Ask a CCCS counsellor a bankruptcy question

Andyparish

Hello CCCS

I would like a little advise on behalf of my father.

He has received a statutory demand for bankruptcy from a creditor for £8000 he owes on a unsercured personal loan.

He is suffering from ill health, 2 heart attacks, diabetes and a triple heart bypass in the last 12 months. He is currently unable to work due to his condition. My question is, are there different conditions that apply when the debtor is suffering from severe ill health?

Thanks greatly
Andy

StepChange_Pavan

Andyparish wrote: »

Hello CCCS

I would like a little advise on behalf of my father.

He has received a statutory demand for bankruptcy from a creditor for £8000 he owes on a unsercured personal loan.

He is suffering from ill health, 2 heart attacks, diabetes and a triple heart bypass in the last 12 months. He is currently unable to work due to his condition. My question is, are there different conditions that apply when the debtor is suffering from severe ill health?

Thanks greatly
Andy

Hi Andy and welcome to the forum.

It’s difficult to give detailed advice over a forum so I’d really recommend that your father gives us a call to talk through his options.

There’s no guarantee at this stage that the bankruptcy will go ahead and we often see them used as scare tactics. However, it’s important that he responds to it as soon as possible. He may be able to ‘set aside’ the demand if there is a ‘genuine triable issue’ (which would need to be decided through a court).

He can call our free helpline on 0800 138 1111 and we have a dedicated bankruptcy support team that will be able to advise him in more detail.

Kind regards,
Pavan

Andyparish

Thank you for you're advise. Much appreciated

ameliah1234567

Hi i went bankrupt in march 2011 which i have been released from after 3 months but i dont have a credit card or cheque book and i was hoping to at some stage apply for a mortgage ? or will i get turned down straight away many thanks michael

StepChange_James

ameliah1234567 wrote: »

Hi i went bankrupt in march 2011 which i have been released from after 3 months but i dont have a credit card or cheque book and i was hoping to at some stage apply for a mortgage ? or will i get turned down straight away many thanks michael

Hi Michael,

Your bankruptcy stays on your credit history for six years, so in your case it should drop off in March 2017. This will make it harder to obtain mortgages as they will always do a credit search.

It is hard to say when you will be able to get a mortgage, as each mortgage lender makes their own decisions on who they want to lend to. Credit rating is only part of the information that they take into account. The size of your deposit, your income and many other factors all go into the overall decision.
Hope this helps.

James

NewChapter_2

I am looking to petition from bankruptcy in several weeks. I am a little concerned as I have closed down all the joints accounts with my other half so he is not affected by my BR. One account we closed down was a savings account which he only paid into and so the balance was solely his. My name was on there though. We have closed the account and he now has the money. I am concerned though with going BR that the OR may try to take it even though it isn't mine.

Would they try to take it/half even though it isn't mine and is now closed?

I am really worried

Thanks

Daisy4567

Morning, my husband and I really need some urgent advice please. Long story short we are in a lot of debt due to helping my Father out financially, who then stopped repaying us and left us with the debt.

We currently own our own home with two mortgages and a suspended possession order.

We are also currently in an IVA which is significantly in arrears. On paper our income looks good and like we can agford the IVA, but things have happened this year that have meant we couldn't pay it several times.

We hate where we live, the house is mouldy and damp and the neighbours are awful. Loud music, constant banging and shouting abuse over the garden fence. We really want to get oput of here and move on but we have tried and failed rhree times to sell the property and rent. Apart from having a small dog, no one wud tuch us for rental because of our credit history.

Finally we have a chance to get out, the rent is £130 more a month than our mortgage but hubby's health has settled down and he is back at work.

Yes this means we can afford to pay the mortgage and i guess the iva, but we have struggled for so long that we just want out, go bankrupt and have a fresh start. We have had nothing but misery in this house amd it is unhealthy to live in.

So, my question really, is would we be accepted for bankruptcy and would we get in trouble for moving somewhere where the rent is more than our two mortgages? I am so scared that what we are doing is wrong and the Court will reject our BR or worse. Would they say that we shoupdn't have moved?

We were going ro send the keys back to the mortgage company and allow them to repossess the house then put the shortfall into the bankruptcy. Will this be allowed or will the judge say we should npt have done this?

We desperately need a new start.

Thank you

StepChange_James

NewChapter wrote: »

I am looking to petition from bankruptcy in several weeks. I am a little concerned as I have closed down all the joints accounts with my other half so he is not affected by my BR. One account we closed down was a savings account which he only paid into and so the balance was solely his. My name was on there though. We have closed the account and he now has the money. I am concerned though with going BR that the OR may try to take it even though it isn't mine.

Would they try to take it/half even though it isn't mine and is now closed?

I am really worried

Thanks

Hello,

When you go bankrupt the official receiver will look into your bank accounts, including ones that have been recently closed. They will determine whether they think the money in that account was yours. If you can clearly show that the money in the savings account did not relate to you then the OR will take that into account.

The important thing will be to make sure you have proof that the payments to the account where nothing to do with you.

Hope this helps.

James

StepChange_James

Daisy4567 wrote: »

Morning, my husband and I really need some urgent advice please. Long story short we are in a lot of debt due to helping my Father out financially, who then stopped repaying us and left us with the debt.

We currently own our own home with two mortgages and a suspended possession order.

We are also currently in an IVA which is significantly in arrears. On paper our income looks good and like we can agford the IVA, but things have happened this year that have meant we couldn't pay it several times.

We hate where we live, the house is mouldy and damp and the neighbours are awful. Loud music, constant banging and shouting abuse over the garden fence. We really want to get oput of here and move on but we have tried and failed rhree times to sell the property and rent. Apart from having a small dog, no one wud tuch us for rental because of our credit history.

Finally we have a chance to get out, the rent is £130 more a month than our mortgage but hubby's health has settled down and he is back at work.

Yes this means we can afford to pay the mortgage and i guess the iva, but we have struggled for so long that we just want out, go bankrupt and have a fresh start. We have had nothing but misery in this house amd it is unhealthy to live in.

So, my question really, is would we be accepted for bankruptcy and would we get in trouble for moving somewhere where the rent is more than our two mortgages? I am so scared that what we are doing is wrong and the Court will reject our BR or worse. Would they say that we shoupdn't have moved?

We were going ro send the keys back to the mortgage company and allow them to repossess the house then put the shortfall into the bankruptcy. Will this be allowed or will the judge say we should npt have done this?

We desperately need a new start.

Thank you

Hi Daisy,

Thanks for getting in touch. It sounds like a tough time at the moment.

I would recommend speaking to your IVA company about your situation before going bankrupt. While you are still on the IVA they are the best people to speak to. In some situations it is possible to make adjustments to IVAs to take into account changes in your situation, such as changing to a rented property. They will be able to advise you about this.

They can also advise you about how best to go bankrupt. Sometimes the terms of your IVA will state that your IVA provider will make you bankrupt if you do not complete the IVA, which could save you money on court fees.

If you go bankrupt then the courts would look at whether your rent is reasonable for the area that you live in for the size of household that you have. As long as it is, then you shouldn’t have a problem. If you hand keys back and allow repossession of your property then you could include the shortfall within the bankruptcy, the courts would not have an issue with this you would just need to let them know about the situation with the property.

Hope this helps.

James

SoletraderSteve

Hi I currently have a CCCS DMP which I have just set up 2 months ago but unable to make payments and have outstanding debts on credit cards/pay day loans of just under £8000 currently 26 living with parents working 8 hours per week. Is there any way I can get a debt relief order and have everything written off, it doesn't bother me about any short term effect on my credit score etc.

I just want them wiped asap so I can start a fresh,

Thanks