Ask a CCCS counsellor a bankruptcy question

System

sheene wrote: »

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

Hi Sheene and welcome to the forum.

I’d recommend that you send a photocopy of your council tax bill to each of the companies and send this recorded delivery.

I hope this helps.

Kind regards

Mat

adamantfan

thanks matt we have sent a new income expenditure to iva and are awaiting their response, and have a phone appt tomorrow with cccs
fell bit better having faced things. thanx so very much
helen

Fantabulous

All my income is via State Benefits - according to the official list - Incapacity Benefit and DLA

My query is this -

I am single and I live in my Mother's house, which is owned outright. I don't pay any rent/rates/etc

Would the OR have any claim on my Mother's house at all?

Also, I have debts which are on a catalogue in her name but she has never had anything to do with the orders or payments. Would I be able to include this in my bankruptcy?

Danny026

Hi everyone

Me and my partner are FTB looking to get on the property ladder currently private renting, any information regarding our issue would be greatly appreciated.

We have seen a few brokers and they all seem to agree, that they can get us a deal for the amount we need with our CURRENT income and expenditure. At the moment this is still subject to credit checks and were the worry comes.

As mentioned there is an issue, my partner had debts of approx £10,000 which she could not afford from a previous relationship. She was cleared of those debts in April 2011 via a DRO (Debt Relief Order).

She has paid for a credit check and it all shows green except for the bank she owed money to (approx £4000) she has been in touch with them and they said they will look into updating their records and call us back next week. (I am aware legally they do not have to do this)

I earn £18,000 a year (full time) I do receive commission but as this can vary substantially (£150-£500) I do not really want to factor this into account (I have a very good credit history according to my bank). My partner earns just over £8000 a year (part time)

When approaching brokers/banks etc we have been looking at borrowing 85% on a purchase price of £100,000 as this fits in our budget nicely and will not overstretch our monthly outgoings. To make up the other 15% I have a deposit of £15,000 (apologies as this is obvious, I just want to make sure you know everything) which I have managed to save.

Now you know the facts, my question is before we try and get an offer in principal I would like any information you can offer because as I understand it, if we fail on our mortgage application that will then go on both our credit files and effect the credit history further.

Firstly, is this correct?

Secondly, realistically what are the chances of even getting a mortgage with my partner's history?

Thirdly, I guess this will be answered by the above two reply's but should I look at trying to get a mortgage just on my own?

Any advice you have would be greatly appreciated as we have seen a house we are interested in which is in budget and we have also found a mortgage we also like the repayments for and the next step of getting this agreed in principal (credit checks etc) has my stomach in knots and could destroy our dreams of owning our own home.

Many thanks in advance

Dan

System

Fantabulous wrote: »

All my income is via State Benefits - according to the official list - Incapacity Benefit and DLA

My query is this -

I am single and I live in my Mother's house, which is owned outright. I don't pay any rent/rates/etc

Would the OR have any claim on my Mother's house at all?

Also, I have debts which are on a catalogue in her name but she has never had anything to do with the orders or payments. Would I be able to include this in my bankruptcy?

Hi Fantabulous and thanks for your post.

The bankruptcy is to do with your debts so your mother’s assets wouldn’t normally be taken into consideration.

However, if you pay anything towards the upkeep of the property or in the past made payments towards the property or made improvements to the house it could be argued that you have ‘beneficial interest’.

The flip side of this is that the catalogue debt is in your mother’s name so she is responsible for the payment of it.

We have a specialist team that deals with bankruptcy and they can help talk you through the process and give specific advice regards filing in the forms.

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

Danny026 wrote: »

Hi everyone

Me and my partner are FTB looking to get on the property ladder currently private renting, any information regarding our issue would be greatly appreciated.

We have seen a few brokers and they all seem to agree, that they can get us a deal for the amount we need with our CURRENT income and expenditure. At the moment this is still subject to credit checks and were the worry comes.

As mentioned there is an issue, my partner had debts of approx £10,000 which she could not afford from a previous relationship. She was cleared of those debts in April 2011 via a DRO (Debt Relief Order).

She has paid for a credit check and it all shows green except for the bank she owed money to (approx £4000) she has been in touch with them and they said they will look into updating their records and call us back next week. (I am aware legally they do not have to do this)

I earn £18,000 a year (full time) I do receive commission but as this can vary substantially (£150-£500) I do not really want to factor this into account (I have a very good credit history according to my bank). My partner earns just over £8000 a year (part time)

When approaching brokers/banks etc we have been looking at borrowing 85% on a purchase price of £100,000 as this fits in our budget nicely and will not overstretch our monthly outgoings. To make up the other 15% I have a deposit of £15,000 (apologies as this is obvious, I just want to make sure you know everything) which I have managed to save.

Now you know the facts, my question is before we try and get an offer in principal I would like any information you can offer because as I understand it, if we fail on our mortgage application that will then go on both our credit files and effect the credit history further.

Firstly, is this correct?

Secondly, realistically what are the chances of even getting a mortgage with my partner's history?

Thirdly, I guess this will be answered by the above two reply's but should I look at trying to get a mortgage just on my own?

Any advice you have would be greatly appreciated as we have seen a house we are interested in which is in budget and we have also found a mortgage we also like the repayments for and the next step of getting this agreed in principal (credit checks etc) has my stomach in knots and could destroy our dreams of owning our own home.

Many thanks in advance

Dan

Hi Dan and welcome to the forum.

I’m assuming your partner has been discharged from the debt relief order after 12 months. If she hasn’t yet been discharged she cannot have assets over £300 and cannot own a property. She also cannot apply for credit over £500 without disclosing the DRO to the lender.

Your partner’s credit report will show the DRO for 6 years. Have you checked all three credit reference agencies to make sure the DRO is not showing on a different report.

This link from MSE should give you some good advice on how credit ratings work and how to improve them.

Beyond this we can’t comment on mortgage lenders policies towards you and your partner’s individual credit histories as we’re a debt advice charity.

I’d recommend taking mortgage advice from an independent financial advisor.

I hope this helps.

Kind regards,

Mat

lloydybhoy

my self and wife got ourselves into round £50,000 worth of debt and entered an IVA in September of 2007, everything was going fairly well until July 2010 when my wife lost 1 of her contracting jobs. i was paying £430 into the IVA and my wife £150. DFD gave me a 6 month break but due to kids and scholl my wife could not get another job to work around the kids. So july this year DFD failed my IVA. but my wife's is still running. Where do i stand now with the creditors and house. Mortgage is £163,00 and the house is worth the same.
would it be best to go bankcrupt or any other ideas? Would we lose the house?

System

lloydybhoy wrote: »

my self and wife got ourselves into round £50,000 worth of debt and entered an IVA in September of 2007, everything was going fairly well until July 2010 when my wife lost 1 of her contracting jobs. i was paying £430 into the IVA and my wife £150. DFD gave me a 6 month break but due to kids and scholl my wife could not get another job to work around the kids. So july this year DFD failed my IVA. but my wife's is still running. Where do i stand now with the creditors and house. Mortgage is £163,00 and the house is worth the same.
would it be best to go bankcrupt or any other ideas? Would we lose the house?

Hi lloydybhoy and thanks for your post.

As your situation is complex I suggest you give us a call to look at your available options.

As your wife is still in a legally binding IVA with an Insolvency Practitioner she should also speak to her IVA Supervisor for advice regards how her IVA would be affected depending on what course of action you take.

You’re welcome to 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.

I hope this helps.

Kind regards,
Mat

facinguptothechallenge

Hi, wondered if anyone can help? Im filling out my bankrupsy forms and it askes on pg9, "Do you have or have you had any endowment or other life policies"? I had one when i was married. when myself and husband seperated over 4 years ago, we sorted out the financial side ourselves and we split everything 50/50 reducing his equity in the house by half his pension, half what the endowment was worth then, (we got a surrender value), then he reduced his share of the house by 10,000 as a settlement figure as i had taken care of the kids all our married life as he worked away all the time and was only home at weekends. We worked out i needed to pay him 17,000 out of his share of the equity in the house so i re-mortgaged and he was taken off the mortgage and i paid him the money. He kept the endowment going and cashed it in last year as it was going nowhere and wasnt connected to the house. Should i include this as it seems complicated to explain and i have no details of the endowment, nor did i gain any money when it was surrendered. He has all the details????. thanks

System

facinguptothechallenge wrote: »

Hi, wondered if anyone can help? Im filling out my bankrupsy forms and it askes on pg9, "Do you have or have you had any endowment or other life policies"? I had one when i was married. when myself and husband seperated over 4 years ago, we sorted out the financial side ourselves and we split everything 50/50 reducing his equity in the house by half his pension, half what the endowment was worth then, (we got a surrender value), then he reduced his share of the house by 10,000 as a settlement figure as i had taken care of the kids all our married life as he worked away all the time and was only home at weekends. We worked out i needed to pay him 17,000 out of his share of the equity in the house so i re-mortgaged and he was taken off the mortgage and i paid him the money. He kept the endowment going and cashed it in last year as it was going nowhere and wasnt connected to the house. Should i include this as it seems complicated to explain and i have no details of the endowment, nor did i gain any money when it was surrendered. He has all the details????. thanks

Hi facinguptothechallenge and thanks for your post.

You would need to include details of this on the form. In your question to me you explained the ins and outs of the situation. You can include a similar description in Section thirteen of the bankruptcy form.

I hope this helps.

Kind regards,

Mat