Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

decisions-need-to-be-made wrote: »

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?

Hi there and welcome to the forum.

From what you’ve said bankruptcy could be your best solution, especially if your mum is willing to give you the money.

As you’re already on a DMP with us, just give us a call and we can go through your options in more detail. We have a specialist bankruptcy team that can help and support you through the whole process.

If you prefer, you can send me your client reference number in a private message and I can get someone to contact you.

Kind regards,
Pavan

LadBroke

Having accumulated a debt of 11000 GBP over a couple of years I have recently entered into a DMP agreement.

Upon receiving my wages on Friday, I did an incredibly stupid thing: I spent my entire wages on gambling slots at several bookmakers - within 24 hours of getting paid !

This morning I have taken a step I should have taken two or three years ago, i.e. I have dealt with my problem gambling and self-excluded myself from both online and shop gambling for five years ! I have also contacted "GamCare" who offer 12 free "One-to-One Counselling" sessions to discuss the issue.

However, this is "only" a long-term solution as my stupidity has ensured I will be out of pocket for a month which has not even begun !
I have no-one to turn to as I have already asked friends and parents to lend me money, nor will my employer be prepared to give any further advance (as he has already done that a few times before) !

Is there such a thing as an "emergency loan" from local authorities I could ask for (bearing in mind I have excluded myself and therefore prevented such a thing will happen again) ... ?

neva_2

My husband is considering going bankrupt as he just cannot cope anymore with his debts, I am already on a debt management so I cannot help, however he has a small amount of money in trust that he will receive in 6 years time, if he goes bankrupt now will this money that is in trust be affected? Many thanks for helping.

mosquito617

My husband has no choice but to go bankrupt 9booked in at the court for 3 weeks time). His Ex ran up nearly 30K of debt in loans, cards, overdrafts etc then took the cash he gave her for rent/water/CT and she hid it well as he worked long hours. She eventually did a flit abroad taking yet more money with her, and now he has the burden of bailiffs banging on the door (we don't answer) and threatenign letters frm them.
He has taken advice from CAB and the debt advice line who have both said bankrptucy is the only way as we don't earn enough to cover it.
I was made redundant in april and am currently intemporary work, and paying off my own bankloan as fast as I can.
what I need to know is how do i protect my credit rating and that of his now adult children who live with us so we are not dragged down by what his Ex did?

StepChange_Pavan

LadBroke wrote: »

Having accumulated a debt of 11000 GBP over a couple of years I have recently entered into a DMP agreement.

Upon receiving my wages on Friday, I did an incredibly stupid thing: I spent my entire wages on gambling slots at several bookmakers - within 24 hours of getting paid !

This morning I have taken a step I should have taken two or three years ago, i.e. I have dealt with my problem gambling and self-excluded myself from both online and shop gambling for five years ! I have also contacted "GamCare" who offer 12 free "One-to-One Counselling" sessions to discuss the issue.

However, this is "only" a long-term solution as my stupidity has ensured I will be out of pocket for a month which has not even begun !
I have no-one to turn to as I have already asked friends and parents to lend me money, nor will my employer be prepared to give any further advance (as he has already done that a few times before) !

Is there such a thing as an "emergency loan" from local authorities I could ask for (bearing in mind I have excluded myself and therefore prevented such a thing will happen again) ... ?

Hi LadBroke and thanks for your post.

Well done on facing up to your problems and getting help for the gambling.

There are crisis loans available but I’m not sure whether you would be eligible. There’s more information on the DirectGov website and it’s worth trying if you can’t get help elsewhere: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018856

It’s a good idea to give us a call too because you won’t be able to make this month’s DMP payment.

Kind regards,
Pavan

LadBroke

CCCS_Pavan wrote: »

Hi LadBroke and thanks for your post.

Well done on facing up to your problems and getting help for the gambling.

There are crisis loans available but I’m not sure whether you would be eligible. There’s more information on the DirectGov website and it’s worth trying if you can’t get help elsewhere: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018856

It’s a good idea to give us a call too because you won’t be able to make this month’s DMP payment.

Kind regards,
Pavan

Thank you for your response, Pavan !

Believe it or not, I have now spent an entire 60 minutes calling them on an 08000 number from my mobile, this will make for a nice Orange Mobile bill come the end of September !

Needless to say I did not get through to anyone :mad:

Just wondering what next to do, I now have three pounds left to spend !?!

mafflondon

Hello,

Sorry not t sure how to create a new post....
Need advice on a deeply worrying thread I viewed regarding bankruptcy / nil tax code and resulting loss of Housing Benefit (HB) -

http://forums.moneysavingexpert.com/showthread.html?t=750075

I am going to Court on Monday 3rd to petition for bankruptcy following extensive and helpful advice from CCCS. I am in receipt of HB. When I receive a Nil Tax code my local authority may view the new net net pay figure as income and subsequently I will lose my HB award and likely to receive an overpayment demand. Apparently, they regard the new net income figure as my claimant income despite the money going direct to the OR. Are CCCS aware of this happenning to others? If this does happen to me (even without an IPA in effect), i will be destitute. Please see the thread for info..
Many thanks, Matthew

LadBroke

CCCS_Pavan wrote: »

There are crisis loans available but I’m not sure whether you would be eligible. There’s more information on the DirectGov website and it’s worth trying if you can’t get help elsewhere: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018856

It’s a good idea to give us a call too because you won’t be able to make this month’s DMP payment.

I have now spoken to the CCCS and won't have to make a payment for September, my normal repayment plan will resume in October (which is fine as I'm guaranteed a bonus at the end of September).

Still having no success with the DWP, their "Crisis Loans" hotline is engaged from 8am to 6pm. Does anyone have any suggestions ?

System

neva wrote: »

My husband is considering going bankrupt as he just cannot cope anymore with his debts, I am already on a debt management so I cannot help, however he has a small amount of money in trust that he will receive in 6 years time, if he goes bankrupt now will this money that is in trust be affected? Many thanks for helping.

Hi Neva and welcome to the forum

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

We’d need to know a little bit more about his situation and the trust itself before we could give full advice.

We have a dedicated bankruptcy team that can help him free of charge.

I’d recommend that he calls our free Helpline 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

System

mosquito617 wrote: »

My husband has no choice but to go bankrupt 9booked in at the court for 3 weeks time). His Ex ran up nearly 30K of debt in loans, cards, overdrafts etc then took the cash he gave her for rent/water/CT and she hid it well as he worked long hours. She eventually did a flit abroad taking yet more money with her, and now he has the burden of bailiffs banging on the door (we don't answer) and threatenign letters frm them.
He has taken advice from CAB and the debt advice line who have both said bankrptucy is the only way as we don't earn enough to cover it.
I was made redundant in april and am currently intemporary work, and paying off my own bankloan as fast as I can.
what I need to know is how do i protect my credit rating and that of his now adult children who live with us so we are not dragged down by what his Ex did?

Hi mosquito617 and welcome to the forum

If you don’t earn enough to cover your husband’s bankruptcy fee it might be worthwhile giving us a call on our free helpline. Our dedicated bankruptcy team may be able to give advice on reducing the fee or having it paid by a third party such as a trust fund, union or former union.

Your credit rating and that of anyone else in the property will only be affected if you have any joint financial products with the person going bankrupt.

Credit ratings are based on the individual and not the household.

If he wants to call us 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