Ask a CCCS counsellor a bankruptcy question

agata

CCCS_Sarah wrote: »

It’s difficult to answer without knowing the full situation. For example you could separate your budgets or you could look at it as a joint budget. If there has been an income shock in the household it maybe that you are entitled to some help with your mortgage payments until things get more on track.

Who is your DMP with?

Thank you Sarah. We are with Personal Debt Helpline. If I leave my husband, I would rather separate the debts. I really don't know what to do...

garston_T

Hi.

I will need to pay for my bankrupcy out of my overdraft, which i will of course be including in the list of debts. I am however worried that I'll be done for fraud if i do this, as i obviously have no intention of paying this money back do i. Or at the very least have my case held up/thrown out and be asked to pay it back etc. I just want to get this thing over and done with. (I don't owe a massive, massive amount like many here, about 11k. But nethertheless I have no way of paying it back, and the monthly repayments take most of my JSA and have left me 700 pounds and rising into a 1700 overdraft. so it might as well be a massive debt, if you cant pay you can't pay..)

I assume taking the money out in cash heightens this risk even more of fruad.

Is paying the 390 pound fee by debit card or cheque possible, and would this reduce the risk? As then on any statement it's clear in black and white the money was to make myself bankrupt, and not to go and buy designer clothes with etc. is the fee able to be payed by debit card/cheque? when i return the completed forms.

many thanks.

fermi

garston_T wrote: »

Hi.

I will need to pay for my bankrupcy out of my overdraft, which i will of course be including in the list of debts. I am however worried that I'll be done for fraud if i do this, as i obviously have no intention of paying this money back do i. Or at the very least have my case held up/thrown out and be asked to pay it back etc. I just want to get this thing over and done with. (I don't owe a massive, massive amount like many here, about 11k. But nethertheless I have no way of paying it back, and the monthly repayments take most of my JSA and have left me 700 pounds and rising into a 1700 overdraft. so it might as well be a massive debt, if you cant pay you can't pay..)

It won't be a problem. Many many people have done that, and need to do that.

The OR understands this.

The fee is cash only.

philnicandamy

Just a thought Garston.....instead of bankruptcy have you read the sticky here about debt relief orders? designed for people with debt under £15,000 similar to bankruptcy but far cheaper to do.

CCCS_Amanda

pinklolly wrote: »

i am about to file for bankruptcy and have found myself unable to pay credit card, store card bills etc this month. i am already well into my agreed overdraft and by paying these bills, leave myself with no money to live, ie for food etc.
if i just dont pay what will happen?????
do i inform the companies that i am about to file for bankruptcy or not????

the other issue i have is my ex husband and i have a mortgaged house with at least £20,000 negative equity. we have had advice from the cab who have suggested a voluntary repossession.
im still confused and worried about the negative equity though. we are hoping to hand the keys back probably end of next week and then file for bankruptcy. obviously we wont have an exact figure for the negative equity so will this still be covered by the bankruptcy?

Hi pinklolly,

It is really up to you whether you want to let your creditors know or not. If they are phoning you it may relieve some of the pressure if you tell them what you plans are. Either way, the Official Receiver (OR) will contact them after your bankruptcy.

When you have your interview with the OR, you will just need to make them aware that you have recently given back the keys on a property with negative equity and that there will be a mortgage shortfall that you need to include in the bankruptcy. The OR will then make sure that this issue is settled before they will discharge you from your bankruptcy.

Regards,
Amanda

garston_T

cheers for the replies. im really still not comfortable with withdrawing the 360 pounds from the overdraft tbh. i just dont see how that isn't fraud and how the bank couldnt do me for it. the court I can see accepting that, but it's the bank im scared of.

im about to book a CAB appointment. need to get this thing moving.

appreciate the advice about the other scheme. tbh, i cant have the thing hanging over me another year though. and this sounds bad, but i just need to clear the debt as im never going to earn great money. i can never pay it off. and i assume in a years time they would shoot my credit rating to bits anyway. So can't really see any difference in this from going bankrupt.

philnicandamy

a DRO is very similar to bankruptcy in many ways....the only difference is it costs £90 instead of the £510 you'd have to pay for bankruptcy

wouldnt worry too much about using your O/D for fees many many people here including me have done that in the past & the OR's do understand and usually turn a blind eye..the banks wont do anything either its certainly not fraud and once the account is included in your bankruptcy its your receivers probs not you

garston_T

ah right, i feel ALOT better now after reading that. many thanks

I'll be paying 360 pounds for mine as I'm on JSA, and as it's overdraft money anyway I'd rather just pay the 360 and get it over and done with and not have it hanging over me for a year. i'd still be committed to all my debt in the meantime should i manage to score a 12k a year admin job or something rubbish. then the problem's still there. and instead of having the chance to finally save some money it's all going on bills. I just want to clear the debt, really. as unethical as it is and i feel bad about it but it's just better for me to go bankrupt now while i have the cash to pay the fee.

powsuzy

Please can you help - I have posted this elsewhere but haven't received any replies:-
I received a Stat Demand dated 1st June but it had never been opened as it was not received in the post just pushed through the door and was not postmarked or stamped. I only found it after Phoenix Collections called. The letter I have from Phoenix states that they called to issue me with a Bankruptcy Order (Letter Title is Bankruptcy Petition - 1st September 2009) the date they called was 24th September - and that as I wasn't in - they will be calling again on 7th October at 10.00am in order to affect service of the Bankruptcy Petition.

The debt is with 1st Credit (Citi Credit Card) £3822.25 - but the account is with Connaught Collections. Following the visit from Phoenix - I contacted the National Debtline - wrote a personal budget and wrote with an offer of payment of £120 per month.

They sent me a letter dated 1st October 2009 saying that my proposal was unacceptable and that they advised me that they are seeking the full debt balance in addition to any costs incurred. The title of the letter was 1st Credit Ltd - Citifinancial Outstanding Debt - £3822.25.

I contacted them again on 3rd October (the day I received the letter) to say that I could get a lump sum and could pay £3000. They informed me that they could not take any payments on my account and that I would have to contact Moorhead James Solicitors who were now handling my case.

I contacted Moorhead James on Monday 5th October and e-mailed them with an offer of £3000.00 in full and final settlement (template letter from National Debtline).

They have now e-mailed me back to reject the offer as follows:-
We refer to your email to the writer of 5 October 2009 upon which we have taken our client’s instructions.

Regrettably, your offer is rejected.

May we remind you that the sum for which you are indebted to our client which remains the subject of these proceedings is £3,822.25. You are also responsible for payment of the petitioning creditor’s costs which currently stand at £1,882. However, this is subject to change as the matter progresses.

Therefore, in total, the amount currently due from you is £5,704.25.

Payment may be made directly into this firm’s client account, the details of which are as follows:

Following this a minute later I received another e-mail as follows:-

WITHOUT PREJUDICE

Dear Madam

We refer to the above matter and your email of 5 October 2009.

As you are aware, the sum currently due and owing from you is £5,704.25.

However, in order to bring this matter to a swift conclusion, the petitioning creditor will accept the sum of £5,000 in full and final settlement of the debt and costs due under petition number 185 of 2009. This offer remains open for acceptance until 4pm on 9 October 2009. This offer is final and non negotiable and, if accepted, payment must be made no later than 4pm on 16 October 2009.

The National Debtline advised me to bring the debt below £750 if possible to avoid bankruptcy - however - neither Connaught or Moorhead James will take any form of payment from me.

I have found an old letter with details of Connaught's Account and the reference number for the original debt - so I am paying £3200.00 into that account - via Bank Transfer - in
the morning.

Will I still be responsible for all the other costs? And therefore will they continue to make me bankrupt? Any help and information/advice would be gratefully appreciated.

Update - Phoenix called today - but I did not answer - they left no further correspondence.

TONY111

URGENT BEFORE O.R. TAKES MY VECHILES. SOME PROFECIONAL HELP/ ADVICE NEEDED PLEASE

I have followed your forum with great interest and read some great advice so I am hoping somebody can possible help me.

I have just been declared bankrupt 5/10/09 and my question is with regard to my vehicles

I am self employed and will be allowed to carry on trading. But I have 2 vehicles.
I am the registered keeper of both. (but not the owner)

1. Motorcycle a 600cc commuter with box on back (not a flash racing bike) Purchase price £500 current value £450

2. High top van. (my workshop fitted out with bench compressor tools and press ect.)
Purchase price £1200 current value £120 to £200

I need to keep both, my argument and facts of the matter are-

The van is my workshop, it has no mot at present but will if allowed to keep it. Without the van I cannot repair the parts I service. When back on the road it will allow access to the jobs that cannot come to me and require me to attend the job with many tools that only the van can carry.

The motorcycle transports the products to and from my customers it takes my child to school some days, it gives me access to my 78 yr old mother to help with shopping/cleaning. It saves a fortune in fuel against the van especially on some of my many long work trips. It saves lots of time on all work trips.
It is my only method to get to my part time Night job. (no busses at 2am & taxi to expensive)

My wife paid for both vehicles last year on the pretence that i can use them unconditionally and I will purchase them from her at some time in the future.

For the van my wife’s bank statement shows the cost of purchase being taken out
4 lots of £300 cash machine withdrawals consecutively (£1200 total cost of van)
Followed by £244.26 for the van insurance.
The insurance is easy to prove it belongs to the van. But there is no receipt for this vehicle to prove she owns it. But the reg document date of purchase is about right.

For the motorcycle 2 consecutive lots of £300 show withdrawn from a cash machine 15 days prior to the reg doc date of purchase, however we do have a receipt for its purchase from the previous owner dated one day after the cash withdrawals and it names my wife as the purchaser of the vehicle and has all the sellers detail including the amount of the sale which was £500. (my wife withdrew £600 but negotiated the price of sale down to £500)

My wife has her own personal vehicle as well value about £900 she uses it for full time work which sometimes includes traveling to different towns. She also uses it for the normal day to day things involved in running a family (2 kids). I have occasional use of this vehicle but its governed by her needs and could not successfully replace either the van or motorcycle. My wife is not part of the bankruptcy..

I think I have read somewhere in the O.R. tech manual that a vehicle reg doc is not proof of ownership and that a vehicle owned by other than the bankrupted party should be counted as excluded property..

If I cannot prove ownership of the van I think I should claim this vehicle is essential for work (which it it) and hopefully be allowed to keep it on that basis.
As for the motorcycle because of the stronger evidence to prove my wife owns it I think I should claim it as exempt property on that basis.

Is this correct?
Do I stand a chance of keeping both vehicles?

These are all true facts’, keeping both vehicles is extremely important to me, my family and business and is not just an excuse to get out of having them taken by the O.R. their value is minimal but replacement would not be easy and an extreme inconvenience.

Thanks in advance for any advice… Tony..