Ask a CCCS counsellor a bankruptcy question

Susie78

Hello, myself and my husband took out IVA's last year but we have no assets to speak of and our house is in negative equity. We have never missed a mortgage payment. Our money situation is going to change for the worse but we will still be able to pay the mortgage, if we go bankrupt will we lose the house?

StepChange_Pavan

Susie78 wrote: »

Hello, myself and my husband took out IVA's last year but we have no assets to speak of and our house is in negative equity. We have never missed a mortgage payment. Our money situation is going to change for the worse but we will still be able to pay the mortgage, if we go bankrupt will we lose the house?

Hi Susie78 and thanks for your post.

If the repayments are affordable and the house isn’t surplus to your needs you should be able to keep the house (provided that it’s in significant negative equity).

If you are still in your IVA you would need to speak to your provider in the first instance, as it’s a legally binging solution. If you discuss your situation, they should be able to advise you on your options.

If your IVA does fail, you can come to us for free and impartial advice. If bankruptcy is your best option, we have a specialist team that can support you throughout the process.

I hope this helps.

Kind regards,
Pavan

WantToBeFree

Can I ask - If your sole income is made up of benefits, ie income support, child tax credits and child benefit, how likely is it that the OR will make an IPA? And same question if there is then additional income from child maintenance.

Many thanks.

JCS1

WantToBeFree wrote: »

Can I ask - If your sole income is made up of benefits, ie income support, child tax credits and child benefit, how likely is it that the OR will make an IPA? And same question if there is then additional income from child maintenance.

Many thanks.

If your sole income is benefits, then there will be no IPA.

SteveABC

JCS1 wrote: »

If your sole income is benefits, then there will be no IPA.

JCS

I pay what I consider to be quite a hefty IPA, as I am only allowed 70% of all my household costs such as rent, council tax, water etc. etc.

Apparently, this is because my two sons (both over 18 <19 and 21> live with me), however their only income is state benefits: ESA for one, who is disabled and JSA for the other. They give me a small contribution (what they can afford), but it doesn't cover the 30% I'm not being allowed for the household items mentioned above?

OR told me it was a standard amount for non-dependants. Does this mean if they started work and gave me more, then I would not need to declare an increase in income because their 30% joint contribution has already been calculated in my IPA?

Just seems a bit strange to me?

WantToBeFree

JCS1 wrote: »

If your sole income is benefits, then there will be no IPA.

Thank you
What about the fact that I also get £350 pm child maintenance from my ex, will there be an IPA then?

niku2

Hello to all.

I'm an American here in the UK on a permanent residence visa. My husband is British, our two tiny daughters are dual citizens. We have made the decision to move back to the States, not an easy decision to make but one that we feel will benefit our children in the long run.

We'd very much hoped that we'd be able to cut all financial ties to the UK and start fresh in the States, but it's obvious now that this is little more than a pipe dream, unless we file for bankruptcy.

We have been trying to sell our house since September of last year and have had no interest at all, despite several reductions in the price and using a couple of different estate agents. We bought it in 2007 and currently owe £127,000 (£110,000 mortgage, £17,000 unsecured loan) to NRAM. Our house is now on the market for £109,000. No matter what happens as far as a sale goes, we'll never get rid of the negative equity.

Our only other debts are one Nationwide credit card at £9,000 and a Nationwide loan at £4,500.

We're aware that we could go through a voluntary surrender, but we also know that we'd be liable for everything from legal costs to the undoubtedly massive shortfall that would occur when the house is sold for peanuts at auction.

We have no savings to speak of, and no assets.

Time is running out for us, as once my husband is granted his immigrant visa to the US, which should occur by mid-February, we have fewer than six months to move over.

My questions are these:

1) If we were to file for bankruptcy, would we be able to get everything in order by April, which is our target date for leaving the UK?

2) Would the court even consider us for bankruptcy? We are currently able to pay all of our bills and have never missed any payments on anything or had any overdrafts. The problem comes when we quit our jobs and leave the UK.

Bankruptcy seems the only option. We will not be able to pay back any of our debts once we move, as we will not be immediately employed in the States.

I would be most grateful for any advice, feel like I've hit rock bottom.

topspur_2

Hello to all,

I'm in need of some urgent advice if possible, my husband and i currently have around £100.000 of unsecured debt, when split £60.000 is mine and £40.000 is his. This is currently being managed by way of a debt management plan, £600.00 pm.

We have a mortgage £175.000 and house value is currently about £200.000. Secured to this property is a loan with first plus for £90.000. Both the loan and mortgage are are up to date.

We also have two other properties that are tenanted, one is in equity and the other isn't.

My husband and i are in the process of separating/divorcing and he intends to live abroad. Once he does i will no longer be able to meet all my above committments and he will not be trying to help!!

I would like to find out what options i have available to me when he leaves, and how do i stand with regards to my home and repossesion as i have two young children.

Would it be possible if repossesion became a possibility to offset the rental properties against this?

Sorry for the long winded question, am really worried and hence not making myself understood.

Thank you.

nolessthan10

Hi,

I have debts of around 11,000 including about 1,200 council tax. All this debt is from bank loans, finance and payday loans. I am a single parent working part time, and my situation is unlikely to change for some time.

I understand I coud write to my creditors and agree to pay a token payment, but some of these debts i've had for years, it's becoming too much especially as I am suffering from anxiety. I'm having counselling and being treated for depression. But I am sure my debts are too small for me to apply for Bankrupcy. Is this true? I have looked at all the help and links you provide, but I can't find anything which gives a guide to the minimum amount of debt.

Thanks

issy0503

Does anyone have any experience of the Plymouth City Council ?
My friend has arrears of Non domestic rates and a walking possession order has been made of some of his belongings p.c, chairs camera etc and some of my properrty ! by Ross and Roberts bailiffs and a payment plan is in force. he is going to file for BR tomorrow, but i read somewhere that the possession order can still be enfoced even after BR.I think all councils are different so just wondered if any one from Plymouth knows if the council call the bailiffs off ?
Thanks.