Ask a CCCS counsellor a bankruptcy question

CCCS_Matthew

Flying wrote: »

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

Hi there.

The OR will request a statement of affairs to illustrate his income and what he contributes towards living costs. 50-70% of the remaining amount (as long as it's more than £99) could go into an income payment arrangement to his creditors for 3 years. It doesn't really matter whether you are living together/renting a room from you, the amount left over each month is what the OR will be interested in. Occasionally the OR may want to see proof of the figures provided, and would normally look at bank statements to see whether the figures on the forms correlate with what he does actually pay.

If he's been living with you for a number of years he may have started to build up beneficial interest in the property, but if it's only recently since he's moved in then this shouldn't be an issue.

I don't think there is any difference between getting a divorce now compared to post bankruptcy.

Regards,
Matthew.

CCCS_Matthew

RichDefoe wrote: »

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

Hi Rich.

You would not be refused bankrutcy. You are clearly in a position where you cannot afford the repayments to your creditors and have no other way in clearing them, which suggests you are insolvent.

You don't need to have more going out than coming in. In fact, we suggest making sure your income coveres your outgoings before considering bankruptcy to make sure you have enough money to live on after bankruptcy, as you will have no access to credit to "bridge the gap"

The £190 left over is likely to be used in an income payment arrangement for 3 years. Normally you expect to pay 50-70% of this back to your creditors.

As far as timescales are concerned, you can go bankrupt as soon as you have the fee together, filled out the forms and booked an appointment with your local county court.

Hope that helps!
Matthew.

baby_miece

does going through a DRO affect being able to move abroad to New Zealand or Australia? Or is it not like it is with a bankruptcy?

CCCS_Matthew

Hi there.

A DRO wouldn't prevent you from moving abroad, it's the same as bankrutpcy. The only thing you would have to consider if you moved whilst still on the DRO whether it affects your situation in relation to whether you still only had £50 or less remaining each month.

Regards,
Matthew.

lauren_1

Due to the recent changes regarding CSA payments and Income support a DRO is no longer suitable for me, what is my next best option?

I will have more than the £50 surplus, infact the changes pushes me to £120 surplus but this is still not enough to pay all my creditors.

uptomyeyes1984

Hi, we've (myself and husband) been looking into our options on how to deal with our debt, at the moment bankruptcy seems to be the one were swaying towards. The only thing that is stopping me is our car. I'm so worried we'll loose it. we have a peugeout 206 (2003) parkers guide says its worth private good 2,120 and private poor 1,395.

Do they allow you so much for a car? I mean before we decided on this we have been trying to sell it to upgrade to a bigger car (2kiddies we need it) but wasnt going to spend anything extra on one only use what we get for our car. We share the car my husband uses it for work he works 2miles from home but ocassional travels between stores, and i use it on a friday when i go to work and i take my 2 babies with me.

Thank you in advance.

debtsrus

Hi, I think this might be relevant to the question you have submitted.

I petitioned for BR on the 17th march and I have just had my interview with the OR.

In my case, my car was written off in a fire a month before I went BR. The insurance company paid out £1,500. I explained to the OR what had happened and that I had cash in hand from the insurance settlement. The OR wouldn't let me use the money to replace my car and I had to hand the cash over to him.

This, is despite me explaining that I live in a rural area, only 6 buses a day - none after 5.30pm and none on Sundays or Bank Holidays - and sharing custody with my ex-wife for our 2 children.

He wouldn't budge and told me that if I had already bought the car it would have been a different matter and I would most likely have been able to keep it.

So don't inadvertently shoot yourself in the foot like did!

I hope this helps.

emcon_2

Hi
I am in desperate need of advice. My Husband and I currently have a debt management plan with Payplan. We pay £282 per month and are really struggling to pay it. My husband is in around £100K due to faliure of his business. At the moment I can't see and end as we will be paying £282 for around 30 years. He is seriously thinking about going bankrupt as we see this as the only option. My debts are manageable, so it would only be my husband going bankrupt. We don't have any assets, but have around £15K equity in our house. We have 3 children and loosing our house would be the worst thing for all of us, and really isn't an option.

Please could you help me, I really don't know what to do for the best.

uptomyeyes1984

Hi, sorry for all my questions we will finially make a decision regarding our debt and it is looking like bankruptcy is the best option for us. the only thing is how do we come up with the £1200 needed? (as myself and hubby need to do it) we have no savings and the only thing we have of value is our car which we are selling anyway to downsize (below £1000) to prepare ourselves. my question is can we take the money from our credit cards and overdraft? its what were using to live on anyway and i dont see any option nor a light at the end of the tunnel at the moment.
Thanks

CCCS_Sarah

baby_miece wrote: »

does going through a DRO affect being able to move abroad to New Zealand or Australia? Or is it not like it is with a bankruptcy?

Hello,

The best thing to do is speak to the embassy of those countries to make sure.

Sarah