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Disgruntled_IVA

Hi,

5 years ago my father thought he was suffering from depression but was really much more seriously ill; he was diagnosed with terminal cancer and was predicted less than a year to live. With true grit he fought for 3 years until December 2010.

Leading up to this diagnosis he was not coping well with life and did not open his mail. This lead to him not paying his council tax for months and owing about £1000. He then missed going to court and he was declared bankrupt. He was advised by Benedict Mackenzie in Crawley to take an IVA.

Even though he was able to clear the council tax bill as his business was still running, Benedict Mackenzie's fees were almost £20,000 which was paid to them by cashing in his life insurance policy.

Whilst I realise the problem was ultimately of his own making, I am amazed that a professional company could have advised him to take this route and charged such an enormous fee for the privilege.

Is there any possible recourse as I feel my father was severely taken advantage of, the IVA was wholly inappropriate and unnecessary for his situation.

Many thanks for any advice. Are there other people who have similar cases?

StepChange_Pavan

Disgruntled_IVA wrote: »

Hi,

5 years ago my father thought he was suffering from depression but was really much more seriously ill; he was diagnosed with terminal cancer and was predicted less than a year to live. With true grit he fought for 3 years until December 2010.

Leading up to this diagnosis he was not coping well with life and did not open his mail. This lead to him not paying his council tax for months and owing about £1000. He then missed going to court and he was declared bankrupt. He was advised by Benedict Mackenzie in Crawley to take an IVA.

Even though he was able to clear the council tax bill as his business was still running, Benedict Mackenzie's fees were almost £20,000 which was paid to them by cashing in his life insurance policy.

Whilst I realise the problem was ultimately of his own making, I am amazed that a professional company could have advised him to take this route and charged such an enormous fee for the privilege.

Is there any possible recourse as I feel my father was severely taken advantage of, the IVA was wholly inappropriate and unnecessary for his situation.

Many thanks for any advice. Are there other people who have similar cases?

Hi there and thanks for your post.

It’s really difficult for us to advise as we don’t know the terms of the product he was sold or the fees that were involved without seeing the paperwork.

I’d recommend that you take this up with Benedict Mackenzie to find out exactly what happened, although this could be difficult if you don’t have permission to speak about your father’s affairs.

This leaflet gives you more information about how to make a complaint if you think your father wasn’t treated fairly: http://www.bis.gov.uk/insolvency/insolvency-profession/professional%20conduct/how-complain-against-an-ip.

Kind regards,
Pavan

Jesca

Hi, I would like to set up a business next month, once by BR has come off my credit report. I shouldnt have a problem registering a ltd company at companies house however I might have a problem getting a business bank account. Do you know of any business bank accounts which will accept bankrupts?

StepChange_Pavan

Jesca wrote: »

Hi, I would like to set up a business next month, once by BR has come off my credit report. I shouldnt have a problem registering a ltd company at companies house however I might have a problem getting a business bank account. Do you know of any business bank accounts which will accept bankrupts?

Hi Jesca and thanks for your post.

We don’t advise on business debts so it’s difficult for me to say, but it looks as though you’ve already had some useful advice on another thread.

You could try Business Debtline for advice too: http://www.bdl.org.uk/.

Kind regards,
Pavan

Tricia53

I stopped working in February 2009 because of ill-health and have been receiving IB and IS (recently changed over to ESA - Support Group). I have debts totalling just over £21,000, which I was paying off with a debt repayment plan with CCCS until December 2010 when I was advised that bankruptcy would be the best route for me. Since then I have been paying my creditors a minimal amount and attempting (unsuccessfully) to save the court fee to declare bankruptcy. Two months ago I applied to my occupational pension fund (Local Government Pension Scheme) to have my pension benefits paid early on the grounds of ill-health. I had to see their medical advisor, who has subsequently submitted a report confirming that I am permanently incapable of employment for reasons of permanent ill-health. I have chosen to take the maximum lump-sum payment (amounting to £+- £5,000) with an annual pension of £781.01. Obviously, I am going to use some of this money to go to court to declare bankruptcy and I want to know what happens with both my lump sum and annual pension. I have read many threads on the forum but am still not sure if this money can be included as assets in my application.

I would be very grateful for any advice.

System

Tricia53 wrote: »

I stopped working in February 2009 because of ill-health and have been receiving IB and IS (recently changed over to ESA - Support Group). I have debts totalling just over £21,000, which I was paying off with a debt repayment plan with CCCS until December 2010 when I was advised that bankruptcy would be the best route for me. Since then I have been paying my creditors a minimal amount and attempting (unsuccessfully) to save the court fee to declare bankruptcy. Two months ago I applied to my occupational pension fund (Local Government Pension Scheme) to have my pension benefits paid early on the grounds of ill-health. I had to see their medical advisor, who has subsequently submitted a report confirming that I am permanently incapable of employment for reasons of permanent ill-health. I have chosen to take the maximum lump-sum payment (amounting to £+- £5,000) with an annual pension of £781.01. Obviously, I am going to use some of this money to go to court to declare bankruptcy and I want to know what happens with both my lump sum and annual pension. I have read many threads on the forum but am still not sure if this money can be included as assets in my application.

I would be very grateful for any advice.

Hi and thanks for your message.

As you’ve already spoken to us for some advice I’d recommend that you give us a call back and speak to one of our team. The lump sum you now have available could mean that there are other options available to you beyond bankruptcy.

If bankruptcy is still the best solution our dedicated team will explain your options in regards the lump sum and the pension.

Our free Helpline is on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

I hope this helps.

Kind regards,

Mat

Sipper_3

I was declared bankrupt in nov 2009 and am in the position of the trustee applying for possession of my house which jointly owned by myself and my partner. I have a large sipp which I cannot obtain funds from until July 2016 , but no other monies or income whatsoever. My partner is keeping me and our three children. I want to use my sipp funds to pay off my trustee, can I do this or are they more likely to push for the home sale?
I also realise that they have a timelimit to get funds from me, can this date be extended easily? My partner will have funds poss Oct/ nov to buy my share of the property will they wait this long. I am fearful that they may put my house up for auction in order to realise the money before the 3 yr deadline and this(due to lower sale price) would financially impair us further.
thanks.

kerinat

Help. A afriend of mine has been advised by CCCs to go bankrupt but she is worried that it will affect her job . Does her emplyer need to Know

StepChange_Pavan

Sipper wrote: »

I was declared bankrupt in nov 2009 and am in the position of the trustee applying for possession of my house which jointly owned by myself and my partner. I have a large sipp which I cannot obtain funds from until July 2016 , but no other monies or income whatsoever. My partner is keeping me and our three children. I want to use my sipp funds to pay off my trustee, can I do this or are they more likely to push for the home sale?
I also realise that they have a timelimit to get funds from me, can this date be extended easily? My partner will have funds poss Oct/ nov to buy my share of the property will they wait this long. I am fearful that they may put my house up for auction in order to realise the money before the 3 yr deadline and this(due to lower sale price) would financially impair us further.
thanks.

Hi Sipper and welcome to the forum.

If your partner will have funds to buy your share of the property, I’d recommend that you explain this to your trustee and they may be willing to wait that bit longer rather than sell the house. If you explain that you have three children in your care this may help your case.

It could also be worth getting a benefits check to see if you are entitled to anything which might relieve some pressure from your partner.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

kerinat wrote: »

Help. A afriend of mine has been advised by CCCs to go bankrupt but she is worried that it will affect her job . Does her emplyer need to Know

Hi kerinat and thanks for your post.

It will only affect her job if bankruptcy is mentioned in the terms and conditions of her employment – for example it can affect some jobs within the financial industry.

There’s no need for her to inform her employer provided that there isn’t anything in her contract, but her payroll department may be alerted through the fact that her tax code will change to 0 (you don’t pay tax while bankrupt).

I hope this helps, but if needs more advice she will have our bankruptcy support number and she can give us a call.

Kind regards,
Pavan