Ask a CCCS counsellor a bankruptcy question

philnicandamy

all depends on the official receiver....most now only use the London Gazette to cut down on costs etc (this only came in around april or so of this year) so it wouldnt appear in the local rag

SuSu1871

Hi everyone - I hope you can help...

I'm writing on behalf of my boyfriend - here's the scenario:

Dec 08 - he & his wife had a joint IVA set up with DFD - total debt £55k
Jan 09 - make first payment, but wife loses job
Feb 09 - they split up and contact DFD to freeze IVA for a few months(agreed)
Jun 09 - boyfriend now living with me, contacts DFD to restart IVA (full payments, including wife's debt)
Jul 09 - payment to DFD leaves boyfriend's bank account
Today - he received a letter to say that he has defaulted and the IVA has been cancelled.

So, what next?

My boyfriend's now considering bankruptcy, but we have a few questions...

1 Does my boyfriend need to start bankruptcy proceedings, or will the IVA people/his creditors make the first move?
2 He pays maintenance (1 child) of £350 a month, agreed between him & his wife. Would he be better going through the CSA?
3 As we live together, will my salary be taken into account?

Understandably, he's confused/angry right now, and I'm on the case to see what the next stages are, hence my post.

I hope you good people can help...

washappychick

Hi Sarah

Thank you for your reply and the phone number, it would be good to talk to someone and get some help to fill in the forms.

I forgot to add that I also have debts to some utilities companies from my previous address too:

£300 for gas
£255 for electricity
£33 for water

can these also be included in my bankruptcy?

Thank you for your help

Kuggers

Philnicandamy and CCCS_Sarah - many thanks for your helpful replies.

CCCS_Sarah

SuSu1871 wrote: »

Hi everyone - I hope you can help...

I'm writing on behalf of my boyfriend - here's the scenario:

Dec 08 - he & his wife had a joint IVA set up with DFD - total debt £55k
Jan 09 - make first payment, but wife loses job
Feb 09 - they split up and contact DFD to freeze IVA for a few months(agreed)
Jun 09 - boyfriend now living with me, contacts DFD to restart IVA (full payments, including wife's debt)
Jul 09 - payment to DFD leaves boyfriend's bank account
Today - he received a letter to say that he has defaulted and the IVA has been cancelled.

So, what next?

My boyfriend's now considering bankruptcy, but we have a few questions...

1 Does my boyfriend need to start bankruptcy proceedings, or will the IVA people/his creditors make the first move?
2 He pays maintenance (1 child) of £350 a month, agreed between him & his wife. Would he be better going through the CSA?
3 As we live together, will my salary be taken into account?

Understandably, he's confused/angry right now, and I'm on the case to see what the next stages are, hence my post.

I hope you good people can help...

Hi everyone - I hope you can help...

I'm writing on behalf of my boyfriend - here's the scenario:

Dec 08 - he & his wife had a joint IVA set up with DFD - total debt £55k
Jan 09 - make first payment, but wife loses job
Feb 09 - they split up and contact DFD to freeze IVA for a few months(agreed)
Jun 09 - boyfriend now living with me, contacts DFD to restart IVA (full payments, including wife's debt)
Jul 09 - payment to DFD leaves boyfriend's bank account
Today - he received a letter to say that he has defaulted and the IVA has been cancelled.

So, what next? I would recommend that he gives DFD a call to see what’s happening

My boyfriend's now considering bankruptcy, but we have a few questions...

1 Does my boyfriend need to start bankruptcy proceedings, or will the IVA people/his creditors make the first move? I would speak to DFD and see what their intentions are as often a clause in the IVA. The IP would be able to confirm this info
2 He pays maintenance (1 child) of £350 a month, agreed between him & his wife. Would he be better going through the CSA? I have attached this link to the CSA website that will help him calculate his payments if he went down that route https://secureonline.dwp.gov.uk/csa/v2/en/calculate-maintenance.asp
3 As we live together, will my salary be taken into account? When your partner puts forward his budget, he would need to put his own costs i.e. his share of the bills etc

Understandably, he's confused/angry right now, and I'm on the case to see what the next stages are, hence my post.

I hope you good people can help...


Hope this helps, and let me know if you have any other questions

CCCS_Sarah

washappychick wrote: »

Hi Sarah

Thank you for your reply and the phone number, it would be good to talk to someone and get some help to fill in the forms.

I forgot to add that I also have debts to some utilities companies from my previous address too:

£300 for gas
£255 for electricity
£33 for water

can these also be included in my bankruptcy?

Thank you for your help

It’s not a problem!

These would also be included.

Good luck with your appointment and let me know if you have any other questions.

Sarah

SuSu1871

Thank you for your help Sarah. He'll be back from work in a bit and I'm sure we'll have many more questions as we'll be looking into this further over the weekend. I've posted comments beneath your blue ones...

CCCS_Sarah wrote: »

So, what next? I would recommend that he gives DFD a call to see what’s happening
He called DFD as soon as he got the letter yesterday. I think they're going to get in touch with his creditors. After many hours of research & talking last night, he's decided he wants to start BR proceedings rather than have them forced on him.

1 Does my boyfriend need to start bankruptcy proceedings, or will the IVA people/his creditors make the first move? I would speak to DFD and see what their intentions are as often a clause in the IVA. The IP would be able to confirm this info
I'll see if he'll call DFD again today to get a clear picture of their plans so we can start moving forward.

2 He pays maintenance (1 child) of £350 a month, agreed between him & his wife. Would he be better going through the CSA? I have attached this link to the CSA website that will help him calculate his payments if he went down that route https://secureonline.dwp.gov.uk/csa/v2/en/calculate-maintenance.asp
He's definintely going to go the CSA route so he can prove his money's going on child maintenance.

3 As we live together, will my salary be taken into account? When your partner puts forward his budget, he would need to put his own costs i.e. his share of the bills etc
We looked at the online forms last night and have split the house-running costs 50/50 (which is what we do anyway).



Hope this helps, and let me know if you have any other questions

geronimo75

Hi,

Im a single parent of three and having lost my job a year ago - I now live off benefits of all types and some maintenance. I split debt with my ex husband but having lost my job am unable to make payments and have been sending token payments for ages. Have been back and forward to CAB over the last year and decided with their help that BR was really my only option....BUT I'm really scared of making that step. I keep putting it off but now I have just received my first court threat - ie no more chances to pay off - one of my creditors are taking me to court - so I am guessing now that I have very little time.
I am worried as I dont know what to do with making arrangements for income payments - as some are weekly. I have read NOT to set up a new account before filing bankruptcy as it will just get closed - so how am I meant to stop my benefits going into my bank account to avoid it being ceased by the OR, and still have money to live during the whole process??? Is there an easy way that I have missed???

CCCS_Matthew

geronimo75 wrote: »

Hi,

Im a single parent of three and having lost my job a year ago - I now live off benefits of all types and some maintenance. I split debt with my ex husband but having lost my job am unable to make payments and have been sending token payments for ages. Have been back and forward to CAB over the last year and decided with their help that BR was really my only option....BUT I'm really scared of making that step. I keep putting it off but now I have just received my first court threat - ie no more chances to pay off - one of my creditors are taking me to court - so I am guessing now that I have very little time.
I am worried as I dont know what to do with making arrangements for income payments - as some are weekly. I have read NOT to set up a new account before filing bankruptcy as it will just get closed - so how am I meant to stop my benefits going into my bank account to avoid it being ceased by the OR, and still have money to live during the whole process??? Is there an easy way that I have missed???

Hi there thanks for the post.

Bankruptcy can be a big step to take, but it's a lot less scary than you probably think. If you haven't already done so, have a browse of the diaries on this forum as often these help to get a good feel of what to expect.

I'm a bit unsure of what you mean when you mention about payment arrangements? If you were to go bankrupt you would not need to make payments to your creditors. If you are in reciept of benefits you would not be asked to pay into an income payment arrangement.

If you are worrying about making payments up until you do go bankrupt, we would normally say stop making payments completely, or perhaps offer a gesture of £1 a month (even to creditors that like to be paid weekly). Once you have started to the process of making yourself bankrupt then there really is no need to make payments as the money can be used to contribute towards your fee.

As far as your bank account is concerned, you can set up a basic account with the Co-op or Barclays before you go bankrupt without the risk of it being closed (assuming you don't owe them any money). Both Co-op and Barclays openly allow an undischarged bankrupt an account, whereas to my knowledge, currently no other bank does.

Your new account would still be frozen for 48 hours when you go bankrupt, but it wouldn't be closed down. So I would get your benefits and any other direct debits transfered to the new account, and simply withdraw enough money to cover you for a couple of days until the account is unfrozen.

Hope this helps!
Matthew.

1967vike

sorry but really need help - bank account s !! i am with halifax easy cash and reallyu expect halifax to close as soon as OR advice them. I have tried coop and they have declined me as I guess I have a credit card with them now in the bankrupotcy - worried barclays will decline me as i had an account with mbna and i believe barcs took them over - wages go in friday into halifax account and every friday weekly - really need some advice - i cant see how i am expected to live without a bank account !!