Ask a CCCS counsellor a bankruptcy question

chelle230

My second post (posted this in a thread too, didn't know where to put it) and after some advice.

I went bankrupt last August due to my business failing (B&B in Blackpool), and had a lot owing on the mortgage, had to give the keys back to the mortgage company.
I am therefore nearly due for discharge.

I have no car at the moment and have gone from one wreck to the next in the last 12 months. I am wondering if there is anyway I am going to be able to get finance from a dealership for a new/nearly new one, or if I have to build my rating again first, if so, how?

Thanks in advance.

wendybatch

Hi, my question is about pensions. I have a civil service pension and am hoping to take early retirement soon. I understood that pensions cannot be taken by the bankruptcy trustees, but I have been advised that if I receive my lump sum whilst I am bankrupt I will lose it. Is that right?
I am not bankrupt now but one of my creditors are threatening to make me bankrupt. I am leaving the country to live in Australia within the next 2 months and am considering whether to make myself bankrupt to clear all my debt before I go but am struggling to get independent advice as to if this is the right thing to do for me.
I had previously considered an IVA but decided that was not right for me. I was given the hard sell from IVA providers but am now having the same trouble with bankruptcy providers. They just seem to want to talk you into a particular course of action for their own monetary gain.
Some advice would be appreciated.

CCCS_Alan

phillymitch69 wrote: »

Hi,

I went BR on 29th June and had my OR interview this morning at 10:00.

In regards to my property, I am in a lot of negative equity with a monthly repayment mortgage that in no way shape or form, am I able to repay.

During the interview, the OR suggested I might want to look into handing back the keys to my mortgage company as (1) I cannot now repay the mortgage (2) I would not be unhappy at moving out and renting a smaller place; the house was bought solely by myself but I shared it with now ex-partner and it therefore carries a lot of very sad memories.

I am aware that in due course, the mortgage company will seek repossession but if handing back the keys speeds up the process I am happy to go for it.

Are there any potential pitfalls I need to be aware of? Can anyone tell me of their similar experiences? Should I seek further professional advice and if so, from whom?

I would like to make as informed a decision as possible, so welcome advice from all parties but, of course, especially CCCS.

Many thanks,

Phil

Hi Phillymitch69

From what you have said you discussed the property in your appointment with the OR, so you would have made him aware that a shortfall is, or would be likely. As long as they aware (it may be worth just checking with them that that’s the case) the shortfall would be included in your bankruptcy.

As The Watchman advised do not sign what is called a deed of acknowledgment from the lender, this would exclude the shortfall from the bankruptcy and you would still be liable.

Also any property that is voluntarily surrendered will be listed on the council of mortgage lenders mortgage repossession register. This information will show on your credit file for 6 years and will make it more difficult to buy property again in the future.

Regards

CCCS_Alan

CCCS_Alan

auburnmama wrote: »

hi, I dont know if anyone can help me. I am due to start uni as a mature student (rocking 30, gulp!) and applied for a student bank account. I got turned down flat.
I was bankrupt (now discharged) and wondered if this was the reason why? would I be eligible for any student account at all? do I have to wait the full 5 years (i think) before I will be able to get anything like this?
Thanks!

Hi Auburnmama

Student accounts normally come with overdrafts so in essence you are applying for credit, so in turn they would check credit scores which would show up the bankruptcy which is probably the reason why you were declined.

If you are applying for accounts and you have been bankrupt you ideally would be looking not to take out any more credit, and use a basic bank account instead to avoid the use of credit.

Below I have included a link to basic bank account information.

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts_ink.pdf

Regards

CCCS_Alan

CCCS_Alan

nickbrat wrote: »

Hello. I have just recieved notification that the CSA are going to take £250 a month from me in the near future.

I simply do not have the money to pay this and i'm now seeking advice as to what i can and can't do.

I would like to begin a debt managemnt plan with the cccs but would specifically like to know what can be done in relation to the the csa. I want to pay something to the upkeep of my children but i'm worried that they may be able to take the moeny directly from my bank account.

So, what advice would the cccs give me regarding reducing the payments during a debt management program?

Thanks

Hi Nickbrat

The CSA payments would be a priority that you would have to pay each month towards the upkeep of your child, so this would be a priority on any budget and you would have to pay the amount requested. The amount would not be lowered if you were sutiable for a DMP unfortunately.
The payments can either be made on a DD or from a deduction from earnings so you would need to speak to them regards the payment method.

If a parent thinks that the CSA’s decision on how much maintenance is wrong, they have the right to appeal against it. They should do this within one month of the date of the letter that tells them about the decision.

An appeal is a formal process, where an independent tribunal, organised by the Tribunals Service, will take another look at the decision. It may take a long time to come to a result.

Instead of appealing, a parent can ask the CSA either to explain the decision or to look at the decision again. This is a less formal process and is often a quicker and better way of correcting a decision if the parent feels the CSA has overlooked some important facts

If you are in financial difficulties and would like to know your options, try our online debt advice facility called Debt Remedy. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. Click here to go directly to Debt Remedy.

Regards

CCCS_Alan

CCCS_Alan

Ethereal_Gaz wrote: »

Hi, quick question. I'm not sure if this is the right area to post so apologies if it isn't.

I'm employed as a director of my company which has not had any work in the past six weeks. Am now claiming jobserve and have spoken with CCCS to work out a budget. Our household incomings are 1000pcm and outgoing are 2000pcm so things aren't looking good at the minute.

I owe £19k across 2 visa cards and I've been advised to send them a letter to say I'll only pay £1 per month for the time being.

My company will need to pay almost 9k corporation tax by the end of the year. It's coffers were finally depleted when I payed this quarters VAT.

So, to the quick question: What should I do about the corporation tax??

I really don't want to upset the tax man, he can send me to jail!

Hi Ethereal_Gaz

I would suggest you contact Business Debt Line as soon as possible, we only advise on personal debt. I have included a link below for you.

http://www.bdl.org.uk/

Regards

CCCS_Alan

CCCS_Alan

chelle230 wrote: »

My second post (posted this in a thread too, didn't know where to put it) and after some advice.

I went bankrupt last August due to my business failing (B&B in Blackpool), and had a lot owing on the mortgage, had to give the keys back to the mortgage company.
I am therefore nearly due for discharge.

I have no car at the moment and have gone from one wreck to the next in the last 12 months. I am wondering if there is anyway I am going to be able to get finance from a dealership for a new/nearly new one, or if I have to build my rating again first, if so, how?

Thanks in advance.

Hi Chelle230

Taking out credit is not an area that we advise on unfortunately.

What you might find though is if you were to apply for any credit including finance, the fact that you have been made bankrupt before will affect your eligibility, and you possibly may not be offered a deal or a deal at a very high interest rate.

Regards

CCCS_Alan

breezerockz

Hi All
this thread is great, the CCCs answers are really helpful

I have a quick question, one of many, but will just ask this for now.

I am on incapacity benefit, have been for a good few yeaqrs now, and don't expect to be lucky enough to be able to work any time soon.

my mum had cancer last year, she has other benefits, i live in with her in house rented by her, i pay toward bills etc, and buy all our food etc.

before i was ill i had a good wage, and a loan credit cards etc, easily paying them off
my mums husband was a bad man, and we have got rid, but he left us in debt,
oweing me thousands( on credit cards, he told us his company paying for us to move house, he lied, i paid removals etc)

then i became ill, and i thought id get better, anyway, because my mum was already ill, and i became ill , i had to use credit to live basically, ( thinking id get better) so i owe more than £20 grand.

i did have a solicitor, who lost me 10 months of a civil case against my last employers,(because she was idle, and ignored facts, wont go into it)
she told me to ignore debts, and not pay anything and let them make me bankrupt.

main question is: will bankruptcy take any of my incapacity?, i don't actually have any left (after using what is needed)and struggle to pay for fuel for car, heating etc
I HAVE NO ASSETS at all.

sorry if made no sense.
thanks

CCCS_Alan

wendybatch wrote: »

Hi, my question is about pensions. I have a civil service pension and am hoping to take early retirement soon. I understood that pensions cannot be taken by the bankruptcy trustees, but I have been advised that if I receive my lump sum whilst I am bankrupt I will lose it. Is that right?
I am not bankrupt now but one of my creditors are threatening to make me bankrupt. I am leaving the country to live in Australia within the next 2 months and am considering whether to make myself bankrupt to clear all my debt before I go but am struggling to get independent advice as to if this is the right thing to do for me.
I had previously considered an IVA but decided that was not right for me. I was given the hard sell from IVA providers but am now having the same trouble with bankruptcy providers. They just seem to want to talk you into a particular course of action for their own monetary gain.
Some advice would be appreciated.

Hi Wendybatch

While you are under the care of the court appointed Official Reciever (OR) you would have to declare any money you receive to the OR, such as the lump sum pay out.

If you are looking to go bankrupt before you move to Australia it would be advisable to check out if such action will affect your application, so possibly contact the embassy or Australia’s immigration authorities.

It’s difficult to give you detailed advice on your options as we don’t have your full financial details. However you can visit our online debt advice facility called Debt Remedy. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. Click here to go directly to Debt Remedy.

If you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Regards

CCCS_Alan

miss_spooky

Hi,

I am writing on behalf of a friend. She completed the CCCS Debt Remedy & spoke to someone via chat yesterday. The advise was to do a low start DMP. Her suplurs was only £78.00. Would BR not be a better idea with a surplus this low? She has tried making token payments to her creditors but they keep harassing her as she's paid 4 weekly and she can not pay on days they request, so some debts are incurring charges every mth etc.