Ask a CCCS counsellor a bankruptcy question

StepChange_James

one2escape wrote: »

We where advised that bankruptcy could be an option for us but I am wondering if I could get some advice.

Our SOA are around level ie we have enough money to pay all bills and outgoings. However our problem is that our house is a very bad state of repair and requires a lot of work totalling around 15 - 20k. Our electrics need rewire and a new kitchen is needed (not a want but a need). The heating system needs flushed. Also the whole house needs painted etc. Its a death by a thousand cuts. These problems started as we did not have the money to fix them at the time and a poor fitting of the kitchen by the installer who ran away after fitting it Are big problem is that we cannot get the finance to do this due to our bad credit history and our house is around 80k if not more in negative equity. We are the end of tether with the house and cant see an end in sight. Should we consider this? We where advised to stop paying our mortgage and secured loan to say for bankrupcy payment and a money for a rent. Is this the best option?

Hello,

Thanks for posting. Ultimately it would be your choice if you wanted to go bankrupt. If your income is roughly equal to your living costs and that is not likely to change in the future then it sounds like bankruptcy could be a good option to deal with the debts.

If you are certain that you want to go bankrupt and are not intending to keep your property then using the mortgage money to save for bankruptcy and a deposit on a rented property would be a reasonable strategy.

Obviously the significant negative equity and the repair work that is required suggest that keeping the property may not be a great financial decision but I couldn’t say for sure without knowing more about your situation.

You advice booklet will have the number for our bankruptcy specialist team, I would suggest giving them a call if you would like to discuss things in more detail as they will be able to access all your information and talk you through the bankruptcy process and options for the house.

Regards

James

one2escape

It was though a different agency. Should I speak to you guys to firm it up?

win123

My mum and I own house jointly - 106k owing on it and the house is probably worth 125k - I am on a DMP with yourselves and hoefully my mum will be too by dec - just wondered if we would be best to go bancrupt as we owe about 28k between us and it is going to take years to pay off and its making my life hell cant eat sleep and panic all the time - the worry is what is the likelyhood of us keeping our home as mum is disabled and we have had the house via a council grant adapted to her needs for her disability do you know of any cases that people have been able to keep their home if they are disabled as finding another property to suit her needs is going to be difficult please any advice would be appreciaated tryingn to go through all options

LSD_2

Stupid/silly as it may sound I'm not sure if I am bankrupt! An application had been met, in 2008, attended court but I was able to agree payments outside of sitting which were accepted. At the time the order didn't go through and I received a letter to that affect.

Im in process of selling home and there is a record stating an application was made in 2008, I haven't seen anything in my credit file, and can't find the letter. Would the solicitors dealing with my sale be readily able to confirm if I am or am not? Is there a way I can find out myself?

Any help on this would be truly gratefully received

StepChange_James

one2escape wrote: »

It was though a different agency. Should I speak to you guys to firm it up?

Hello,

It can sometimes be useful to get a second opinion (particularly if you still have questions). 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.

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.

All the best.

James

StepChange_James

win123 wrote: »

My mum and I own house jointly - 106k owing on it and the house is probably worth 125k - I am on a DMP with yourselves and hoefully my mum will be too by dec - just wondered if we would be best to go bancrupt as we owe about 28k between us and it is going to take years to pay off and its making my life hell cant eat sleep and panic all the time - the worry is what is the likelyhood of us keeping our home as mum is disabled and we have had the house via a council grant adapted to her needs for her disability do you know of any cases that people have been able to keep their home if they are disabled as finding another property to suit her needs is going to be difficult please any advice would be appreciaated tryingn to go through all options

Hello,

I think we might have been talking on our other thread.

If either of you were to go bankrupt the courts would appoint an official receiver and part of their job would be to realise the value in any assets and distribute this between the debts.

In the case of property they would work out your “beneficial interest” (basically your share of the equity) and would want to get this money and spread it between your debts. If someone you know can give the official receiver a payment of this amount they would be willing to let you keep the property, but obviously it would be likely to be a lot of money.

The official receiver can take the circumstances of your mother’s health into account but this is more likely to mean they might give you more time to find somewhere else to live rather than allow you stay in the house indefinitely.

It may be easiest to give us a call to talk through your options, as we will have your details on file so can tailor advice to your situation.

Regards

James

StepChange_James

LSD wrote: »

Stupid/silly as it may sound I'm not sure if I am bankrupt! An application had been met, in 2008, attended court but I was able to agree payments outside of sitting which were accepted. At the time the order didn't go through and I received a letter to that affect.

Im in process of selling home and there is a record stating an application was made in 2008, I haven't seen anything in my credit file, and can't find the letter. Would the solicitors dealing with my sale be readily able to confirm if I am or am not? Is there a way I can find out myself?

Any help on this would be truly gratefully received

Hi LSD,

There's no reason to feel stupid, these things can be hard to follow. If you hadn't already done it, I would have suggested checking your credit history.

Another way to check would be the insolvency register which you can search here: http://www.insolvencydirect.bis.gov.uk/eiir/. This should have details of your bankruptcy if it went through.

If that doesn't turn up any results you may want to speak to the court you went to in 2008 to see if they have any records.

Hope this helps and good luck with the house sale.

James

julesb31

As a member of police staff do you know if I can still go bankrupt without getting the sack. I work for the Met Police. This is the final thing really before I can definately say yes to going BR.

StepChange_James

julesb31 wrote: »

As a member of police staff do you know if I can still go bankrupt without getting the sack. I work for the Met Police. This is the final thing really before I can definately say yes to going BR.

Hi Jules,

Unfortunately there isn't a simple yes or no answer to this question. I'd recommend talking to your Welfare Officer before going ahead with bankruptcy. They will be able to say if your role would be affected by bankruptcy. In some situations, where you are seen to be in a "sensitive" post they may redeploy you into a less "sensitive" post.

Even if your current role would not be affected by bankruptcy it is worth bearing in mind that future career progression may be hampered, but again, your Welfare Officer will be able to tell you more about this.

If you would like to get some advice about bankruptcy and the other solutions to deal with debts you might want to get in touch with us.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

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.

Hope this helps.

James

LSD_2

CCCS_James wrote: »

Hi LSD,

There's no reason to feel stupid, these things can be hard to follow. If you hadn't already done it, I would have suggested checking your credit history.

Another way to check would be the insolvency register which you can search here: http://www.insolvencydirect.bis.gov.uk/eiir/. This should have details of your bankruptcy if it went through.

If that doesn't turn up any results you may want to speak to the court you went to in 2008 to see if they have any records.

Hope this helps and good luck with the house sale.


James

Thank you, will try insolvency direct as nothing on my credit report. The solicitors seem to be having difficulties knowing who to ask to remove entry as no reference, nothing to indicate who put it on,nothing