Ask a CCCS counsellor a bankruptcy question

tigerfeet2006

Whle you are waiting for a CCCS bod I will try and answer your questions.

ap76 wrote: »

hi
i contacted cccs yesterday as my current and growing debts are becoming a problem. my current debts are 33,000, with 22,000 of them being non secured debts. the guy i spoke to mentioned bankruptcy. i own my house which i paid 92,000 for 5 years ago. my current mortgage is 77,000 but my house has now decreased in value and is only worth around 80-85,000. i am worried as how bankruptcy will effect me as i have a mortgage.

As you have equity in the house the OR will have an interest in this. If it is a joint mortgage then he will generally want 50% depending on your circumstances. If you are sole owner then he will want all the equity. The OR has up to 3 years to deal with property and may wait to see if the equity goes up and then ask for it. The equity is called Beneficial Interest.


i am also worried if my employers will be informed
Your employers will not be informed. Her Maj's Tax man will contact them and ask them to give you a Nil Tax Code but there are several reasons for a NTcode and due to data protection they won't be told why. Though if you go BR between Feb. and April you usually won't get one as there is not enough time to set it up.

, and my wages are paid into my current account to which i do not have an overdraft and do not owe the bank any money, will i be able to keep this account.
There are only two BR friendly banks, see this thread
https://forums.moneysavingexpert.com/discussion/3582093

sorry for all the questions but i need it clesring up before i decide what to do. thanks xx

Keep asking questions and read the main board, read, read and read some more, ask more questions and get your self informed.

Have a read of the Bankruptcy Help sticky, there is a lot of useful info. in the first post especially.
https://forums.moneysavingexpert.com/discussion/1056083

KNOWLEDGE IS POWER.

mocktudorland

Hi MS Experts
I'm very pleased to have found your site!

FYI - I have reviewed the checklists and initial pages and it looks like I an not in Debt Crisis but will be soon if I don't start managing my money/debt properly.

I have created as suggested on the First time posters page a SOA list. I am not sure what the next step is. Where do I post this info. to get some feedback/comments? Is it directly to this site/thread?
Cheers Steve

SOrry - Ignore - Just realised I should have posted this on another MSE forum page.
Best Steve

mocktudorland

Sorry - Just realised I should have posted this question elsewhere on MSE forum.
Steev

renie

Hi

I'd be really grateful if you could please clarify what is meant by 'the interest in a dwelling house'. The below information is on the BIS website, I rang them to clarify this but they wanted to know all my details and I'm not yet at a stage where I know what to do.

I need to know if I brought a property and the mortgage is in my sole name, before I met my current partner, and I go bankrupt as I cannot afford the repayments on my own home and move in with him will this affect him as he own's his own property? Alternatively if I moved in with my mother who also owns her own property would it effect her. I am petrified that I will bring my debt into the lives of other people and they will lose money too.

What is meant by the bankrupt’s home?

It is the interest in a dwelling house, which at the date of the bankruptcy order was the sole or main residence of:

• the bankrupt; or
• the bankrupt’s spouse or civil partner; or
• the former spouse or civil partner of the bankrupt.

Thank you for any advice you can give me.
Renie

System

ap76 wrote: »

hi
i contacted cccs yesterday as my current and growing debts are becoming a problem. my current debts are 33,000, with 22,000 of them being non secured debts. the guy i spoke to mentioned bankruptcy. i own my house which i paid 92,000 for 5 years ago. my current mortgage is 77,000 but my house has now decreased in value and is only worth around 80-85,000. i am worried as how bankruptcy will effect me as i have a mortgage. i am also worried if my employers will be informed, and my wages are paid into my current account to which i do not have an overdraft and do not owe the bank any money, will i be able to keep this account. sorry for all the questions but i need it clesring up before i decide what to do. thanks xx

Hi and welcome to the forum.

I can see you’ve already had some excellent advice from tigerfeet2006.

In regards your employment you might want to check the individual details of your employment contact as some professions can be affected by bankruptcy.

As you are already a client and we have access to all your details I’d recommend that you give us a call so that can answer any further questions.

I hope this helps.

Kind regards,

Mat

sylviac

Hi - I am writing for my daughter she is 23 and has a vanquis credit card - she has got herself over £1,700 on this card and is finding it difficult to pay even the minimum amount - she has cut the card up but the interest rate with this bank is ridiculous and probably interest alone is now £400 +. She has phoned them as she is self employed and has very little work at the moment and they have agreed to accept a minmum payment and to freeze her interest for 3 months only. She has been paying £12 per month in for ppi insurance - but apparently it does not cover her if she is self employed - can you advise us please for the best way forward - they are very pushy ringing mmost days and she is really worried about what to do - thank you

18horses

Hello, could you please advise me with this query? I live in northern Ireland.

I was involved in a car crash a few months ago. I have recently discovered that I made a small mistake in my insurance application which may lead the company to void it.

Should this happen, I understand they would be obliged to pay any third party personal injury claims under the road traffic act, but could then seek to recover this payment from me.

Were this to happen, and it involved a significant sum which I could not pay, would the monies they try to recover from me be considered eligible debt for bankruptcy?

StepChange_Pavan

renie wrote: »

Hi

I'd be really grateful if you could please clarify what is meant by 'the interest in a dwelling house'. The below information is on the BIS website, I rang them to clarify this but they wanted to know all my details and I'm not yet at a stage where I know what to do.

I need to know if I brought a property and the mortgage is in my sole name, before I met my current partner, and I go bankrupt as I cannot afford the repayments on my own home and move in with him will this affect him as he own's his own property? Alternatively if I moved in with my mother who also owns her own property would it effect her. I am petrified that I will bring my debt into the lives of other people and they will lose money too.

What is meant by the bankrupt’s home?

It is the interest in a dwelling house, which at the date of the bankruptcy order was the sole or main residence of:

• the bankrupt; or
• the bankrupt’s spouse or civil partner; or
• the former spouse or civil partner of the bankrupt.

Thank you for any advice you can give me.
Renie

Hi Renie and thanks for your question.

If you were to lose your own house through bankruptcy and move in with your mum or partner, your bankruptcy shouldn’t affect them. You would only usually have beneficial interest in their property if you had lived there and contributed towards household costs and improvements for some time.

As you have your own home too and are considering bankruptcy, it’s really important that you seek some free and impartial advice. If you don’t want to give your details at this stage you can use our anonymous advice service, Debt Remedy (http://www.cccs.co.uk/ref/drcu).

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.

I hope this helps.

Kind regards,
Pavan

Chainless33

I was discharged from my personal bankruptcy just under a year ago. The company I work for is changing structurally soon and I am going to be offered the chance to be a director of the "new" company by the current MD which is fantastic. They are fully aware of my situation and I think as a discharged bankrupt there is nothing stopping me being a director but would my own personal history be to the detriment of the business by affecting its ability to obtain credit etc?????? Basically the company currently has 2 equal shareholders who want to go their separate ways, one to form a new start ltd company and the other to retain the company name and history but form a new board and share structure so this company has an existing trade/credit history. Can anyone advise please? Apologies if this is in the wrong thread......

StepChange_Pavan

sylviac wrote: »

Hi - I am writing for my daughter she is 23 and has a vanquis credit card - she has got herself over £1,700 on this card and is finding it difficult to pay even the minimum amount - she has cut the card up but the interest rate with this bank is ridiculous and probably interest alone is now £400 +. She has phoned them as she is self employed and has very little work at the moment and they have agreed to accept a minmum payment and to freeze her interest for 3 months only. She has been paying £12 per month in for ppi insurance - but apparently it does not cover her if she is self employed - can you advise us please for the best way forward - they are very pushy ringing mmost days and she is really worried about what to do - thank you

Hello sylviac and thank you for your post.

Firstly, if she has been paying PPI and she isn’t covered she should claim it back. There’s more information on how she can do this here: http://www.moneysavingexpert.com/reclaim/

Secondly she can’t pay them money that she can’t afford. She can ask them to stop calling her if they are harassing her and they can communicate with her in writing instead.

If she’d like some more detailed advice on how to deal with them she can call our free helpline on 0800 138 1111. We have a specialist team that advise self employed people and they can help her to put a budget together.

I hope this helps.

Kind regards,
Pavan