Ask a CCCS counsellor a bankruptcy question

System

titch392000 wrote: »

I'm a disabled single mum of 1.

I rely entirely on benefits and when my marriage broke down 3 years ago I entered into a debt management plan with Gregory Penningtons.

My ex has been problematic with my maintenance in recent months and I got CSA involved 6 weeks ago. Since then I've received a couple of payments for about £20 and a couple for less than £1

They're meant to be asssessing him and getting it sorted but I can no longer afford my debt management plan. I rang CCS and they advised a DRO as I only have £42 disposable income.

I don't have the money to pay the full bankruptcy fee so the DRO would be perfect.

My anxiety comes from not knowing what may happen in the future. The CSA are having no joy getting anything set up with my ex, he's refusing to set up a DD and they are having to chase him for payments off his debit card.

What happens if I enter the DRO and in a couple of months he starts giving me regular payments (£22 weekly) ? This would take me above the £50 disposable income bracket, but then there is no guaranteee that a couple of months later he won't start messing about again

I just don't know what do to for the best.

Hi Titch392000 and thanks for your post.

As there is no guarantee on the CSA payments we would look to put forward a DRO based on your guaranteed income which is your regular benefits.

If your circumstances changed we’d be able to look at your budget again.

As we’ve already recommended a DRO you can call our specialist DRO team to discuss this in more detail and they will be able to put your mind at ease.

I hope this helps.

Kind regards,

Mat

System

moneymoan wrote: »

Please could anyone advise me what I can do in my situation.
1) I have a mortgage with Northern Rock - no equity I owe more than the property is worth.
2) I have a secured loand with Welcome Finance ( I believe they should never have offered me it (It was not affordable to me and would have failed any basic affordability check)
3) Having failed at trying to keep up the debts on the remaining unsecured debt which Welcome Finance did not cover. I now have an IVA.
Obviously I realise now that I'd have been better off taking an IVA for the whole of the unsecured debt instead of taking the secured loan with Welcome, but in my defence, I had been ill advised by Citizens Advice Bureau (they told me if I wanted apply for an IVA that I need £5k to pay upfront fees) so I should apply for Bankruptcy.
I would not consider Bankruptcy as an option for me because I did not want to lose my job and because despite the fact that most of my unsecured debt was due to my head being in the sand and me using credit cards to pay may way and paying unreasonable costs and interest rates to keep going, I wanted to be responsible and pay off my debts if I could.
I am now in a position since my husbands income has reduced that I cannot make ends meet. If I were able to choose what not to pay it would be Welcome Finance since their payments are so high and because I would be in a very different position if the debt they supplied the loan for had been included in the IVA.
When I started to struggle with Welcome payments, they temporarily reduced they payments allowing me to pay interest only for a while and stopped interest being applied to my loan, but after time they said they would have to start adding interest back on to the account. I still pay interest only...I can't manage to pay the full amount.
I am currently being allowed to pay interest only on my mortgage with northern rock for a 1 yr period and when I asked if Welcome would be willing to reduce my payments any further they responded with "Ah well if you are paying less to Rock you could pay more to us!!!!"
I don't suppose anyone out there has any advice to offer me??? I don't know what to do next eg
If I sold my home I would owe more to the Northern Rock, and still owe Welcome Finance and still have the IVA and would find it difficult to rent.
If I stay and go bankrupt for the unsecured debt I'd only be £250 per mont better off and so would still struggle with Welcome Finance
.........what other options do I have.........at the moment I survive by borrowing money from my mum for food and repaying her when I can then borrowing again and again. Life is a bit sad to say the least and truthfully I have never had a lavish lifestyle..........this is honestly all just down to bad money management!

Hi Moneymoan and thanks for your post.

I answered your first question in the private message you sent us.

If you feel you were miss-sold the Welcome Finance loan you can make a complaint to the Financial Ombudsmen.

http://www.financial-ombudsman.org.uk/

I hope this helps.

Kind regards,

Mat

jbatista

Hi I really need some help I received a hand delivered letter last night telling me I am being made bankrupt, a petition complying not to respond to a Statutory Demand by Lowell Portfolio, I need help desperately, the hearing date is the 13th Dec.... where do I go from here, as I am not even sure who the debt is with??? I have a Mortgage, other debt too, am not working either...

StepChange_Pavan

jbatista wrote: »

Hi I really need some help I received a hand delivered letter last night telling me I am being made bankrupt, a petition complying not to respond to a Statutory Demand by Lowell Portfolio, I need help desperately, the hearing date is the 13th Dec.... where do I go from here, as I am not even sure who the debt is with??? I have a Mortgage, other debt too, am not working either...

Hi jbatista and thanks for your post.

We would need to look at your situation in more detail to be able to determine whether this is an actual Statutory Demand or a threat. It should say on the letter what the debt is for and how much is outstanding.

I’d recommend that you call our free helpline as soon as possible so that we can discuss your options. You can call us on 0800 138 1111 and we’re open Monday to Friday 8am - 8pm.

Kind regards,
Pavan

jbatista

Hi I have a date for court posted on it Its definitely not a stat demand...

IF

jbatista wrote: »

Hi I have a date for court posted on it Its definitely not a stat demand...

Hi jbatista, As CCCS_Pavan has said please contact on of the free debt charities ASAP for further help.


Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111
  

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Best wishes
If...x

techno1029

Is going bankrupt whilst in an IVA different from not being in an IVA?....Have been in IVA 2 years but things steadily getting worse and would like to get house repossessed, rent somewhere and then hopefully try to start again.....Have a mortgage which isnt bad but I have a second secured loan on it which is just killing me financially.....just starting to consider BR and weighing up the pros and cons....any help much appreciated!!!!!

System

jbatista wrote: »

Hi I have a date for court posted on it Its definitely not a stat demand...

Hi and thanks for your reply.

We have a specialist team that will be able to advise you on this.

I’d recommend that you gather details of your debts as well as your income and expenditure and that you call our free helpline as soon as possible so that we can discuss your options. You can call us on 0800 138 1111 and we’re open Monday to Friday 8am - 8pm.

Kind regards,

Mat

System

techno1029 wrote: »

Is going bankrupt whilst in an IVA different from not being in an IVA?....Have been in IVA 2 years but things steadily getting worse and would like to get house repossessed, rent somewhere and then hopefully try to start again.....Have a mortgage which isnt bad but I have a second secured loan on it which is just killing me financially.....just starting to consider BR and weighing up the pros and cons....any help much appreciated!!!!!

Hi and thanks for your message.

An IVA is a legally binding document overseen by a Supervisor who is also an Insolvency Practitioner (IP).

The first point of call for advice is to speak to the IP who is Supervisor of your IVA. They have access to all your details and are fully qualified to give you advice about bankruptcy.

Both IVAs and Bankruptcy are forms of Insolvency. IVAs are usually put in place to protect assets such as property.

Most bankrupts are discharged after 12 months but may continue to pay into the bankruptcy for 3 years. As you are two years into an IVA this is something to consider.

It may be possible to go bankrupt and hand the keys back to your property to include in any shortfall in the bankruptcy but you must seek advice from your IVA Supervisor in the first instance.

Many people in IVAs are not aware that IVA payments can be reduced if you are struggling, this may sometimes be with agreement of creditors and subject to a Variation meeting, you would need to discuss this with your Supervisor.

I hope this helps.

Kind regards,

Mat

techno1029

Thanks for reply Mat. Think I will do some more investigating then maybe have words with my IP. Cheers.