Ask a CCCS counsellor a bankruptcy question

CCCS_Sue

JSAisnofun wrote: »

I am a bankrupt due for discharge in March 2010. I am unemployed and have been for several months. The DWP in their kindness are repaying £1k of my £1.5k a month mortgage. My Mortgage company, Cheltenham & Glos have said that they would still like the £500 per month from me. I did laugh and said how do you expect me to pay you £500 a month when I only get £400, and what makes you think I would starve myself and my family to pay you???
C&G said that if I don't pay I will fall into arrears and after 4 months of arrears they may look to reposess.... but that all cases are looked at on an individual basis.
So my question is what should I do???
As I see it I have two choices

:mad:1. Ignore them, hope for the best (that I get a new job quick and can start repaying.... I know its a bit of a head in the sand approach). Take my chances if they go for repo, argue in court etc..

:eek:2. They have offered to convert the existing fixed rate (6.75%) 3 year deal (which expires in Nov 2010) deal to a variable rate of 2.5%. But I have to pay them the redemption penelty of £3.5k - like I have that. but it would bring the repayments to below what DWP are paying, so actually starts to repay capital (or in my case accrued interest from all the payment holidays etc)

They are well aware of my Bankrupt status. They are also aware that the house is in negative equity, which helped us to keep it when I went BR

So can they repossess?? Please advise.

Hi JSAisnofun and thank you for your message

Your mortgage is your main priority and you should not ignore your lender as they can look at repossession if you do not keep up with your payments or come to a suitable arrangement with them.
If they did go for repossession, then the judge would look at your ability to make the repayments.
You need to look at whether the mortgage is indeed affordable.
If you are on a repayment mortgage, could you change to interest only?
There are other options you could consider but it is difficult to give you detailed advice via email without knowing your full financial circumstances.
If you would like an appointment to speak to one of our mortgage counsellors about your situation, you can call free on 0800 138 1111. Lines are open 08.00 until 20.00


Regards
Sue

chelle230

CCCS_Matthew wrote: »

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.

thanks Matthew, only just come back to this thread!
feel much better now thanks, haven't contacted them as yet, other things came up, and just forgot, but will do it asap.
the mortgage company told me they couldn't say anything as to whether or not it had been sold, and said that I would be liable for the difference once it had, glad you've put my mind at ease though

shamim

Hi CCCS Team...

I would like to ask a couple of questions please, reference my Credit File and Defaults placed on the file..


Pre Bankruptcy:
a. I was not in default with repayments to a creditor,
b. thefore no default notices were ever sent out to me



Post Bankruptcy:

As stated: I had not defaulted with any creditors

*** are they still permitted to place a Default Entry on my credit file due to
the fact I am now Bankrupt ? ***


My understanding is, in the circumstances as described above, Pre Bankruptcy under the Consumer Credit Act, no Default placed on my credit file would be valid, as I was not in Default and no defualt notice was ever sent.


Given that I was Bankrupt , the creditors say that the Consumer Credit Act is superceeded by the fact that I was Bankrupt, therefore they are permitted to place the default entries on my file without having to adhere to any such conditions.


One Bank, placed a Default dated the date of my Bankruptcy, the other Bank placed a Default dated several months after that date.

Your clarification on this matter would be appricated...

Regards Shamim

sarah1773

Hi
I am in the process of applying for a DRO and have just sent all the paperwork off. However, one particular DCA, Frederickson Int. Ltd holds 4 of my accounts and are passing them onto Bryan Carter Solicitors (which I suspect are part of their company anyway). But their letters say they have the power to send bailiffs round etc. I have been telling them that I am sorting my finances out with CCCS but doesn't seem to make a difference. Is it a good idea to tell them I am applying for a DRO or will this make them harrass me even more? I just want them to stop taking further action, I am really worried about it.
Thanks
Sarah

CCCS_Matthew

shazbo wrote: »

Could anyone tell me how long it should take for the OR to claim their % from extra income. My hubby has recieved extra each month since november, in varying amounts, we have sent the OR his payslips each time and waited for him to claim some of it but we have heard nothing, i have 3 lots of 70% in my account. Do i have to keep it for the full term of the BR just in case they want it? I know we could ring but I havent yet and just thought I would ask in case you know

Thanks in advance

Hi there.

In most cases the OR will take the IPA contribution on a monthly basis automatically, but I assume your husband pay must be sporadic which is why a set amount cannot be agreed each month? I'm not too sure how long it would be before the OR would make a claim in such a case. As you have sent in pay slips I would definitely make sure the money is still there should the OR want to make a claim but I would definitely ring to ask on how long it will be and what you should do with the money as it may get very difficult to budget your money with the 'extra' money sitting in the account.

Matthew.

CCCS_Matthew

flightboy wrote: »

Im on JSA ( and have been since nov ) and have around £14K worth of debt i have at last ran out of money to pay. If i got bankrupt how much will the fees be? and will my 1 CCJ be bankrupt with the others?


Thanks

Hi flightboy.

All CCJs will be included within bankruptcy, and if you are on JSA the fee would be £310. However, if your debts are less than £15k you may find you can do a Debt Relief Order instead which would only cost £90. There are a few other things to consider to qualify for a DRO, such as having less than £300 of assets (although a car to the value of £1000 is allowed), having less than £50 surplus each month, and not having a private pension that has more than £300 contributions paid into it.

If you would like some help looking at your options, feel free to use Debt Remedy or call our helpline on 0800 138 1111 to book an appointment.
Click here to go directly to Debt Remedy.

Regards,
Matthew.

CCCS_Matthew

shamim wrote: »

Hi CCCS Team...

I would like to ask a couple of questions please, reference my Credit File and Defaults placed on the file..


Pre Bankruptcy:
a. I was not in default with repayments to a creditor,
b. thefore no default notices were ever sent out to me



Post Bankruptcy:

As stated: I had not defaulted with any creditors

*** are they still permitted to place a Default Entry on my credit file due to
the fact I am now Bankrupt ? ***


My understanding is, in the circumstances as described above, Pre Bankruptcy under the Consumer Credit Act, no Default placed on my credit file would be valid, as I was not in Default and no defualt notice was ever sent.


Given that I was Bankrupt , the creditors say that the Consumer Credit Act is superceeded by the fact that I was Bankrupt, therefore they are permitted to place the default entries on my file without having to adhere to any such conditions.


One Bank, placed a Default dated the date of my Bankruptcy, the other Bank placed a Default dated several months after that date.

Your clarification on this matter would be appricated...

Regards Shamim

Hi Shamim.

This is bit of a detailed question, which I'll have to pass onto the specialist bankrutpcy team. Once I've found out the answer I'll let you know.

Thanks for your patience.
Matthew.

CCCS_Matthew

sarah1773 wrote: »

Hi
I am in the process of applying for a DRO and have just sent all the paperwork off. However, one particular DCA, Frederickson Int. Ltd holds 4 of my accounts and are passing them onto Bryan Carter Solicitors (which I suspect are part of their company anyway). But their letters say they have the power to send bailiffs round etc. I have been telling them that I am sorting my finances out with CCCS but doesn't seem to make a difference. Is it a good idea to tell them I am applying for a DRO or will this make them harrass me even more? I just want them to stop taking further action, I am really worried about it.
Thanks
Sarah

Hi Sarah.

Your creditors can only send bailiffs if you've defaulted on a CCJ. If you've not had any court documents then you've not got too much to worry about. It won't necessarily stop your creditors from still trying to pressure you into paying, it's in their nature to try an get you to pay what they want, regardless of whether you can afford it or not.

You could certainly tell them that you are going for a DRO. It's hard to say whether this will help them to back off a little bit, or whether they do try and take things further. If they do go for a CCJ it doesn't really matter in the grand scheme of things. Any CCJ's you get will still get included withing the DRO.

Have you tried writing to them to ask them to take your phone number off their records, or thought about maybe changing your number to stop the calls straight away?

Regards,
Matthew.

sarah1773

CCCS_Matthew wrote: »

Hi Sarah.

Your creditors can only send bailiffs if you've defaulted on a CCJ. If you've not had any court documents then you've not got too much to worry about. It won't necessarily stop your creditors from still trying to pressure you into paying, it's in their nature to try an get you to pay what they want, regardless of whether you can afford it or not.

You could certainly tell them that you are going for a DRO. It's hard to say whether this will help them to back off a little bit, or whether they do try and take things further. If they do go for a CCJ it doesn't really matter in the grand scheme of things. Any CCJ's you get will still get included withing the DRO.

Have you tried writing to them to ask them to take your phone number off their records, or thought about maybe changing your number to stop the calls straight away?

Regards,
Matthew.

Hi, thanks for your reply - I haven't had any court documents - just letters from solicitors threatening court action. Two more creditors have sent similar letters now so I suppose its all part of their procedure - its just a bit scary as they make you think they have the power to do all sorts.

I might write to my creditors in a week or so and tell them I am going in for a DRO then and see what happens. I refuse to talk to them on the phone as I find them quite intimidating as they try to pressure me to pay more than I can. Instead I have written to them all on numerous occassions, firstly to ask them to contact me in writing only and secondly to say I am in financial difficulties and am working with the CCCS.

Thanks

SOTTY

Hi,
I am self employed (sole trader) and business has been growing over the last 2 years, and I recently invested in the business but have stumbled across a problem that I'm not sure how to deal with Debt Management - IVA - Bankruptancy. Last year a few small customers went through IVA which I have dealt with but more recently a large customer went into admin. This all has resulted in a business debt of Credit Cards £18,500, Suppliers £45,000 and overdrafts £2,000. As I am self employed I will also have £2,400 unsecured personal debts. I have a house (mortgage £82,000 and secured loan £19,000) but recently valued at £85,000 so no scope there. I have some assets with the business but selling them would result in no longer trading.