Ask a CCCS counsellor a bankruptcy question

CCCS_Sarah

KITTENPOP9 wrote: »

Hi, Me and hubby went BR last month and we are now thinking of giving up our house for volutary repossession. Could you please confirm that if we decide on this course of action then even if we'r discharged or undischarged any shortfall will fall will be included in our bankruptcy? Many thanx.

Hello,

If you have not been discharged from the bankruptcy it should be fine and as long as you do not signed any paperwork from the mortgage lender acknowledging the debt. This would create a new debt post bankruptcy of which cannot be included in the current bankruptcy.

Sarah

fermi

CCCS_Sarah wrote: »

If you have not been discharged from the bankruptcy it should be fine and as long as you do not signed any paperwork from the mortgage lender acknowledging the debt.

The same also applies even if you have been discharged.

fermi

If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?

When the property is eventually sold any shortfall to the mortgage loan company is still a provable debt in the bankruptcy, even if you have been discharged, as you are released from the debt on discharge.

But as said, DO NOT sign any acknowledgement of the debt after the date of the bankruptcy order.

KITTENPOP9

Thanx Sarah & fermi but does that still apply even if we don't buy the BI as we're really not sure if we can afford to buy the BI plus costs in the future?

fermi

KITTENPOP9 wrote: »

Thanx Sarah & fermi but does that still apply even if we don't buy the BI as we're really not sure if we can afford to buy the BI plus costs in the future?

Yes. ..........

Learning_fast

Hi, I have a bankrupcy hearing on the 11th may - and have opened a new account too soon - I am Wondering since it's a managed account will the official reciever freeze it and how long after the meeting will I hear from the OR? Just want to make sure everything is ok..

Thank you

luciokas

Unfortunately, one day in February I was declared bankrupt. A few days after that I received a compensation payment for my accident at work. Sadly, my trustee took it away as an asset in my sequestration, which I think is not fair as it is money paid to me for my pain and suffering. I know that usually they do not have any interest in that kind of money (apart a bit that is for lost earnings). Well, I have read stories like that on this website.

Trustee, says that it is an asset and has to be sequestrated.
Interesting fact - the first time I told them that I've received that payment and asked if I can keep it, they didn't know the answer as they have never had such case before and took some time to reply to me and that's where I think might be the case of just 'not knowing' and doing whatever might look right.

I am considering appealing it and would be grateful if you could give me some advice in such case.

Thank you very much!

P.S. It’s Scottish bankruptcy.

CCCS_Sue

Learning_fast wrote: »

Hi, I have a bankrupcy hearing on the 11th may - and have opened a new account too soon - I am Wondering since it's a managed account will the official reciever freeze it and how long after the meeting will I hear from the OR? Just want to make sure everything is ok..

Thank you

Hi Learning fast and thank you for your message

All your bank accounts are usually frozen by the bank when it is made aware of the bankruptcy order.
So I’m afraid you may have opened this account a little too soon.
You will need to make alternative arrangements for receiving money into the account and paying any standing orders or direct debits etc.
After the bankruptcy order, you can open a new bank or building society account, but you must tell them you are bankrupt.
You could also ask the bank where you have opened your new account if they would be willing to let you continue banking there.
It is for them to decide whether you can continue.
They may impose some conditions and limits.

After the hearing, the OR will arrange a meeting with you.
The OR will then tell your creditors about the bankruptcy, and send them a report with a summary of your financial situation.
This should happen soon after the hearing.

Hope this helps.

Regards
Sue

CCCS_Sue

luciokas wrote: »

Unfortunately, one day in February I was declared bankrupt. A few days after that I received a compensation payment for my accident at work. Sadly, my trustee took it away as an asset in my sequestration, which I think is not fair as it is money paid to me for my pain and suffering. I know that usually they do not have any interest in that kind of money (apart a bit that is for lost earnings). Well, I have read stories like that on this website.

Trustee, says that it is an asset and has to be sequestrated.
Interesting fact - the first time I told them that I've received that payment and asked if I can keep it, they didn't know the answer as they have never had such case before and took some time to reply to me and that's where I think might be the case of just 'not knowing' and doing whatever might look right.

I am considering appealing it and would be grateful if you could give me some advice in such case.

Thank you very much!

P.S. It’s Scottish bankruptcy.

Hi luciokas and thank you for your message

You could put your grievance in writing to the Accountant in Bankruptcy.
I have attached a link to the Accountant in Bankruptcy website for you
http://www.aib.gov.uk/MainNav/Services/Legislation/complaints

Regards
Sue

debtsrus

Learning_fast wrote: »

Hi, I have a bankrupcy hearing on the 11th may - and have opened a new account too soon - I am Wondering since it's a managed account will the official reciever freeze it and how long after the meeting will I hear from the OR? Just want to make sure everything is ok..

Thank you

Hi Learning Fast,

I went BR last month and I opened a new bank account about two weeks before lodged my petition. If you opened your new account with Barclays or Coop ( the only two banks that allow people who have gone BR to keep thier account) there should not be a problem. I opened a cash account with Barclays and set up my standing orders and pension payments at the same time, I told them exactly what the situation was and they couldn't have been more helpful. There was no interruption in the service and everything just carried on as normal.

If you're having some anxiety about your upcoming interview the following paragraphs might help youfeel a bit better.

My initial contact with the official receiver was on my way home after submitting my petition, they didn't hang about. He asked me some questions about whether I had any antiques or any items of value at home, and then rang me the following day to make an appointment for me to attend an interview about a week later. I asked them if I could have a telephone interview because it was difficult for me to travel to their office and they agreed to that.

I had my interview at the appropriate time, but the run up to the interview was for me the worst part of the whole of this Bankruptcy thing. I don't think I slept a wink during that week, I was worried sick.

The OR rang me at the appropriate time ....on the dot! I felt like throwing up but I couldn't because I was almost paralysed with fear.

If you are going through anything similar let me put your mind at rest. The interview lasted less than half an hour; the questions asked were just verification of the details set out in my Statement of Affairs; he asked me if I had any questions, and that was it.

So if you are apprehensive I hope these few words make you feel a little easier.

Good Luck

DebtsRus.