Ask a CCCS counsellor a bankruptcy question

OhSoStupid

Apologies for above, computer decided to move the paragraphs out of order!

StepChange_Pavan

OhSoStupid wrote: »

Good Morning Matt/Pavan

Following my bankruptcy, I was expecting a nil tax code (although I only started a job a few months after declaring BR). However, I have paying tax as normal. My question is, because I have not earned more than my tax free allowance, am I able to claim a tax refund as I would be normally? I appreciate that normally the OR would be entitled to any refund, but technically I shouldnt have been paying tax in the first place.

If I had not paid the tax each month then I very much doubt that I still would have any excess disposable income. It would be nice if I could use this money to give my wife a larger contribution towards our expenses instead of her subsidising me.

Many thanks in advance for any reply.

Would it make any difference if I claimed refund after being discharged?

I do not have an IPA, and technically my my SOA would show a negative disposable income (my wife contributes from savings)

Hi there, and thanks for your question.

I’d recommend that you discuss this with your official receiver. You’re right in saying you should have had a nil tax code but it sounds as though this was missed because you didn’t have the job at the time of your bankruptcy - and it wasn’t later applied.

It’s unlikely that you’d be able to keep any refund as it would probably go to the your OR, so it’s best that you ask them in the first instance.

Kind regards,
Pavan

bankrupt81

Hi

I dont know where to start really - my husband has decided to go bankrupt but I am the one who is lookinginto all the ins and outs as he finds it all too much. I have posted udner the bankruptcy thread our story but to cut a long story short - we want to start a family without a massive debt over our heads - i owe about 12k but i have worked out i can pay this back over about 18 months so i dont feel the need to do a joint bankruptcy. Husband owes around 27k - we are both on dmp's.

The questiosn i hvae and i presume are always the same things you have to answer so i apologise are:

It is stated everywhere that we should have seeked proffessional advice before for petitioning for bankruptcy - how do we prove this - is it just a question that is asked and we say yes we have sought advice or do we have to prove it somehow?

I have also found out that they shouldnt be interested in my wages as it is him going bankrupt and not me and all they need to know is that i contribute 50% towards the househol expenses - how do we prove this or again is just a case of saying yes - this is how much i contribute compared to the household outgoings? Or will they want to see some jkind of proof for this and what would the proof be?

We share a car but it is my name - we work at the same place but obviously all car expenses are joint as it is a shared car. We bought it for £500 but to be honest it isnt even worth that. We save £50 each month to go towards repairs, mot etc on top of petrol - will this be allowed?

Should he stop the payment to the DMP he is doing as of now so we can put this towards the bankruptcy fees we need to save?

Im sure there are so many more things i want to know but i think that willd do for now.

I cant sleep thinking baout all this at the moment and its effecting my work too as all i do is sit and try and research what is best so nay advice would be greatly appreciated.

StepChange_Pavan

bankrupt81 wrote: »

Hi

I dont know where to start really - my husband has decided to go bankrupt but I am the one who is lookinginto all the ins and outs as he finds it all too much. I have posted udner the bankruptcy thread our story but to cut a long story short - we want to start a family without a massive debt over our heads - i owe about 12k but i have worked out i can pay this back over about 18 months so i dont feel the need to do a joint bankruptcy. Husband owes around 27k - we are both on dmp's.

The questiosn i hvae and i presume are always the same things you have to answer so i apologise are:

It is stated everywhere that we should have seeked proffessional advice before for petitioning for bankruptcy - how do we prove this - is it just a question that is asked and we say yes we have sought advice or do we have to prove it somehow?

I have also found out that they shouldnt be interested in my wages as it is him going bankrupt and not me and all they need to know is that i contribute 50% towards the househol expenses - how do we prove this or again is just a case of saying yes - this is how much i contribute compared to the household outgoings? Or will they want to see some jkind of proof for this and what would the proof be?

We share a car but it is my name - we work at the same place but obviously all car expenses are joint as it is a shared car. We bought it for £500 but to be honest it isnt even worth that. We save £50 each month to go towards repairs, mot etc on top of petrol - will this be allowed?

Should he stop the payment to the DMP he is doing as of now so we can put this towards the bankruptcy fees we need to save?

Im sure there are so many more things i want to know but i think that willd do for now.

I cant sleep thinking baout all this at the moment and its effecting my work too as all i do is sit and try and research what is best so nay advice would be greatly appreciated.

Hi bankrupt81 and thanks for your post.

They will ask him if he’s had advice and her would just need to say where from. It is important that he does this to make sure that it is his best option and we can provide all of this advice free of charge if he gets in touch.

You’re right that he doesn’t have to include your figures in his budget, although you might find it easier to work out if you do. The official receiver will just want to see that there is a fair split between the household and that should be fine if you contribute 50/50.

£50 per month sounds a lot for repairs so this may need to be looked at in light of your whole budget – again we can advise on this if he comes to us for some more detailed advice.

He should only stop payments to his DMP if he’s already sought some free and impartial advice. If he needs to save for the fees it’s likely that he will need to, but it’s best that he speaks to someone about it first.

I know you mention that he finds it all a bit too much but we can go through everything clearly and at a pace that he understands. In the first instance we’d need to go through his budget and he can do this online (http://www.cccs.co.uk/ref/drcu) or by calling our helpline on 0800 138 1111. There may even be other options available that you haven’t thought of so this part is important. Once he’s done this he can speak with our specialist bankruptcy team that can help and support him throughout the whole process.

I hope this helps.

Kind regards,
Pavan

tigerfeet2006

You would not have received a Nil Tax Code when you started work. The NTcode is only applied on the income that you were receiving at the time you went BR. It returns to normal if you get a new job while you are still BR. If you were not working at the time of BR you would not receive a NTcode and if you are subsequently employed that is a change of circumstances so novNTcode. So the refund will go to the OR. You most likely not even see it as it will be sent automatically to the OR

OhSoStupid wrote: »

Good Morning Matt/Pavan

Following my bankruptcy, I was expecting a nil tax code (although I only started a job a few months after declaring BR). However, I have paying tax as normal. My question is, because I have not earned more than my tax free allowance, am I able to claim a tax refund as I would be normally? I appreciate that normally the OR would be entitled to any refund, but technically I shouldnt have been paying tax in the first place.

If I had not paid the tax each month then I very much doubt that I still would have any excess disposable income. It would be nice if I could use this money to give my wife a larger contribution towards our expenses instead of her subsidising me.

Many thanks in advance for any reply.

Would it make any difference if I claimed refund after being discharged?

I do not have an IPA, and technically my my SOA would show a negative disposable income (my wife contributes from savings)

Discharged

Hi, I went BR in March 2007, discharged 2008 after my business went under. I've had constant well paid employment since and without going into too much detail I'm still an absolute disaster with money. I

I feel I have depression problems and spending money fuels me through some tough times, shockingly I got £14k compensation in Feb 2011 and blew it all in a year on my hobbies. I've handed in my notice to change jobs to work for a competitor and the company has refused to pay me my month's notice which has left me in a real pickle this month, having no savings has left me totally exposed.

I have two pay day loans totalling £1000 to pay off and nothing until end of May. I don't seem to comprehend the gravity of my actions and irresponsibility with money. I split up with my ex partner a year ago and have squandered loads of money with my kids at weekends, it's made me feel better about not living with them but I'm no fit parent when I can't feed them at weekends for the next month.

My question is, does the CCCS have access to any counsellors who can help with Cognitive Behavioural Therapy?? It isn't cheap and after 12 months of waiting for counselling with my local GP/NHS PCT they still can't help unless i'm suicidal.

StepChange_Pavan

Discharged wrote: »

Hi, I went BR in March 2007, discharged 2008 after my business went under. I've had constant well paid employment since and without going into too much detail I'm still an absolute disaster with money. I

I feel I have depression problems and spending money fuels me through some tough times, shockingly I got £14k compensation in Feb 2011 and blew it all in a year on my hobbies. I've handed in my notice to change jobs to work for a competitor and the company has refused to pay me my month's notice which has left me in a real pickle this month, having no savings has left me totally exposed.

I have two pay day loans totalling £1000 to pay off and nothing until end of May. I don't seem to comprehend the gravity of my actions and irresponsibility with money. I split up with my ex partner a year ago and have squandered loads of money with my kids at weekends, it's made me feel better about not living with them but I'm no fit parent when I can't feed them at weekends for the next month.

My question is, does the CCCS have access to any counsellors who can help with Cognitive Behavioural Therapy?? It isn't cheap and after 12 months of waiting for counselling with my local GP/NHS PCT they still can't help unless i'm suicidal.

Hi Discharged and thank you for your post.

Unfortunately we can’t refer you to anyone as this isn’t our specialist area. You could try calling the MIND helpline to see if they can provide any advice or support: http://www.mind.org.uk/.

The only other option I can think of is to go back to your GP and insist that you need a referral sooner.

I hope this helps.

Kind regards,
Pavan

Discharged

Thanks Pavan

regards

Mick

StepChange_Pavan

Hi everyone,

The CCCS MoneyAware team are out of the office tomorrow for the day. We’re sorry for any delay in replying to your question – We’ll be back on Thursday

You can still receive debt counselling through our online service Debt Remedy (http://www.cccs.co.uk/ref/drcu) 24 hours a day.

Kind regards,
Pavan

Sunshinejsp

Please Help;

I am not even sure if this is the right place to put this message.

I was made bankrupt in 2009 and discharged the following yr, (May 2010) I had been thinking of asking for my PPI back too but did not think it would go thru?

Anyway, i thought it was worth a try? they could only say yes ot no!

I called my old bank, and informed them of my complaint re the PPI charges i knewwere mis-sold. They said it would be looked into..

4 weeks later i get a letter saying they have offered me money and tho i know i could get more should i have taken it further i was just grateful to be offered something so i accepted. they are sending me a cheque in the post within the next 4 weeks...

The bank in question was also the same bank i owed money to when i was made bankrupt.

I have read many things on here and it is all so very confusing and gobbledogook to me.
Please. can someone , anyone tell me in simple laymans terms, will i or will i not get this money from the bank or will it go to the OR (Official Receiver) from my discharged bankruptcy
Please help