Ask a CCCS counsellor a bankruptcy question

cp7

CCCS_Matthew wrote: »

Hi there.

The only time I've come across overpayments not being included is when they are subject to a claim of benefit fraud and have a confiscation order.

What reason did the official reciever give to say that your overpayment of tax credits cannot be included within your bankrutpcy?

Matthew.

the accountant in br just returned paperwork and advised it could not be included. the cab at time of br also advised they could not be included. the overpayments are child tax credit and working tax credit, does this make a difference? no fraud of benefits.

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 Samim, in answer to your question...

With regard to the credit file, the defaults should drop off after the 6 year term. It is quite common for some creditors' to add late defaults. Under Insolvency law the O.R has 12 months to deal with the administration of a Bankrupts' estate and/or finances (Hence the maximum 12 month Bankruptcy term). Therefore, there can be a lengthy delay before some creditors' get the final bankruptcy notice, resulting in the credit file being update some time after the actual bankruptcy has been declared.

Hope that helps,
Matthew.

debtsrus

Hi,

I shall be filing my BR petition in the next few days, I'm facing a bit of a dilemma concerning my car and I wonder if someone could tell me the best thing to do in the circumstances:-

I live in a rural area with very restricted public transport service so I really would find it very difficult to manage with out a car, as I'm experiencing right now. My car was written off in a fire last month and the insurance company has just paid out the sum of £1250 in compensation.

I intend to draw this money out of the account before submitting my petition and use it to purchase a replacement. Am I doing the right thing or am I liable to get myself into even more trouble than I'm in at the moment?

Thanks for any advice you can offer on this conundrum.

CCCS_Sarah

SOTTY wrote: »

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.

Hi Sotty,

Thank you for your question.

I would recommend that you speak to a charity called Business Debtline. They will be able to help you look at your options, I have attached a link to their website for you http://www.bdl.org.uk/

Sarah

CCCS_Sarah

cp7 wrote: »

the accountant in br just returned paperwork and advised it could not be included. the cab at time of br also advised they could not be included. the overpayments are child tax credit and working tax credit, does this make a difference? no fraud of benefits.

Was your final award notice of repayment issued before or after your bankruptcy date? This would make a difference as if it was after you would be liable for the debt. If the notice was issued before you went bankrupt and you were no longer claiming tax credits the debt should be included in Bankruptcy. If you are still claiming tax credits and the repayment was been made from deductions from your benefit, these deductions will continue until you are discharged from your bankruptcy – at this point any remaining debt will be written off.

I have attached a link to the Insolvency Service Technical manual so you can have a read through
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch73-84/Chapter77/part7/Part7.htm

If your situation differs from the above (Section 77.50) then you would need to contact the Insolvency Service direct.

bigtone2010

tlc1000 wrote: »

hi i hope i am posting this in the right place, apologies if i have done it wrong. i am after some help regarding going bancrupt.

Last year i started my own business, it is a ltd company and i am employed by the company as a director with no other staff, firstly does this still mean i am self employed ?

i have got into a large amount of debt (16k) , mainly personal for living expenses since giving up my job to start this company and a small amount of business debt (under 5k). I have looked at the DRO and dont feel i apply due to owing over 15k, which therefore only leaves bancruptcy otherwise it will take me more than 30yrs to clear with min payments. my business is small and only brings in a small amount of money i can hardly get through the month without paying any creditors.

i live in my boyfriends house and my only asset would be my car so feel BR is the best option.

My main concern though is what will happen to my business, obvioulsy i can not be a director, can i change the ltd co to a sole trader or can i still not be a sole trader. Although it does not make massive amounts it is a small income which helps with all the other bills so still need to keep this going, do i have anyway to do this.

Lastly as i am going to have to not pay creditors and save the money to pay the fees can i contact my creditors and tell them this as they are on my back all the time ?!?

Any help would be appreciated.

thanks

Hi, ex bankrupt here (went under for £223,000). Best thing i did at the time. Anyway, you are an employee of the company, but also an office holder and pursumably the main share holder. If the company does not have huge profits etc you need to transfer all the shares and directorship into someone elses name and quick, as once you go bankrupt they will strip you off your assets which will include all the shares in your company.

It will be questioned by the official receiver and you will need to explain why you surrendered your shares and directorship, personally I would say I needed the money and I knew a buyer for the company. Sell the shares at £1 each and say you desperatly needed the money to survive it was your last resort. Providing the company is small with no real assets or retained profits, the receiver won't be interested in it. It is important that you are careful as a bankrupt with regard to the company, you are not allowed to run a company directly or indirectly as a bankrupt, make sure you get yourself a new employment contract from the new owner and have resolutions drawn up and filed in your records to say you will no longer be involved in the actual running of the company but are merely an employee who carries out duties as instructed by the new owner. That is your company saved !

If your car is not on HP and is paid off and is worth less than £4,000 (approx) you will be allowed to keep it in order to go to and from work.

Your personal posessions will also be protected and you will not lose them unless they are worth lots of money.

Empty your personal bank accounts before you go bankrupt, if you have thousands in the bank you need to explain where it is, if you owe family members any money pay them back and tell the receiver about it when he contacts you, he will write to them and providing they clarify your story, he will take no further action.

Do not become a sole trader whilst bankrupt you will have to tell all your customers and suppliers that you are bankrupt, you will not be able to have a business name and will have to use your name as the business name. If poss work for someone else in the company you will sell them. Also to sell 100 shares no actual money has to change hands, you can say you sold it for the promise of new employment, or even take 100 for it, dont worry about tax etc as all tax bills will be written off anyway.

Anything on catolgues / store cards credit cards etc you can keep if its value is quite low.

I went under in 2001 and now I have credit cards, loans and mobile contracts etc. So talk that it ruins your life is rubbish, it takes a few yrs but you will bounce back. people are allowed to fail.

good luck

CCCS_Sarah

debtsrus wrote: »

Hi,

I shall be filing my BR petition in the next few days, I'm facing a bit of a dilemma concerning my car and I wonder if someone could tell me the best thing to do in the circumstances:-

I live in a rural area with very restricted public transport service so I really would find it very difficult to manage with out a car, as I'm experiencing right now. My car was written off in a fire last month and the insurance company has just paid out the sum of £1250 in compensation.

I intend to draw this money out of the account before submitting my petition and use it to purchase a replacement. Am I doing the right thing or am I liable to get myself into even more trouble than I'm in at the moment?

Thanks for any advice you can offer on this conundrum.

Hello,

Thank you for your message.

As you are just replacing your car, I would not think this would be a problem. However I would recommend that you call the Insolvency Service and double check as it would depend on the Official Receiver. They usually class anything over the value of £1500 as an asset but this has been known to be lower. If you needed a car for work, you would also have the option of buying a slightly cheaper car and using some of the money for your fees?

Sarah

langfor

Guys,

can someone give me some advice please.

I was up at court on Monday and a decree was granted against myself. However i tried to clear the court charges last Friday but was told i couldn't because it wasn't yet on the system. Now this has happened through no fault of my own. The council have agreed they were in the wrong but they say the decree can't be removed. Is this correct? Is there anything i can do?

Thanks

debtsrus

CCCS_Sarah wrote: »

Hello,

Thank you for your message.

As you are just replacing your car, I would not think this would be a problem. However I would recommend that you call the Insolvency Service and double check as it would depend on the Official Receiver. They usually class anything over the value of £1500 as an asset but this has been known to be lower. If you needed a car for work, you would also have the option of buying a slightly cheaper car and using some of the money for your fees?

Sarah

Thank you Sarah,

I'll phone the Insolvency Service as suggested and see what they have to say.

leahceri

Hi
I am filing for bankruptcy but I am considering buying a car (my sister will lend me the money) The car is eleven hundred pounds. Will it be taken off me?
Thank you