Ask a CCCS counsellor a bankruptcy question

tigerfeet2006

notenoughtogoround wrote: »

I was made bankrupt in March 2009 and have been paying £383 every four weeks ever since. I recently contacted the insolvency service to get a reassesment of my payments given some incomings / outgoings have changed. I also enquired about when I could expect to be discharged.

Turns out I was discharged back in April 2010. Nice of someone to tell me. My question is given I have been discharged should I have been continuing to make payments? If not I am owed backdated money?

Any advice at all would be greatly appreciated, thanks.

Your BR lasts 12 month from the date were declared BR and then you are automatically discharged. The OR rarely informs you of the discharge as it is automatic.

An IPA lasts 36 months from the first payment and can be altered up, down or suspended if your circumstances change. Suspended months count towards the 36 months.

This should of been explained to you when you sought advice on going BR and by the examiner at the time. So I am afraid you are not due any money back.

Well done on getting through your BR year, now is the time to start your Credi File Clean Up as per the sticky.

System

Gray-Fox wrote: »

Hi Mat, thanks for your response.

So assuming they let me keep the bike, and I wanted to move to new accommodation. Would it be OK for me to then sell the bike in order to fund my rent/deposit in advance?

Thanks.

Hi Gray Fox and thanks for your reply.

If you argued to keep your bike and then later sold it before you were discharged, the Official Receiver could take a dim view of this and may expect any money you received to be paid into the bankruptcy.

I hope this helps.

Kind regards,

Mat

System

notenoughtogoround wrote: »

I was made bankrupt in March 2009 and have been paying £383 every four weeks ever since. I recently contacted the insolvency service to get a reassesment of my payments given some incomings / outgoings have changed. I also enquired about when I could expect to be discharged.

Turns out I was discharged back in April 2010. Nice of someone to tell me. My question is given I have been discharged should I have been continuing to make payments? If not I am owed backdated money?

Any advice at all would be greatly appreciated, thanks.

Hi Notenoughtogoround and welcome to the forum.

I can see you’ve had a good answer on this issue from tigerfeet2006.

An income payment order will last three years so you will still be bound by this until 2012.

I’d recommend that you speak to the Official Receiver dealing with you case if you have any issues.

I hope this helps.

Kind regards,

Mat

StepChange_Private_Messages

jayney123 wrote: »

Hi,
Hope someone can help please.
I have a relative who died two weeks before my discharge. They did not leave me anything in their will BUT the beneficiary (who does not know about my BR) wants to change the will by 'deed of variation' to give myself and a few other relatives a cash amount.
I know I have to inform the AIB, as I'm on an IPA, but will I have to surrender the whole amount to them as the date of death was before my discharge but the date of the 'deed of variation' will be dated after my discharge.
Hope someone can help, thanks.

Hi Jayney123 and thanks for your post.

It would be up to the individual AIB as to how this is dealt with. The important thing is for you to update them on the situation as soon as possible.

I hope this helps.

Kind regards,

Mat

Gray-Fox

CCCS_Mat wrote: »

Hi Gray Fox and thanks for your reply.

If you argued to keep your bike and then later sold it before you were discharged, the Official Receiver could take a dim view of this and may expect any money you received to be paid into the bankruptcy.

I hope this helps.

Kind regards,

Mat

Hi Mat, thanks again.

One further question re your response: How am I supposed to find the money to move house then, if I cannot sell my bike? Can I include a sum in my SOA (when I start working) to save per month to go towards the cost? I am of the understanding that the OR cannot stop BRs from moving, but they might take a dim view if you are paying an amount for a property which is above the market value for that area, right?

Another question now, this time re IPAs.
I believe I'm right in thinking that IPAs are only payable if you have more than £20 disposable income, right? So if I never have more than £20 within the first year (i.e. my undischarged year) I'll never be asked for an IPA? So once I'm discharged, I can't be re-chased for an IPA, can I?

Thanks.

mitel

Hi

My question is similar to Gray-Fox in that it is about a vehicle.

My partner is about to go through with br as soon as we have raised the fee but our car is in her name and registered to her.

I use the car everyday to drop our daughter off at her child minders and then i use it to get to work and then pick up and home after work. We have no issues paying gmac for the car but there is a clause in contract saying they will take it if we go br.

is there any way around this as it is going to seriously seriously have a critical impact on our lives with me not able to get to work.

The car is £200 a month with approx 10k outsatanding finance, not a bad debt and we are totally able to pay it. I am unable to get credit for another car (even with carloans4u).

thanks

tigerfeet2006

CCCS_Mat wrote: »

Hi Gray Fox and thanks for your reply.

If you argued to keep your bike and then later sold it before you were discharged, the Official Receiver could take a dim view of this and may expect any money you received to be paid into the bankruptcy.

I hope this helps.

Kind regards,

Mat

Mat, I always thought that if the vehicle had been exempted then the OR would have no interest in it so it was the BR's to do what they want with, so if they wanted to sell it and buy another vehicle or purchase an item then that would be no problem. Please can you clarify for me.

System

Gray-Fox wrote: »

Hi Mat, thanks again.

One further question re your response: How am I supposed to find the money to move house then, if I cannot sell my bike? Can I include a sum in my SOA (when I start working) to save per month to go towards the cost? I am of the understanding that the OR cannot stop BRs from moving, but they might take a dim view if you are paying an amount for a property which is above the market value for that area, right?

Another question now, this time re IPAs.
I believe I'm right in thinking that IPAs are only payable if you have more than £20 disposable income, right? So if I never have more than £20 within the first year (i.e. my undischarged year) I'll never be asked for an IPA? So once I'm discharged, I can't be re-chased for an IPA, can I?

Thanks.

Hi Gray-Fox and thanks for your reply.

As your situation sounds complex I’d recommend that you contact our specialist bankruptcy team for some one on one advice regards your situation.

They should be able to help clear up an issues or questions you might have.

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

tigerfeet2006 wrote: »

Mat, I always thought that if the vehicle had been exempted then the OR would have no interest in it so it was the BR's to do what they want with, so if they wanted to sell it and buy another vehicle or purchase an item then that would be no problem. Please can you clarify for me.

Hi Tigerfeet2006 and thanks for your post.

In this case the bike would be seen as an excluded asset which the client had been allowed to keep by the Official Receiver. The OR originally saw no reason why the bike shouldn’t be sold.

If the bike is then sold before discharge, the money from the sale would be treated as a received asset which would need to be realised for the benefit of the bankruptcy.

I hope this helps.

Kind regards,

Mat

System

mitel wrote: »

Hi

My question is similar to Gray-Fox in that it is about a vehicle.

My partner is about to go through with br as soon as we have raised the fee but our car is in her name and registered to her.

I use the car everyday to drop our daughter off at her child minders and then i use it to get to work and then pick up and home after work. We have no issues paying gmac for the car but there is a clause in contract saying they will take it if we go br.

is there any way around this as it is going to seriously seriously have a critical impact on our lives with me not able to get to work.

The car is £200 a month with approx 10k outsatanding finance, not a bad debt and we are totally able to pay it. I am unable to get credit for another car (even with carloans4u).

thanks

Hi mitel and thanks for your post.

I’d recommend you save some extra money prior to going bankrupt in order to get another car.

The hire purchase vehicle will be have to be surrendered when your partner petitions for bankruptcy.

If you haven’t taken any advice regards bankruptcy prior to petitioning I’d recommend you speak to our specialist bankruptcy team for some free and impartial advice.

You can 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