Ask a CCCS counsellor a bankruptcy question

Weejo

Hi there, I have a small business which I've struggled to keep afloat for 5 years. I have a number of personal and business debts (I'm a sole trader), I think it's time for me to file for bankruptcy as I've ran out of options and can see this as the only way out, I'm generating virtually no income. I'm concerned about my shop lease as I still have a further 2 years to run and where do I start? Can someone help, at my wits end but think I've made the decision.

CCCS_Matthew

Kelstar73 wrote: »

I need to know how this will affect the home I live in with my husband and child.

My husband was in the process of buying the house which has now become our marital home but my name is not on the mortgage.

Can someone please tell me if this will be affected if I am made bankrupt.

What else will happen to me if it goes ahead.

Thank you.

Hi there, thanks for getting in touch.

If you have contributed towards the upkeep of the house over time, you are likely to have built up some beneficial interest. This is where it maybe seen that you have an entitlement to some of the equity in the property even though your name isn't on the mortgage. If you are in negative equity then this isn't likely to be an issue.

Who has threatened you with bankruptcy, and have you actually recieved a statutory demand?

Regards,
Matthew.

CCCS_Matthew

whichwhydoIturn wrote: »

hi i am with a dmp for 3 years now, Gregory pennington.is there a cheaper company or way to pay off my debts.My hubbie walked out the first month we had a DMP & I have been paying money for both our debts since.no one has heard of my husband since he left .Gp are aware of my circumstances.can you help.in total we owe jointly & singly around 30k.i just want to get ride of my debt ASAP.I work rent a house & have no children. thank you

Hi there.

CCCS charge nothing for our DMP's.
https://www.cccs.co.uk/InfoCentre/EnglandandWales/Debtsolutions/Debtmanagementplan.aspx

You could also try National Debtline or your local CAB as they don't charge a fee either.

You can book a telephone based appointment to discuss your options by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have all of the necessary information ready, it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Regards,
Matthew.

CCCS_Matthew

katsu wrote: »

My brother is a mature student (full time in first year of degree at uni) with over £15k of debt in respect of a bankloan. He also has some council tax arrears (possibly other arrears/disputed bills with telephone co, utilities, I don't know the details).

Q1 - If he becomes bankrupt whilst at university will his student loans be considered income and as such taken into account in considering if he has too much income and needs to pay money to the official receiver?

Q2 - will he continue to receive student loans as a bankrupt (I assume he can as going BR does not write them off, so no risk to loan company)?

Q3 - If he has a CCJ for the loan can this outstanding loan debt still go into a bankruptcy?

Thanks.

Hi there.

1) As his income comes from student loans, the official reciever would not take interest in this as an income.

2) He will be able to continue to recieve his student loans as they are not regulated by the consumer credit act and therfore is unaffected as his bankuptcy.

3) Any CCJs he currently has will be included within his bankruptcy.

Hope this helps,
Matthew.

CCCS_Matthew

chelle230 wrote: »

Hi, hope someone can help answer this.

I was declared bankrupt in August 2008, so am now discharged. the main reason for the bankruptcy was a bed and breakfast business not being successful, so the mortgage and bills, and outstanding loans/credit cards, etc were all included.

I received a letter from the mortgage company a couple of weeks back saying the account was in arrears, thought this was an error and threw the letter away.

today I had a text asking me to call by 5.30pm to discuss the arrears. I called immediately to be told I was still liable for any outstanding debt.
Is this correct?
I thought that once the bankruptcy had taken effect and the OR had been through everything then that was it and I wouldn't be expected to pay anything, unless the OR advised. I will call them Monday anyway.
they told me the current arrears stand at £35k and this is increasing every month, as the fees on a commercial property are extortionate!
obviously I'm worried as I can't pay that, even in installments.

not sure if the building has been sold or not, as they wouldn't say, but work is being done to the property and apparantly the sale was noted in the local paper, for a significant loss.

thanks in advance, Chelle

Hi Chelle.

Providing the mortgage was taken out before your bankrutpcy you won't be liable. It could be that you are still being contacted if the lease is still in your name and has yet to be sold. Either way, let your OR know and they should be able to get in contact with them to sort it out.

You've probably done this by now anyway, so let me know how you get on!

Regards,
Matthew.

CCCS_Matthew

newby85 wrote: »

Hello, a quick questions..... Having been made bancrupt in 2005 I have been wondering why my credit file still says I owe upwards of £20k... Thank you for all the info In this forum, I'm now in the process of getting my previous credit accounts updated. However I notice that under court information it has information about CCJ's that I recieved before I was made bancrupt. Will these remain on my file with my bancruptsy for 6 years or should they have been removed?

Hope you understand what I mean!

Thank you in advance

Adam

Hi Adam.

You normally find that as soon as you go bankrupt your credit file shows zero balances on your debts, so you may want to check with your official reciever to why this hasn't happened. It might also be worth sending confirmation of your bankruptcy to the credit reference agencies who should be able to update your balances accordingly.

Either way, your debts including any CCJs you had registered against you should drop off your credit file after 6 years from the date that you went bankruptcy.

Hope that helped.
Matthew.

CCCS_Matthew

emmdee57 wrote: »

Hi, I was made Bankrupt in March 2008 due to my business folding. I had a meeting with the OR, after which my details were handed over to one of the Big 4 Accountancy firms as I at that time had assets. After an initial flurry of paperwork they sent me I have heard virtually nothing. However, in Sept 08 my house was repossessed leaving no assets. My credit reference report does not show any of my previous debts or does it show that I was made B'rupt. What should happen now and should I do anything to give them a prompt. Finally, in the meantime, can I get credit? Thank you

Hi there,

When you were made bankrupt, was it you personally being made bankrupt or was the bankruptcy for a limited company?

Thanks,
Matthew.

leemint

Hi, I completed the debt free remedy on line a few days ago, how long does it take for CCCS to take action.

thanks

philnicandamy

Once you completed the online debt remedy make a note of the reference number on screen & call cccs to arrange an appointment yourself

CCCS_Sue

ruthybaby28 wrote: »

how long does bankruptcy last as my boyfriend was declared bankcrupt sept 2008 and we have not heard off the or for about 12 months also as the debt was in both our names the debts are sending them to me in my name how can i resolve this will i have to go bankcrupt too as i can t afford to pay all these debts as well as my own

Hi ruthybaby28 and thank you for your message

Usually after 12 months, he would be automatically discharged on the first anniversary of the bankruptcy order.
He would not get an automatic discharge if his discharge had been suspended due to failure to cooperate with the OR or trustee, or if he were subject to a criminal bankruptcy order. He could contact his OR for further information regarding this.

If he was discharged automatically, he would do not have to do anything to get his discharge.
He can obtain a certificate of discharge, if he needs one, but there is a charge which is currently about £60.
I have attached a link to the Insolvency Services website which has leaflets you can download for further information
http://www.insolvency.gov.uk/guidanceleaflets/Guides.htm

Because the debts were in joint names, then you are joint and severally liable so they will now pursue you for the money.
I cannot give you detailed advice about your options without knowing your full financial situation.I would recommend that you call for an appointment to speak to one of our debt counsellors to discuss your options

To book an appointment with one of our trained counsellors you would need to contact our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Alternatively you can visit our online debt advice facility called Debt Remedy. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. This link will take you directly to Debt Remedy www.cccs.co.uk/ref/drcu

Regards,
Sue