Ask a CCCS counsellor a bankruptcy question

fermi

Sammy3008 wrote: »

Bankruptcy is something my husband considered, until we read up on it, is it true, all your worthy possessions are taken, towards payment? We obviously own a car (that my husband uses to get to and from work) which is worth about £4000.00 (if that) the PC, Flat screen tv, but the TV and PC were given to us by family!!
We also have a Together mortgage with NR, and we tryed to go down the IVA route for all our debts, but because of having an uinsecured loan with NR, we couldn't do it, as our home isn't worth enough for them to secure it to the property.
So if the house doesn't sell, then its either repossession, or Bankruptcy. Is there anyone we can contact who we can speak to regards both Repossession/Bankruptcy, so we can put our minds at ease a little?

You can talk to any of the organisations recommended in Martin's article here:

Non-profit Debt Counsellors' List

The car would certainly be an asset in a bankruptcy that the Official Receiver (OR) would want to get some money from. However, if it is essential for work then you may be allowed up to £2000 to replace it with something cheaper or you may be able to buy it back from the OR. But it would be up to your examiner, and it is very very hard to predict exactly what the outcome with cars will be.

But it is not true that the OR will take ALL your possessions. They are only interested in non-essential items that will raise money at auction. Because most 2nd hand items like TVs/PCs and other items you may have in your house are worth next to nothing at auction after fees/selling costs, then the OR will not usually be interested in claiming them. Obviously if they are brand new and worth £1,000s that may be different, or if you have antiques etc. But in general most things people have in their homes are not worth their effort.

CCCS_Sue

macduf wrote: »

I wonder if you could help me with my query. After I aqquired a judgement against someone I then issued a warning letter of bankruptcy via their family but I now need to go for full bankruptcy as that has failed to work. The person involved now lives abroad but still has business interests in England and still returns. My question is do I have to hand the petition direct to the person or if not what other method is available?

Many thanks

Hi macduf and thank you for your message

I have attached a link to the Insolvency Service’s booklet “How to make someone Bankrupt” which will answer your queries click here.

Hope this helps

Regards
CCCS_Sue

CCCS_Sue

WF1976 wrote: »

HI,

I have the opportunity of selling my house which has been on the market and unlived in since my relationship split up three years ago. Just before the split we took out a huge consolidation loan, which took secured lending to about 95% of the house cost. With the current market the house has obviously now dropped and I find that I am in Negative equity of about 20k.

I am under huge financial strain and have been since the split but have managed to keep up with all payments just about, I have taken a second job and have restricted funds to live on but have managed to stay away from further credit since it all happened. When this started I never imagined the house would still be on the market 3 years later - my only chance to improve quality of life is to get rid of this house, and finally may have an opportunity however I have no idea what to do due to the negative equity...

Can you advise a best course of action? My thoughts are asking the secured loan lender to split the outstanding loan amount between me and my partner and set up a new unsecured loan, they may not agree to this however. Otherwise I may have to consider bankruptcy as the thought of continuing in this way for another year or two is unbearable.

Thanks

Hi WF1976 and thank you for your message

I would recommend that you call us for an appointment to discuss your situation with a debt counsellor as there are options you could consider, but we need to look at your full financial situation before we could give you detailed advice.

If you would like to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Regards,
CCCS_Sue

CCCS_Sue

Kuggers wrote: »

Hi. I know this question is forever being asked but what are the rules regarding cars as assets following bankruptcy - I seem to remember finding an extremely comprehensive answer on the forum regarding the regulations but I've lost it again,.....

hi kuggers and thanks for your message

I believe the answer on the forum you are referring to has been supplied already by fermi.(Thank you fermi!)

Regards
CCCS_Sue

CCCS_Sue

Kuggers wrote: »

Another quick question, how soon after a bankruptcy order is issued will a bank receieve notification and consider freezing an account?

Hi kuggers and thank you for your message

All your bank accounts are usually 'frozen' by the bank as soon as it becomes aware of the bankruptcy order - so you will need to make alternative arrangements for receiving money into your account and paying standing orders, direct debits etc.
You should not try to open a new bank account before the bankruptcy order is made, because this account will also be frozen.

Regards
CCCS_Sue

CCCS_Sue

malfollie_01 wrote: »

Hello CCCS,

Please can I ask some advice please.

Me and my partner have made the decision to go bankrupt we stopped paying all the creditors and the mortgage (repossession had already been threatened by northern Rock) Saved up enough for the rent and deposit on our rented house moved in last month.

We know need to find £1,000 for the fees!! HELP. I have a bout £300 at the minute but really can't see my having the rest anytime soon. I know we aren't paying anything anyway but even without paying anything we only really have £100 left a month to put away after our basic living expenses
I am concerned of the time it is going to take us to get the fees.
What effect will it have that we are not paying anything but don't have the fees??
How long will I realistically have to get the fees together??

Malfollie
xxx

Hi malfollie and thank you for your message

If you are unable to raise the bankruptcy fee and have no one in the family who can help out, there may some Trust Funds you could look at applying for.
I would recommend that you call for an appointment to speak to one of our debt counsellors about your situation, as we do have a bankruptcy support team who could look into this for you.

If you would like to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Regards,
CCCS_Sue

CCCS_Sue

aromatic wrote: »

I am very new to this forum so please bear with me if I make any mistakes.
I have so much on my mind at the moment I cannot cope much longer.
My husband and I have an IVA and we have been unable to keep up with the payments of £575.00 per month and we have not paid for the last three months and our IVA practitioner is about to make us bankrupt.
I have read so much advice about bankruptcy and yet we are still terrified of the prospect but it seems we have little choice in the matter unless we now pay £827.00 per month to make up for missed payments!! as stated in our last letter from our iva practitioner.
As well of all of this hanging over our heads, I am a full time carer to my mother who has senile dementia and my husband has recently had heart surgery!
I have very little time spare for sorting out finances and I am sooooo worn out with it all and the worry...
If we go bankrupt will our home be taken from us. We live in a park home which is quite old and was valued prior to our iva. Its valued at two thousand pounds. I am terrified of losing our home as we have no where else to go... also what possession will be taken away. We have very little because anything of value was sold to pay some debts prior to the iva.
Our iva practitioner wants me to contact her at the latest Tuesday 23rd June to inform her of our intentions or the matter will be taken out of our hands and she will bankrupt us.......
What do I do.... I know I should have tried to seek help sooner but with so much going on in my life I have just tried to put it out of my mind and yet I know only too well its not going to go away.
I would really appreciate any sound advice you could give me and what I should say when I ring my iva practioner tomorrow who is not particularly happy with me and not easy to talk to.. I usually end not been able to get out what I really want to say. I actually dread speaking to the woman.
Many Thanks for taking the time to read this tail of woe!
aromatic

Hi aromatic and thank you for your message

Sometimes, the Insolvency Practitioner will look at alternatives to bankruptcy such as a realistic DMP to repay the debt, especially as you have very little assets, but this is something you will probably discuss when you contact her.

If the bankruptcy goes ahead, then the OR will look at your Park Home as an asset.
It may be an idea to wait until the OR gets an up to date valuation of the home and then see if you can raise the cash to pay this as a lump sum instead of them taking the home.


Regards
CCCS_Sue

CCCS_Sue

huggies78 wrote: »

Hello,
can anyone please help. me and my wife have both declared ourselves bankrupt but recenly been discharged. the strain of this period has caused us to seperate. Can anything be done to sell my house so me and my family can have a fresh start? the house is solely in my name and the official reciever is control over it. any help will be a greatly appreciated.

Hi huggies78 and thank you for your message

A bankruptcy restriction notice is an entry at the Land Registry against a property that is solely owned by a bankrupt. A restriction is automatically placed when a bankruptcy order is made. It puts on record that the bankrupt is no longer the legal owner of the property and does not have the ability to sell the property or enter into any other dealings in connection with the property - only the trustee can do this.
I have attached a link to an Insolvency Service booklet called ‘What Will Happen to My Home’ which contains some useful advice. click here

I would also recommend that you contact your OR and discuss this with them.

Regards
CCCS_Sue

CCCS_Sue

Sammy3008 wrote: »

Bankruptcy is something my husband considered, until we read up on it, is it true, all your worthy possessions are taken, towards payment? We obviously own a car (that my husband uses to get to and from work) which is worth about £4000.00 (if that) the PC, Flat screen tv, but the TV and PC were given to us by family!!
We also have a Together mortgage with NR, and we tryed to go down the IVA route for all our debts, but because of having an uinsecured loan with NR, we couldn't do it, as our home isn't worth enough for them to secure it to the property.
So if the house doesn't sell, then its either repossession, or Bankruptcy. Is there anyone we can contact who we can speak to regards both Repossession/Bankruptcy, so we can put our minds at ease a little?

Hi sammy3008 and thanks for your message

I have replied to the private message that you sent to us regarding this question, and provided our free telephone number you can contact for further advice.
If you did not receive this,please let us know.

Regards
CCCS_Sue

aromatic

Thanks Sue... this is all sooo scary... the thought of losing our home is just the last straw and I doubt we will have the funds to purchase off the OR... then that will leave my husband and I and my mother homeless... life just isn't worth living!
Thanks again for the advice I appreciate you taking the time to reply.
Best Wishes,
aromatic