Ask a CCCS counsellor a bankruptcy question

leahceri

Hi
The CAB advised me today that i need to declare bankruptcy. I have an appointment in February to fill in the forms. What should i do now? Cancel direct debits? Inform creditors?
Thank you

CCCS_Matthew

rag31 wrote: »

Hi there

I have posted my SOA on a thread on it's own but I have some questions please. We are insolvent looking at our SOA. My husband refuses to admit this and says he will reconsider bankruptcy in 6 months time.

So, I am considering bankruptcy just myself as I can't handle the stress when I know there is no other option.

My questions are: what happens to joint debts and accounts? Our current account with all direct debits etc is joint. If I go bankrupt will it be frozen?

Also, will dh income be taken into account more than just to ensure he pays his share of the bills? (tbh it all goes into the family account).

I also had a business which was closed 3 years ago. It only broke even, but we didn't have any debt when it closed. It was a partnership but we registered as a ltd company, but it was... can't remember the term... we didn't have to file accounts anyway.

Will I need to put the details of this in the Bankruptcy forms? Will they contact my ex-partner about this?

I think that's it at the moment. Thanks.

Becky

Hi Becky, thanks for getting in touch.

Any joint debts you have with your partner are classed as joint and severally liable. So if you were to make yourself bankrupt, your partner would be liable for the full amount. As far as joint bank accounts are concerned, I believe it is down to the discretion of the bank to whether or not they will allow the bankrupt still to be named on the account. Joint accounts will still be frozen for 48 hours or so, just as any accounts just in your name would be.

If your budget illustrates your income, and your financial commitment to the budget then your husband's income should not be taken into consideration.

You may need to include the information about the business you used to be a director of. It shouldn't affect the situation at all, but it's worth making note of it so the OR is aware. There should be no need for the OR to contact your ex-partner about this, unless they feel something untoward has occurred with the business.

Hope this helps,
Matthew.

rag31

CCCS_Matthew wrote: »

Hope this helps,
Matthew.

Yes, it does Matthew. Thank you.

Becky

CCCS_Matthew

Stardust wrote: »

Am I right in thinking I should include my student loan payment letter with all my bits to the CCCS as proof of my student loan?

And do you guys want the original or a photocopy?



I thought of another question while in the bath What happens to all the charges that get added on in between sending off my bits and having the DRO applied? There paper statement might read £800 but it'll be £850 with intrest/late payment etc - It'll all come in at under £15k with the extras (at least I hope no one gonna charge me 2k for non payment or something :eek: )


Just waiting for a letter to come in the post and then I can send it all off :j Can't wait for this 4 year nightmare to be over!

Hi there.

Just to check, what option are we helping you with? Your post suggests a DRO but just wanted to check as this is the bankrupcty thread!

Matthew.

CCCS_Matthew

leahceri wrote: »

Hi
The CAB advised me today that i need to declare bankruptcy. I have an appointment in February to fill in the forms. What should i do now? Cancel direct debits? Inform creditors?
Thank you

Hi there.

My advice would be that if you have decided to declare bankruptcy, then you should stop paying your creditors straight away. Up until you actually do go bankrupt you could consider offering a good will gesture payment, but anything more than £1 a month is best avoided, as you could use this money to help save for your fee.

If you haven't already done so set yourself a new basic bank account open away from your creditors to protect your money. Providing you don't owe them money, consider a Co-op or Barclays cash account as these are typically considered 'bankruptcy friendly' accounts and therefore should not be affected by the bankruptcy.

Whether or not you tell your creditors that you are looking at going bankrupt is down to you. There is nothing to suggest you must tell them, so if you feel more comfortable keeping it to yourself at this stage you can do!

Good luck,
Matthew.

Stardust

CCCS_Matthew wrote: »

Hi there.

Just to check, what option are we helping you with? Your post suggests a DRO but just wanted to check as this is the bankrupcty thread!

Matthew.

With a DRO, i know this is the bankruptcy thread but im trying to get answers to my questions and am unable to get through on your 08001071339 line.

Do you require originals or photocopy's to be sent?

CCCS_Matthew

Stardust wrote: »

With a DRO, i know this is the bankruptcy thread but im trying to get answers to my questions and am unable to get through on your 08001071339 line.

Do you require originals or photocopy's to be sent?

Hi again, no problem.

Photocopies are fine as we are unable to send back originals. Include information regarding the student loan assuming it's been included as an income on your budget.

As far as any interest is concerned, that will also be included within the DRO providing it doesn't take you over the £15k threshold. Once the DRO is signed and active, no more interest can be added unless the DRO is revoked.

Hope this helps!
Matthew.

Tagnut1999

My wife and I are are going to have to make a reduced mortgage payment this month because she has been made redundant and we can't afford the full payment this month. How soon can we petition for Bankruptcy?

I am hoping the wife will find some employment soon but she will have to take a paycut but if she can clear £1K per month we should still be able to afford the mortgage. Our house is in negative equity and a very nice man called Dwayne at CCCS told us that it is likely we may be able to keep the house.

Thank you very much for your help

Regards

CCCS_Matthew

Tagnut1999 wrote: »

My wife and I are are going to have to make a reduced mortgage payment this month because she has been made redundant and we can't afford the full payment this month. How soon can we petition for Bankruptcy?

I am hoping the wife will find some employment soon but she will have to take a paycut but if she can clear £1K per month we should still be able to afford the mortgage. Our house is in negative equity and a very nice man called Dwayne at CCCS told us that it is likely we may be able to keep the house.

Thank you very much for your help

Regards

Hi there.

Have you advised your mortgage lender that you are unable to meet your full payment this month? It might be best to call us to discuss things over the phone as it's really hard to give you specific advice about things without being able to see your budget and know what else has been discussed on your appointment.

Regards,
Matthew.

Emmaj_2

We have today had our OR telephone interview after declaring ourselves bankrupt on 23rd December.

I found it pretty tough and at times felt he was trying to catch me out but that might just be me as I was very nervous! Ive got nothing to hide I just wasnt expecting some of the questions and couldnt be exactly sure on some of the figures/dates he was asking for but was honest and said what I thought but I couldnt be exact without looking further.
Our debts total to £30k combined and most of these are in my partners name so his interview lasted a lot longer.

A couple of months ago we sold our car for £1600,the true value to raise £1000 court fees and bought a new car for £595 as my childrens school/nursery are approx4miles away and I have to do 3 round trips there in a day. National debtline advised me that this was a fair thing to do and shouldnt have any problems with keeping the car. My partner was advised today that in order for us to keep the car we need to write and propose an acceptable contribution otherwise we would lose the car.

I have been unemployed since June 2009 due to childcare and my partners business failed in September which is when our problems started. We took a dmp with cccs for 2 months prior to that when his work started to deteriorate. The OR has asked to see a copy of this.My partner has just had 2 weeks agency work and looks promising for next couple of weeks aleast so we are making every effort to get back on our feet as we hate being in this situation.

What Im trying to ask is does what we have done so far sound normal/acceptable and what would be an acceptable proposal. We have no spare money to offer them without borrowing which isnt a route we will go down again and for my partner to carry on working he needs to have a car. I can get the bus to and from school if needed but the work he is being offered is 15-20 miles away and his hours are 2am start so cant use public transport.

Is this a normal thing for them to ask or do you think there may be some problems.

Sorry to babble on I just want this to go smoothly and quickly as possible so I can try and start the year with a fresh new start.

Emma