Ask a CCCS counsellor a bankruptcy question

hawkend

Hi there,
My wife and I are at the end of the 3rd year of an IVA which we have been informed will be extended to 6 years.We are now falling behind on payments (2 behind),this is due in part to the fact of my wage dropping over £300 per month, my wifes has increased slightly - approx £70 per month.
Our gross expenditure last month was almost £200 more than our nett income.We struggle to keep money in the bank to cover DD payments and therefore get clobbered by charges £60-£90 per month.In filling in my annual review i have been deliberately conservative in respect to some of the outgoings which in retrospect was possibly a tad naive.
If we start to pay a reduced amount into the IVA how long is it likely to be before a creditor has us declared bankrupt.
If or when declared bankrupt what is likely to happen re our home.We have 3 kids under 15 the youngest which is special needs and to rent in our area is dearer than our mortgage for similar or even smaller properties.We currently have a £100k mortgage on a house at best worth £104k but the council has a first charge on the property of £36k (for 18 months)would it be likely that the house would be repossessed ?

I hope someone can make sense of all this.

Dave

sportie

I am writing this on behalf of my boyfriend. He is in a serious mess and is considering declaring himself BR.

He currently owns a flat with his ex girlfriend which is in negative equity and now northern rock are trying to put a charging order on it for the unsecured loan that they took out at the start. They both want to get rid of the flat and move on with their lives but neither can afford to sell it or take on the negative equity and now that they are being faced with a charging order can't sell it.

My OH also has outstanding credit card debt, overdraft and another unsecured loan

1) If they both declared themselves BR could they give up the flat (something they both want but can't afford to sell)?

2) Would his car be taken away (Probably worth £5000)?

3) How would him being BR afffect my credit rating if we were to live together in the future?

Thanks

trying_to_get_by

I split with my former partner in april 2007, when we sold our house and went our seperate ways he gave me his half of the proceeds from the sale of our home which worked out around £13k as he was not working. As I recieved this money from him I did not expect any contribution for our children. I have now recieved a letter from a solictor informing me that he had made himself bankrupt in august 2008 and that they now want me to repay this money back. I am really worried I do not have this money now and have enough of my own debts to be dealing. With can anyone tell me where I now stand as I dont want to have to leave my current home uprooting my children again.

mightykate

Hi
I was declared bankrupt in May had no assets o it seemed quite straightforward to the OR. They said they would reccommend an early discharge after 6 months which hopefully will be October. What exactly does this mean? I have a basic bank account with abbey that i opened on the day. In terms of mortgages etc when would I be able to apply?

Kind regards

washappychick

Hi All

I have stopped burying my head in the sand and have decided to go BR.

I have approx 40k debts with my ex hubby, who went BR earlier this year, leaving me solely responsible for the debts.

We did own our own house which I was living in after the split but I was offered a very good job and relocated to Wales, renting out my house to my brother and his new wife. I was then made redundant at Christmas and moved back to my hometown and into my sister's while I looked for a new job. I was lucky enough to find one in February, but on giving my brother notice in my house he refused to move unless I went through the courts!!!! new wife's influence I think. As I had been at my sister's (already 4 in her 2 bedroomed house, then me and my youngest son)for 4 months and I could afford to rent a property, this I did. My brother moved out of my house 2 months later!!! so no mortgage being paid.
My oldest son was then made redundant and moved in with me also. My youngest son is on an apprenticeship so only gives me a little in rent money.

I have kinda completed a budget thing (not sure of its correct name)

I have been reading this forum for a while and found the advice and info helpful and it has reassured me its not the end of the world to be BR and there is life after too.

I know I will need a new b/a but not until after the BR, but do I have to attend court to petition for BR?

Is there a chance they might not let me?

I am worried about if I have to make payments for 3 years after, how does this work, what are the rules?

The court and the OR is the scary bit, hopefully when I get thro that bit it will get easier

I'm going to go to the court and pick up the paperwork as I don't have a printer at home to print the forms off, my parents are going to lend me the fee, so I will be ready in the next few weeks.

If anyone has any other advice it would be welcome.

Thanks

adg1980

My partner has debts of over £40k and intends to declare himself bankrupt as soon as we can get the money together. How long, approximately, will the bankruptcy last?

He has been living with me for just over 2 years and the only thing he owns of value is his car (but would only be worth about £1k). Will his bankruptcy effect me in any way? We don't have any credit agreements, loans or bank accounts that are owned jointly. Would they repossess any of my items or assets?

Also, he is self employed and needs his car for work. Would they take his car?

philnicandamy

adg1980 wrote: »

My partner has debts of over £40k and intends to declare himself bankrupt as soon as we can get the money together. How long, approximately, will the bankruptcy last? 12mnths sometimes sooner if lucky enough to receive an early discharge..

He has been living with me for just over 2 years and the only thing he owns of value is his car (but would only be worth about £1k). Will his bankruptcy effect me in any way? only of you have any jkoint debts... We don't have any credit agreements, loans or bank accounts that are owned jointly. Would they repossess any of my items or assets? NO

Also, he is self employed and needs his car for work. Would they take his car? depends on the OR really cars are difficult best of times...

just a few thoughts to help

miss_spooky

Hi,

I am helping a friend sort out her finances. We had a sort out through all her paperwork and found that two accts were poss statute barred. Wrote to both companies with the Statute Barred letter from here. Lettes sent beg July 09.

One co agreed and confirmed so and has taken her details of their system. The other comp sent back statements showing the last activity on the account. Now, they are claiming that the last payment was 23/11/03 but after looking at her statements it seems that the last actual payment was 23/09/03 with Oct & Nove 03 DD being returned as rejected. The outstanding bal conf this.

So, the question is, which would be the correct date. Sep or Nove 03?

Also this is the only letter she has sent to them, they do not have her contact numbers only her adddress, so would this mean she has acknowledged the account although it was a SB letter sent?

regards.

CCCS_Alan

hawkend wrote: »

Hi there,
My wife and I are at the end of the 3rd year of an IVA which we have been informed will be extended to 6 years.We are now falling behind on payments (2 behind),this is due in part to the fact of my wage dropping over £300 per month, my wifes has increased slightly - approx £70 per month.
Our gross expenditure last month was almost £200 more than our nett income.We struggle to keep money in the bank to cover DD payments and therefore get clobbered by charges £60-£90 per month.In filling in my annual review i have been deliberately conservative in respect to some of the outgoings which in retrospect was possibly a tad naive.
If we start to pay a reduced amount into the IVA how long is it likely to be before a creditor has us declared bankrupt.
If or when declared bankrupt what is likely to happen re our home.We have 3 kids under 15 the youngest which is special needs and to rent in our area is dearer than our mortgage for similar or even smaller properties.We currently have a £100k mortgage on a house at best worth £104k but the council has a first charge on the property of £36k (for 18 months)would it be likely that the house would be repossessed ?

I hope someone can make sense of all this.

Dave

Hi Dave

Sorry to hear about your situation.

You do need to speak to your insolvency practitioner (IP) regarding your changes in situation. They will be able to give you an idea on what effect not meeting your payments will have, and should be able to discuss your options moving forward.

As you are still legally bound by the agreement we have to direct you to your IP regarding the situation. If the IVA fails and you are no longer bound by the IVA and the debts still stand, we could then have a look at your situation and provide you with advice for how best to deal with your debt.

Regards

CCCS_Alan

CCCS_Alan

sportie wrote: »

I am writing this on behalf of my boyfriend. He is in a serious mess and is considering declaring himself BR.

He currently owns a flat with his ex girlfriend which is in negative equity and now northern rock are trying to put a charging order on it for the unsecured loan that they took out at the start. They both want to get rid of the flat and move on with their lives but neither can afford to sell it or take on the negative equity and now that they are being faced with a charging order can't sell it.

My OH also has outstanding credit card debt, overdraft and another unsecured loan

1) If they both declared themselves BR could they give up the flat (something they both want but can't afford to sell)?

2) Would his car be taken away (Probably worth £5000)?

3) How would him being BR afffect my credit rating if we were to live together in the future?

Thanks

Hi Sportie

Any one can give up a property at any time. They could contact the lender and arrange to hand the keys back if they can no longer afford the property. It would then go to auction or be put on the market, and on been sold they would be billed for what ever is outstanding on the property at that time.

In bankruptcy his car would be deemed as an asset, and if a vehicle is essential they will only allow one of around £1000 to be kept.

If in the future you have joint liabilities an association could be placed onto your credit file which could affect your credit score. Below is a link that explains a bit more about association.

http://www.experian.co.uk/downloads/consumer/creditfileexplained.pdf

I would suggest your boyfriend comes for an appointment so we can go through his situation in more detail to make sure bankruptcy is his best option. If he would like to talk to a debt counsellor about his situation, he 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.

Regards

CCCS_Alan