Ask a CCCS counsellor a bankruptcy question

CCCS_Sue

Weejo wrote: »

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.

Hi Weejo and thank you for your message

I would recommend that you contact the Business Debtline about your situation.
They are a charity, and they give free, confidential and independent advice on how to deal with business debt problems.

They will be able to give you help and advice on the options available for your situation
I have attached a link for you.
http://www.bdl.org.uk/

Regards
Sue

MovingForward_3

Hi

I'm considering BR, am self-employed, living as a single person.

Given my current income and expenditure there is not any surplus left for an IPA. However, I understand that as a BR I will be exempt from tax for the rest of the financial year, in which case I will have a surplus while I'm not paying tax.

Does this mean that an IPA will be set up, and does this also mean that it will therefore run for 3 years, even though once tax kicks back in I will not have any surplus to pay into it?

I realise that an IPA can be reviewed and so I am not concerned about being asked to carry on paying once the "tax surplus" has ended - what I want to know is whether I'll be tied in to an IPA for 2 years after I'm discharged, and thus have to report any increase in income during that time.

I trust this makes sense!

Many thanks in anticipation

MovingForward

CCCS_Sue

leemint wrote: »

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

thanks

Hi leemint and thank you for your message

Normally within a few days, but it would depend on what the recommendation was in your booklet when you had completed your Debt Remedy.
If you need further clarification on anything to do with your Debt Remedy , I would recommend that you call the Debt Remedy team on the telephone number in your booklet.
regards
Sue

CCCS_Sue

MovingForward wrote: »

Hi

I'm considering BR, am self-employed, living as a single person.

Given my current income and expenditure there is not any surplus left for an IPA. However, I understand that as a BR I will be exempt from tax for the rest of the financial year, in which case I will have a surplus while I'm not paying tax.

Does this mean that an IPA will be set up, and does this also mean that it will therefore run for 3 years, even though once tax kicks back in I will not have any surplus to pay into it?

I realise that an IPA can be reviewed and so I am not concerned about being asked to carry on paying once the "tax surplus" has ended - what I want to know is whether I'll be tied in to an IPA for 2 years after I'm discharged, and thus have to report any increase in income during that time.

I trust this makes sense!

Many thanks in anticipation

MovingForward

Hi Movingforward and thank you for message

There will be extra money in your pay because of the nil tax code. This money will form the basis of an IPA or IPO, even if you have no other real disposable income.
A nil tax (or NT) IPA or IPO may be the only amount you have to pay, and the agreement or order will stop when your tax code changes. If you have other real disposable income, the IPA or IPO will reduce when your tax code changes.


I have attached a link to an Insolvency Service leaflet on IPA and IPO which will answer any further questions.

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/ipoipa.pdf

Regards
Sue

emmdee57

I was made BR in March 2008 by my local council (Council Tax). Following a meeting with the OR it was then handed over to a large accountancy firm to handle. Since then my home has been repossessed but I have heard next to nothing. My credit files only state one creditor (I had over 10) but does show anything about the BR. Is this right? I though the details of my BR would have been stated by now. Also, whilst it doesn't show, can I apply or a mortgage now whilst it is still good as my new business is doing quite well. Thank you.

katsu

Thanks for your reply CCCS Matthew, re my mature student sibling. One other question - as he has council tax arrears (from prior to becoming a student, when he was made redundant and ended up on benefits, so either from earlier this year or end of last CT year too), can they go into a BR as well? I don't know if there is a point at which you remain liable for CT arrears (for example if they take you to court for non payment before you become BR)?

Really appreciate your services here, I've already given him the info from your previous post, to reassure him. He was terrified that if he went BR he would lose his student loan and have to give up the course. You have given him hope that this will all be OK. Many, many thanks.

samjayne

I've just had a date to go Bankrupt on Feb 10th i had been planning on doing an IVA but after advice from CCCs i've decided to go bankrupt while i had originally written to all my creditors saying that i was in the process of setting up an IVA many of them still ring trying to get me to make a payment. Is it ok to tell them that i will be going bankrupt on Feb 10th? Also have been advised that i should maybe only pay them a £1 a month so that i can save for BR fees and should i inform them of that?

CCCS_Matthew

emmdee57 wrote: »

I was made BR in March 2008 by my local council (Council Tax). Following a meeting with the OR it was then handed over to a large accountancy firm to handle. Since then my home has been repossessed but I have heard next to nothing. My credit files only state one creditor (I had over 10) but does show anything about the BR. Is this right? I though the details of my BR would have been stated by now. Also, whilst it doesn't show, can I apply or a mortgage now whilst it is still good as my new business is doing quite well. Thank you.

Hi there.

It's strange that your bankrutpcy isn't showing on your credit file at all, as it should show on your credit file for 6 years from the date of bankruptcy. Have you tried obtaining a copy of your credit file with the other credit reference agencies so see what is registered with them? The following 3 organisations can all provide you with this:
www.experian.co.uk
www.equifax.co.uk
www.callcredit.co.uk

If you have had confirmation of discharge from your bankruptcy, then you are free to apply for a mortgage now. If you have yet to have confirmation of discharge (unlikely if you were made bankrupt in March 2008) then you won't be able to apply for a mortgage until you are discharged.

Regards,
Matthew.

CCCS_Matthew

katsu wrote: »

Thanks for your reply CCCS Matthew, re my mature student sibling. One other question - as he has council tax arrears (from prior to becoming a student, when he was made redundant and ended up on benefits, so either from earlier this year or end of last CT year too), can they go into a BR as well? I don't know if there is a point at which you remain liable for CT arrears (for example if they take you to court for non payment before you become BR)?

Really appreciate your services here, I've already given him the info from your previous post, to reassure him. He was terrified that if he went BR he would lose his student loan and have to give up the course. You have given him hope that this will all be OK. Many, many thanks.

Hi again,

Providing the Council Tax arrears were incurred before his bankruptcy, they will be indeed included within his application so he will not be liable.

Hope this helps, wish him luck.
Matthew.

CCCS_Matthew

samjayne wrote: »

I've just had a date to go Bankrupt on Feb 10th i had been planning on doing an IVA but after advice from CCCs i've decided to go bankrupt while i had originally written to all my creditors saying that i was in the process of setting up an IVA many of them still ring trying to get me to make a payment. Is it ok to tell them that i will be going bankrupt on Feb 10th? Also have been advised that i should maybe only pay them a £1 a month so that i can save for BR fees and should i inform them of that?

Hi there.

If you feel comfortable telling your creditors you are going bankrupt then you can certainly tell them that. To be honest, at this stage if you've made the decision you don't need to go out your way to answer the phone calls.

If you are going to go bankrupt next month you are best to pay no more than £1 to each of them as the rest can be used to save for the fee.

Good luck,
Matthew.