Considering bankruptcy - advice needed please!

princess1984

Hello

I am currently paying a DMP through CCCS, have done for approx 4 years. My balance isn't much different, I've been predicted to clear my debts in 15 years, I insisted all along that this was fine as once my children grow up, childcare costs would reduce and working hours would increase. Now I'm not so sure. My partner has debts which are messing up my repayment of my DMP, I've sat here and worked out the budget again, we've got £11 per month to pay all our creditors (my contractual payment to CCCS is £111 and hasn't been paid this month, looking at the budget I can see why).

We're now discussing bankruptcy as a serious option, I'm getting frightened to answer the phone. Told one creditor we'll call them once we've spoken to CCCS, they said they'll continue to call until I call them back with a plan of action to repay. I would appreciate any advice regarding the following:

1. We are both working but also students at university. We get a special support grant(as we're both students), a parents learning allowance (we have 2 children) and a maintainance loan which we are using our final payment in April 2010 to pay for our wedding in August. If we go bankrupt, will the OR consider this student finance to be income? If they do, can I delay the bankruptcy until May so they can't touch this?

2. How do we find the money to pay the court fees? We do not qualify for help with costs as we are not on benefits.

3. Do they come in to your home and take anything? We have nothing of real value, the tv was £300 but I'm assuming that's pennies to them? We have 2 cars, we both work different shifts so have one each, can they touch these?

4. We have a joint current account with Barclays. We have the Additions Active, with all our benefits included, main benefit we make use of is RAC cover, but also will writing, phone insurance, extended warranty (the accidental damage comes in handy with the kids around). Will the basic bank account let us keep this benefit?

If yo can think of anything else please do add it, in the meantime I have to contact CCCS which I am absolutely dreading and I know I'll be told to go bankrupt.

Thanks for listening

philnicandamy

princess1984 wrote: »

Hello

I am currently paying a DMP through CCCS, have done for approx 4 years. My balance isn't much different, I've been predicted to clear my debts in 15 years, I insisted all along that this was fine as once my children grow up, childcare costs would reduce and working hours would increase. Now I'm not so sure. My partner has debts which are messing up my repayment of my DMP, I've sat here and worked out the budget again, we've got £11 per month to pay all our creditors (my contractual payment to CCCS is £111 and hasn't been paid this month, looking at the budget I can see why).

We're now discussing bankruptcy as a serious option, I'm getting frightened to answer the phone. Told one creditor we'll call them once we've spoken to CCCS, they said they'll continue to call until I call them back with a plan of action to repay. I would appreciate any advice regarding the following:

1. We are both working but also students at university. We get a special support grant(as we're both students), a parents learning allowance (we have 2 children) and a maintainance loan which we are using our final payment in April 2010 to pay for our wedding in August. If we go bankrupt, will the OR consider this student finance to be income? If they do, can I delay the bankruptcy until May so they can't touch this? Student finance payments are usually left alone

2. How do we find the money to pay the court fees? We do not qualify for help with costs as we are not on benefits. stop creditor payments & put this towards fees make sure though you cont priority debts gas/elect/TV rent etc

there are some companies that "could" help with the cost of fees but you would have to contact the CAB before you could apply

• Severn Trent Trust Fund and other water trusts
• EDF Energy Trust
• Royal British Legion
• Some Trade Unions
  • Trades Union Congress
  • Union Finder from Worksmart
• Turn2Us enables you to search for charities

Please note you will usually need the assistance of a recognised Debt and Money Advice Worker in completing applications relating to the above.


3. Do they come in to your home and take anything? We have nothing of real value, the tv was £300 but I'm assuming that's pennies to them? We have 2 cars, we both work different shifts so have one each, can they touch these? if you both work & are both going BR & working they may allow the cars..nobody will come to your home to go through your assets the receiver who deals with bankruptcy would only be interested in things that could bring AT LEAST £1000 in auction...so your safe

4. We have a joint current account with Barclays. We have the Additions Active, with all our benefits included, main benefit we make use of is RAC cover, but also will writing, phone insurance, extended warranty (the accidental damage comes in handy with the kids around). Will the basic bank account let us keep this benefit? sadly it will not no...

If yo can think of anything else please do add it, in the meantime I have to contact CCCS which I am absolutely dreading and I know I'll be told to go bankrupt. try not to worry too much bankruptcy is a last resort option have the discussion with cccs and see what happens

Thanks for listening

Welcome firstly...added a few thoughts anything else you need to ask just shout & we'll all do our best to help

if they do suggest bankruptcy have a bit of a read here

http://forums.moneysavingexpert.com/showthread.html?t=1056083

princess1984

Thank you for your message. You say to stop paying creditors while you save up for the BR fees, won't the creditors go mad? Do you make a token payment to them during this time, and do you need to inform them that you are saving to go BR? I am going to apply to my university for my BR fees, see if they may be able to help at all. 'The Fund may help to alleviate unexpected financial hardship. Students who may be considering leaving higher education because of financial problems are particularly encouraged to apply.' Worth a try. Nothing to lose.

princess1984

I have called CCCS, they have closed down my DMP and have given me the number for the Bankruptcy Helpline within CCCS. I already feel so relieved, they said they can't touch my student money and they will help me find out my options with paying the court costs.

philnicandamy

Glad you made the call....well done

token payments really dont help that much to be honest...and thats IF creditors agree to it (mine didnt) its really then a case of fending off phonecalls & letters once you stop payments

i've heard in the past of university hardship funds helping..so thats a good idea as I said though there are as well other funds you might be able to use if they refuse

There are a number of charities that may help with bankruptcy costs and fees depending on eligibility (examples below).

• Severn Trent Trust Fund and other water trusts
• EDF Energy Trust
• Royal British Legion
• Some Trade Unions
  • Trades Union Congress
  • Union Finder from Worksmart
• Turn2Us enables you to search for charities

once you stop creditor payments dont tell them if they call about your upcoming bankruptcy that'll only increase the hassles...tell them your talking to cccs & you'll be in touch soon

princess1984

I'm going to be making token payments until I go BR in May, CCCS said it is wise for me to wait until then so that we can renew our tenancy agreement for a year to ensure we have stability and a roof over our heads. Already spoke to one creditor who said they can't accept £1 token payments, and asked if I'd like to know the minimum they'd consider. I said there's no point, I can't offer any more money than that so they'd have to take my £1 for the time being. Might record a new answering machine message saying the same thing for any other creditor who wants to try! :rotfl:

Have decided to keep the joint account but change it to just my partner's name so we can keep the benefits. Do I open an account now or when I'm BR? Also shall I get all my money paid into my partner's account or does it need to be in my own?

fiveyearplan

I wouldn't bother with the token payments or telling the creditors that you are planning bankruptcy - they won't believe you and they will still hassle you. I just didn't answer my landline phone from 8:00 am to 9:00 pm and only took calls on my mobile from numbers I recognised - ie no 0845/0800/0870 numbers. It was stressful but I dealt with it.

Bethankim

Hiya,

I appreciate its very hard and saving for 2 lots of fee's wont be easy.
can i make a suggestion, feel free to ignore me but if you are getting a final payment of your grant in April, would you consider using that to pay for the fee's.

I appreciate your wedding is important, but if it was me id use what i had to go BR and then change my wedding plans to still get married but cheaply within a limited budget - as its the marriage that would be more important to me

it is worth popping up for SOA to see if there is any room for saving those fee's and also what your budget would look like post BR so you can save up a little towards august.

just another perspective

Worcsman

I can only speak from my own experience and not on the basis of any professional knowledge on the subject.. Go for it! Bankruptcy seems so scary but it really isnt, it is a relief, so long as you are not too attached to your assets, property etc then just do it. Prepare well though and start sticking cash under the matress for the big day. Empty your bank accounts, sell anything of worth, above all else, research the process thoroughly.. There is much to do in preparation and you can do plenty to make things better for yourself prior to having the receivers call for your stuff. You will need all the cash (not in a bank) you can get to see you through. Stay legal! Hope that helped. Good luck!

princess1984

Bethankim wrote: »

Hiya,

I appreciate its very hard and saving for 2 lots of fee's wont be easy.
can i make a suggestion, feel free to ignore me but if you are getting a final payment of your grant in April, would you consider using that to pay for the fee's. Sorry I have been so busy waffling away on here I have missed some facts - CCCS said just I need to go BR, not my partner, which is fantastic! Another question though - can I financially disassociate yourself from your OH so their credit rating isn't dragged down by mine? (he has his own debts but nowhere near what I've got).

I appreciate your wedding is important, but if it was me id use what i had to go BR and then change my wedding plans to still get married but cheaply within a limited budget - as its the marriage that would be more important to me I agree it's the marriage not the wedding that is important but we have already placed deposits and these are the bookings that we want to keep. Alot of these bookings I've paid the min deposit, 50% of the balance or more, so I'd actually be wasting more money by cancelling.

it is worth popping up for SOA to see if there is any room for saving those fee's and also what your budget would look like post BR so you can save up a little towards august. Sorry, what's a SOA? Sounds good whatever it is :rotfl:

just another perspective