Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

churchill33 wrote: »

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.

Hi churchill33 and thanks for your post.

Firstly we’d need to look at your situation in a lot more detail to be able to advise you on whether bankruptcy is definitely your best solution.

You’re right that it could be seen as preferential treatment so in this instance it would be best to be honest and explain your situation to the OR. It would then be up to them to decide on what to do. They could consider a Bankruptcy Restriction Order (BRO) which you can read more about in this leaflet: http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/bro.pdf.

It’s best not to worry and get in touch with us if you’d like some more detailed advice. We have a specialist team that will be able to answer all of your questions and support you throughout the process. You can use 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.

I hope this helps.

Kind regards,
Pavan

luvchocolate

cccs are really good but they now close at 6pm so try in the morning.

STILL_BRASSIC

NatWest have been bril and frozen the interest on my credit card and I have been making regular payments for the last two years. They want to check that I am paying all I can so I need to provide up-to-date income & expenditures information. I was told by CCCS initially, a set amount that I could say I spent on food for my family of 4 and amounts for other things like hairdressers, home maintenance, etc. Can you let me know what the national average for these are please. I live near Bristol if that is important.

StepChange_Pavan

win123 wrote: »

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

Hi win123 and thank you for your post.

Please try not to worry until you’re had some free and impartial advice on your options. As you have some equity in your property, it’s unlikely that bankruptcy will be your best solution but it’s difficult to say without looking at your circumstances in more detail.

It’s best that you get in touch so that we can go through your situation and recommend that best option for you. You’ve mentioned that you’re already on a DMP, so if that’s with us just call our support number and we’ll go through everything with you. No matter what, we’ll take your housing into consideration and give advice that best suits you.

I hope this helps to put your mind at ease a little.

Kind regards,
Pavan

StepChange_Pavan

eastonspice wrote: »

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.

Hi Eastonspiceand thanks for your post.

We’d need to look at your situation as a whole to be able to advise you on how to complete the forms as it’s a complicated area and we don’t want to give you wrong advice. We have a specialist bankruptcy support team that can go through everything with you but we can’t do this without knowing more about your circumstances.

It’s important that you get some detailed free and impartial advice before going bankrupt and you can call our free helpline on 0800 138 1111 so that we can help.

Kind regards,
Pavan

StepChange_Pavan

TreeHouse wrote: »

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.

Hi TreeHouse and welcome to the forum.

It won’t impact your partner if you’re not financially connected in any way. However we would recommend that you get some free and impartial advice to make sure that this is definitely your best solution.

You can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our free helpline on 0800 138 1111 if you’d like us to look at your situation in a bit more detail.

Kind regards,
Pavan

StepChange_Pavan

STILL_BRASSIC wrote: »

NatWest have been bril and frozen the interest on my credit card and I have been making regular payments for the last two years. They want to check that I am paying all I can so I need to provide up-to-date income & expenditures information. I was told by CCCS initially, a set amount that I could say I spent on food for my family of 4 and amounts for other things like hairdressers, home maintenance, etc. Can you let me know what the national average for these are please. I live near Bristol if that is important.

Hi there and thanks for your post.

We recommend that you put down exactly what you spend rather than sticking to the averages as this will best represent your situation. If you’d like some more guidance please get in touch.

Kind regards,
Pavan

LadBroke

I have been on a “Debt Management Plan” with the CCCS for two months.

Despite me informing all of my creditors in writing that I would enter into such an agreement with the CCCs and that they should not contact me at work as this could result in me losing my job one of my creditors – “Payday Express” – has just done that.

They called today and because their number comes up on a display the whole team can actually see their number and easily “google” it to find out who’s calling me directly.

Is there anything I can do to stop them and prevent any possible / further embarrassment for myself ?

soontobesensible

Hi there, just wondered if you could enlighten me? As soon as a person is made bankrupt how do they manage for money and food if the banks accounts are taken over by the OR or trustee?
Thank You:(

win123

Pavan

Thank you so much for your reply =- I am with the CCCS on my DMP and must thank everyone there for always being supportive and considerate to our circumstances at this worrying time - I have always had fantastic support from your team on the telephone just worry as my creditors are now contacting me again saying they wqant to review my fuinances as my dmp payments have had to go down a little to save my home - so frightened that one day CCCS will say we can't help anymore as my debt is so large at 19K. So worried that my family will end up homeless especially my poor elderly disabled mother and son. Thanks again for your advice Pavan much appreciated anbd thank the team on the phones as they do a fabulous job always give 100% Thank you:)