Ask a CCCS counsellor a bankruptcy question

sonnyg_2

Hi

I am just looking for some advice.

Me and my husband have £32,000 of debt. We are both currently unemployed and I am claiming JSA income based for both of us. My husband is also disabled so we receive DLA and I receive carers allowance. We have a 10 month old baby so we also get tax credits and child benefit and we get housing benefit and council tax benefit.

I have just done a monthly budget plan and it shows that we have £300 surplus a month. I am concerned that if we do decide to go bankrupt then the OR will just laugh in our face because we have so much surplus income?

We have spoken to someone at community legal advice who advised us that going bankrupt would be our best option. I explained all of our information but I am just worried she may have overlooked something.

Please advise.

Many thanks

motherb

Hi me and oh went bankrupt in jan we have spent the last 20 years in debt we had over £600 surplus after bankruptcy and it has not been a problem

sonnyg_2

Thank you for your post that has put my mind a rest

now

tordoff wrote: »

Please can someone advise me - I opened a basic bank account as entered an iva - a Co-Op Cashminder Account. I've since been unwell with depression and they tell me I went overdrawn by £1.61 and now the account will be closed, I don't know what to do as surely I will not get a bank account in my situation will I?

The Co-op bounced one DD on me, I was informed that they would only close the account if this happened three times, so it might be worth asking the question

Strangey84

Need help with forms

Section 3.4 Assets
I have paid into a pension scheme previously through an employer and I pay currently into my pension through my current employer. Does this need to be added as a personal pension arrangement?

Section 4 Unsecured creditors

I am unsure of dates incurred for many and indeed what the debt was for initially, any advise???

CCCS_Sue

langfor wrote: »

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

Hi langfor and thank you for your message

A decree would normally remain on your file for 6 years from the date of the decree unless it is set aside or recalled by the courts. It can also be removed if the debt is repaid within one calendar month of the original date.
If you think that the details on your file are incorrect or incomplete, then you can ask the Registry Trust Limited to check your entry with the courts.
For more information on this, I have attached a link to a booklet called ‘Credit Explained’ http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Regards
Sue

CCCS_Sue

leahceri wrote: »

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

Hi leahceri and thank you for your message

If a car is essential for work and there are no other alternative ways of you getting to work, and the value of the car is not high, then the OR may consider letting you keep the car.

The OR will also enquire where the money came from to purchase the car.

The loan from your sister would also be included in the bankruptcy.

Regards
Sue

Barn31

Dear Matthew, Sarah, Alan, Sue or Amanda - hope you can help - any chance I can ask for your help?

I went B/R last week and am due to go and see the OR for the dreaded interview. Might you be able to tell me what might happen in my situation, just as far as IPA's and IPO's and whatever are concerned? Sorry to ask but am a little confused.

Essentially I have no surplus monthly income and actually have a deficit, as odd as that looks. (Am self-employed and the last few months have been dire - but then again that's one of the reasons why I am going through the bankruptcy process.)

So as things stand, presumably I would not be asked to have to contribute a proportion of my monthly surplus as I do not have any!

But I am looking for a new job, so if I then got a new job (after the OR interview, and fingers crossed that I do get one), I presume I would then have to tell the OR of my change of circumstances.

If I then had a monthyl surplus, presumably I would have to pay some of that to the OR - which is fine, by the way. But can the OR say 'that's fine, you do not have to pay anything as you have not got it' at the time of the interview, and then say 'OK you need to pay X amount' at a later date once circumstances have (hopefully!) changed? If so, would that be in place until discharge, or keep going after discharge?

Sorry if this sounds stupid but I am not really sure how an IPA or IPO work, or indeed what they are! I'd be delighted if you could shed some light!

philnicandamy

Barn31 wrote: »

Dear Matthew, Sarah, Alan, Sue or Amanda - hope you can help - any chance I can ask for your help?

I went B/R last week and am due to go and see the OR for the dreaded interview. Might you be able to tell me what might happen in my situation, just as far as IPA's and IPO's and whatever are concerned? Sorry to ask but am a little confused.

Essentially I have no surplus monthly income and actually have a deficit, as odd as that looks. (Am self-employed and the last few months have been dire - but then again that's one of the reasons why I am going through the bankruptcy process.)

So as things stand, presumably I would not be asked to have to contribute a proportion of my monthly surplus as I do not have any! correct you wouldnt...

But I am looking for a new job, so if I then got a new job (after the OR interview, and fingers crossed that I do get one), I presume I would then have to tell the OR of my change of circumstances. any change in finances you would have to inform the OR within 21 days...remember though if your starting a new post the OR will probably ask for a new SOA to be filled in (remember things you didnt claim for you now could with work)

If I then had a monthyl surplus, presumably I would have to pay some of that to the OR - IF you had a surplus of over £99 a month AFTER your living expenses are paid they would take a percentage (see the chart below) which is fine, by the way. But can the OR say 'that's fine, you do not have to pay anything as you have not got it' at the time of the interview, and then say 'OK you need to pay X amount' at a later date once circumstances have (hopefully!) changed? If so, would that be in place until discharge, or keep going after discharge? an IPA can only be started while your undischarged and have the surplus I mentioned...IF you went over the £99 a month surplus then you would pay the % for three years BUT again this can be altered frozen if your circumstances changed again & you fell below the allowed surplus

Sorry if this sounds stupid but I am not really sure how an IPA or IPO work, or indeed what they are! I'd be delighted if you could shed some light!

Bit of a "light" read here
Income Payment Agreements/Orders.

• IPO / IPA (Income Payment Orders and Income Payment Agreements) (IS)
• FAQ - Income Payment Orders / Agreements ( IPO / IPA ) (IS)
• OR's Case Help Manual - Income Payments Agreements (IS)
• OR's Case Help Manual - Income Payments Orders (IS)
• OR's Technical Manual - IPAs Assessment of real disposable income (IS)
• Nil tax (NT) coding/IPAs (MSE)
• Income Payments Calculator (Excel spreadsheet) (IS)
• The assessment of real disposable income where the bankrupt's income is derived in part from state benefits

and the chart the OR works what percentage to take of surplus I mentioned above...........

CCCS_Sue

sonnyg wrote: »

Hi

I am just looking for some advice.

Me and my husband have £32,000 of debt. We are both currently unemployed and I am claiming JSA income based for both of us. My husband is also disabled so we receive DLA and I receive carers allowance. We have a 10 month old baby so we also get tax credits and child benefit and we get housing benefit and council tax benefit.

I have just done a monthly budget plan and it shows that we have £300 surplus a month. I am concerned that if we do decide to go bankrupt then the OR will just laugh in our face because we have so much surplus income?

We have spoken to someone at community legal advice who advised us that going bankrupt would be our best option. I explained all of our information but I am just worried she may have overlooked something.

Please advise.

Many thanks

Hi sonnyg and thank you for your message

From the information you have supplied in your message, bankruptcy does seem like the best option to clear your debt in the quickest possible way.
However, without knowing your full financial details, it is difficult to give you detailed advice.
If you would like some further advice and help regarding this, you could call us for an appointment to speak to one of our 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.

Regards
Sue