Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

helmarnic wrote: »

Can anyone please advise i have recived a statutory demand from 1st credit to make me bankrupt and force me to sell my jointly owned house due to an outstanding debt for £3,899.22 owed to bank card i offered a repayment plan of £50 per mth which they point blank rejected saying they would only accept £130 per mth now recived in post the demand for full payment or they will apply to court to make me bankrupt can they do this as i offered to pay the max i can afford HELP PLEASE

Hi helmarnic and welcome to the forum.

1st Credit is renowned for issuing these as a scare tactic. Although it’s unlikely that they will follow this through, it’s important that you get some impartial advice and offer them something that you can afford.

You can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) 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,
Pavan

hawaje2013

Hi, my first post here, slowly trying to find my way around here. At the moment I'm on DMP but struggling to make the payments, so far I made all but I was quite late in the last few months. If I decide to go BR route will I have to sell my house? (Me and my wife live with three children).
Mortgage: 84k
House value: 90-95k
Debts: 24k unsecured, managing them through DMP, 2k of high interest trade card debt

My neighbour had to sell the house (repossesion) few months ago and she sold for 70k. So depending on the circumstances it might be no or little equity in the house.

And another more general question, if I carry on DMP after 7 years I will be free of unsecured debt. How my credit situation will be different from going through BR now? If it is going to be no difference so why struglle to pay it off? I know it is not the way I should think but bulk of my debt is beacuse I took personal loan to pay off for my people when I was I waiting to be paid by contractor. Contractor then went bankrupt and I lost 20k. That company didn't have any problems with not paying its subcontractors.
Anyway, all I want is clean start as soon as possible with as little impact on my family as possible.

Any advice or pointing where I could find help is greatly appreciated.

coops4

Hi

I have a current DMP which i have been keeping up to date with but my child tax credit which is £280 a month was removed from me in June. Since then like an idiot instead of updating my account i have taken poay day loans on to try and get by!

I know have £800 in pay day loans outstanding and cannot afford interest. I assume if i report to CCCS they will withdraw my DMP. Is it worth being honest and swallowing the consequences?

I am training in law and fear taking an IVA or Bankruptcy as i will not be able to practice as a legal executive (or so i understand)

If i added these companies to my DMP the irony is i would prob be able to afford it.

Any advice would be great thank you

jm52

I'm 54 and unemployed, with a mentally ill partner of 56, who has been unable to work for 2 years and is unlikely to work in the near future.

I have had intermittent employment over the past three years, after being bullied out of a relatively well paid job, for Scotland, £25k. When I get work now, it is temp work at an average rate of £7.

Due to losing my job and my partner's illness, I was unable to pay any of my debts which now amount to over £20k and now ignore several daily calls from debt collectors.

I looked at the CCCJ online questionnaire and was surprised as how low the expenses on items like food were expected - I was recommended £131 for a month's food expenditure?

My concern would be that a payment plan would be extremely severe if I ever did get a job and therefore would like to ask the forum if bankruptcy is a better option? To clear the debts once and for all?

I would also like to ask if I would lose my flat. It is only the interest that is paid and we only own 60%, the other 40% being the property of a housing association. I have read that they could force a sale or take a percentage of the 60% which I don't even know would be possible plus I would prefer this not to happen.

Please advise as I am desperate with worry and know it is only a question of time for the bailiffs to come knocking on the door.

System

hawaje2013 wrote: »

Hi, my first post here, slowly trying to find my way around here. At the moment I'm on DMP but struggling to make the payments, so far I made all but I was quite late in the last few months. If I decide to go BR route will I have to sell my house? (Me and my wife live with three children).
Mortgage: 84k
House value: 90-95k
Debts: 24k unsecured, managing them through DMP, 2k of high interest trade card debt

My neighbour had to sell the house (repossesion) few months ago and she sold for 70k. So depending on the circumstances it might be no or little equity in the house.

And another more general question, if I carry on DMP after 7 years I will be free of unsecured debt. How my credit situation will be different from going through BR now? If it is going to be no difference so why struglle to pay it off? I know it is not the way I should think but bulk of my debt is beacuse I took personal loan to pay off for my people when I was I waiting to be paid by contractor. Contractor then went bankrupt and I lost 20k. That company didn't have any problems with not paying its subcontractors.
Anyway, all I want is clean start as soon as possible with as little impact on my family as possible.

Any advice or pointing where I could find help is greatly appreciated.

Hi Hawaje2013 and welcome to the forum.

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

If you have equity in your property and you go bankrupt it is possible that you would lose the house.

Bankruptcy is a form of Insolvency that will stay on your credit file for six years; a debt management plan is an informal agreement with creditors that would see you repay your debt in full.

Your debt management plan will take 7 years to repay but in bankruptcy you would more than likely be discharged after 12 months and make no more than 3 years worth of payments.

I’d recommend that you give us a call on 0800 138 1111. We’re open Monday to Friday 8am - 8pm. We could look at your situation in more detail and advice from there.

I hope this helps.

Kind regards,

Mat

System

coops4 wrote: »

Hi

I have a current DMP which i have been keeping up to date with but my child tax credit which is £280 a month was removed from me in June. Since then like an idiot instead of updating my account i have taken poay day loans on to try and get by!

I know have £800 in pay day loans outstanding and cannot afford interest. I assume if i report to CCCS they will withdraw my DMP. Is it worth being honest and swallowing the consequences?

I am training in law and fear taking an IVA or Bankruptcy as i will not be able to practice as a legal executive (or so i understand)

If i added these companies to my DMP the irony is i would prob be able to afford it.

Any advice would be great thank you

Hi Coops4 and welcome to the forum.

As you’re already a client of ours please give us a call.

We’re here to help you and will try our best to look for a solution for your situation.

I hope this helps.

Kind regards,

Mat

System

jm52 wrote: »

I'm 54 and unemployed, with a mentally ill partner of 56, who has been unable to work for 2 years and is unlikely to work in the near future.

I have had intermittent employment over the past three years, after being bullied out of a relatively well paid job, for Scotland, £25k. When I get work now, it is temp work at an average rate of £7.

Due to losing my job and my partner's illness, I was unable to pay any of my debts which now amount to over £20k and now ignore several daily calls from debt collectors.

I looked at the CCCJ online questionnaire and was surprised as how low the expenses on items like food were expected - I was recommended £131 for a month's food expenditure?

My concern would be that a payment plan would be extremely severe if I ever did get a job and therefore would like to ask the forum if bankruptcy is a better option? To clear the debts once and for all?

I would also like to ask if I would lose my flat. It is only the interest that is paid and we only own 60%, the other 40% being the property of a housing association. I have read that they could force a sale or take a percentage of the 60% which I don't even know would be possible plus I would prefer this not to happen.

Please advise as I am desperate with worry and know it is only a question of time for the bailiffs to come knocking on the door.

Hi Jm52 and thanks for your post.

It sounds like you would benefit from some more advice.

We’d need to look at your situation in detail before we could give specific advice regards bankruptcy.

There could be other debt solutions open to you that you are not currently aware of.

We have a specific team that deals with Scottish debt solutions and I’d recommend that you ring our free Helpline on 0800 138 1111 to speak to them. 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

margina

Hello, I'm new to forum sites and don't know if i'm doing the correct thing, but here goes! After contacting citizens advice after son told us that he has quite a few debts while living in a flat and probably before, he is temporarily lodging at home while we help him sort his debts out, not pay them! what are our rights regarding our property and posessions against his debt? we have never been in debt. Hope you help?

System

margina wrote: »

Hello, I'm new to forum sites and don't know if i'm doing the correct thing, but here goes! After contacting citizens advice after son told us that he has quite a few debts while living in a flat and probably before, he is temporarily lodging at home while we help him sort his debts out, not pay them! what are our rights regarding our property and posessions against his debt? we have never been in debt. Hope you help?

Hi Margina and thanks for your post.

As long as the debts are in your son’s name he is solely liable for them. Your property and possessions are your own and nothing to do with his debt.

A court bailiff would only seize your son’s possessions if he has a received County Court Judgement and he doesn’t comply with what the court asks and defaults on the judgement.

I hope this helps.

Kind regards,

Mat

don240

philnicandamy wrote: »

Good luck with it all don it's really not half as bad as your imagining it could be, if you need a hand with the forms post a new question on the bankrupt and living with it forum and someone's always happy to help!

Well its 13 days till I go bankrupt, all my forms are filled in & I just need to get two more copies of my forms &turn up at court on the 7th October at 9AM, I am getting more worried as the date gets closer, but will see how things go.

The main thing that concerns me now is that one of my creditors is my ex father in law (I have been separated since July 2010) I have been in a DMP since late 2008, & borrowed £3000 of him in May 2010 as my old car was on its last legs & at the time needed a reliable car to travel the 22 miles to & from work,

I sold the newer car in August 2011 at market value to buy a cheaper one (I did a part ex that gave me a car & left me enough to pay for my B/R) I now live 3 miles from work but need a car to visit my son who is still 20 miles away from me ( I have to collect him at 6.30 every Friday morning as my Ex has to be at work for 6.40 & as there are no Buses at that time to where he lives, I am hoping I will be allowed to keep the car).

I have been paying him at £50.00 per month & have herd that this could be classed as being preferential to him as I was paying him a higher % per month of my total debt to him than I was to my other creditors, at the time I was still sticking my head in the sand & trying to a avoid B/R so went to him as I knew I would struggle to get credit elsewhere.

Have I done anything wrong & if so what could the consequences be?

Also I handed the old marital home back to the Mortgage company in April this year & am now renting, is it a problem that I have took on things like telephone/ internet / contents insurance etc. at my new address, knowing that I was probably going to go bankrupt.

Again, Have I done anything wrong & if so what could the consequences be.

Thanks in advance