Ask a CCCS counsellor a bankruptcy question

CCCS_Matthew

shazbo wrote: »

hi can someone please help. my husband and i were declared bankrupt at the end of july and things have been going ok but now my husband has had a lucrative months pay and we need some of it to pay for extras and christmas but when i spoke to the OR they said they couldnt tell me if we can keep any of the extra money ( the CAB said the OR would take 80% max) and we have nothing put by for christmas at all and a few things to pay for that we just cant manage in our budget. My question is will they take all the extra money or are we likely to be left with some?

After speaking to them today i feel sick with worry and stress please help me understand what the likely outcome could be, is the CAB on the right track?

I'm afraid it's ultimately up to the discretion of the official reciever. You'll need to explain the situation to see whether they can allow you some of this to meet your commitments but in throry, your budget should have allowed for small amount for christmas and other emergencies.

Matthew.

CCCS_Matthew

manaquin wrote: »

Hi there

i actually have an appointment next week to speak with a business debt advisor at CCCS but i had some things on my mind to ask.

firstly, my business is not making enough money in my opinion, as i have been trading since end of jun 09, and 2 months of that recently i became ill and hospitalized. Ive just been discharged yesterday but cant do what i used to do.

ok, the first issue i have is that im 2 weeks behind on business rates. Now my business is a franchise and basically they are looking to take over my affairs in veiw to selling it at a reduced price, but this is obviously gona take time, and personally, i dont see the point of me slipping into more debt.

im worried about the business rates as im unsire what the process is, can i be sent to prison for non payment?

Also hypotherically, if i did go the bankcrupt route, if an ipo was given, the 'reasonable' living costs allowed, RE rent, i currently rent a room in a house( i have no major assets apart from the business), but my landlord who lives with me may want his house back. the ave rent for a single bed in manch is about 400-450, so would they deem this as reasonable or are the expecting me ti live in a council property? I didnt see any thing in the guidlines about having to live in council or ha property so im assuming this is reasonable. can an ipo be altered later if im having to move/ circs change>

thanks

I'm not an expert when it comes to business debts, but my understanding is that the repurcussions of not paying business rates is similar to council tax. You'll only ever be sent to prison if you refuse to pay. If you can't pay they can enforce the debt through court. The following maybe of use:
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073792392

As for bankrutpcy, you won't be forced into a council property if you need to move. It's to be expected that you don't look at renting a top-notch penthouse apartment which costs twice as much as the average flat, but I'm sure that's not going to be much of an issue.

An IPA/IPO can be altered if your situation turned for the better/worse. You would just need to discuss with the official reciever.

Good luck for the appointment.
Matthew.

CCCS_Matthew

jojo1985 wrote: »

i have had an appointment with cab and going for a dro, all is good apart from the bank account situation. Well my cab advisor says that i will be able to keep my bank account ( it has an overdraft) the account is with natwest but i have a credit card with them that will be cleared with the dro, the advisor said that they won't close my account because of this. Now on these forums im being told this is not the case and i could (at worst) be done for fraud. i really need some professional advice please.

i have applied for a co-op cashminder and been turned down and the only other available is barclays...but i am including barclaycard debt on the dro...will this matter?

if i can't get that im at a loose end, i need a proper bank account! Benefits can be paid into a post office account but h/benefit can't and they only give you crossed cheques, my local council won't cash them there so i can't receive it!

HELP!

Hi there.

Not quite sure where the fraud issue has come up, but I would suggest you move banking away from Natwest. You are restricted from borrowing during an DRO and having use of an overdraft is borrowing.

On what grounds did Co-op give you for rejecting you? Normally they are quite receptive to people having basic accounts. Barclays shouldn't be a problem once the DRO is up and running as they won't be chasing your for the money. Have you got the ability to have your money paid into a family members' account for the time being until the DRO is active?

Matthew.

CCCS_Matthew

messenger wrote: »

I am trying to find some answers for a person I know from work. He went bankrupt in June'07 for £40,000. He owns a house-mortgaged. He is afraid, his house will be put on sale as a result of this at the end of 3 yrs(by June'10). What will happen to his house?. Should he submit a valuation for his house? or will it be valued for him?
Thank you

The official reciever/trustee has up to 3 years to decide what to do with the property if it has equity in it. They will be normally be given the following options:

1. Sell the house and release an agreed amount of equity to settle the debts
2. Find a third party who is prepared to pay the money on their behalf (normally easier said than done)
3. Have the house sold on their behalf

Unfortunately, if they refuse the trustee has the right to force sale of the property. As far as valuation is conerned, the trustee has the duty to have the property valued by an impartial party. If the valuation is disupted, you can have the property valuated yourself to compare and request that is taken into consideration.

Hope this helps,
Matthew.

CCCS_Matthew

Daveymilo wrote: »

How long does the bankrupcy process take? And if im bankrupt and my parents buy me a car as a gift am i allowed to keep it?

The process length differs depending on how busy the court is, and also whether or not you've got the fee together and all the forms filled out.

Typically I would say once you've got everything together the average wait is probably 3-4 weeks but it's hard to say. It might be worth browsing the bankruptcy thread to see what other people say, as many on there have been through the process.

As for the car, if it's worth more than £1,000 it could be taken as an asset. If it's in your name it doesn't really matter if it's a gift or not I'm afraid.

Matthew.

CCCS_Matthew

candie1 wrote: »

Hello My husband and i went bankrupt friday 13th nov, the order was made. we have a telephone interview in a few weeks. We were given proffesional advice regarding our debts to go bankrupt. We were told we are in negative equity. All our unsecured and secured debts including mortgage are up to date regards payments and i have never missed a payment,although some weeks we could not even afford a loaf of bread. I am just worried now we could loose our home could someone please help. Thankyou

If you're in negative equity then your won't be asked to sell your home. When you say "you were told you were in negative equirty" did you get a valuation to be sure?

The only possible issue you may have is if the OR thinks that the payment towards mortgage and any other secured lending is more than the average for a home of your size in your area. If this is the case, you might be asked to make a contribution each month to make up the difference. This would be something your OR will discuss when you have your call.

Hope all goes well.
Matthew.

CCCS_Matthew

links26 wrote: »

Hi there, hope someone can give me some guidance with this.

Am looking at declaring myself bankrupt as am currently out of work and on jobseekers with little to no spare money for creditors.

My concern lies with money I had in a couple of savings accounts for a few months of last year - basically a friend of mine sold a house and the proceeds were put into savings accounts that I opened in order to earn more interest (he's a higher rate tax payer) - the money was then returned to him including all the interest when he bought another house.

Obviously I'm a bit worried that if I declare myself bankrupt I'm gonna have to explain the movement of large amounts of cash (we're talking 6 figure sums) in my recent financial history even though none of the money was technically mine. If I can prove through statements where the money came from and where it's since gone will the OR see that it was never really my money? or will they deem that I have some kind of interest in the new house?

Many thanks.

Hi there,

I think it's fair to say that it will raise a slight concern with the official reciever, but as long as it can be well documented that it wasn't your money to start with you maybe ok.

The only possible issue I can think of is that the official reciever may claim you are entitled to some of the interest. If your friend was using your accounts for financial benefit to avoid tax, you could see how this might raise an eyebrow or two.

I think for peace of mind, your best bet is to call the Insolvency Service and ask this question hypotherically, they should be able to give you a more convincing answer.

Regards,
Matthew.

CCCS_Matthew

PH1LL wrote: »

Hello,

I will be going bankrupt, i lef tmy ex wife, am not divorced yet. She is paying the mortgage and living in the property we jointly own, its in negative equity - about 10k i want her to buy my BI.

2 things - Is there any chance of her being refused the option of buying my BI?

and Will the mortgage provider be informed, if so will they force her to renegotiate a new mortgage? (its 110% mortgaged and about 5.5 times her salary) she has been paying it alone for months now and compltely up to date with the payments.

Many thanks

Phill

Hi Phill.

If the property is in negative equity there should be no reason to why she can't buy the BI. It normally costs a nominal £1 plus about £211 in legal costs.

The mortgage provider will be informed that you've been made bankrupt, but they won't insist that she has to re-mortgage the property so as long as she continues to pay the mortgage each month there should be no issue. It won't have any negative impact on her credit file.

Hope this helps,
Matthew.

PH1LL

Hello Matthew, thanks for your reply. Can the OR delay her buying the BI until a time when there is equity in the property? I know they have three years to deal with it.
If they can, how likely is this to happen?

Thanks
Phill

cookie1979_2

Hi Everyone

Just a few questions ....

Once the petition is took to court does the fee have to be paid then and there?

What happens to your home? My byf is approx £20k in debt the house is in negative equity ... How quick can it go? He wants to move out of there asap as its so sad...

What happens if he gets a higher paid job after bankruptsy will he have to pay any of the debt back??

Not sure if ive made sense ...

Thanks

C xx