Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

mynumber wrote: »

Hi, Im heading towards bankruptcy unfortunately, i took out a loan in 2010 for a car for my son. Hes paying this and its registered in his name. The loan is a fixed sum loan with Santander, is this the same as a finance loan, if i do go bankrupt will my son lose the car. hope you can help k

Hi mynumber and welcome to the forum.

Provided that the loan isn’t secured on the car this shouldn’t be a problem, and from what you’ve said it doesn’t sound like it is.

You would need to check the terms and conditions of the agreement to be certain, and if it is an unsecured loan it will be included in the bankruptcy and your son will be able to keep his car. If he continues to pay you back for the loan, it’s likely that this will go towards the bankruptcy but you would need to discuss this with the official receiver. If it’s a hire purchase or secured loan it’s a bit more complicated and we’d need to look at your situation in a bit more detail.

Either way, it’s important that you get some free and impartial advice to make sure that bankruptcy is definitely your best option. You can is visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

We have a specialist bankruptcy team that will help and support you throughout the whole process if it’s your best solutions.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

livbob wrote: »

Hi please can you give me some advice I seem to be going around in circles ! My husband is wanting to go br, I'm not too sure we earn with ot 3 500 our outgoing are 747 motgage sescurd loan 338 Iva 550 crdit card 100 catulogue 150 , then all the usual bills , do you think we shyd go. br? Will we have to pay over the 3 yrs , can yiy have a holiday ? Still not sure if we will loose the house .thanks for reading

Hi livbob and thanks for your post.

It’s really difficult to say whether bankruptcy is your best solution without looking at your situation in a lot more detail - we’d need to know more about your income and expenditure and your circumstances first.

You may be able to keep the house depending on equity and your budget and this leaflet might give you a bit more information about why you would have to pay into the bankruptcy for up to 3 years: http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/freedomofinformation/technical/incomepaymentordersagreements.htm.

It’s unlikely that you’ll be able to budget a big amount for a holiday each year as if you have surplus money this will go towards the bankruptcy.

If you’d like more detailed advice on your situation to see if bankruptcy is definitely your best solution you can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu). Or if you prefer, you can ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

I hope this helps.

Kind regards,
Pavan

churchill33

Good Morning

I wondered if I could please get some advice re spending prior to bankruptcy.

I am honest when I say that bankruptcy had never originally been an option that I would have considered (due to what I do for a living).

We have always paid our bills on time, but due to a bad business decision 6 years ago in which we actually got totally ripped off, we find ourselves in the situation of having a secured loan for £40K which has put our house into negative equity.

My partner has worked overtime for so many years that it has become the norm and has health is beginning to suffer. I work part-time hours to fit around the childrens school hours so that they have continuity of someone being around for them.

Last year we managed to reclaim ppi, we immediately paid a loan, credit card and 2 x overdrafts. There was around £1000 remaining and we decided to put it towards a holiday - like I state we had no intention of ever filing for bankruptcy at this stage.

As the months have gone on we have realised just how heavily we had been relying on overtime to maintain our monthly outgoings, this became evident when my partners overtime started to slow down and after paying a lot of the debts as above, we found that the overdraft was creeping back up again and we had been having to use the credit card to buy groceries.

This is my main concern - 2 months ago the final installment of our holiday was due and payment needed to be made. I hung out until the last moment as I wanted to cancel and not commit to anymore expenditure, however upon reading the small print it seemed that we would have to pay almost as much to cancel as to still go, so I paid the remainder on the credit card and vowed to repay it in full when we got back from any overtime. We didn't take any spending money - family members helped out with this.

Whilst on holiday we had a frank discussion about everything and that is when the bankruptcy question was first raised. I spoke to my work upon our return and although there was no guarantee I would be able to keep my job, I have now been assured that my job is secure.

Now, a family member has said they would pay the holiday element of the credit card but surely as we are now considering bankruptcy then that would be considered as a preferrential payment to a creditor?

I'm now very worried (I stress about everything). How will this be seen by the OR?

Any advice would be greatfully received.

bc0802

Hi all,

I'm a new member to the site but would really appreciate some advice.

A few years ago I stupidly took out a payday loan, these spiralled way out of control and it has taken a good few years of hard work to clear them for good.

Having thought that would have been the end of it, on viewing my credit report I noticed that every time I had taken a payday loan out via Payday UK or the Lending Stream, both a credit search and a settled account record were attached to my credit file. The settled account will remain on my file for 6 yrs.

I have contacted Experian, Payday UK and the Lending Stream to see if they can remove these but they have refused.

I want to give them another chance to do so before taking things further but having researched I can't find the name of the Chief Executive/Managing Director for either Payday UK (MEM Consumer Finance) or The Lending Stream. Can anyone help as I don;t just want to address the letter to the CEO?

If this doesn't work I will be escalting this to the FSA and OFT, who I understand are already looking into Payday Loan companies. My argument is that they are in no way responsible lenders but the main aspect is that they claim that by taking out their loans it could improve your credit rating. This is in fact the absolute opposite and stops people being able to get credit elsewhere therefore, leaving people in financial trap, something I'm sure the OFT in particular would be keen to hear about!

These companies are booming and mainly because once they have you, it's very difficult to shake them off. I think it's appauling that these are being ignored by the Government and these should be outlawed.

Any help on locating these names would be massively appreciated and likewise, if anyone has managed to persuade these companies to remove credit records from their files, even better!

tigerfeet2006

All entries will stay on your credit file, period! Whether good bad or indifferent, that is the way it works.

[Deleted User]

No names are available for the companies your asking for in fact one I know used to use a fake name anyhow on replies in the end I was just glad to receive an email response no matter who it came from, nothing stops you from having a root round on the internet trying a professional networking site like linkedin if the CEO is really that important but expect to be ignored, although sorry to say but why shouldn't your credit report be accurate and correct?

It is written into these companies terms and conditions, what happens with credit reporting same as credit cards, you were unlucky and choose companies who do report (I know their on mine too) but are at least not gangsters or 'illegal' lenders

The OFT finished their investigation back on May 18th!? we're still waiting for the findings lol! so your better of complaining properly through the company complaints procedure and after 8 weeks take it to the Financial Ombudsman or Trade Association (if a member of a trade association it should show on their website in the info/About us section) as the OFT won't help you individually, so if you have already begun a complaint then the timer is already ticking

Yeah I think the Government is sooo wrong, but what would we then have in place of payday loans - broken bones and hurt much worse then a piece of paper showing facts

bc0802

Thanks Deleted User. Some useful advice in regards to escalating this and I think I may as well explore it and see what the FO says after the 8 weeks period.

I fully appreciate what you and tigerfeet2006 say about records remaining on my credit report however, my main issue is with the number of entries they have recorded, particularly as I was an existing customer.

I appreciate this is down to me, it was my decision to take them out in the first place but my frustration is that by doing so it created a negative entry on my credit file so that I could not borrow from high street lenders to pay this off and return a manageable amount each month. Instead it unfortunately took me a few years to be able to break the cycle.

I've checked through Linkedin but as you say, the names at the top of these companies seem to be shrouded in mystery!

Anyway, very helpful advice and appreciate you taking the time to respond, thank you.

win123

I am desperate for some advice asap please I live with my disabled mother and 17 year old son who is currently in college - I am on a DMP and owe 19k which is going to take me 20 years to repay at 92 per month. I also have a joint mortgage with my mother who is on disability and we currently owe 106,000 on this and currently pay 720per month was paying 504 interest only for a while but bank won't let me revert back to interest only so I am really struggling) I would say our house is worth maybe 130 thousand but house prices are coming down and some work needs to be done on the house (not a lot just the odd things) I am at my wits end with worry and scared and feel I have had enough and feel I am going to mae myself ill with worry as I am a worrier - I want some advice on bancrupcy as I am not sure whether this will be the best way to go but my main question is the house

My mother is disabled and we have had grant work done by the council ie stair lift and walk in shower etc would BR mean we have to sell the peoperty as we are really worried that we will end up homeless I am so scared and anxious all the time ( how does BR work re selling home ie if we sold the house we would maybe get around the 130K mark left out of that would not be a lot would BR take my mums share of her equity and do the legal fees for selling also come off before the equity is shared between us sorry if I am not making sense I am in a state and how could we go about trying to save our home - I know it is worrying my son also being homeless he is only 17 and shouldnt be worrying about this kind of stuff I feel so guilty - Any help and advice would be appreciated thanks

I wish to say that I pay the mortgage monthly water rates, dmp, car ins, my mobile which I will cancel next april when contract ends - a couple of life ins policies on the house, house insurance and mine and my sons food and petrol expencess which leave me with hardly nothing to live off for the month my wages are 1000 per month and I get Family credit while my son is in college but that ends next year so I dread to think what will happen- My mum pays my life cover as we have life for life, gas electric tv licence and basic sky etc and her food and is left with hard nothing again at the end of the month out of her DLA so she cant even help me so we are in dire straights. Sorry its long winded and thank you again for advice

I am so worried we will all end up on the streets homeless which is mine and anyone elses' worset nightmare xx

eastonspice

i am in the middle of filling in my bankruptcy forms but have become stuck on a few items can anyone please advise me
first question is on form 6.27 i have entered all addressess and business addresses that i had. when it comes to the crossing out parts what do i cross out i dont have the businesses anymore i have crossed out everything but number 3. and is a volauntary arrangement a payment set up with creditors.

i had a home but yet again was advised to hand it back to morgage co how wrong was that should i put that as a asset i used to have and disposed of.
one last thing half the debt i have can be found on experian but i dont have letters as that was long ago will this matter. any help is appreciated thankyou.

TreeHouse

Hi. I think bankruptcy is my only option. All debts are solely in my name, I have insufficient income to pay them off. I want to know if it will have any impact on my partner and his business. He is self employed and my name is no way linked to his business. I do not want him to find out as I am afraid he will leave me and my child.
Thank you for your help.