Ask a CCCS counsellor a bankruptcy question

Tigger2808

My partner is considering bankruptcy or DRO. His debts date back to before he met me (some are years old). We have no way of paying them off in the near future, especially now that he's lost his job. Some of the debts are down to his ex-partner - joint bank a/c etc. (This is a fact, not him trying to fob me off).

However I'm a little worried as he's had letters hand delivered through the door by bailiffs, so they've obviously been here while we were out! The house is mortgaged in my name, he's not on the mortgage. I have paid for almost everything in the house but I think I'd have difficulty providing receipts etc to prove this. Can bailiffs take stuff from my home? Could my home be at risk? Could I be affected if he decided to declare bankruptcy or apply for a DRO?

Any advice would be appreciated. Thanks.

CCCS_Amanda

PH1LL wrote: »

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

Hi Phill,

This is not usually an immediate transaction but usually happens within a year or so of bankruptcy.

Regards,
Amanda

CCCS_Amanda

cookie1979 wrote: »

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

Hi cookie1979,

You will have to pay the Bankruptcy fees at the court when you petition for your bankruptcy.

If the house is in negative equity the Official Receiver (OR) may give your boyfriend the option to stay in the house if he can get a 3rd party to buy his beneficial interest in the property. If the house is unaffordable, or your boyfriend wants to move and have any potential mortgage shortfall included in the Bankruptcy then he can hand the keys back to the mortgage company at any time. He can either do this prior to his bankruptcy, or after discussing his options with the OR.

If you are an undischarged bankrupt and you receive a pay increase or get a higher paying job, you are required to declare this to the OR.

I hope that this helps.

Regards,
Amanda

peacock

Hi, we need some advice about beneficial interest.
We both went bankrupt, and the OR says a relative can buy our beneficial interest for £1 as we are in negative equity. If we arrange that, and later decide that we can't afford to keep paying such high mortgage payments if the fixed rate ends and the B S make the new deal even higher, would our relative become liable to any shortfall if we were to give back the keys and let the debt on the house roll-up with the bankruptcy?

jojo1985_2

CCCS_Matthew wrote: »

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.

thanks matthew, all i received from co-op was a letter to say thank you for my interest but they wouldn't give me one, i rang and they said they only usually reject on grounds of fraud on my credit file, i have no knowledge of fraud and checked my credit report just incase and all was fine. Waiting to hear from barclays now. The biggest problem i'm having is with paying money in, particularly housing benefit, the only option is direct to landlord, which on average would leave me more out of pocket monthly!

Goats1

Hello there,

I'd be very grateful if someone can answer my questions.

I had personal debts totaling £34k accumulated over 8 years or so. In May of this year I lost my job, and as a result of health and other issues, I've not been able to get another job since. I was not able to make any payments to my 7 creditors until this month. Due to the lack of any assets and prospects, I was on the brink of applying for bankruptcy when a relative kindly offered to help with settling my debts. The offer was conditional on me agreeing reduced settlement figures with all of my creditors to the tune of £17-18k. I negotiated and agreed "Full and Final" settlements with each of the creditors individually, and managed to get the money from the relative and pay them all £17.2k. A couple of creditors had already issued default notices, so I had to negotiate with their debt collection agencies.

My questions are:

- Was what I did an IVA? If not, what's it then?
- How does it compare to bankruptcy?
- What are the repercussions of it on my personal, work and financial future?
- If what I did was the wrong way of sorting out my situation, how can a rectify the matter and have it sorted?

Many thanks for taking the time to read and advise me!

Tigger2703

My partner and I are petitioning for bankruptcy as soon as we can get the fees togther, but there are a couple of things I don't understand about the fees. Most of the debts are in my name, from before we were together, but we do have a joint bank account that is £700 overdrawn and he has a few small debts from long ago that have just resurfaced.

If we go bankrupt as a couple, do we have to pay the court fees twice? If I do it on my own can a joint bank account be included, and if not is there any way of putting it in just my name before we submit the papers?

I'm also getting conflicting information on the court fees being anywhere between £300 and £900 in total, so can you tell me how much we will need to pay and at what stage in the proceedings.

I also can't work out if we qualify for any reduction to the costs (I earn nearly 11K and he earns about 13k per year and we're not on any benefits although we have been recently).

Thanks in advance for any help you can give.

V

mysterio_2

Tigger2703 wrote: »

My partner and I are petitioning for bankruptcy as soon as we can get the fees togther, but there are a couple of things I don't understand about the fees. Most of the debts are in my name, from before we were together, but we do have a joint bank account that is £700 overdrawn and he has a few small debts from long ago that have just resurfaced.

If we go bankrupt as a couple, do we have to pay the court fees twice? you will yes..NO such thing as a "joint" bankruptcy sorry... If I do it on my own can a joint bank account be included NO because the debt from the joint account would then fall to your OH , and if not is there any way of putting it in just my name before we submit the papers? be very suprised if the bank allowed...while still O/d anyhow

I'm also getting conflicting information on the court fees being anywhere between £300 and £900 in total, so can you tell me how much we will need to pay and at what stage in the proceedings. £510 each payable the day you present at court

I also can't work out if we qualify for any reduction to the costs (I earn nearly 11K and he earns about 13k per year and we're not on any benefits although we have been recently).

Thanks in advance for any help you can give.

V

Court fee remission and forms.

• HMCS - Court fees do you have to pay them? (And guidance on completing the fee remission form). (pdf)
• HMCS - Form EX160 - Application for a fee remission (pdf)
• Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)
• Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)
• Possible assistance with Bankruptcy costs / fees (Thanks to NE Derbyshire CAB)

CCCS_Sarah

Tigger2808 wrote: »

My partner is considering bankruptcy or DRO. His debts date back to before he met me (some are years old). We have no way of paying them off in the near future, especially now that he's lost his job. Some of the debts are down to his ex-partner - joint bank a/c etc. (This is a fact, not him trying to fob me off).

However I'm a little worried as he's had letters hand delivered through the door by bailiffs, so they've obviously been here while we were out! The house is mortgaged in my name, he's not on the mortgage. I have paid for almost everything in the house but I think I'd have difficulty providing receipts etc to prove this. Can bailiffs take stuff from my home? Could my home be at risk? Could I be affected if he decided to declare bankruptcy or apply for a DRO?

Any advice would be appreciated. Thanks.

Hello,

Does your partner know what debt the Bailiffs are collecting? Depending on what type of debt it is, it will change the advice.

Are you in rented accommodation or is your home mortgaged?

Sarah

baled_2

Hi
I have received a letter from the Official Receiver dealing with my brother's bankruptcy asking that I pay the receiver £2100 which was a loan my brother repaid to me last year before going bankrupt this year. I am sending a letter today informing him that I cannot afford to pay him this money as the sum was a personal loan which I arranged with my own bank at the time and subsequently repaid once my brother paid me.
Can anyone who has either been through this situation or advised/helped anyone through this answer some questions I have? I'd be really grateful if this is possible.
1. What proof will the receiver ask from me to back up my claim? Bank statements? Wage slips? And how far back would I have to provide these?
2. If I'm receiving tax credits will he count this within my income and ability to pay?
3. Do I have to declare any savings accounts as well as current accounts? I have just over £1000 in a savings account which was a backdated tax credits payment. I'm concerned if I tell him this, he'll demand I use that as payment.
4. My other brother has had a similar letter to me but for a larger sum. He is being made redundant at Christmas. Will he still be expected to pay?
5. If the decision is that I have to pay this money, can I appeal against it?
6. If all else fails and I have to pay, what payment arrangements are likely to be expected and how will they be set? Can I determine this or will he?
Sorry for the bombardment of questions, it would just be really useful to know these answers.
I understand that the receiver is perfectly entitled by law to demand this so called 'preferential payment' back and I say this in the politest possible terms that the law is an !!!. If you can't help out your family in times like these, who can you help?
Thanks in advance.