We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Ask a CCCS counsellor a bankruptcy question
Options
Comments
-
I am considering Bankruptcy and already have a CCJ that I have been paying for 2 years. I intend to stop paying my creditors to save for the Bankruptcy fees - do I just stop paying the CCJ too or will I get into further trouble if I do this.0
-
Hi, I was wondering if anybody could help me. I have abour 5000 spread over 3 credit cards all upto the limits. I am paying top interest on all off them its costing me about 150-200 a month just to meet the minimum payments which is obviuosly getting me nowhere. I applied for a few loans to pay off this debt which would leave me with 1 monthly payment a month but kept getting refused. I joined experian to check my credit file to find my score was excellent at 997, but my available credit was only 1000 hence why i was most likely getting refused any more credit. Despite me stating on my applications for loans and new 0% interest balance transfer credit cards i still keep getting refused. Has anybody got any advice on how I can consolidate these credit cards with 1 monthly paymeny that actually reduced the debt.
Thanks0 -
So sorry i have entered this thread on the wrong forum. Just ignore please
Thanks
:eek:0 -
I am considering bankruptcy or trust deed having put my business into liquidation. I had personal guarantees linked to business, in the region of £100'000.
I have personal debt of circa £15'000.
In consulting with my Insolvency Practitioner, I am considering entering into a trust deed (should I be able to gain agreement with creditors) or declaring bankrupt.
This is an issue weighing heavy on my mind, mainly due to the future implications.
My main areas of concern are
*Professional reputation
*Future ability to obtain mortgage
*Future ability to be Director
*Inability of financial institutions to distinguish between both. For example, bankruptcy can be discharged after 1 year whereas Trust Deed is fixed payment for 3 years.
At this moment I am more persuaded by bankruptcy as there is not credit rating incentive to go with trust deed. Bankruptcy gives me a 'new start after year 1, Would you agree?0 -
QuestionTime wrote: »At this moment I am more persuaded by bankruptcy as there is not credit rating incentive to go with trust deed. Bankruptcy gives me a 'new start after year 1, Would you agree?
What is the 'credit rating incentive' with bankruptcy?
As far as I know, that bankruptcy will be on your credit file for 6 years. You may well find it tough to obtain credit for a while with either bankruptcy or trust deed.
Anyone? Correct me if I am wrong on that.0 -
I am comparing Trust Deed to Bankruptcy, and it seems to me that your credit reference is effected equally. Bankruptcy allows you to move on more quickly. Its not like a Trust Deed protects your credit rating in any way - ie, there is no credit rating incentive to go that way. It also holds you into an agreement for three years, at which point you are two years behind where you would have been with bankruptcy?
Just trying to weigh up implications of each scenario...0 -
QuestionTime wrote: »I am comparing Trust Deed to Bankruptcy, and it seems to me that your credit reference is effected equally. Bankruptcy allows you to move on more quickly. Its not like a Trust Deed protects your credit rating in any way - ie, there is no credit rating incentive to go that way. It also holds you into an agreement for three years, at which point you are two years behind where you would have been with bankruptcy?
Just trying to weigh up implications of each scenario...
Bankruptcy is not always over and done with after a year though!!!0 -
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
Hi don240 and thanks for your post.
Are you including your ex father in law in the bankruptcy? It shouldn’t be a problem that you were paying him a slightly higher percentage whilst in your DMP but it’s highly unlikely that you will be allowed to continue paying him whilst you are bankrupt.
Insurances and telephone costs at your new address shouldn’t be a problem provided that it’s not excessive expenditure and within your means.
The worse that could happen is that you will be given an Income Payment Order if you have an available surplus http://www.bis.gov.uk/insolvency/personal-insolvency/income-payments-orders-and-agreements or your bankruptcy could be extended.
I hope this helps, but you can call our helpline to speak to our specialist bankruptcy team if you need more detailed advice.
Kind regards,
PavanI work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy0 -
I am considering Bankruptcy and already have a CCJ that I have been paying for 2 years. I intend to stop paying my creditors to save for the Bankruptcy fees - do I just stop paying the CCJ too or will I get into further trouble if I do this.
Hi Respite and thanks for your post.
It’s best to offer your creditors token payments whilst you save for your bankruptcy fees.
It’s important that you maintain the payments to your CCJ. If they’re too high for you to afford, you could vary the amount by using an N245 form and reduce it to £1 too. You can just explain that you’re saving for your bankruptcy fees.
I’d recommend that you get in touch as there could be other options available to you, and if bankruptcy is your best option we have a specialist team that can support you throughout the process.
You can use our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111 to speak with an advisor. We’re open Monday to Friday 8am - 8pm.
I hope this helps.
Kind regards,
PavanI work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy0 -
Hi, I was wondering if anybody could help me. I have abour 5000 spread over 3 credit cards all upto the limits. I am paying top interest on all off them its costing me about 150-200 a month just to meet the minimum payments which is obviuosly getting me nowhere. I applied for a few loans to pay off this debt which would leave me with 1 monthly payment a month but kept getting refused. I joined experian to check my credit file to find my score was excellent at 997, but my available credit was only 1000 hence why i was most likely getting refused any more credit. Despite me stating on my applications for loans and new 0% interest balance transfer credit cards i still keep getting refused. Has anybody got any advice on how I can consolidate these credit cards with 1 monthly paymeny that actually reduced the debt.
Thanks
Hi webdel1
Don’t worry about posting in the wrong place – we’ll always try to help where we can.
We wouldn’t usually recommend consolidating in your situation as you may find it hard to find someone that will lend to you and it could make your situation worse in the long term.
If you’d like some free and impartial advice, please get in touch – it could be that something like a reduced payment plan could be a better option for you.
Kind regards,
PavanI work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.1K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards