Ask a CCCS counsellor a bankruptcy question

System

mamasita wrote: »

Hi

My husband has received a statutory demand for bankrupcy. This is in relation to a loan he took out some time ago for £5000 he had been paying the loan for a while and the bank phoned him and asked him if he wanted to increase amount to £10,000 as the interest rate had dropped and the repayments would be almost the same as the initial £5000 loan. He said yes but had to restart whole loan again. He has been struggling for a while now he is self employed. We had an arrangement with this creditor and we were paying £50 per month, however he had two companies go into liquidation on him and for a couple of months we had no income whatsoever!! unfortunately we missed the payments and when the company got in touch with us we offered to restart the payments. We were told that they would have to look into this and they would get back to us with an answer. I waited a month and as we had not heard anything from them I called them to see if his offer had been accepted. I was told that it was now too late as the file had been handed over to their liquidation department and we would have to wait to hear from them!! We have since received a "Statutory Demand under section 268(1) (a) of the insolvency act 1986. Debt for liquidated sum payable immediately. We could not pay the debt immediately and wrote again offering the sum of £50 per month. They have now written back refusing the offer and have now sent a bankruptcy petition to be heard on the 2nd August. What I would really like to know is if my husband can apply for an IVA and not have to go bankrupt or is it too late for that? Also if he is forced to go bankrupt would they force us to sell our house. we have 3 dependent children!! I would really appreciate any help you could give.

Thanks

Hi Mamasita and thanks for your message.

I’d recommend that you call our helpline for some immediate advice.

Our number is 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.

I hope this helps.

Kind regards,
Mat

mojoparrot

HI
I contacted CCCS by phone a couple of months ago and had a counselling session where I was advised to go bankrupt. I have been trying to get the £700 together to do this. I have a mortgaged property which has no arrears and is manageable as its been interest only for some time in an attempt to cut down. I also had some CCJ's which needed dealing with so I have contacted the courts and submitted the NJ whatsit forms and fees to stave off baliff action. These are still pending decisions with the court as to whether my offers will be accepted. One of the CCJ's is for a £7000 Nat West Loan from 2008. I received in the post today a B132 form from the land registry. Does this mean that i will be forced to go bankrupt and what about the fee if this happens? The house is either in negitive equity or does not have £7000of equity. Can you tell me what all this means? (Other than Im in a mess)

thanks!!

Conniesmum

Hi,

I spent this evening speaking to a lady at debt advisory line. My partner and I have around £30k worth of debt between us and a monthly defecit of over £600 per month. The debt advisory line suggested bankruptcy was our best course of action. They said if would cost me approximate £1200 (possibly less for my other half because he is unemployed) including court costs etc. We are in so much debt that we can't afford this. They suggested we could take out a payday loan and then include it in the bankruptcy.

Although I thought this was a great idea at first, I'm concerned that the OR will think we have been irresponsible in taking out a loan we knew we couldn't pay back.

I can't see any other way of paying but don't want to make it all worse than it already is!

Please help

System

mojoparrot wrote: »

HI
I contacted CCCS by phone a couple of months ago and had a counselling session where I was advised to go bankrupt. I have been trying to get the £700 together to do this. I have a mortgaged property which has no arrears and is manageable as its been interest only for some time in an attempt to cut down. I also had some CCJ's which needed dealing with so I have contacted the courts and submitted the NJ whatsit forms and fees to stave off baliff action. These are still pending decisions with the court as to whether my offers will be accepted. One of the CCJ's is for a £7000 Nat West Loan from 2008. I received in the post today a B132 form from the land registry. Does this mean that i will be forced to go bankrupt and what about the fee if this happens? The house is either in negitive equity or does not have £7000of equity. Can you tell me what all this means? (Other than Im in a mess)

thanks!!

Hi mojoparrot and thanks for your post.

A B132 form concerns a creditor applying for a charging order, which suggests that you may have defaulted on one of the CCJs.

I’d recommend you call us back and get some detailed advice now that the situation has moved on.

Please 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.

Kind regards,

Mat

System

Conniesmum wrote: »

Hi,

I spent this evening speaking to a lady at debt advisory line. My partner and I have around £30k worth of debt between us and a monthly defecit of over £600 per month. The debt advisory line suggested bankruptcy was our best course of action. They said if would cost me approximate £1200 (possibly less for my other half because he is unemployed) including court costs etc. We are in so much debt that we can't afford this. They suggested we could take out a payday loan and then include it in the bankruptcy.

Although I thought this was a great idea at first, I'm concerned that the OR will think we have been irresponsible in taking out a loan we knew we couldn't pay back.

I can't see any other way of paying but don't want to make it all worse than it already is!

Please help

Hi Conniesmum and welcome to the forum.

In England and Wales bankruptcy fees total £700. You pay a £175 fee to the court and £525 to the official receiver. If you have a low income or receive benefits, you may be exempt from the court fee allowing you to go bankrupt for £525.

The company you are speaking to seem to be charging you £500 extra for their assistance in filing in the forms.

We have a specialist bankruptcy advice team that can assist you in filing the forms free of charge.

We might be able to offer some advice on how to save up the fee, we wouldn’t normally recommend taking out any further lending.

I’d recommend that you call 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.

Kind regards,
Mat

adamantfan

hi there i wonder if anyone can give us a bit of advice please - we're at our wits' ends
husb is thinking of bankruptcy as in £50grand debts. he has had an iva for a year but our income has decreased by £1000 per month, leaving us with just £45 per month prior to debts. we have just filled in a review for them.
our mortgage is £93 grand estate agent came yesterday and valued us at £115-119,995.
i not on mortgage, or the deeds.i don't work any more had to leave last year due to anxiety and depression, which has morphed in to m. e , but we have 5 children i have brought up. all of my income was pooled into the family, but not directly into mortgage....would i have beneficial interest?

also my sister has offered to buy beneficial interest for us, and we could pay her back, could we deal with that immediately, on going bankrupt or even before....rather than waiting to be repossessed? and not knowing if we were to become homeless

could we take a loan out or remortgage prior to bankruptcy to pay for the beneficial interest
we just sooooooo don't want to lose our home. the neighbours are wonderful, my mother in law who is a great support to me lives opposite and my little boy's school is literally across the road meaning that i am able to take him there and back myself...

would the official receiver accept an offer, a % towards the beneficial interest or does it have to be the full whack?
thankyou for taking the time to read this, hope someone can help, it is so frightening

ktstu

I entered into a DMP recently and just applied for a new mobile contract yesterday as my old is due to finish. I have just been told I could get into trouble for this and the DMP cancelled? I dont even know if the new contract has been accepted?
Is this correct?

System

adamantfan wrote: »

hi there i wonder if anyone can give us a bit of advice please - we're at our wits' ends
husb is thinking of bankruptcy as in £50grand debts. he has had an iva for a year but our income has decreased by £1000 per month, leaving us with just £45 per month prior to debts. we have just filled in a review for them.
our mortgage is £93 grand estate agent came yesterday and valued us at £115-119,995.
i not on mortgage, or the deeds.i don't work any more had to leave last year due to anxiety and depression, which has morphed in to m. e , but we have 5 children i have brought up. all of my income was pooled into the family, but not directly into mortgage....would i have beneficial interest?

also my sister has offered to buy beneficial interest for us, and we could pay her back, could we deal with that immediately, on going bankrupt or even before....rather than waiting to be repossessed? and not knowing if we were to become homeless

could we take a loan out or remortgage prior to bankruptcy to pay for the beneficial interest
we just sooooooo don't want to lose our home. the neighbours are wonderful, my mother in law who is a great support to me lives opposite and my little boy's school is literally across the road meaning that i am able to take him there and back myself...

would the official receiver accept an offer, a % towards the beneficial interest or does it have to be the full whack?
thankyou for taking the time to read this, hope someone can help, it is so frightening

Hi Adamantfan and thanks for your post.

If your husband is on an IVA he would need to speak to the Insolvency Practitioner who is the Supervisor of the IVA, the Insolvency Practitioner would also be able to advise on bankruptcy should the IVA fail.

If you have breached the terms of the IVA and wish to seek some free and impartial advice we have a specialist bankruptcy team that would be able to advise you.

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.

I hope this helps.

Kind regards,
Mat

System

ktstu wrote: »

I entered into a DMP recently and just applied for a new mobile contract yesterday as my old is due to finish. I have just been told I could get into trouble for this and the DMP cancelled? I dont even know if the new contract has been accepted?
Is this correct?

Hi ktstu and thanks for your post.

If you were on a DMP with us we would just need to make sure the new contract was affordable for you.

I hope this helps.

Kind regards,

Mat

sheene_2

hi im not in debt but i keep reciving baliff letters after the previous owners of my house to with unpaid bills at another address i have owned my property for over 5 years now and i am trying to find out how i remove these peoples names that are still linked with my addres not my credit file any advice

thanks