Ask a CCCS counsellor a bankruptcy question

clanger69

Hi all

I'm currently on an IVA that i should never have been put on as i don't have any assets. I stopped paying it at Xmas with the intentions of the IVA provider forcing me into bankruptcy, which is the road i should have gone down 3 years ago!!. Why hasn't my IVA provider been in contact with me for over 6 months?

Also, i am currently employed and pay into a company pension scheme, and also £50 a month as part of a company sharesave scheme. Will this money that i've saved in the pension and sharesave scheme be used towards my debts or will it just have to stop? If so, would i be better cancelling the sharesave scheme and getting the £300 refunded or would i be better to carry on in the scheme and hope the OR doesn' t realise?

Any advise would be greatly appreciated.

DotNetter

Hi all

I'm a little confused an more worried than not that I'm going to have to go BR and that I will definitely loose my house.

I've spoken with the CCCS and have an appoinmtnet with the IVA department for next week to go thorugh my eligability for an IVA.

MY concern is that 50% of my unsecured debt is with NorthernRock (via a Together mortgage) and I have heard that they are very unlikely to agree to the IVA which would effectively stop it.

At this point, I believe that they will look to convert the unsecured part to a secured part.

My only option then would be to file for BR but I believe even after NorthernRock convert the unsecured to secured (or even if they don't) I will have positive beneficial interest in the house and so will be forced by the trustee to sell to release this!

I have 3 kids (including a 2month old) and we've lived in our home for 10yrs...I really don't want to loose my house

What can I do and will the CCCS Voluntary Arrangements team beable to advise me on BR matters aswell or will I be passed back to the main CCCS to then be allocated someone else to look into the BR side of things?!

Regards,


Wayne

Broke_American_Chiquita

Hello everyone,

I am new here, so hello! I would like some advise, if possible. This is something that I have been needing to deal with for a few years and it has been something that I have been running away from. I now realize that I need to deal with it, in order for me to get over my guilty conscience! Here is my situation:

-I have debts with various creditors topping in total around GBP7,000

-I am currently on Income Support and claiming Housing Benefit for me to pay my rent, which is up-to-date

-Due to reasons that I do not want to get into (and personal) I cannot work at the moment

-I know that bankruptcy is the right thing for me

My question is, How do I start this whole process of bankruptcy? I know that its costs a lot to start the process and I cannot afford it, which is one reason why I have delayed it. Being on benefits, is there any help available for me to help pay for fees?

Another concern that I have is that I have one main bank account that I use. This account is used for me to receive my benefits and standing orders for my rent goes out of this account, as well as standing orders for water and electricity bills. If I go down the road of bankruptcy, could I still keep this bank account?

I appreciate any advise.

Thanks!

Broke_American_Chiquita

DotNetter

Broke_American_Chiquita wrote: »

Hello everyone,

I am new here, so hello! I would like some advise, if possible. This is something that I have been needing to deal with for a few years and it has been something that I have been running away from. I now realize that I need to deal with it, in order for me to get over my guilty conscience! Here is my situation:

-I have debts with various creditors topping in total around GBP7,000

-I am currently on Income Support and claiming Housing Benefit for me to pay my rent, which is up-to-date

-Due to reasons that I do not want to get into (and personal) I cannot work at the moment

-I know that bankruptcy is the right thing for me

My question is, How do I start this whole process of bankruptcy? I know that its costs a lot to start the process and I cannot afford it, which is one reason why I have delayed it. Being on benefits, is there any help available for me to help pay for fees?

Another concern that I have is that I have one main bank account that I use. This account is used for me to receive my benefits and standing orders for my rent goes out of this account, as well as standing orders for water and electricity bills. If I go down the road of bankruptcy, could I still keep this bank account?

I appreciate any advise.

Thanks!

Broke_American_Chiquita

Hi BAC

I know everybody has differing circumstances and an idea of what a 'lot' of debt is but are you sure you want to be made bankrupt for £7k?

This will stay on your credit record for 6 years and in the grand scheme of things £7k isn't a lot of debt to have nowadays (and I'm not having a go; as I said I know that everyone has differing circumstances).

Speak to the CCCS who will be able to offer you the best way forward.

Cheers,


Wayne

DotNetter

Hi again,

Just reading another thread and saw this which may or not be applicable to you BAC...

http://forums.moneysavingexpert.com/showthread.html?t=1385275

Cheers,


Wayne

CCCS_Matthew

clanger69 wrote: »

Hi all

I'm currently on an IVA that i should never have been put on as i don't have any assets. I stopped paying it at Xmas with the intentions of the IVA provider forcing me into bankruptcy, which is the road i should have gone down 3 years ago!!. Why hasn't my IVA provider been in contact with me for over 6 months?

Also, i am currently employed and pay into a company pension scheme, and also £50 a month as part of a company sharesave scheme. Will this money that i've saved in the pension and sharesave scheme be used towards my debts or will it just have to stop? If so, would i be better cancelling the sharesave scheme and getting the £300 refunded or would i be better to carry on in the scheme and hope the OR doesn' t realise?

Any advise would be greatly appreciated.

Hi there, thanks for getting in touch. Whether or not your IVA company has been in contact with you would depend on whether you paid them enough during the IVA to cover the fees. If they've taken enough from what you did pay, they won't be interested in the situation anymore and will have no reason to contact you. If you've not paid enough money to cover the IVA fees it could be that your IVA company did not put a clause in your agreement to force you into bankruptcy should the IVA fail. You would really need to check with the IP to see what their intentions are.

If you are considering bankruptcy, there are some cases where you can continue to make contributions to a pension, this leaflet explains more:
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/pension.pdf

However I think it's unlikley that the OR will let you contine to pay into the sharesave sheme as it will be considered an investment. You could consider getting a refund of what you've paid in if this is possible. The OR might take interest in this if you don't use it to pay debt off with, although you could probably justify using the cash for the fee if you choose to go bankrupt on your own accord.

Hope this helps,
Matthew.

CCCS_Sarah

DotNetter wrote: »

Hi all

I'm a little confused an more worried than not that I'm going to have to go BR and that I will definitely loose my house.

I've spoken with the CCCS and have an appoinmtnet with the IVA department for next week to go thorugh my eligability for an IVA.

MY concern is that 50% of my unsecured debt is with NorthernRock (via a Together mortgage) and I have heard that they are very unlikely to agree to the IVA which would effectively stop it.

At this point, I believe that they will look to convert the unsecured part to a secured part.

My only option then would be to file for BR but I believe even after NorthernRock convert the unsecured to secured (or even if they don't) I will have positive beneficial interest in the house and so will be forced by the trustee to sell to release this!

I have 3 kids (including a 2month old) and we've lived in our home for 10yrs...I really don't want to loose my house

What can I do and will the CCCS Voluntary Arrangements team beable to advise me on BR matters aswell or will I be passed back to the main CCCS to then be allocated someone else to look into the BR side of things?!

Regards,


Wayne

Hi DotNetter,

You’re right if NR does take up more than 50% of your debts, they will have the casting vote, however don’t let this worry you until you have spoken to CCCSVA. They will be able to discuss your eligibility in detail with you.

NR won’t be able to just secure the debt against your property. I wouldn’t be able to say if bankruptcy is an option for you, as I don’t have all your details, but if an IVA is not your best option or it does not go ahead you will receive advice on your next best step to take.

Hope this helps and try not to worry until you have spoken to CCCSVA.

Regards
CCCS

CCCS_Matthew

Broke_American_Chiquita wrote: »

Hello everyone,

I am new here, so hello! I would like some advise, if possible. This is something that I have been needing to deal with for a few years and it has been something that I have been running away from. I now realize that I need to deal with it, in order for me to get over my guilty conscience! Here is my situation:

-I have debts with various creditors topping in total around GBP7,000

-I am currently on Income Support and claiming Housing Benefit for me to pay my rent, which is up-to-date

-Due to reasons that I do not want to get into (and personal) I cannot work at the moment

-I know that bankruptcy is the right thing for me

My question is, How do I start this whole process of bankruptcy? I know that its costs a lot to start the process and I cannot afford it, which is one reason why I have delayed it. Being on benefits, is there any help available for me to help pay for fees?

Another concern that I have is that I have one main bank account that I use. This account is used for me to receive my benefits and standing orders for my rent goes out of this account, as well as standing orders for water and electricity bills. If I go down the road of bankruptcy, could I still keep this bank account?

I appreciate any advise.

Thanks!

Broke_American_Chiquita

Hi there, thanks for getting in touch.

I would advise you to give us a call. If you are considering bankruptcy, it would be worth booking in an appointment with one of our debt counsellors to discuss your finances in detail and talk you through your options and how to move forward.

It might be that considering the amount of debt you have that something like a Debt Relief Order would be more suitable to you, but without knowing your situation in full it's impossible to say. Your counsellor can discuss everything including bankruptcy with you on the appointment.

If you want to discuss your options, you would just need to speak to an advisor by calling our free helpline on 0800 138 1111. Lines are open from Mon-Fri, 08:00-20:00.

Hope this helps,
Matthew.

macduf

I wonder if you could help me with my query. After I aqquired a judgement against someone I then issued a warning letter of bankruptcy via their family but I now need to go for full bankruptcy as that has failed to work. The person involved now lives abroad but still has business interests in England and still returns. My question is do I have to hand the petition direct to the person or if not what other method is available?

Many thanks

Broke_American_Chiquita

DotNetter wrote: »

Hi BAC

I know everybody has differing circumstances and an idea of what a 'lot' of debt is but are you sure you want to be made bankrupt for £7k?

This will stay on your credit record for 6 years and in the grand scheme of things £7k isn't a lot of debt to have nowadays (and I'm not having a go; as I said I know that everyone has differing circumstances).

Speak to the CCCS who will be able to offer you the best way forward.

Cheers,


Wayne

Thank you for the advise. Does this mean that after six years, I am clean, as if no debts?

Thanks, Wayne.