Ask a CCCS counsellor a bankruptcy question

CCCS_Amanda

tlc1000 wrote: »

hi i hope i am posting this in the right place, apologies if i have done it wrong. i am after some help regarding going bancrupt.

Last year i started my own business, it is a ltd company and i am employed by the company as a director with no other staff, firstly does this still mean i am self employed ?

i have got into a large amount of debt (16k) , mainly personal for living expenses since giving up my job to start this company and a small amount of business debt (under 5k). I have looked at the DRO and dont feel i apply due to owing over 15k, which therefore only leaves bancruptcy otherwise it will take me more than 30yrs to clear with min payments. my business is small and only brings in a small amount of money i can hardly get through the month without paying any creditors.

i live in my boyfriends house and my only asset would be my car so feel BR is the best option.

My main concern though is what will happen to my business, obvioulsy i can not be a director, can i change the ltd co to a sole trader or can i still not be a sole trader. Although it does not make massive amounts it is a small income which helps with all the other bills so still need to keep this going, do i have anyway to do this.

Lastly as i am going to have to not pay creditors and save the money to pay the fees can i contact my creditors and tell them this as they are on my back all the time ?!?

Any help would be appreciated.

thanks

You are right, if you did decide to go bankrupt then you could not be the director of a ltd company, but you could be a sole trader.

If you decide that you are going down the route of bankruptcy, then you could just offer the creditors a £1 token payment as a goodwill gesture until you have saved for the fees.

If you would like an appointment with ourselves to see if bankruptcy is your best option you can call 0800 138 1111.

Amanda

CCCS_Amanda

jennie65 wrote: »

The account i have opened is psot bankruptcy, and had to have it in my own name as housing benefit and child benefit will not pay into an account not in my name. New account was opened after telling Barclays I had been declared bankrupt and if that gets frozen too I have no access to my salary or tax credits etc and so will have no access to any money at all.

Is it normal to not hear from OR as still not heard anything at all.

Hi Jennie,

If its benefits you are wanting to get paid into the account, you could look into opening a post office account.

If you have not heard anything from the OR, you could contact the court for the OR details and chase them up.

Amanda

CCCS_Amanda

charlie12345 wrote: »

Have you any idea what can be included in ' normal living expenses' for a DRO as trying to find out if this is the best way to go but can't afford to loose the £90 fee if rejected because they feel I have more than £50 spare each month.
Many thanks

Hi Charlie,

It would be your day to day living costs such as rent, food, household bills, travel expenses etc

If you need any help completing a budget, you would be able to have an appointment with ourselves. If a DRO is an option for you the CCCS are also an approved intermediary so we could get the ball rolling for you too.

If you would like an appointment, our number is 0800 138 1111.

Regards
Amanda

CCCS_Matthew

Helter_Skelter wrote: »

Hi, I have my court appearance on 12 May.

Assuming it's straightforward, how long will it be before the OR contacts me.

Secondly how long before my creditors will be notified from the date of the Bankruptcy, ie 12 May?

Your help appreciated.

Hi there.

Your OR will normally contact you via telephone within a couple of weeks of the bankrutpcy hearing. However this timescale could differ depending on how busy the courts are and how many other people are going through the same process in your area. Your creditors are normally informed of your bankrutpcy around the same timescale, again this may take the OR longer if they are busy.

The main thing to consider is that your liability is immediately taken away from these debts from your hearing. If any creditors do contact you post the 12th just advise them that you've gone bankrupt and provide them with your case number.

Hope this helps,
Matthew.

jennie65

Post office said no to opening an account as I work full time and need somewhere for my wages to go into, I only claim housing benefit as I am forced to rent privately and the rent is four fifths of my income.

Is it normal for OR to not get in touch as STILL not heard and declared BR on 15/04

CCCS_Sue

hopefull142 wrote: »

we are seriously considering bankruptcy, however we are struggling to choose an adviser do you have any advice?

Hi hopeful142 and thank you for your email

It is important to make sure that you have explored all the options available for your situation before you go ahead and file for bankruptcy.

CCCS is a registered charity, and there is no charge whatsoever for the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you.

If bankruptcy was the best option for your situation, we have a special bankruptcy support team who can give further help and support if required.

I have also attached a link to the Insolvency Service website which may be of further use.
http://www.insolvency.gov.uk/ .

You can also download the forms from this site.

If you would like 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_Sue

CCCS_Matthew

Hi Angel1978, thank you for your message.

Do you know who ASH Process is collecting on behalf of? How much do you owe them, and is this debt personally in your name or is it joint with your husband?

In order for them to petition for your bankruptcy they must first personally serve you with a Statutory Demand. A Statutory Demand gives you 21 days to repay the debt before taking the opportunity to request a hearing to petition for your bankruptcy. Has a Statutory Demand been served? If you can perhaps answer these questions to start with it can help us understand your situation in a bit more detail and provide you with the right advice.

As far as the mortgage is concerned, you cannot simply be taken off at your request. To be removed from a mortgage you must have seeked legal advice through your solicitor how would try and help you come to an arrangement providing your husband could afford to buy you out. With that in mind, it’s likely that you will still be on the mortgage.

Regards,
Matthew.

Angel1978 wrote: »

Can somebody help me please. I'm going out of my mind with worry.

I've received a letter from ASH Process servers saying they are going to attend my old address today PM. My husband still lives there and he's worried sick about what to do. They have said they are going to serve me with a Bankruptcy Petition for a hearing on 5th May (this seems very quick to me).

My husband and I split up about 3 months ago and I moved out of the marital home to ease the strain (along with my 2 children). We have been trying to work through our problems and were just starting to get somewhere when this latest bombshell dropped on us. We don't know if the house still has my name on the mortgage (we asked for it to be removed but never had any letter through to say it had been) and it's an added stress to a marriage that I now feel is doomed to fail.

I don't know what to do. I'm scared out of my wits and don't think I can cope with anymore stress. I don't have a job, can't find a job and so therefore can't offer to pay anything. I have no clue what they are going to do or how they are going to go about it.

Somebody please help me.

CCCS_Sue

jennie65 wrote: »

Post office said no to opening an account as I work full time and need somewhere for my wages to go into, I only claim housing benefit as I am forced to rent privately and the rent is four fifths of my income.

Is it normal for OR to not get in touch as STILL not heard and declared BR on 15/04

Hi jennie65

As a bankrupt you might find it difficult to open a new bank or building society account. Some banks may allow you to keep using your existing bank account after they have contacted the Official Receiver.

After the bankruptcy order, you could contact your bank and see if they would be willing to let you continue banking with them. It is the bank who would decide and not the Official Receiver.

If the Post Office and your own bank have refused, then you could look at opening a basic bank account elsewhere.
I have attached a link to a booklet which explains basic bank accounts in more detail and gives a list of banks you could consider.

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

Regards
CCCS_Sue

isabella01

CCCS_Amanda wrote: »

Hi Izzy,

Thank you for your message.

The joint account you have with your partner would be included in the bankruptcy and would be frozen and most likely be closed.

It is very unlikely that the bank would take into account the purpose of the other account and this account would also be frozen. I have attached a link to a booklet that lists different accounts that you could look into in the meantime, each account will be slightly different so you would need to double check if it is a cheque account.

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

With regards sending your creditors the details, the official receiver will inform them but if you would like to speed up the process you could send them the details.

Hope this helps
Amanda

Thanks Amanda:beer:
I have just composed a letter requesting that our bank do not take any actions on the account used for our son's Direct Payments (for respite) that it isn't my money and held in trust for our son..hopefully they'll take heed..if not I can see we are going to have problems finding a cheque account now we are officially bankrupt:rolleyes:

Izzy

debrag

I am embarking on BR shortly after 21st May due to going from a full time job to LHA & JSA (hopefully).

1) How do I do my SOA?
2) How do I prove what my income will be as it will take awhile for my claim to go through?
3) Should I include dates for all my cc's in my 'cause of bankruptcy' & state the reason why I had to leave my job? [FONT=&quot][/FONT]