Ask a CCCS counsellor a bankruptcy question

Tagnut1999

CCCS_Matthew wrote: »

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.

We are going to speak to them tomorrow. We are in a fixed rate deal at the moment paying a lot higher interest than anyone else (other than those who are also on a fixed rate!) We don't know if we can buy our way out of it add it to the mortgage and go on to the variable rate which is a lot lower which would reduce our monthly payments. We are with the Northern Rock don't know whether this will help or hinder us!!.

I spoke with the lovely Ellen in Halifax this evening who was extremely helpful. I will let you know the outcome of our discussions with our Lender.

Incidentally should i mention to NR that we are looking at Bankruptcy or should I leave that for now? My wife will hopefully get a job soon as she has an Interview the end of the month maybe another interview in the pipeline and she is hoping to hear about a job whose closing date is tomorrow.

Thank you for your help

ineedhelp123

hi i split with my partner six months ago over my spirraling debts she ageed to buy my share of the house she gave me £15k which was her saveings she tried to borrow more as my share of the equity was 50k but abbey would not lend her the money on affordability,my name is no longer on the deads i have lived in a flat for the last six monthscouldnt get benefits because of my payout so have used the money to keep my minimum payments going out i am now on the dole cant get a job and skint so this is the first month a cannot make the payments if i go bankrupt can they still go after the house

fermi

ineedhelp123 wrote: »

hi i split with my partner six months ago over my spirraling debts she ageed to buy my share of the house she gave me £15k which was her saveings she tried to borrow more as my share of the equity was 50k but abbey would not lend her the money on affordability,my name is no longer on the deads i have lived in a flat for the last six monthscouldnt get benefits because of my payout so have used the money to keep my minimum payments going out i am now on the dole cant get a job and skint so this is the first month a cannot make the payments if i go bankrupt can they still go after the house

If you effectively sold your share of the house/equity for less than it's true value, then that could well be considered a "transaction at undervalue".

As such, it may be possible for the OR/trustee in any bankruptcy to use the courts to reverse such a transaction and then pursue any equity that constitutes your share.

I would suggest getting some direct advice on the matter from one of the organisations in my signature, and also some legal advice on consequences. https://www.communitylegaladvice.org.uk maybe?

MovingForward_3

CCCS_Matthew wrote: »

Hi there.

The payment arrangement will only continue whilst you have more than £99 surplus income. If once your tax code has reverted this puts you in a position where there is less than £99 surplus it will cease.

My understanding is that should your IPO/IPA be suspended (due to the tax code example), and you are then discharged, an increase with your income after discharge would not enforce a further IPO/IPA. Because this is quite a specific question and key to your decision making process I would say it would be worth calling the insolvency service beforehand to get some clarification.

Hope this helps,
Matthew.

Thanks Matthew. Here's response for Insolvency Service...

"Dear Sir

Thank you for your e-mail yesterday.

Please note that the Insolvency Enquiry Line of The Insolvency Service deals with general queries relating to insolvency and its relevant legislation in England and Wales, and cannot provide advice, only information.

If the IPA/IPO is for the NT Coding only, once that ceases to be relevant the IPA/IPO would cease and the trustee would revue your circumstances.

If no further IPA/IPO is deemed necessary during the remainder of the bankruptcy, then once discharged no further IPA/IPO can be commenced.

However, during the bankruptcy if your circumstances change you would have to inform the trustee who would then review your ability to contribute towards the bankruptcy.

I hope that this is of help to you."

ineedhelp123

fermi wrote: »

If you effectively sold your share of the house/equity for less than it's true value, then that could well be considered a "transaction at undervalue".

As such, it may be possible for the OR/trustee in any bankruptcy to use the courts to reverse such a transaction and then pursue any equity that constitutes your share.

thanks for the advice how likely is it that the or/trusty to pursue this and can my x fight it as it is nowt to do with her

CCCS_Amanda

Emmaj wrote: »

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

Hi Emma,

I would try and write a proposal offering a nominal fee to the bankruptcy. Make sure that you indicate the reasons why you NEED the car. For example, your husband is the main earner in the house and has 2am starts at work on a regular basis so can not get to work and back without the car. If your husband can not work then your only option will be to claim benefits.

You should not borrow money to make a contribution, unless you have understanding family.

Try this and see what the reaction is. The Official Receiver obviously knows that you do not have any extra money.

I hope that this helps.

Regards,
Amanda

trixie99

Hi, I have an unsecured loan that is guarantored by a friend (FLM Loans). I have lost my job and can't pay the loan anymore so my friend has took over payments for the last two months (FLM went to them for payment as they are guarantor). They have now been told they will lose their job next month and they have told me that they are going to go bankrupt soon as they are already struggling etc. Will the company start chasing me now for payment and could I get a default/CCJ or will it be included in their bankruptcy as they are guarantor? i.e. is it now their debt or is it still really mine?

PLease help, we both need to know what may/will happen in this situation?

Many Thanks for your help
Trixie

Emmaj_2

CCCS_Amanda wrote: »

Hi Emma,

I would try and write a proposal offering a nominal fee to the bankruptcy. Make sure that you indicate the reasons why you NEED the car. For example, your husband is the main earner in the house and has 2am starts at work on a regular basis so can not get to work and back without the car. If your husband can not work then your only option will be to claim benefits.

You should not borrow money to make a contribution, unless you have understanding family.

Try this and see what the reaction is. The Official Receiver obviously knows that you do not have any extra money.

I hope that this helps.

Regards,
Amanda

Thanks for your help. The OR actually asked my partner if there is anyone we could borrow some money from to make a contribution which I am really shocked at! There were 10 creditors we owed money to so whatever I offer to pay is going to be minimal to them but alot to me! I am going to try and raise the money but how much should be an acceptable offer, as I dont want to pay more than I need to and I dont want to insult them?

Emma

ineedhelp123

ineedhelp123 wrote: »

fermi wrote: »

If you effectively sold your share of the house/equity for less than it's true value, then that could well be considered a "transaction at undervalue".

As such, it may be possible for the OR/trustee in any bankruptcy to use the courts to reverse such a transaction and then pursue any equity that constitutes your share.

thanks for the advice how likely is it that the or/trusty to pursue this and can my x fight it as it is nowt to do with her

i have franticly been reading up on this and am not a scholar so could bve wrong
i was not married to my x partner and have read somewere that it changes things, also i have read that if i go on a dmp that evan if they go for a charging order on the ex house they cannot force a sale and the charging order only lasts for 12 years is this correct anybody in the same position please let me know

fermi

ineedhelp123 wrote: »

i was not married to my x partner and have read somewere that it changes things

Not really. A "transaction at undervalue" with anyone that occurred that recently can be reversed.

The law is in place to allow that to be done for anyone or any company you might make such a transaction with.