Ask a CCCS counsellor a bankruptcy question

welshpony78

leahceri wrote: »

hello
I have been advised by the CAB to apply for bankruptcy. However, I am worried that I applied for catalogue items in December on buy now pay 2011 that they may think that i was trying to avoid paying or defrauding them,
Can you please help me with this?
Pat

As above, I have just been advised to file for bankruptcy, but have had to take money from my overdraft with the Halifax to raise the money for the court fees, and to pay back a friend money that I owed her - will this cause a problem my apt with the court is not till Feb 3rd, don't know how else I could raise the money as I had just paid some minimum payments to my creditors before deciding to go down this route and want to file sooner rather than later so that I can start to re-build my life.
Thanks for your help

custardcream

...apart from the 3x completed forms etc.

I'm going to apply to have the court fee waived and just pay the £360 but I know I've got to take some paperwork with me as proof but can't remember what.

Vague memories of 3mths bank statements and child tax credit paperwork but worried in case I've forgotten something.

Any help appreciated. Thanks.

philnicandamy

Going to court all you'll need is Fees/Forms proof of benefits letter (dated within a month) if your claiming court fees back....keep the bank statements etc till the receiver contacts you...remember though some courts charge an "oath swearing" fee usually around £7 or so extra

CCCS_Sue

trixie99 wrote: »

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

Hi Trixie and thank you for your message

You would still be liable for debt if your friend went bankrupt as it is in your name.
The creditors will still pursue you and if you are not able to make the contractual payments every month, then they could issue you with a default notice or a CCJ.

If you are struggling to make the repayments,then you can call us for an appointment to discuss your situation with one of our debt counsellors.

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

CCCS_Sue

Tagnut1999 wrote: »

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

Hi Tagnut

If your circumstances are likely to change if your wife gets a job, then it might be an idea to leave it for now.

CCCS_Sue

newby85 wrote: »

I was made bankrupt in september 2005. I sent a letter to GMAC asking them to update my credit file as it was still showing the car loan I had as defaulted. They have written back to me and said "there is no legal obligation for a creditor to mark a file as settled/satisfied if no settlement is received" Is this correct? My balance is showing as defaulted in june 2005.

Adam

Hi Adam and thank you for your message

A default will stay on your credit reference file for six years from the date of the default. When you have been discharged from your bankruptcy you can send proof of your discharge to everyone included in your Statement of Affairs.
Those creditors whose debts were included in your bankruptcy should then mark the entry on your credit reference file to show that you no longer owe money on that account, usually by marking the entry as ‘satisfied’ or ‘settled’.
However, the default will not be removed from your credit reference file until six years from the date of default. If you wish, you can ask the credit reference agency to add a statement called a ‘Notice of Correction’ to the default entry. You could then say the debt was included in your bankruptcy.
I have attached a link to the ‘Credit Explained’ booklet which will give you further information on this

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Regards
Sue

chris2447

Hi,

I wonder if someone has an answer to my question, both my husband and I were declared bankrupt in November. We live with my son and daughterinlaw who are unemployed so we pay all the bills but our rental agreement is in four names.

My son informs me he has been turned down for jobs after the credit check as it shows up that someone who lives here is bankrupt.

They have applied to the council for housing but until our agreement is finished on this house they refuse to offer them anything.

The problem is we sold this house on one of the buy to rent schemes and at the end of the agreement we should get £24,000 between us. The O.R. has already told us that we will lose our half, but I would not want them to lose their share, so we cannot take there names off the temacy.

Could someone tell me is there a solution.

Christine

cp7

CCCS_Alan wrote: »

Hi CP7

The debts would be included. But if the benefit overpayment was joint the other person would still be liable for the debt.

Regards

CCCS_Alan

hi i'm still in dispute with this apparent overpayment of tax credits. they say i have to pay back. it was not included in my br as acc in bankruptcy said no.

1. are aib wrong to say no?

2. i was apparently given a chq for 193 tax credit while they sorted out the payments as they were slow to payout. i would have thought they would then calculate the correct payment minus this 193. it was in 2003 how am i supposed to find out what happened?

3. the second overpayment in 2004/05 apparently occurred when my daughter left school but as i told them immediately about this then within 2months i stopped working and received no wages, i cant understand how this amount could have been overpaid. they dont seem to listen to my side of things and ignore everything i write.

i'm bankrupt, living on income support and just cant afford to pay all this back. can someone please advise what i can do? please

CCCS_Matthew

kirstiejayne wrote: »

Hi there,

My partner is going bankrupt tomorrow, he has an interest only mortgage (in his name only) on our house, and has so far missed one payment on this, however we do not want to keep the house and have arranged to move into a rented property at the beginning of Feb. There is no equity in the house, possibly even negative. Will the OR frown upon us leaving it and moving into the rented one?
Also we have a car on HP, worth around £5000 and costing us £180 a month, going down to £145 in april, my partner needs this to get to work as its in the middle of nowhere and to get public transport and taxis would cost £800+ a month, is there any possibility of keeping the car?

Thank you.

Hi there, thanks for getting in touch. Not sure whether or not this is going to be of any help now considering your partner's hearing way yesterday. But...

As far as the house is concerned, if you want to surrender it then you can do. It won't be frowned upon. I suppose the only issue was if you were moving into rented accomodation which costs you substainally more than what your mortgage payments would have been if you had stayed.

As far as the car is concerned, in most cases the cost would not be allowed as HP is a form of credit. I am aware that there have been exeptions and people have been allowed to keep them. Ultimately it's down to the discretion of the official reciever, but also down to the finance company as well.

How did the hearing go?
Matthew.

CCCS_Matthew

samjayne wrote: »

hi i'm going bankrupt in 4 weeks time one of my major creditors is 2 bank loans from my Bank which is Barclays Bank.I had a temorary agreement with them to pay a reduced amount whilel i got advice from CCCS but now I've had a letter from them saying that the Finance Department will be in touch to sort out a more permanent arrangement. Is it ok to tell them that i am going Bankrupt? I have opened a new account with The Cooperative bank, and have cancelled all my direct debits with Barclays
apart for the 2 that pay my laons with them.
thanks Sam

Hi Sam, you can certainly tell them that you are going bankrupt. If that upsets them, make sure you don't give in to them and come to a payment arrangement! If you want to pay them something, I would stick to a nominal £1 per month until you go bankrupt.

Good luck,
Matthew.