Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

bubblebum1982 wrote: »

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 x

Hi Sabrina and thanks for your post.

This does seem strange if you’re a shareholder. Are you financially linked to your partner in any other way? You could approach the bank to query this or alternatively seek advice from a business advisor or Business debtline.

Kind regards,
Pavan

tigerfeet2006

babsiccles wrote: »

Thank you very much for your help I 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.

Start a thread on the board and put up your SoA and someone will look at it for you to make sure you have accounted for every thing. You will need to do it as it will be when you go BR ie: will you still be living alone or will you have moved in with your OH.
This is the template we use http://makesenseofcards.co.uk/soacalc.html

Having an IPA is not an onerous thing it is very flexible and easy to change as circumstances change.

minniepoos_2

Hi, I've got a bit of a long-winded question but I'll try to explain it as briefly as I can...
My husband left me in 2010 and moved in with his gf. Our house was on the market, sale agreed and about to complete. I moved out into rented accommodation, and as soon as I did that, he blocked the sale and moved back into the house with the gf.
For one reason or another it is still in mine and his name now, although he is paying all the mortgage/life assurances etc, as he is living there.
He has decided if I don't sign it over to him based on a 3 yr old valuation (the house has since been valued at £12000 more), then he will move out into the gf's parents and 'force' me to pay half the mortgage etc until it is sold.

I am on a DMP with the CCCS, so paying isn't an option.

If it isn't paid in full, I guess it will be repossessed. My credit record is already shot, so this will affect him more than me. If it is repossessed though, how else would that affect me? Will I be forced to declare bankruptcy? Is there anything else I haven't thought of yet that I should be thinking of?

Sorry - long winded, I just hope it made sense.

babsiccles

Hi again,

Thank you so much for your advice so far, it's proved really helpful

I have a quick question re a bankruptcy petition being served on me from HMRC for tax debt when self employed.

They're trying to serve the petition today for the second time. I no longer live at the address they're serving it to, but my ex-partner still lives there. He won't be there to receive it but he's given me the contact details for the tax officer.

On the letter it says I can choose another date for it to be delivered. I want to dispute the amount they're saying I owe because I didn't submit tax returns for the past three years and so they calculated it based on previous tax returns.

Do you think I could request some time to calculate how much I owe? I'm very nervous about making the call

boydel1061

Does anyone know the latest fees for a Bankruptcy Annulment, are they set fees? Should the Annulment be granted, would it be wrong for a bank, or any one for that matter, to refuse an application for additional lending etc. based solely on a previous Bankruptcy order? Is it a horrible long and drawn out process, should I employ a solicitor?
Thanks everso.
Del.

System

minniepoos wrote: »

Hi, I've got a bit of a long-winded question but I'll try to explain it as briefly as I can...
My husband left me in 2010 and moved in with his gf. Our house was on the market, sale agreed and about to complete. I moved out into rented accommodation, and as soon as I did that, he blocked the sale and moved back into the house with the gf.
For one reason or another it is still in mine and his name now, although he is paying all the mortgage/life assurances etc, as he is living there.
He has decided if I don't sign it over to him based on a 3 yr old valuation (the house has since been valued at £12000 more), then he will move out into the gf's parents and 'force' me to pay half the mortgage etc until it is sold.

I am on a DMP with the CCCS, so paying isn't an option.

If it isn't paid in full, I guess it will be repossessed. My credit record is already shot, so this will affect him more than me. If it is repossessed though, how else would that affect me? Will I be forced to declare bankruptcy? Is there anything else I haven't thought of yet that I should be thinking of?

Sorry - long winded, I just hope it made sense.

Hi and thanks for your message.

If the house is in negative equity and is repossessed you and your ex will be liable for any shortfall.

Any extra debt from the mortgage or secured loan shortfall could mean that bankruptcy becomes a better option for you.

If you were to petition for bankruptcy your ex partner would become solely liable for the whole of the shortfall and vice versa.

As you’re already on a DMP with us I’d recommend that you call us to discuss your options.

We did write a blog along these lines that is worth reading.

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

babsiccles wrote: »

Hi again,

Thank you so much for your advice so far, it's proved really helpful

I have a quick question re a bankruptcy petition being served on me from HMRC for tax debt when self employed.

They're trying to serve the petition today for the second time. I no longer live at the address they're serving it to, but my ex-partner still lives there. He won't be there to receive it but he's given me the contact details for the tax officer.

On the letter it says I can choose another date for it to be delivered. I want to dispute the amount they're saying I owe because I didn't submit tax returns for the past three years and so they calculated it based on previous tax returns.

Do you think I could request some time to calculate how much I owe? I'm very nervous about making the call

Hi Basiccles and thanks for your post.

I’d recommend that you call them to discuss this.

Although I doubt you would be given extra time to comply HMRC will still need to see your final tax returns and calculate amounts owed at a later date.

I hope this helps.

Kind regards,

Mat

System

boydel1061 wrote: »

Does anyone know the latest fees for a Bankruptcy Annulment, are they set fees? Should the Annulment be granted, would it be wrong for a bank, or any one for that matter, to refuse an application for additional lending etc. based solely on a previous Bankruptcy order? Is it a horrible long and drawn out process, should I employ a solicitor?
Thanks everso.
Del.

Hi Del and thanks for your post.

Bankruptcy Annulment is a specialised field and you would need the advice of an Insolvency Practitioner who handles such cases.

You may wish to carry out a search of specialists local to you for more help.

I hope this helps.

Kind regards,

Mat

volksie

Hi,

I've also got a long winded question, but will try to be quick.

Me and my ex-partner jointly owns a property since 2004 with a joint mortgage of £287000. In 2009 we split, with divorce (Decree Nisi) in 2010. Initially everything was amicable, but 6 months after the split he refused to share any joint posessions or any rental income from lodgers. He also refused to pay back half of the £26000 credit card/loan/overdraft debt we jointly accrued during our relationship. Unfortunately the debt was solely in my name, so I was stuck with paying for it -and he was benefitting from the things it bought. I stopped to pay my part of the mortgage, hoping that he'll agree to sell the house. Unfortunately he is now paying it all and no arrears. He refuses to sell the house and cannot afford to get a new mortgage. Also, there is no incentive to sell as the rental income is £800 pcm and the mortgage only £500 pcm.
I went bancrupt in 2011 as I was advised that it will solve the debt/house issues. I've never missed payments and had an outstanding credit rating. I only went bancrupt to get rid of the mortgage! I now found out that the house is a secured debt and my part of the equity will be "sold" to my ex. I phoned the mortgage company, and they said as long as the payments are being made, the mortgage will stay like it is. OR who is dealing with the issue has also said that they are not interested in the mortgage, only my equity. If my ex can buy it (and he will), they will set up a deed that legally transfer ownership to him, leaving the mortgage as is.
This means he'll own 100% of the house, but we'll have a joint mortgage for the next 20 years. This also means:

1) I'll not be able to buy my own place
2) be linked to him financially
3) will be liable for the mortgage payments
4) potencially get a bad credit rating if he cant pay
5) cannot force a sale as I don't own anything of the house

FOR THE NEXT 20 YEARS!!!

Please can you advise what I can do about this. I feel like I've made a huge mistake going bancrupt and feel like I'm powerless in this situation.

System

volksie wrote: »

Hi,

I've also got a long winded question, but will try to be quick.

Me and my ex-partner jointly owns a property since 2004 with a joint mortgage of £287000. In 2009 we split, with divorce (Decree Nisi) in 2010. Initially everything was amicable, but 6 months after the split he refused to share any joint posessions or any rental income from lodgers. He also refused to pay back half of the £26000 credit card/loan/overdraft debt we jointly accrued during our relationship. Unfortunately the debt was solely in my name, so I was stuck with paying for it -and he was benefitting from the things it bought. I stopped to pay my part of the mortgage, hoping that he'll agree to sell the house. Unfortunately he is now paying it all and no arrears. He refuses to sell the house and cannot afford to get a new mortgage. Also, there is no incentive to sell as the rental income is £800 pcm and the mortgage only £500 pcm.
I went bancrupt in 2011 as I was advised that it will solve the debt/house issues. I've never missed payments and had an outstanding credit rating. I only went bancrupt to get rid of the mortgage! I now found out that the house is a secured debt and my part of the equity will be "sold" to my ex. I phoned the mortgage company, and they said as long as the payments are being made, the mortgage will stay like it is. OR who is dealing with the issue has also said that they are not interested in the mortgage, only my equity. If my ex can buy it (and he will), they will set up a deed that legally transfer ownership to him, leaving the mortgage as is.
This means he'll own 100% of the house, but we'll have a joint mortgage for the next 20 years. This also means:

1) I'll not be able to buy my own place
2) be linked to him financially
3) will be liable for the mortgage payments
4) potencially get a bad credit rating if he cant pay
5) cannot force a sale as I don't own anything of the house

FOR THE NEXT 20 YEARS!!!

Please can you advise what I can do about this. I feel like I've made a huge mistake going bancrupt and feel like I'm powerless in this situation.

Hi and thanks for your post.

We answered your question in the email you sent to us.

If you need any more advice regards this you are 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