Query regarding CCCS advice..

r710

Hi,

After some opinions please.

My husband is now unemployed, has an appointment tomorrow at the Job Centre to see if he can't get some income based job seekers allowance.

He called CCCS today, as I asked him to, and the member of staff told him he couldn't apply for his own bankruptcy as he has no income (We were aware this may exclude an IVA, but not bankruptcy).

He was told he would instead have to wait for each creditor to take him to Court, I presume through CCJ's. and make agreements to pay them say £1 each per month. After entering into an arrangement with the creditors at Court, he then wouldn't be able to go bankrupt for the same debts in the future. They warned him that this result would end in 15 years plus of bad credit as opposed to the straight 6 we we hoping for with bankruptcy.

His debt is significant, and currently the only income we have is from my part-time wage and child tax credits and working tax credits, although my childcare element will soon be removed due to my husband's unemployed status. Despite the fact we would be entitled to housing benefit, they have stopped my claim due to an overpayment in dispute. At present, our income is far less than our outgoings, but hopefully when my husband finds work, the housing benefit gets reinstated, we'll have sufficient without the debt.

Can anyone shed any light on this advice? I'm really confused as to why he can't go bankrupt on benefits when I have seen several posts mentioning it, and talk of reduced Court fees for those on benefits..

I'm going to get him to check this information with another debt charity but this advice has really confused me. Just as we were starting to get our heads around bankruptcy, this has really scared us..

I'd appreciate anyone's thoughts,

r710

mandyl

hi
doesnt sound right that info from cccs.
they never said that to me and im on income support and have no spare money. as far as im aware if you can raise the br fees there is no reason why you cant go bankrupt. big hugs xx

r710

Thanks mandyl,

Been interrogating my husband about the conversation he had with them. He's really confused himself but he definitely understood that she told him he'd be likely to be paying his creditors back for at least 15 years. Given this process has already tested my emotional health to the limits, I'm not sure I can face that prospect!

Glad this doesn't sound right to you, certainly sounds like a nightmare to me!

r710

Ineedaname

CCCS do seem to give out odd advice from time to time, I think it depends on which individual you speak to there. Another member was told something similar a while back, but they spoke to the CAB (I think) and got help there instead.

mandyl

hiya again,
if i decide to just carry on as iam it would take me forever so that bit might be right. but i cant see why on earth they said you cant go br? br is for people with no money . im on income support and was looking at br. very strange

philnicandamy

At the end of the day if your hubbies insolvent (cant meet outgoings with current cash coming in) he can make himself bankrupt BUT the courts may ask if hes not a great deal of cash left at the end of each month how he'll manage with no credit...apart from that it'll not be refused

CCCS should know that most creditors wont make someone bankrupt as it costs them way way more to do than if you DIY so I cant understand their thinking tbh

for the record? went bankrupt over 4yrs ago myself on benefits...no issues at all

immoral_angeluk

Eh? That sounds like rubbish advice IMHO. Anyone can go bankrupt. If he has no personal income then he should declare the household income, I don't see what the problem is. I have clients on little/no personal income go BR all the time and have never had a problem. The only real reason they're looking at income is to look at IPAs anyway....

Oh and for what it's worth, in the whole time I've been doing debt advice I've had ONE client who's been made bankrupt by a creditor... I've been working in debt advice for about 3 years now and currently see around 15-20 new clients a month, so that should give you an idea..

philnicandamy

Influx of new staff recently though...methinks the training needs to be assessed AGAIN

immoral_angeluk

philnicandamy wrote: »

Influx of new staff recently though...methinks the training needs to be assessed AGAIN

More than likely, but it's the same everywhere really, your advice is only as good as your advisor, which is why it often pays to 'shop around'.

philnicandamy

Indeed it does...

r710

Thanks for your replies.

It's re-assuring to know that this advice doesn't sound right to you guys too, and I'll be able to sleep better tonight with some hope that bankruptcy could still be an option for him. Funny, bankruptcy always appeared to be worst case scenario. Given the scare we had today, I'm not so sure!

I'll get him to call another advice line tomorrow and see where that gets us.

Really appreciate you taking the time to help put our fears to rest.

r710