Ask a CCCS counsellor a bankruptcy question

System

WantToBeFree wrote: »

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

Hi and thanks for your posts.

We have a specialist bankruptcy team that should be able to talk you through the process and prepare you for what the Official Receiver may or may not ask for in regards an IPA.

All our advice is free and impartial and you can call us on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

I hope this helps.

Kind regards,

Mat

System

niku2 wrote: »

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.

Hi and thanks for your post.

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

Firstly you would need to seek advice before petitioning for your own bankruptcies, we have a specialist bankruptcy advice team that should be able to offer some insight.

You may find that the Official Receiver has some issues with your case as you are intentionally making yourselves insolvent.

I would also double check the immigration rules in your husband’s case regarding this.

I’d recommend that in the first instance you call us for some more detailed advice by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

I hope this helps.

Kind regards,

Mat

System

topspur wrote: »

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.

Hi and thanks for your message.

How the properties are dealt with would depend on what solution you took.

As your situation is complex I’d recommend that you call us to discuss this in detail.

Please call our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm. You’d need to gather details of all your income, expenditure, debts and assets.

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.

It might also be worthwhile reading our blog on this subject –

http://moneyaware.co.uk/2011/09/we-got-a-joint-loan-now-weve-split-who-has-to-pay/

I hope this helps.

Kind regards,

Mat

System

nolessthan10 wrote: »

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

Hi and welcome to the forum.

You can go bankrupt for £11,000 but there may be other options open to you including a Debt Relief Order, this would depend on your circumstances.

The quickest way to find out what the best solution is would be to use our online debt 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.

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,

Mat

niku2

CCCS_Mat wrote: »

Hi and thanks for your post.

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

Firstly you would need to seek advice before petitioning for your own bankruptcies, we have a specialist bankruptcy advice team that should be able to offer some insight.

You may find that the Official Receiver has some issues with your case as you are intentionally making yourselves insolvent.

I would also double check the immigration rules in your husband’s case regarding this.

I’d recommend that in the first instance you call us for some more detailed advice by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

I hope this helps.

Kind regards,

Mat

Many thanks for your response.

My husband's visa will very likely already be in hand before anything happens with us financially.

We have already spoken to National Debtline and preliminarily to CCCS (telephone appointment set up for this Tuesday).

We realise it's an odd situation, as we are not currently insolvent and it's only through our decision to move that we would become so. Quite honestly, at this point in time, we feel up against a wall and that the only other option to filing bankruptcy is to simply walk away from everything and hope that no one finds us. Obviously, this is a more terrifying option than bankruptcy.

We have be be out of the UK by May, as this is when my US passport expires.

If we were to go the voluntary surrender route now and hand the keys back to NRAM, would that make us more eligible for bankruptcy in the eyes of the court? There is no way we are able to pay the £1400 court fees only to be told that we do not qualify; we are having to take two mortgage holidays to scrape the fees together.

Very grateful for any further advice anyone has--so glad I've found this forum.

nottoolate

CCCS_Mat wrote: »

You may find that the Official Receiver has some issues with your case as you are intentionally making yourselves insolvent.

not true. they are already insolvent

kepar

We realise it's an odd situation, as we are not currently insolvent and it's only through our decision to move that we would become so. Quite honestly, at this point in time, we feel up against a wall and that the only other option to filing bankruptcy is to simply walk away from everything and hope that no one finds us. Obviously, this is a more terrifying option than bankruptcy.

not true. they are already insolvent


I don't understand your comment.

System

niku2 wrote: »

Many thanks for your response.

My husband's visa will very likely already be in hand before anything happens with us financially.

We have already spoken to National Debtline and preliminarily to CCCS (telephone appointment set up for this Tuesday).

We realise it's an odd situation, as we are not currently insolvent and it's only through our decision to move that we would become so. Quite honestly, at this point in time, we feel up against a wall and that the only other option to filing bankruptcy is to simply walk away from everything and hope that no one finds us. Obviously, this is a more terrifying option than bankruptcy.

We have be be out of the UK by May, as this is when my US passport expires.

If we were to go the voluntary surrender route now and hand the keys back to NRAM, would that make us more eligible for bankruptcy in the eyes of the court? There is no way we are able to pay the £1400 court fees only to be told that we do not qualify; we are having to take two mortgage holidays to scrape the fees together.

Very grateful for any further advice anyone has--so glad I've found this forum.

Hi and thanks for your reply.

As you already have an appointment tomorrow I’d wait and see what our bankruptcy counsellor says when they have your full details.

We will be able to offer best advice best on a more detailed look at your situation.

I hope this helps.

Kind regards,

Mat

sarahlouise1979

Hi,
I will try and keep this brief!
Live in shared ownership flat, it's on the market (can't rent it out as shared ownership), for £58k (my half). Mortgage outstanding is £64k, so in negative equity.

Have decided to give the keys back as I need to get rid of it ASAP (moving in with partner) and I have other unsecured debts of around £18k, then I will probably go bankrupt.

Have a few questions regarding all of this, hope someone can help please:
What is the actual procedure for handing the keys in? Am I ok to sign paperwork to say that I'm handing it over and that I will be liabe for the shortfall? (as i won't yet have gone bankrupt)

Can i file for bankruptcy straight away after handing keys back?

I will be moving in with my partner, and paying him towards mortgage, bills etc, are we ok to split all the bills roughly in half and I pay him a set amount per month?

What are the maximum allowances for things like petrol and food?

What about the fact that my car is fairly old, what amount can I put in my SOA to cover car maintenance?? And what if the car dies?! If all my income is accounted for, how can I replace my car?

Think that's everything for now!

System

issy0503 wrote: »

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.

Hi and thanks for your message,

The bailiffs shouldn’t be able to take any of your property unless you are named on the debt. Your friend would need to prove who owns what property to the bailiff.

This is a little bit of a grey area and it could depend on how much the debt is for.

Your friend should seek clarification from the Official Receiver who is dealing with the bankruptcy.

We will try and offer further clarification and reply to this post again with a definitive answer, but this may take some time.

I hope this helps.

Kind regards,

Mat