is paying all your expenses and you have no money of your own. The OR cannot take any of your partner’s money as she is not the one going bankrupt.

You just need to list the income into the household and show the expenses, any money left over is your partner’s money.

If you need any advice on filling in the forms we have a specialist bankruptcy team that can help.

I hope this helps

Kind regards

Mat

StepChange_Pavan

Hi everyone

Our CCCS website and Debt Remedy (http://www.cccs.co.uk/ref/drcu) are undergoing some essential planned maintenance across tonight and tomorrow morning. We hope to have full service restored by 1pm tomorrow. In the meantime the CCCS MoneyAware blog (www.moneyaware.co.uk) is available to help you with your debt questions.

Thanks,
Pavan

jazza6

Hi. I wonder whether CCS can offer advice. I have just been made redundant and owe about £13k(ish). My other half does not know I am in debt and he is worried enough about how we will cope with me just receiving jobseekers allowance.

My dilemma is that we both have the same bank, our own accounts but one is for joint use only for the bills. Unfortunately one of my loans is with the same Bank - how stupid. I will not be able to pay anything into the joint account as I won't have any money and plan to open another bank account elsewhere to get my jobseekers allowance paid into. Can the Bank, if I can't pay my loan, take it out of our joint account?

philnicandamy

its possible....barclays did with mine

System

jazza6 wrote: »

Hi. I wonder whether CCS can offer advice. I have just been made redundant and owe about £13k(ish). My other half does not know I am in debt and he is worried enough about how we will cope with me just receiving jobseekers allowance.

My dilemma is that we both have the same bank, our own accounts but one is for joint use only for the bills. Unfortunately one of my loans is with the same Bank - how stupid. I will not be able to pay anything into the joint account as I won't have any money and plan to open another bank account elsewhere to get my jobseekers allowance paid into. Can the Bank, if I can't pay my loan, take it out of our joint account?

Hi Jazza6 and thanks for you post.

We have answered you question in a private message and explained that it is possible for the bank to do this.

I understand that you’re going to get in touch with us so that we can help with some free and impartial advice.

Kind regards

Mat

Looby123

Hi...can anyone help me with my query..or has anyone else been through this and can offer advise?

My husband and I went bankrupt last October. The house we live in is mortgaged in his name only.

We have sorted out payment orders etc and everything is fine...except we want to transfer the trust of the house back into my husbands name.

There is currently negative equity in the house and we had no problems paying the mortgage so were able to keep our house.

My question is...do we really need a solicitor to deal with this ie. transfer the trust back to us,or could we do without one? The reason being is cost- as the house is solely in my husbands name,the Official Recievers costs are £464 (as opposed to just £265if we both owned the house!!)... and the cheapest (in fact,only) solicitor i could find who knew what I was on about (others accused me of fraud saying that you cant have your house back after bankruptcy!)..cost £575!!

If I do need a solicitor - does anyone have a recommendation.. like I say,I've only managed to find one (and that was from the Insolvency website), that had experience in this field?

Also...when we're sorting all this out...is it possible to put my name on the deeds at the same time? As we will be changing the deeds anyway to remove the Official Recievers I cant see this being a problem or csting any extra than just putting my husbands name on it!

any advice is welcome...and the faster the better...!!!

thanks