Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

Dav82w wrote: »

Hi there would like some advice please,
I bought a house in 2007 with a friend,this so called friend 8 months ago moved out and stopped paying his half of the mortgage.he now rents with his to be wife (god knows where and I cant contact him) and is securing loans against the property which he no longer pays for.He is in arrears for these loans and I now have the threat of debt collectors coming to the door looking for him,I know this as I have had cards posted through the door.
I can just about afford to pay this mortgage (NRAM) on my own but the mortgage is a variable rate,so will increase eventually.I've tried twice to have a change of parties ,but had them refused as I don't meet there lending criteria.I've also tried a declaration of trust with a solicitor but my so called friend refused to sign the house over to me.
So obviously I'm finding this very stressful and I'm now at the point where I want to walk away.If I have the house repossessed will i have to go BR? There will be a shortfall so can I agree to pay half of this as there is after all two lenders? and how long does it stay on your credit file? p.s sorry if I've posted in the wrong place.

Hi Dav82w and thanks for your post.

You wouldn’t necessarily have to go bankrupt if the house was repossessed but we’d need to look at your situation in a lot more detail before we can advise you on your options.

I’d recommend that you call our free helpline so that we can look at your circumstances and explore all of the solutions that are available to you.

You can call us free on 0800 138 1111 and we’re open Monday to Friday, 8am – 8pm and Saturdays 9am – 22pm.

Kind regards,
Pavan

Dundeelass

Thank you, CCCS_Pavan for your quick reply. I posted on here as well as sending an email as I wasn't sure where I'd get the quickest reply and was feeling quite desperate to find help a few days ago.

However, I now have an appointment to see someone on Saturday so fingers crossed I can get this sorted.

My husband previously had a trust deed but he pulled out before it became protected. I had become bankrupt and he was paying into the trust deed but it soon became apparent that he was paying too much (as advised by my trustee) and the company he was with were taking all of our spare income rather than just the amount proportional to his and my wages (basically the debt company were taking some of what should have been going to my creditors). The house was valued before our bankruptcies by the people administering the trust deed and they decided that we were in negative equity. They assisted me to apply for bankruptcy assuring me that the house would be safe. A further valuation by my own trustee since going bankrupt has given a figure of £15,000 more hence why we suddenly have found ourselves in this situation!

loose-halo

Hi

I need some advice, please. I have a discharged bankruptcy from 2009, and although most of my accounts are showing as 'updated' on credit expert with the date they were dealt with under bankruptcy, there is a Northern Rock loan and mortgage which keep getting 'udated' to the current date.

I am just nervous that although the rest of my file will be cleared by 215, I will still have these constantly updated reminders dragging my score down.
Any advice greatly appreciated.

L

StepChange_Pavan

loose-halo wrote: »

Hi

I need some advice, please. I have a discharged bankruptcy from 2009, and although most of my accounts are showing as 'updated' on credit expert with the date they were dealt with under bankruptcy, there is a Northern Rock loan and mortgage which keep getting 'udated' to the current date.

I am just nervous that although the rest of my file will be cleared by 215, I will still have these constantly updated reminders dragging my score down.
Any advice greatly appreciated.

L

Hi Loose-halo and thanks for your post.

You would need to contact your creditors to query this with them. This leaflet gives you more information about what to do on pages 19 – 20: http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

I hope this helps.

Kind regards,
Pavan

mafflondon

Dear CCCS,
I have a question re. IPA once declared bankrupt.
Are UK holidays permitted by the OR as a reasonable expense on an IPA for a family of 4, if affordable of course? It would be nice to take the family camping or something after bankruptcy (and stress) is formalised. But what if we dont go on holiday and instead use that expense to pay for something else such as ongoing motoring costs i.e. breakdown / parts etc for my wife's car (her car - registered, licenced, I have no licence so not an asset of mine).
What happens if one month we overspend on food and housekeeping and therefore spend less on clothes and haircuts?
So, what I am asking is can the IPA be flexible or do you have to prove what you are spending each month as stated on the SOA?
Thank you, Matthew

StepChange_Pavan

mafflondon wrote: »

Dear CCCS,
I have a question re. IPA once declared bankrupt.
Are UK holidays permitted by the OR as a reasonable expense on an IPA for a family of 4, if affordable of course? It would be nice to take the family camping or something after bankruptcy (and stress) is formalised. But what if we dont go on holiday and instead use that expense to pay for something else such as ongoing motoring costs i.e. breakdown / parts etc for my wife's car (her car - registered, licenced, I have no licence so not an asset of mine).
What happens if one month we overspend on food and housekeeping and therefore spend less on clothes and haircuts?
So, what I am asking is can the IPA be flexible or do you have to prove what you are spending each month as stated on the SOA?
Thank you, Matthew

Hi mafflondon and thanks for your post.

You don’t have to stick strictly to the budget as long as you are paying your priorities and maintain your payments to the IPA if you are given one. It is important to budget carefully wherever possible to prevent yourselves from struggling – like you mention if you overspend in one area you will have to cut back in another in order to compensate, and although this might be ok for one month it may become difficult further down the line if something else crops up.

If you’re considering bankruptcy, it’s important that you get some free and independent advice beforehand. We have a specialist bankruptcy team that can help and support you throughout the process if you need it.

Kind regards,
Pavan

mafflondon

Thanks Pavan, I am in touch with CCCS but there are always further questions...
My next question concerns Nil Tax Code and Housing Benefit. I understand that the OR would consider reducing any IPA if a local authority views the nil tax code as additional income and reduces housing benefit accordingly.
However, is there any advice on what would happen if the bankrupt had a very small IPA i.e £20-£60 or no IPA at all, a nil tax code and in receipt of Housing Benefit? This could leave the bankrupt i.e. me almost desititute as Housing Benefit pays for about a 1/3 of my private rent.
So, any idea if the OR, faced in this situation, would consider not putting me on a nil tax code to prevent loss of HB or removal of nil tax code if HB award was taken away from me?

Goldrill

Hello - could I have some advice please?

I'm going to court to put bankruptcy papers in on Tuesday, but I have two debts which are a bit odd, and I don't know quite how to fill the form in for them.

My business (Ltd Co) went under in january and I have got a Winding Up order, and it's about to go to the OR. The business owed our premises landlord a substantial sum. He claims I have personally guaranteed this, and I did, but we have nothing in writing to prove it. I have no desire to rip him off and would like the debt included - as there will be assets from BR but not from the company. Can I put this on the form, and how should I do it?

Secondly, I guaranteed an item the company had on HP. The owners haven't been to pick it up, are still invoicing and won't give me any final settlement figure - depsite, obviously, several phone calls, letters etc. I need to show this debt as I will owe it - should I put an approximation of what is likely to be due?

Many thanks for any help - the rest of it had been quite straightforward but I knew it was too good to be true!

gibboking

Hi!! Firstly can I just say a BIG Thank youto CCCS....You have been a great support to me and my family for around 6 years now!!!

Now onto serious matters...

My husband and I are seperating and He is seriously considering Bankruptcy...I just wondered if this wil have an effect on me at all?

Our home is in negative equity - We owe £128k on the mortage and we just had it valued at £110K We also have a charge on the property of around £5k.

All of our debts are in a DMP with CCCS and they are all in my husbands name apart from the one which is charged to our property.

The main questions I have really are: are they likely to take the house if my husband was to go bankrupt and are they likely to make me go bankrupt too?

Sorry if info is a bit vague...please let me know if you need any more info.


Thanks in advance

Jaffa_cake_4

BIG Thank you to CCCS from me too, I have been in a DMP with them for over a year and they administrate a monthly payment of £160 to my creditors. This has been a great help.

This figure of 160 is derived what is calulated to be my disposable income, made up of a monthly wage of 1,100 and just under 400 per month which is from my Wife's contributions based ESA. We had to go into the DMP as my wife became too ill to work nearly 2 yrs ago, and has been very poorly from then onwards.

She had the dreaded call saying her ESA will end on the 30th of April, and from what we can see there is no other benefit available to her from now on and of course she is not well enough to work.

I really would like to carrry on paying my DWP but can't see how, So is bankruptcy an option as I work full time now and have no realistic chance of increasing my earnings, if anything I could do with more time at home to help my wife.