Ask a CCCS counsellor a bankruptcy question

Sandwich

Sorry for asking so many questions! But I have another...

If I declare bankruptcy and a payment plan is set up, what happens if I later on find a better job than the one I have now? Will my payments have to go up or will the original plan still stand?

Also if the payments do go up, is there any kind of cap, or can it be all of your additional income?

System

Sandwich wrote: »

Sorry for asking so many questions! But I have another...

If I declare bankruptcy and a payment plan is set up, what happens if I later on find a better job than the one I have now? Will my payments have to go up or will the original plan still stand?

Also if the payments do go up, is there any kind of cap, or can it be all of your additional income?

Hi and thanks for your message.

Bankruptcy usually last 12 months, if you do have a surplus income you should expect to pay this into an Income Payment Arrangement/Order for 3 years from the date of petitioning.

If your income changes during this three year period you could expect to pay more or less into the arrangement depending on your circumstances.

If you get a job earning more money you could be expected to make changes to the payment, although your expenses may change also due to the new position and any additional cost associated with it.

I hope this helps.

Kind regards,

Mat

jaki88

hello,



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debtinfo

tigerfeet2006 wrote: »

Please can you clarify this advice for me. I have always said that if you have a BR friendly account ie: a Co-op Cashminder or a Barclays Cash account then the BANK will not freeze the account (it is NOT the OR who freezes the account. You just tell the OR this is your main day to day account and he will tell the bank he has no interest in the account.) You can carry on using this account as per normal with no problems. This has certainly been out experiance on the main board.

Just to be clear, if the account is only to be used for your reasonable domestic needs and does not have an overdraft then the OR will not instruct the account to be frozen.

In fact the only letter they will send to the bank is form Bank2 option1 which specificly asks the bank to leave the account open (although the final decision rests with the bank)

There are some reasons why an account may be frozen or stopped completely including
has an overdraft facility,
is one of multiple accounts,
contains savings not needed for the next months domestic needs,
contains an amount significantly more than the OR tells the bank should be in there, (this is actually where it can go wrong sometimes, for instance if the OR tells the bank that there is say £200 in there but by the time the bank gets the letter more wages have gone in the bank may freeze the account and go back to the OR for further instuction)
the bank just does not like you
somebody hits the wrong button:D

KimLyn

My Husband is looking at going bankrupt. He has been on a dmp for the last 6 years and interest is still being added to the debts so we feel this is his only way out.

What I would like to know is currently he pays 2/3 of our household bills as he is on a higher wage than me but would the OR say that he only had to pay 1/2 as we are married?

Also he would have a surplus income of £40 per month on our calculations, is this too much to be able to go bankrupt?
He currently owes £24,000 approx.

mollygrub1

Hello all... I am considering br .... Here are my questions... I would be so grateful for any advice

I have a shared ownership house and owe 65k on my half of the property. I am in neg equity of approx 30k or thereabouts

No arrears on rent or mortgage

I earn approx 22k and am up to my neck in payday loans so that when my wages come in they all go out in loans almost leaving me with no money for the next month

I need my car for work and live rurally so no chance of public transport

My partner has just moved in with me and he is on job seekers all so no income and the debts are all mine as is the mortgage etc etc

Questions -

If I go br could I lose my home? Clearly there is a huge amt of neg equity in it but not sure where I stand - the combination of rent and m/gage is much lower than any rent I could find anywhere!!!

Would any of this affect my new partner - he is not paying anything into the household as he has a young daughter and he has nothing anyway!!!

Can the beneficial interest be taken on by my family member who is a discharged br herself?

When it comes to allowances etc as my partner lives with me do I just put one adult down as he contributes nothing or for 2 adults??

Where can I find the allowances allowed in br for working out? I assume I would have to pay for 3 yrs as I would have money over following br but am confused over allowances etc etc

Many many thanks in advance!!!

moll

debtinfo

mollygrub1 wrote: »

Hello all... I am considering br .... Here are my questions... I would be so grateful for any advice

I have a shared ownership house and owe 65k on my half of the property. I am in neg equity of approx 30k or thereabouts

No arrears on rent or mortgage

I earn approx 22k and am up to my neck in payday loans so that when my wages come in they all go out in loans almost leaving me with no money for the next month

I need my car for work and live rurally so no chance of public transport

My partner has just moved in with me and he is on job seekers all so no income and the debts are all mine as is the mortgage etc etc

Questions -

If I go br could I lose my home? Clearly there is a huge amt of neg equity in it but not sure where I stand - the combination of rent and m/gage is much lower than any rent I could find anywhere!!! Bankruptcy always puts the possibility of losing your property in play but given what you have said it is very unlikely

Would any of this affect my new partner - he is not paying anything into the household as he has a young daughter and he has nothing anyway!!! not directly, credit scores are individual to you as long as you dont have any joint financial products, but living together he will be expected to make a reasonable contribution to the household, whilst he is unemployed then this doesent really affect him but if he did get work for instance earning as much as you then your OR would expect for him to pay half the household bills if he was living there

Can the beneficial interest be taken on by my family member who is a discharged br herself? Yes as long as they can afford to buy it, most of time these days though the OR waits until the 3rd year to have alook at it again to see if there is any equity before letting someone buy the BI

When it comes to allowances etc as my partner lives with me do I just put one adult down as he contributes nothing or for 2 adults?? You would put down the expenses of the whole household and you would also include his small JSA income, as above this work out in your favour at the moment but wouldnt if he was working as well

Where can I find the allowances allowed in br for working out? I assume I would have to pay for 3 yrs as I would have money over following br but am confused over allowances etc etc There are no allowances, you will be allowed what is reasonable for your situation. Start by creating a list of everything you spend at the moment

Many many thanks in advance!!!


moll

hope that helps

StepChange_Pavan

KimLyn wrote: »

My Husband is looking at going bankrupt. He has been on a dmp for the last 6 years and interest is still being added to the debts so we feel this is his only way out.

What I would like to know is currently he pays 2/3 of our household bills as he is on a higher wage than me but would the OR say that he only had to pay 1/2 as we are married?

Also he would have a surplus income of £40 per month on our calculations, is this too much to be able to go bankrupt?
He currently owes £24,000 approx.

Hi KimLyn and thanks for your post.

If he earns more than you, the OR would just want to see a fair split and this doesn’t necessarily mean that everything has to be 50/50 so it should be fine.

£40 surplus isn’t too much to go bankrupt providing that this is definitely his best option. I’d recommend that he gets some free and impartial advice beforehand as there could be other solutions available to him.

If he’s like us to look at his situation in more detail he can us our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111. We’re open Monday to Friday, 8am – 8pm and Saturdays 9am – 2pm.

I hope this helps.

Kind regards,
Pavan

KimLyn

Thanks Pavan.

Another question I have is if he did go BR would our landlord be told? We failed all credit checks when trying to rent through an agent because of both our DMP's but managed to find a private landlord. If they are told and we have to move out we won't have anywhere left to go.

dazedandconfusticated

hi there and thanks for the information you have provided on the points i had ,its took a bit of a weight off ,thanks ,also along with what ive previously asked i was wondering what my response should be to the creditors who are ringing me with regard to my outstanding balances ,should i tell them that im going to be registering bankruptcy as soon as i have the necessary funds ,or should i say that i am currently being advised with regard to debt management??,as there is conflicting advice and i dont know which one to do for the best ,as ive heard that by admitting you are going bankrupt can cause further difficulties ,if so what would these be?,any and all assistance on this quandary would be gratefully received ,cheers :-)