Ask a CCCS counsellor a bankruptcy question

WelshSaver

I am hoping you can advise me. I left my husband 3 months ago, I rented a new place with my younger son and I left him at our mortgaged house where my teenage son decided to stay.

The problem I have is my husband is telling me he no longer wants to live in the house and as we have a secured loan and debts he intends to go bankrupt. Until now I have carried on paying half towards the secured loan and debts. But he now wants to walk away. I am starting college in September to work towards qualifying as an accountant which I assume would not be possible if I became bankrupt.

I have signed a tenancy agreement for a year so cannot move back to the house. And he still intends to go bankrupt and tells me there is nothing i can do about it. I cannot afford to cover the cost of the house, my rent and all the debt, so I cannot offer to take it all on.

Do you know where I stand legally, as he wants to give the keys up and leave in the next few weeks. He won't put it on the market and sell it or rent it out. The mortgage is in joint names and the secured loan is in joint names.

Any advice would really be appreciated, thanks.

StepChange_Pavan

The_mangler wrote: »

Hi, I hope you can help me.
We are 3 months into a DMP but our income has drastically reduced due to my daughter reaching 18 and leaving further education, therefore my child benefit and child tax credits have been heavily hit. Instead of us paying £551 we are now looking at only managing £112 per month. We rent, my husband is disabled and I am his carer. Would you think it is worth me declaring myself bankrupt and my husband keeping his payments to his debts up through the DMP (they are much lower than mine)?

Hi there and thanks for your question.

It could be an option for you to go bankrupt and your husband to maintain the DMP but we’d need to look at your situation in a bit more detail to make sure this is the best solution – there may be other ideas that you haven’t considered.

You didn’t mention who your DMP is with but if it’s with us or another of the debt charities you’ll be able to get free and independent advice. Just give us a call if your DMP is with us or you can send your client reference number in a private message and I’ll get someone to contact you.

I hope this helps.

Kind regards,
Pavan

Mouse1812

CCCS_Mat wrote: »

[FONT=&quot]Hi and thanks for your post.
[/FONT]
[FONT=&quot]The Official Receiver has an interest in the property for 2 years and 3 months. So paying any lump sum off of the property and creating equity could mean that the Official Receiver revives their interest in the property and it could possibly be sold.[/FONT][FONT=&quot]

[/FONT] [FONT=&quot]It’s also worth noting, that if you have an Income Payment Order and the Lump Sum funds are yours (as opposed to a friend or family member) then you must inform the Official Receiver about these funds.[/FONT][FONT=&quot]

[/FONT] [FONT=&quot]I hope this helps.
[/FONT]
[FONT=&quot]Kind regards,
[/FONT]
[FONT=&quot]Mat[/FONT]

Sorry please may I flag this answer as incorrect? The OP question included

Originally Posted by pfinance

six months after the bankruptcy a friend of mine bought the beneficial interest from Official receiver.



In which case the OR has NO interest in the property

debtinfo

Mouse1812 wrote: »

Sorry please may I flag this answer as incorrect? The OP question included

Originally Posted by pfinance

six months after the bankruptcy a friend of mine bought the beneficial interest from Official receiver.



In which case the OR has NO interest in the property

Good spot mouse, it would also be worth CCCS_Mat noting that the general provision for family homes if for them to remain in the bankruptcy for 3 years (rather than 2 years 3 months) unless otherwise dealt with and also that the OP in this case did not show that it was a family home so if not been bought by the friend there is a slight possibility that it may not have been subject to the 3 year rule, ie thats a question worth establishing before answering

BrandNewAccount

Here's my situation, any help is appreciated.

I had my house reposessed in 2010 for not paying my mortgage. I knew it was coming but was just sticking my head in the sand and not dealing with it. I moved in with my girlfriend and left no forwarding addresses. At that point I owed mortgage, council tax, hmrc, gas, elec, sky..... everything basically. The way I dealt with it was just to walk away from it all, not tell anyone where I was going, and move in with my girlfriend who was happy to support me, even though I was unemployed.

After splitting with her, I've been staying with friends for a bit, and now I'm back at my mums. This feels like rock bottom to me, and its time to sort all of this stuff out and get back on me feet and start looking for a job.

I'm thinking bankruptcy is the way forward due to the amount I owe. The house is in negative equity to the tune of £25k. I also owe about the same to the tax man and vat man.

I tried ringing the CCCS and they said I needed to work out exactly what I owe by doing a credit report on noddle.co.uk. The problem is I have no way of doing this because I have to bank account anymore or credit cards so have no way of proving my identity.

I'm not sure where to turn.

System

Mouse1812 wrote: »

Sorry please may I flag this answer as incorrect? The OP question included

Originally Posted by pfinance

six months after the bankruptcy a friend of mine bought the beneficial interest from Official receiver.



In which case the OR has NO interest in the property

Hi Mouse and thanks for your post

Both you and debtinfo are correct and my answer is wrong. I’ve also sent a PM to the original poster to confirm this.

We aim to make sure all advice is correct so I’ve edited the original response with the correct answer to the question.

Thanks for flagging this up.

Kind regards,

Mat

System

WelshSaver wrote: »

I am hoping you can advise me. I left my husband 3 months ago, I rented a new place with my younger son and I left him at our mortgaged house where my teenage son decided to stay.

The problem I have is my husband is telling me he no longer wants to live in the house and as we have a secured loan and debts he intends to go bankrupt. Until now I have carried on paying half towards the secured loan and debts. But he now wants to walk away. I am starting college in September to work towards qualifying as an accountant which I assume would not be possible if I became bankrupt.

I have signed a tenancy agreement for a year so cannot move back to the house. And he still intends to go bankrupt and tells me there is nothing i can do about it. I cannot afford to cover the cost of the house, my rent and all the debt, so I cannot offer to take it all on.

Do you know where I stand legally, as he wants to give the keys up and leave in the next few weeks. He won't put it on the market and sell it or rent it out. The mortgage is in joint names and the secured loan is in joint names.

Any advice would really be appreciated, thanks.

Hi and thanks for your question.

It sounds like you would benefit from some free and impartial advice.

If your husband goes bankrupt you would be liable for any joint debts including mortgage and secured lending shortfalls, we’ve written a blogpost that goes into some detail on this subject.

http://moneyaware.co.uk/2011/09/we-got-a-joint-loan-now-weve-split-who-has-to-pay/

Bankruptcy can affect some professions particularly in the financial sector.

I’d recommend that you contact us for some free advice on your own situation and the best way forward should your husband petition for his own bankruptcy. Our free Helpline is on 0800 138 1111. We’re open Monday to Friday 8am - 8pm and Saturday 9am until 3.00pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

I hope this helps.

Kind regards,

Mat

adam_selby

tryed speaking to these coucillers when i had my crisis . . .can't recommend them enough. . . the best ones based out side major cites as they have more time mine was based in hitchin, herts.

System

BrandNewAccount wrote: »

Here's my situation, any help is appreciated.

I had my house reposessed in 2010 for not paying my mortgage. I knew it was coming but was just sticking my head in the sand and not dealing with it. I moved in with my girlfriend and left no forwarding addresses. At that point I owed mortgage, council tax, hmrc, gas, elec, sky..... everything basically. The way I dealt with it was just to walk away from it all, not tell anyone where I was going, and move in with my girlfriend who was happy to support me, even though I was unemployed.

After splitting with her, I've been staying with friends for a bit, and now I'm back at my mums. This feels like rock bottom to me, and its time to sort all of this stuff out and get back on me feet and start looking for a job.

I'm thinking bankruptcy is the way forward due to the amount I owe. The house is in negative equity to the tune of £25k. I also owe about the same to the tax man and vat man.

I tried ringing the CCCS and they said I needed to work out exactly what I owe by doing a credit report on noddle.co.uk. The problem is I have no way of doing this because I have to bank account anymore or credit cards so have no way of proving my identity.

I'm not sure where to turn.

Hi and welcome to the forum.

I’d recommend that you contact the credit reference agencies and ask for advice.

There are three CRAs in the UK: Callcredit, Equifax and Experian.

I hope this helps.

Kind regards,

Mat

decisions-need-to-be-made

I've been on a DMP with CCCS since Jan 2010 I owe £36k and pay under the DMP £89 per month I can't afford to pay anymore as I am no longer working and have 2 young children to look after (two child care costs would be more than my monthly salary anyway), my husband only earns £14k a year and each month we struggle to pay the £89, I know I've been advised before not to go bankrupt simply because I wouldnt be able to afford the fees but I could borrow this money from my mum if needed.

My question is I think bankruptcy is the only option as I'm never going to be able to pay the money back, I've tried so hard to pay it back before I did the DMP (I paid a lot off it - £54k to £36k). I feel like the DMP is just making me put my head in the sand and keep paying towards a debt which will last until 2049.

Any advice?