Ask a CCCS counsellor a bankruptcy question

homp

Hello,
I signed a protected trust deed in June 2005 (Scotland).
I paid the first 8 payments, and then unfortunately had a gap of about 2 years (due to unemployment).
Fortunately, I was able to re-start payments and now I will be able to complete all 36 re-payments come 1 December 2010.
My questions are this:
When I re-started contributions I received a decree from the Council (due to previous overpaid Housing Benefit ). I forwarded this to my trustee at the time (their request) as this debt was not included in the trust deed. I have never heard anything more regarding this matter.
1) Will the Council chase this up come the end of my trust deed? Do they have a definitive timescale for chasing overpayments?
2) How will my credit rating be affected come the end of my trust deed as it’s taken over 5 years to complete all re-payments?
3) How long does this trust deed stay on my credit file/history?
I recently paid for a credit report from Equifax and it came back as “Fair” with no mention of my previous bad debt. Seems strange? I gave all accurate information but it did only went back 3 years!?
I await your response.

Many thanks

Barn31

cheers Philnicandamy, and sorry for the delay in posting this acknowledgement - but thanks again for your help, very much appreciated!

philnicandamy

No problems Barn...hope it put your mind at ease

StillStanding

Hi all
Could someone please give me some advice. I have been on a DMP with youselves for a year now. Some crditors have been great, and my smaller debts are going down slowly but surely. However the interest and charges being added on my larger debts is only pushing my overall debts up
I was just wondering on how much longer I should ride this out for. Some of my smaller debts should be paid off by the end of the year, and I hope to get a payrise in April so I could put more into my DMP.
I'm just wondering if BR would now be the best option. I have a mortgage on my house (in negative equity). Really don't know what to do

Whattodo

Hi,

I am going to ask a few questions please can you help?

My husband and I have recently moved from our mortgaged home into rented accomodation, the main reason was the fact that the property was no longer safe for us to live in (drugs, violence and many other problems with area) also it was a one bedroom flat which was too small for us and our one year old daughter. We tried to sell but the valuation was around 70,000 and our mortgage is 115,000 with HBOS - we asked for volunt repo and the bank said no - therefore after numorous trips to Citizins advice we decided to jump ship - stop paying Mortgage and rent - we now live in a lovely home but are totally clueless about what to do next.
We have a secured loan with welcome on the flat also of around 9000 - which we have also stoppped paying.
We have decided our best bet is to go bankrupt as we owe the loan, one credit card of 2,500 and some other smaller debts - my main question is should we file for Bankruptcy before they repossess us? What happens about the shortfall if after - it before will the falt just be taken as part of the BR?
HBOS are really dragging their feet - we have told them we want them to take it and they finally offered us VR last week - but this is after 6 months of no payment - should we take it now or wait to be reposessed?
They sent out a debt advisor who basically told us we did the right thing for our personal safety and emotional wellbeing we HAD to leave the property - however we have still heard very little about what will happen next.
As I'm sure you hear a lot I just want it to be over.
I earn good money - 37,000 - however by husband works part time and studies/cares for our daughter and earns just 10,000) will they take a lot from us?
I am a teacher - will this affect my job?
Sorry many questions and a very confused woman ranting is prob not the best for you but I am not sure who to ask anymore?!
Thank You

princess1984

I spoke to CCCS re my DMP yesterday and have been advised to go BR. I have been told to make token payments of £1 per creditor until I go BR, and to write letters to all the creditors explaining this. Is there a template letter? - I'm not sure what information to give them. It's because before now I have been making payments to my DMP and they might want to know why I am only making token payments, yet I don't want to tell them I'm going BR.

emmdee57

Hi again. I was a sole trader/ 'trading as'. As it happens I have just tried to open a bank account but was turned down as they claimed I was 'bankrupt'. Any help is greatly appreciated.Regards

pixiechick_2

Hi Whattodo
Sorry I can't help with the financial advice but I'm also a teacher (on supply - not from choice) and I am looking into going BR. I emailed the NUT who replied "I can confirm that the fact that a teacher has been declared bankrupt does NOT debar them from seeking or taking up employment as a teacher."
I hope that this is at least one thing less for you to worry about.

Auntglad

Hi, I have just joined this forum as I am desperate for some advice & help.
My husband is 61 & I'm 66. He was working in the construction industry until last April, and although he tried to find work there's just no jobs around now, and also his age is against him. We are now receiving pension credit & rent & council tax relief. I know our financial situation has been getting worse & worse, and although I've been trying to meet our credit card & loan payments it's now at the stage were we just can't manage to make ends meet. We've kept clinging to the hope that a job would turn up, but we have to face facts now. Our total income from pension credit is £11124.40, and our total outgoings are £ 16381.88 !! I completed the income & expenditure form on this website and am so shocked at the result. I haven't included an amount for holidays, as how can we afford a holiday on a negative income? Approx. £510.00 of the outgoings are for credit card & loan payments & overdraft interest. We are almost £3500 overdrawn at the bank (our limit is £3500) and as soon as any pension money is paid in most of it has to go towards the direct debits & standing orders.
We have been paying £10 monthly on an old debt from years ago (when my husbands business folded & we also lost our home), we have never missed a payment, and yet the firm who is handling the debt -Debt Managers Ltd- have been phoning me & asking if I can increase my payments. The girl who phoned last week was very unsympathetic & aggressive, and when I tried to explain we were on pension credit & couldn't afford to pay more, she told me I had to give her all my income & expenditure details over the phone there & then. I refused & asked her to send me a letter, but I am still very upset about it, and her attitude to me.
Now I have realised the full extent of our debts I just don't know what to do. Even without all the payments for the credit cards & loan, the pension credit barely covers everything else i.e. Gas,electric,water, TV licence, House, Life,Car insurance,telephone, etc etc. One of the credit cards is from the bank we have our overdrawn current account with. I haven't used it for ages but there's still a balance owing of approx £3700. If I tell them we can't afford the payments I'm worried they could withdraw our overdraft facility which will add to our problems.
Last year I transferred a a balance to another card with zero interest, hoping to pay it off, but unfortunately I used it for birthdays & Christmas presents & even to buy groceries and have made the situation worse. We also have another credit card with the same bank, that has a zero balance, and which has a limit of £9000, and I'm worried that the bank will force me to transfer the amount owing on my overdraft on to this card. They insisted I did this once before ,even though I objected, and said that as I had a credit balance left on the credit card I had to transfer an overdraft balance of £750.00 from a current account onto the card.
Our total credit card & loan debts are approx £21000 including the overdraft. We have no savings and need urgent help.
Thank you & sorry for the long post.

CCCS_Matthew

Strangey84 wrote: »

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???

Hi there.

In response to question 3.4, both of these pensions will need to be listed in this section. In relation to the second question, it is quite common that people cannot remember details for either of these two questions however they do need to be completed. We would normally advise that you do your best to try and remember back to an approximate date as to when you took our the borrowing even if you can remember a year. For example you may have a credit card and can remember taking it out around 5 years ago and you can therefore put 2005 under date incurred and in brackets underneath put approximately. If it is obvious from the borrowing such as a Dorothy Perkins card then you would put clothing or if a loan or credit card statement would show something ovbious such as a car then put this. If the borrowing is not obvious and you cannot remember which is common then you can put general living costs or general living expenses.

Hope this helps,
Matthew.