Ask a CCCS counsellor a bankruptcy question

CCCS_Amanda

confused76 wrote: »

hi
quick question about a car....when i divorced my parents bought a car i have used since new - the registration documents are still in my mothers name but i tend to class it as my own. obviously when it comes to br i am glad it is still in my mothers name however i have thought of it as my own and last time i got car insurance i put down that it was my own, not thinking anything of it. does the or get a copy of car insurance? this would look dodgy if so, and what should i do? officially it is still my mothers. it is prob worth 2,000 its a 5 year old 1.2 punto
thanks
S

Hi confused 76,

The car is not your asset and as the car has never been registered in your name it should not be an issue.

As long as the car is your sole means of transport (ie. You are not taking the bus to work, but still paying for the car and all associated costs), and as long as the car costs are not excessive then the OR should not have a problem.

Regards,
Amanda

CCCS_Amanda

porcupine1 wrote: »

My wife and I have been advised to go bankrupt. We are looking to rent as we can afford the mortgage, but not the secured First Plus loan as well. What will happen to the secured loan when we declare bankruptcy? There seems to be some confusion about this

Hi porcupine1,

I take it that you are handing back the keys on your current property?

If this is the case then the house would be sold and any proceeds from the sale would, firstly, be applied to your mortgage. If there are any funds left over they would go to First Plus.

If there is still a debt after this happens (called a mortgage shortfall) you would be able to include this in your bankruptcy.

Regards,
Amanda

CCCS_Amanda

cookie12 wrote: »

Hi

I am planning to go bankrupt. I have a secured loan on my mortgage. Some have said that they have kept their homes after bankruptcy but as I have a secured loan against the property, would I have to lose the house to lose the loan?

Thank you

Hi cookie12,

Essentially, yes. As the debt is secured on the property, the only way to retain your property is to pay the mortgage and the secured loan.

If you have negative equity in your property, it is possible to keep your property when you petition for your own bankruptcy. However, the home has to be affordable; the payments you make on your mortgage and your secured loan combined has to be a reasonable amount.

I hope this helps.

Regards,
Amanda

CCCS_Sarah

oregonuk1 wrote: »

To Sarah
The problem with me being on JSA is I have mental health problems and it could take me years to get a new job because Mental health problems are frowned on in the work place and the current jobs market for the sort of basic work I can do There are no jobs.


With my mental health problems and the fact friends will not be able to help me any more so is pushing me to want to kill my self because of my debt the only thing stopping me is living with my parents granted I do not have the bills to pay but below is what I do pay. I will not have the money to pay and with me being on only £64.30 each week this only covers me for my


food of £30.00 a week
my mobile of ten pounds a week for looking for work.
Travel on bus £15.00 a week
clothes about £5.00 a week
hair cut £2.50 a week
and the rest will go on anything else I need
That means I am left with nothing.


The CAB and my doctor both think because of my Mental health problems I should go bankrupt before my friends stop loaning me money because I am not solvent now.


One more thing if I use the insolvency services online forms for bankruptcy do I have to pay for this service?.


Will I be able to put in detail my above out goings or should I just add this to my Bankruptcy papers?.


Thanks


Oregonuk1

Hi Oregaonuk1,

Thanks for you reply.

Your creditors can’t have what you don’t have and really don’t feel pressured into paying more than you can afford. You would be more than welcome to come for an appointment and then we can help you complete a budget and then refer you to our bankruptcy support team if it’s your best option.

If you would like an appointment please call 0800 138 1111

CCCS_Sarah

oregonuk1 wrote: »

Thanks for your reply Phil I wish more people could be understanding of Mental health problems I think lots of people that get in Trouble with money have bad luck or a mental health problems.

Hi Oregaonuk1,

I don’t know much about mental health issues, however I know that there is a really good organisation called MIND. I have attached a link to there website http://www.mind.org.uk/ if its something your aware of then just disregard the link.

Hope it comes in useful

Sarah

In_a_Mess_3

Hi,

Just a quickie, we have been advised that bankruptcy may be the best option for us, and we are just talking about it and wondered what about the utilities?

Can we still pay them by direct debit monthly or will they make us put in a pre-payment meter?

I am sure I will think of some more questions later!!

Thanks!

philnicandamy

In_a_Mess wrote: »

Hi,

Just a quickie, we have been advised that bankruptcy may be the best option for us, and we are just talking about it and wondered what about the utilities? they carry on as normal....BUT depending on your bank account you may have to switch to barclays or co-op's basic account...they're the only 2 bankrupt freindly banks at the moment...

Can we still pay them by direct debit monthly or will they make us put in a pre-payment meter? depends if you have debts with the current supplier? if not then you can happily carry on as normal...

I am sure I will think of some more questions later!!

Thanks!

Just a few thoughts

caro50

we `are considering going bankrupt but we are due to remortage our home next september and wondering if we will get another mortgage?

Our home is in negative equity and we have a large secured loan against the house with nothern rock as well.

Any thoughts would be appreciated.

In_a_Mess_3

Thanks again Phil! we don't have debts with them so that's excellent news! Should we open the new accounts now or wait until it all starts happening?

philnicandamy

Nothing to stop you opening a basic account now...Barclays or Co-op offer a basic account with cashcard DD's etc sometimes they can take a little while to process..once everythings in place for "B" day make sure the basic account has only enough cash in to cover your living expenses..any more cash and the receiver "could" start taking an interest

the only place that seems to close co-op accounts opened before bankruptcy are brighton..so you should be fine