Ask a CCCS counsellor a bankruptcy question

Bucka724

Hello there,
I am looking for some advice on my debt. I currently have around £28k debt from previous store cards, credit cards and loans. I go to the point about 4 years ago that i was unable to cope with payments and seeked advice and went with a company called Dissolve debt where they set up payments to all, i think, 7 or 8 creditors. I then changed over to anoother company called Bournes that i alos pay £100 a month to and they say they can not only pay off my debts with agreed payments to creditors each month but look at a debt reduction plan.
I am now at the point where i am thinking is this all worth it and is bankruptcy an option for me? I have just come out of a long term relationship that has caused me further stress but am dubious about going bankrupt or considering it as an option.
I want to start agin, look at saving and buying a house in a few years time but don't know the real implications if i take steps to bankruptcy. I received defaults on all my accounts previously which all still have outstanding debt but these are going back 5 or 6 years now.
can anyone help me or give me some advice of what i should do? I don't want this debt hanging over me and am trying to make a fresh start but want to do whats for the best and not make things even worse for myself now and in the near future.

Look forward to anyones comments

System

GoingUnder wrote: »

Hi

I was declared Bankrupt in May. I have a nil tax IPA which will be starting this month and am waiting for details of my normal IPA to come through.

I have been offered a motorbike free by a friend. We have a car which was exempted by the OR.

My question is, if I accepted the Bike, would it then be an asset I would have to declare and then sell. If so, I might as well decline the offer to save the hassle. It is not high value hence the offer of a gift.

Many thanks GU

Hi GoingUnder and thanks for your post.

I’d recommend that you double check this with the Official Receiver who is dealing with your case.

I hope this helps.

Kind regards,

Mat

System

Poor_Churchmouse wrote: »

Hi there

We are currently 6 mths into a dmp and are finding it increasingly hard going. My hubby is suffering with stress/depression from dealing with the strains of balancing the money (or lack of!) and I am starting to think it may be easier for us if at least him were to go br.
We desperately don't want to lose our home so I need to ask the following questions and if anyone can at least give us a clue to the answers that would be fab!

1) We owe £131,000 on the house and we paid £146000.00 for it 5 years ago. The market has slumped as we all know and the house could do with a couple of grand spending on it. In order to keep the house, we'd have to get a relative/friend to buy out the beneficial interest to avoid the forced sale - how is the beneficial interest calculated? is this something the OR finds out or do we get independant valuations? We could probably raise (by borrowing from family) a max of £7000.00 but that would be it.
2) Would they actually expect all of the BI if it was just my hubby going BR or is there some respite as my name is on the mortgage too?
3) I believe you also have to make payments for 3 years after discharge - are these payments payable in the 12 months you are officially br? and, how are those payments calculated?

I know br is not the easiest option but for the sanity of my hubby we at least have to look into it and have had no joy whatsoever from CAB or Payplan.

Thank you!!

Hi PoorChurchmouse and thanks for your post.

I’d recommend getting a free valuation from a local estate agent and working out exactly what equity you do have and what your husband’s half share is, only then could you see if you could afford to buy out your husbands share.

Dependent on your husband’s circumstances he would be expected to pay any surplus income into the bankruptcy for three years. Even though he could be discharged from the bankruptcy after 12 months, the Income Payment order would continue until three years are completed.

There could be other options open to you jointly or separately that you are not aware of.

If bankruptcy is the best option we have a specialist bankruptcy team that can assist you through the process.

I’d recommend that you give us a call on 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[FONT=&quot]

[/FONT]

tomhagen

Hi everyone,

I was hoping you guys could offer some advice.

I was recently made bankrupt by my creditors and the court has appointed me with an Official Receiver. I am extremely worried about losing my home and have no idea what to do next.

Mortgage: 70k
Debt: 30k
Market value of house: 170k
House is joint-owned - my partner is not bankrupt.

I have no other assets.

What are my available options? 2 days after my bankruptcy i was contacted by The Bankruptcy Protection Fund who said they could sort everything about but i do not trust them.

As you can see, I have a lot of equity to lose if the court appointed trustee does not sell my house at market value. Is there anyway for me to now the sell the house at market value and pay off my creditors whilst retaining the value of equity left over after the mortgage and debts are repayed?

Is my house certain to be sold?

Many thanks for your help.

System

kezxx22 wrote: »

I have decided to go BR (no other option)

Other than try to raise the funds to actually do it I have another query...

Approx 2 years ago I transferred my interest in a house I owned with my partner over to him via the solicitors. However, my name is still on the mortgage. I did not receive any money doing this because I owe my then partner lots of money hence signing the house to him when we split. There is no equity in the house at all & needs work done on it.

If I go BR will the OR try to get money from the house/my ex? I dont want to cause problems between us. Surely if there is no money in the house the OR wont be interested?

Kerry:(

Hi Kerry and thanks for your post.

The Official Receiver will want to investigate this transaction fully and will need details of the money you owed to your ex partner and a valuation of the property and current mortgage details.

You will need details of what you signed and why for the OR to investigate the full series of events.

I hope this helps.

Kind regards,

Mat

System

Tom_Tit wrote: »

Hello.
Hope this is correct place to post.

Current situation.

Joint homeowner
Mortgage=£85,000 (up to date)

House value = approx £185,000

Equity = approx £100,000

No savings or pension.

Credit card debt (in my name only, not joint) = approx £45,000

No arrears. (Yet)


Self employed and work is drying up.

Only way I pay credit card bills seems to be by using another card.

Struggling to pay.
Want to do something before I start going into arrears or missing payments.

Do I sell house and pay debts off. Leaving us with £55,000 to carry on but no home to live in? Will be difficult to get another mortgage as self certification seems gone and I haven't got the income to borrow again. Will have to rent.

Do I borrow £45,000 on my/our mortgage but this transfers a sole unsecured debt into a joint secured debt?

Do I sell house and realize £100,000 equity? Then rent, and then approach card companies with a repayment schedule more suited to my income but with no property assets. Would my £50,000 'cash' share of the house sale be taken off me?

Hope this is clear enough and thanks for any suggestions.

Hi Tom Tit and welcome to the forum.

In regards taking out further secured borrowing and mortgage products I would recommend that you speak to an independent financial advisor. We wouldn’t normally recommend taking out further lending as this often makes the situation worse.

I’d recommend putting together a budget based on your current income and expenditure and seeing what you can offer your creditors.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drmsepm ) 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.

I hope this helps.

Kind regards,
Mat

System

Bucka724 wrote: »

Hello there,
I am looking for some advice on my debt. I currently have around £28k debt from previous store cards, credit cards and loans. I go to the point about 4 years ago that i was unable to cope with payments and seeked advice and went with a company called Dissolve debt where they set up payments to all, i think, 7 or 8 creditors. I then changed over to anoother company called Bournes that i alos pay £100 a month to and they say they can not only pay off my debts with agreed payments to creditors each month but look at a debt reduction plan.
I am now at the point where i am thinking is this all worth it and is bankruptcy an option for me? I have just come out of a long term relationship that has caused me further stress but am dubious about going bankrupt or considering it as an option.
I want to start agin, look at saving and buying a house in a few years time but don't know the real implications if i take steps to bankruptcy. I received defaults on all my accounts previously which all still have outstanding debt but these are going back 5 or 6 years now.
can anyone help me or give me some advice of what i should do? I don't want this debt hanging over me and am trying to make a fresh start but want to do whats for the best and not make things even worse for myself now and in the near future.

Look forward to anyones comments

Hi Bucka724 and thanks for your post.

It sounds like you would benefit from some free and impartial advice.

Bankruptcy like other debt solutions will have an impact on your credit file and could restrict your access to credit for six years.

If bankruptcy is the correct solution for you we have a specialist team that can guide you through the process.

However, there could be other solutions available to you that you are not aware of.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drmsepm ) 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.

I hope this helps.

Kind regards,
Mat


Kind regards,
Mat

StepChange_Pavan

tomhagen wrote: »

Hi everyone,

I was hoping you guys could offer some advice.

I was recently made bankrupt by my creditors and the court has appointed me with an Official Receiver. I am extremely worried about losing my home and have no idea what to do next.

Mortgage: 70k
Debt: 30k
Market value of house: 170k
House is joint-owned - my partner is not bankrupt.

I have no other assets.

What are my available options? 2 days after my bankruptcy i was contacted by The Bankruptcy Protection Fund who said they could sort everything about but i do not trust them.

As you can see, I have a lot of equity to lose if the court appointed trustee does not sell my house at market value. Is there anyway for me to now the sell the house at market value and pay off my creditors whilst retaining the value of equity left over after the mortgage and debts are repayed?

Is my house certain to be sold?

Many thanks for your help.

[FONT=&quot] [/FONT]
Hi tomhagen and thank you for your question.

Firstly I don’t recommend that you get in touch with The Bankruptcy Protection Fund as they will charge you for their services and may promise to deliver things that they can’t.

You may be allowed to sell your property as you’re likely to get a higher amount for it if you do. You will need to speak to your appointed Insolvency Practitioner about this, and would need their permission first. However, it’s likely that they will take 50% of the equity even if it is higher than £30K as the rest will cover their fees.

Alternatively, your wife – or another family member/friend could buy you out of the property. They would pay your share of the equity (which using your figures would be £50K) to the IP. This would mean you could stay in the house, but whoever buys you out would own your share of the house.

I hope this helps, but if you need more detailed advice you can call our free helpline on 0800 138 1111. They will refer you to our specialist bankruptcy support team.

Kind regards,
Pavan

BR1_2

Myself & partner were declared bankrupt this month, the or is setting up an ipa,

now this will last 36months & i understand that if we get anymore money/wage rises within the 36months this also has to go to them....

my question is do they do an incomings/ outgoings each year?

to cover bill/rent/council tax increases.....

or will it stay the same no matter what?

Thanks in advance x

System

BR1 wrote: »

Myself & partner were declared bankrupt this month, the or is setting up an ipa,

now this will last 36months & i understand that if we get anymore money/wage rises within the 36months this also has to go to them....

my question is do they do an incomings/ outgoings each year?

to cover bill/rent/council tax increases.....

or will it stay the same no matter what?

Thanks in advance x

Hi BR1 and thanks for your post.

The OR will make allowances for changes in essential expenditure. You would need to inform them if at anytime the budget that has been set became unsustainable.

I hope this helps.

Kind regards,

Mat