Ask a CCCS counsellor a bankruptcy question

CCCS_Matthew

Esoog wrote: »

Greetings, I have another Beneficial Interest question..

Background - partners ex-husband is going bankrupt, they have a joint mortage.

We're in the process of trying to get the BI sorted, the estate agent valuations are a bit high (not in common with local market etc, I assume they want our business thats all) and the next step might be a cheap surveyor.

If the worst comes to the worst and the OR wants say £8k to buy it off them, since they don't include any of the early repayment fees etc in their workings out. Could we try and play hardball and say "look, we're not risking you sitting on this and getting maybe £10k in 3 years time/putting a charging order on the house" so "we're going to sell now and because of the costs you won't get anything (neither would we) so I suggest you accept this £3k cash offer"?? Obviously that would be a last gasp attempt..

Also, the mortgage company has attempted to secure an unsecured loan on the house (when the now Bankrupt ex husband upped and left my partner paying everything on her own so she was late with a mortgage payment or two) - can we say "look we're not going to pay the mortage, so this unsecured loan will be secured on the house taking it into mega negative equity" / "we're not going to pay the mortgage and it'll get reposessed so I suggest you accept our offer" ? - Again these are very last options but I'm trying to get a feel for what's going to happen.

We've already spoken to the OR about the extra early fees etc and they said to us "well you aren't actually selling" which is true, but if the bank wont give me a loan to buy the BI we'd rather sell than risk losing a big fat chunk of money later if we sold it at a profit..

You can certainly make an reduced offer to the OR to buy the BI back. I've known of cases where a lesser amount has been accepted. However, whether they do or not is really down to their discretion. I'm not sure whether the latter argument will have any impact on the decision to be honest.

Is the mortgage and loan a Northern Rock together mortgage by any chance?

Regards,
Matthew.

CCCS_Matthew

sarah1773 wrote: »

Hi
I am currently applying for a DRO - I have sent all my statements and paperwork off and am just waiting for CCCS to get back to me. One of my debts that I included was a doorstep collector (Provident). My husband has an account with these also and makes our repayments at the same time at the door. Mine didn't have very much left on it but I still told my husband only to make £1 token payment as I couldn't afford to pay any more. However, he has been paying the full amount each time out of his own money for me as he says he feels intimidated into doing so by the collector. As a result, there is not very much left to pay on my account.
My question is - what happens if that debt is paid off in full by the time the CCCS get back to me? Would I just be able to tell them to remove that creditor before completeing my DRO application? Is it going to look like I've favoured one creditor over another? As my other creditors have only been receiving £1 token payments. Hope you can help, thanks, Sarah

Hi there.

It's not ideal to pay more than a token payment to any of the debts whilst waiting for a DRO. However, it's not going to have an impact on the DRO as long as your budget is still the same and the debts are still under £15k. If it had been cleared by the time the DRO went ahead then it would just need to come off the application.

My advice would be to only pay a £1k from now on though, simply for the sake of saving your husband money. There is nothing that Provident can do to make you pay any more, I'm sure you're aware they cannot send bailiffs etc, so tell him to keep his hands in his pockets!

Good luck,
Matthew.

CCCS_Matthew

bevhicks77 wrote: »

Hi,
A few questions...If I go bankrupt can administrators take my pedigree dog? He's not been neutered so could be worth quite a bit as a stud dog.
I live with my partner in her caravan. Could the admin's take that? The debts are all mine, none in her name.
Although we live in a caravan at a site, our mail is registered to her parents house. Officially we live there. Could this affect bankruptcy proceedings?
I owe money to IR for unpaid tax. Is this included in the bankruptcy?

Hi there.

A pedigree dog should not be considered as long at it's a pet, and is not just kept as a way to make money. The only time I've come across animals being included as assets in a bankruptcy petition was someone that owned horses that were worth thousands. How much do you think your dog is worth?

If the caravan is in your partner's name, it won't be taken. Her parent's property wouldn't be an issue so long as you have not gained beneficial interest, which is where you've contributed towards the mortgage and upkeep of the house. If you just get your mail sent there, this wouldn't be a problem.

You're unpaid tax would be included, providing you're liable for it personally rather than from a limited company.

Hope this helps,
Matthew.

CCCS_Matthew

bernie1991 wrote: »

I am on a debt mgt plan, my creditors are happy with my repayments, can one creditor file for bankrupcy.

I think this one has been answered via the PM you sent us.

Cheers,
Matthew.

Esoog

CCCS_Matthew wrote: »

You can certainly make an reduced offer to the OR to buy the BI back. I've known of cases where a lesser amount has been accepted. However, whether they do or not is really down to their discretion. I'm not sure whether the latter argument will have any impact on the decision to be honest.

Is the mortgage and loan a Northern Rock together mortgage by any chance?

Regards,
Matthew.

Sure is. Are they known for trying to secure the unsecured or something? :S

stevemarsh1976

Hi

I have a telephone interview/meeting with CCCS tomorrow and Im hoping they advise br, just wondering if this is likely ?

quick synopsis is I have 12k unsecured debts but I have negative equity on my house of some £20k if I sold at the recomended sale price. I am moving out in 2 months regardless so intend to hand back the keys thus I will be owing minimum 20k on the house but probably more. Long shot I will be facing debts of at a guess 40k minimum.

Also will CCCS ofer any assistance with forms SOA etc, not that I dont think I cant get that help from here but just wondering to what extent they aid you. Also if CCCS advise against br is that avenue closed off for me ?

thanks

edit attaching my soa for reference

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1650
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1650

Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 97
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 20
Groceries etc. ......................... 170
Clothing................................ 50
Petrol/diesel........................... 70
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 0
Total monthly expenses.................. 1542


Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 114000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 117000...(550)......5.4
Secured Debt.................. 11200....(97).......0
Total secured & HP debts...... 128200....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
cards..........................3000......100.......0
overdrafts.....................2250......50........0
loans..........................7800......200.......0
Total unsecured debts..........13050.....350.......-


Monthly Budget Summary
Total monthly income.................... 1,650
Expenses (including HP & secured debts). 1,542
Available for debt repayments........... 108
Monthly UNsecured debt repayments....... 350
Amount short for making debt repayments. -242

Personal Balance Sheet Summary
Total assets (things you own)........... 114,000
Total HP & Secured debt................. -128,200
Total Unsecured debt.................... -13,050
Net Assets.............................. -27,250

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I also owe 2600 on a loan a friend took out for me to pay for a boiler when mine packed up alst year as I couldnt get any credit and had no heating...not overly sure where this sits

Flying

My partner was recently made bankrupt. He is still married although has been seperated for two years and his wife has also been made bankrupt. They have 2 children – one 19 and the other 15. He was paying an extortionate amount of money in rent, so we decided that he should come and live in my house, which I own solely in my name.

He has his interview with the OR next week. If he tells the OR that we are living together, could this affect the amount of surplus income they think he has. We have agreed that he should pay me some rent, and also contribute towards the bills, since I would be out of pocket otherwise.

Alternatively, if he tells the OR that he is renting a room from me, are they allowed to come and check on our living arrangements?

Also, he wants to file for divorce - am I correct in thinking he would be better doing that while bankrupt than after?

Many thanks in advance

RichDefoe

Hi, im a first time poster, just looking for a little advice on my current situation.

I am currently £34,000 in debt, throuigh mainly credit cards, one loan and 3 overdrafts (credit dating back to 2000). I have organised debt management plans with all of my creditors for the last 2 years, but in this time my circumstances changed due to redundancy and work changes.

I have had one County Court judgement, last week, for my highest credit card with Nationwide who would not agree with my monthly payment offer. They wanted to have a charging order against my property but did not know I no longer had the property (mortgage is also with nationwide!!). All my other creditors agreed but are now beginning to pressure me again to raise my payments. I have had numerous appointments with the National Debt Helpline and CCCS, most recently 2 weeks ago regarding a possible IVA. they advised regarding Bankruptcy which is what this post is aimed at.

My situation is I am no longer a home ower and basically have no assets. My monthly income is £1200 after tax and my outgoings are £1010 leaving me £190 surplus. is it likely I would be accepted for bankruptcy based on these figures? i have been given different information from people saying my outgoings need to be higher than my income, I need to have a certain amount of debt, etc. I guess im just looking for some clarification.

In terms of timescales, how long would it take for the BR to take place? Is it likely I would be asked to pay a figure each month over 3 years and if so, what is the likelyhood figure?

Many thanks for any input anyone can give me.

Rich

CCCS_Matthew

Esoog wrote: »

Sure is. Are they known for trying to secure the unsecured or something? :S

Yes, it's quite common that with a NR Together mortgage in cases where the unsecured loan has been defaulted, that they will look to secure the loan against the house anyway.

The advantage of this in BR is that it may help reduce the equity in the property increasing chances of keeping the house. The negative is that the debt does not become included within the bankruptcy whilst you still own the property, and you may have to make monthly contributions towards the debt set by the court.

Regards,
Matthew.

CCCS_Matthew

stevemarsh1976 wrote: »

Hi

I have a telephone interview/meeting with CCCS tomorrow and Im hoping they advise br, just wondering if this is likely ?

quick synopsis is I have 12k unsecured debts but I have negative equity on my house of some £20k if I sold at the recomended sale price. I am moving out in 2 months regardless so intend to hand back the keys thus I will be owing minimum 20k on the house but probably more. Long shot I will be facing debts of at a guess 40k minimum.

Also will CCCS ofer any assistance with forms SOA etc, not that I dont think I cant get that help from here but just wondering to what extent they aid you. Also if CCCS advise against br is that avenue closed off for me ?

thanks

edit attaching my soa for reference

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1650
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1650

Monthly Expense Details
Mortgage................................ 550
Secured/HP loan repayments.............. 97
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 20
Groceries etc. ......................... 170
Clothing................................ 50
Petrol/diesel........................... 70
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 60
Emergency fund.......................... 0
Total monthly expenses.................. 1542


Assets
Cash.................................... 0
House value (Gross)..................... 110000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 114000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 117000...(550)......5.4
Secured Debt.................. 11200....(97).......0
Total secured & HP debts...... 128200....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
cards..........................3000......100.......0
overdrafts.....................2250......50........0
loans..........................7800......200.......0
Total unsecured debts..........13050.....350.......-


Monthly Budget Summary
Total monthly income.................... 1,650
Expenses (including HP & secured debts). 1,542
Available for debt repayments........... 108
Monthly UNsecured debt repayments....... 350
Amount short for making debt repayments. -242

Personal Balance Sheet Summary
Total assets (things you own)........... 114,000
Total HP & Secured debt................. -128,200
Total Unsecured debt.................... -13,050
Net Assets.............................. -27,250

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

I also owe 2600 on a loan a friend took out for me to pay for a boiler when mine packed up alst year as I couldnt get any credit and had no heating...not overly sure where this sits

Hi there.

Sorry to take so long to get back to you. How did the appointment go?

Matthew.