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Ask a CCCS counsellor a bankruptcy question
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IwtbDebtfree wrote: »Hi, have posted a message in the Mortgages forum, and been pointed back here as a newbie posted who has been watching the forums for a while....!!
My question is this, I currently have an outstanding CCCS DMP, which I have been on for a couple of years, and look like I have another couple of years to go (18 months at current rates), however I am looking to try and reduce my mortgage(s) by remortgaging down to a single mortgage, which I think would then give me more a month to speed up the CCCS DMP payment plan.
However a couple of questions come up, firstly under the terms of the CCCS DMP am I even allowed to ask the mortgage advisors to review my case, as it could be deemed asking for further credit....
Secondly I am being stupid trying to do this anyway.... and lastly which I think I now the answer to, should I look to pay off the CCCS DMP plan with money added to the remortgage, in the hope that I can get full and final settlement agreements with my creditors....
Theres a lot there but any advice would be greatly welcomed...
Mike
IwtbDebtFree (I wanna be DebtFree)
Hi Mike and thanks for your message.
Remortgaging to make things more affordable should be fine.
If you are offered remortgage facilities we also have a specialist full and final settlement team that might be able to help.
I’d recommend that you give us a call to discuss this in more detail.
I hope this helps.
Kind regards,
MatThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Menaisavingexpert wrote: »I am ready to file this coming Tuesday, I have everything ready, have even arranged to borrow the fee from sis-in-law who will wait for a year no interest BUT I have heard that there is a form that you can present to show your income so so low that you don't even have to pay the fee. (would be great not to borrow anymore from anyone while still unemployed)
Have scoured the Insolvency service website but cannot find a link.
Anyone know what it is called and how I can find it online?
Thanks in advance
Hi Menaisavingexpert and thanks for your post.
I can see you’ve already had some excellent advice from tigerfeet2006
If you need any help prior to petitioning for bankruptcy I’d recommend that you give us a call. We have a dedicated team that can help free of charge.
I hope this helps.
Kind regards,
MatThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
I'm pretty sure I'm going to go bankrupt in the middle of April. All my credit cards are maxed out and my overdraft is to the hilt at the end of every month. All my debt is credit card or bank overdraft.
I stopped my direct debits for minimum payment to my credit cards this month so I am now on my first default with them all. Each of them are ringing me several times a day and I am not answering their calls.
What is the consequence of this action and is it the best course to take? Should I speak to them and tell them what I'm planning? Or should I just ignore them for the next 3 months??
I need 3 months to save my bankruptcy fees and mid april will be the time when I've hopefully got them saved.
Hi Oldzskool and thanks for your post.
I can see from your other posts that you’ve already been advised by us that Bankruptcy is your best option.
You can make your creditors aware that you will be petitioning for your bankruptcy and you can make token payments of £1 per month as a gesture of goodwill until you can save for the fees.
As you’ve already been through the Debt Remedy process you should have the number for our specialist bankruptcy team. If you give them a call they can help and support you through the whole process and they’ll be able to answer any of your questions. They’ll also have access to your information so they’ll be able to tailor the advice to you.
I hope this helps,
Kind regards,
PavanI work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy0 -
Hi
I went bankrupt in 2007 discharged in 2008 - desperately needing some help with a current problem.
My partner (who wasn't around when I declared bankruptcy) has set himself up a ltd company as he's now going to be working freelance. He has appointed me as a shareholder. He went to barclays for a business bank account, but has just been declined because of my bankruptcy.... Can this be right? Even when I will have no access to either the company or bank account, I am merely just a name on a piece of paper?
Please if anyone knows anything regarding this we would be most appreciative of some advice in sorting this matter.
Sabrina x0 -
Hi,
I'm looking for some help regarding a tax issue and being made bankrupt.
I was self-employed for five years, beginning October 2005, and after declaring tax I realised I couldn't afford to pay my tax bill. I agreed payment plans with HMRC and they approved them but I found that during the recession I couldn't keep up with the payments. Subsequently, I stopped paying and haven't filed a tax return since. I stopped being self-employed last year and HMRC have calculated I may owe somewhere of the region of £80,000-100,000.
I didn't earn anywhere near enough to owe £80,000.
Basically, a guy from HMRC tried to serve a bankruptcy petition against me last week and they're coming back either tomorrow or Tuesday.
I understand what happens when I become bankrupt but in my case it seems like the best option because I rent, I have no assets, I owe nothing to any other creditor, I don't have a credit card or a loan, no car, my bank account is a basic bank account without any lending facilities. It will be a huge relief to have the slate wiped clean (so to speak).
My only concern is I'm due to start a new job as a marketing admin on around £20,000 and move in to a new rental property with my partner. Would the court/trustee deduct any money from my monthly salary? And if so, how much? I really don't want to be on the breadline for years, but at the same time I accept that I'm responsible for this mess and want to resolve it ASAP.
Any help would be greatly appreciated. If there's an alternative to being made bankrupt, even at this late stage, then I would jump for it if it mean't I wouldn't have any restrictions on my salary for the next few years!0 -
Hi, im just looking for any advice you can give.
My mother is 61 and has numerous debts and still has 11 years remaining on her mortgage. She is now out of work, has no chance of getting another job and her debts are mounting up.
She is on a pension of £530 a month, but her mortgage and loan repayments are double this. We have been helping her to make these payments for the last six months but I think the only step she can take is bankruptcy and start again.
The house is in negative equity and the next mortgage payment of £500 and a secured loan payment of £350 is due in a few days... she won't be able to make these payments.
Any advice appreciated.
Thanks0 -
Hi and welcome. While you are waiting for a CCCS councillor to respond have a read of the sticky marked Look Here First: Bankruptcy Help...babsiccles wrote: »Hi,
I'm looking for some help regarding a tax issue and being made bankrupt.
I was self-employed for five years, beginning October 2005, and after declaring tax I realised I couldn't afford to pay my tax bill. I agreed payment plans with HMRC and they approved them but I found that during the recession I couldn't keep up with the payments. Subsequently, I stopped paying and haven't filed a tax return since. I stopped being self-employed last year and HMRC have calculated I may owe somewhere of the region of £80,000-100,000.
I didn't earn anywhere near enough to owe £80,000.
Basically, a guy from HMRC tried to serve a bankruptcy petition against me last week and they're coming back either tomorrow or Tuesday.
I understand what happens when I become bankrupt but in my case it seems like the best option because I rent, I have no assets, I owe nothing to any other creditor, I don't have a credit card or a loan, no car, my bank account is a basic bank account without any lending facilities. It will be a huge relief to have the slate wiped clean (so to speak). You will need to open a Co-op Cashminder or Barclays Cash account. These are the only 2 banks that will offer an account to BR's. Check out the Bank Account sticky
My only concern is I'm due to start a new job as a marketing admin on around £20,000 and move in to a new rental property with my partner. Would the court/trustee deduct any money from my monthly salary? And if so, how much? I really don't want to be on the breadline for years, but at the same time I accept that I'm responsible for this mess and want to resolve it ASAP. You will produce a SoA with your incomings and out goings and the OR will look at them and come to an agreement with you. If there is a surplus after this then you will pay it to the OR. If your circumstances change then you submit a new SoA. The payment is called an IPA and will last 36 months (info in the sticky)
Any help would be greatly appreciated. If there's an alternative to being made bankrupt, even at this late stage, then I would jump for it if it mean't I wouldn't have any restrictions on my salary for the next few years!
All the best with it all.BSCno.87The only stupid question is an unasked oneLoving life as a Kernow Hippy0 -
tigerfeet2006 wrote: »Hi and welcome. While you are waiting for a CCCS councillor to respond have a read of the sticky marked Look Here First: Bankruptcy Help...
All the best with it all.
Thank you very much for your helpI have a question regarding the Income Payments Arrangement...
Is there a way to avoid this?
I will be earning about £1,300 a month after tax and national insurance. I predict my outgoings (rent, bills, food etc), will be about £1000 a month. Will they really take the remaining £300?
I understand why they would but if there's a way to avoid having to budget for three years then I'd like to do that.0 -
babsiccles wrote: »Hi,
I'm looking for some help regarding a tax issue and being made bankrupt.
I was self-employed for five years, beginning October 2005, and after declaring tax I realised I couldn't afford to pay my tax bill. I agreed payment plans with HMRC and they approved them but I found that during the recession I couldn't keep up with the payments. Subsequently, I stopped paying and haven't filed a tax return since. I stopped being self-employed last year and HMRC have calculated I may owe somewhere of the region of £80,000-100,000.
I didn't earn anywhere near enough to owe £80,000.
Basically, a guy from HMRC tried to serve a bankruptcy petition against me last week and they're coming back either tomorrow or Tuesday.
I understand what happens when I become bankrupt but in my case it seems like the best option because I rent, I have no assets, I owe nothing to any other creditor, I don't have a credit card or a loan, no car, my bank account is a basic bank account without any lending facilities. It will be a huge relief to have the slate wiped clean (so to speak).
My only concern is I'm due to start a new job as a marketing admin on around £20,000 and move in to a new rental property with my partner. Would the court/trustee deduct any money from my monthly salary? And if so, how much? I really don't want to be on the breadline for years, but at the same time I accept that I'm responsible for this mess and want to resolve it ASAP.
Any help would be greatly appreciated. If there's an alternative to being made bankrupt, even at this late stage, then I would jump for it if it mean't I wouldn't have any restrictions on my salary for the next few years!
Hi babsiccles and thanks for you posts.
Tigerfeet has already kindly answered most of the points in your first question.
With regards to the Income Payment Arrangement; you would need to make any payments as determined by the Official Receiver for 3 years if you have a disposable income of more than £50 per month. You can read more about them here:http://www.bis.gov.uk/insolvency/Publications (It’s the word document leaflet called Income Payments Orders and Agreements around half way down the page). Unfortunately there’s no way around this if your budget shows you have this money available.
Having said this, there might be other options available to you and we would need to look at your situation in a bit more detail to explore these. You can use our online advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a debt solution quickly or you can call our free helpline on 0800 138 1111.
If bankruptcy is recommended as your best solution, we have a specialist team that can help and support you throughout the whole process.
I hope this helps.
Kind regards,
PavanI work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy0 -
Hi, im just looking for any advice you can give.
My mother is 61 and has numerous debts and still has 11 years remaining on her mortgage. She is now out of work, has no chance of getting another job and her debts are mounting up.
She is on a pension of £530 a month, but her mortgage and loan repayments are double this. We have been helping her to make these payments for the last six months but I think the only step she can take is bankruptcy and start again.
The house is in negative equity and the next mortgage payment of £500 and a secured loan payment of £350 is due in a few days... she won't be able to make these payments.
Any advice appreciated.
Thanks
Hi yates99 and thanks for your post.
It’s difficult to give detailed advice without knowing more about your mum’s situation, but from what you’ve mentioned it sounds as though she doesn’t have enough money coming in to afford her secured debts. Bankruptcy would only alleviate her of any unsecured debts unless she wanted to give up the house.
We would need to discuss your mum’s circumstances with her, or if she’d prefer she can give us permission to speak with you on her behalf. I’d recommend that she calls our free helpline on 0800 138 1111 so we can explore all of the options that are available to her. We’re open Monday to Friday, 8am – 8pm.
Kind regards,
PavanI work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy0
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