Query regarding CCCS advice..

kepar

Gothicfairy wrote: »

Of course because I would balance it based on what I have now rather then what I use to have when I worked full time in quite a good job.
I would have :
Rent (250)
Gas/Electric
Council tax
Car insurance
Petrol
Tax and MOT

Anything after that is food and for me

Right now I would have:
Mortgage (over £600 per month)
Council tax (over £100 per month)
gas/ electric (should be £120 per month)
Water (30 per month)
DEBTS (this now should come to over £500 per month)

So I would be better off after bankrupcy then I am now and at the moment there seems little else I could do to move forward.

Yes great that is what I was trying to point out.

What Pavan was pointing out was if after going bankrupt and you still cannot balance the books, maybe with a large deficit what is the point of going bankrupt.

Ineedaname

CCCS_Pavan wrote: »

We don't say people can't go bankrupt if they have a deficit budget, they certainly can and ultimately it is their choice. It's that we would advise that there’s no long-term solution in place and that the budget would ideally be balanced before petitioning. This helps the client’s wellbeing in the long term.

The problem being this isn't the first time a member has posted that CCCS has said they cannot petition for BR due to having a negative budget. So obviously training is required in order to ensure your staff explain as you have above.

I also don't see how it helps the client's wellbeing unless CCCS provide some practical advice on how to balance the budget...

kepar

I also don't see how it helps the client's wellbeing unless CCCS provide some practical advice on how to balance the budget.

The way I see it INAN is that although some people are "happy" enough to go br, they want to maintain a certain lifestyle. Although going br means that you rid yourself of debt and the ability to credit you can be left with very little to live on. As DD said in an earlier post, some have to survive on very little.
If things go wrong you can be in an even worse mess, you have no where to go. I should know, the washing machine has just gone bang, fortunately now we have some savings , 2 years ago in our br year we would have had to manage without one for 5-6 months whist we saved where we could.

debt_doctor

The books will ALWAYS balance in the end. Everyone who has a right to reside in the UK is entitled to benefits. When they were working they would have had expenses relative to their income.
Lets say a single person comes out of work (over 25yrs old) and gets £280 per month JSA. He has a mortgage, insurances, a car and basic expenses amounting to £1000 per month - NEGATIVE BUDGET.

Nothing gets paid except gas, elect, water TV Licence and food.(£280 pm)
Car is sold/ taken off road, given back to HP company.
Client goes bankrupt. All debt written off.
Council tax met by benefit.

Possession proceedings for mort arrears, shortfall in to bankruptcy.

Moves in to council / private rent, met by housing benefit.

Books balanced. (just!)

DD

Ineedaname

Kepar, hence the need for some practical advice on reducing expenditure, or finding out about other benefits the client may be entitled to. What appears to happen right now is that CCCS say "negative budget, can't go BR" and leave it there, poor client wondering which way to turn...

Broken washing machine? I wouldn't go without for 5-6 months, I'd be straight on Freecycle and have a free second hand working machine within a week. See a practical solution to saving money.

OK, I don't expect CCCS to advise to that extent, but even pointing the client in the right direction would be of more help than nothing.

debt_doctor

kepar wrote: »

I also don't see how it helps the client's wellbeing unless CCCS provide some practical advice on how to balance the budget.

The way I see it INAN is that although some people are "happy" enough to go br, they want to maintain a certain lifestyle. Although going br means that you rid yourself of debt and the ability to credit you can be left with very little to live on. As DD said in an earlier post, some have to survive on very little.
If things go wrong you can be in an even worse mess, you have no where to go. I should know, the washing machine has just gone bang, fortunately now we have some savings , 2 years ago in our br year we would have had to manage without one for 5-6 months whist we saved where we could.

I agree with that. The books balance at the end of a sometimes very steep learning / realisation curve. But they always end up balancing, they have to, it's a product of low income mixed with enforcement and service withdrawl.

DD

debt_doctor

When I'm training volunteers I always ask them this question;

What's the most important thing a debt advisor does?

The answer is they give people hope.

Hope that no matter how bad things are now and no matter how little income they have or are going to have there is a light at the end of the tunnel that they can become debt free and live within their (often meagre) means.

If you can't build a client up, give them hope and empowerment to tackle what they need to do to get out of their situation, then you have failed as a debt advisor.

For CCCS or anyone else to say at the outset "you've got a negative budget - you can't go bankrupt" has potentially taken away all hope and empowerment for the client and has made a clients situation worse.

DD

Ineedaname

I guess that's really my point DD, to just end the conversation on that and let the client walk away not knowing where to turn next, except MSE BR forum, is just not good enough.

dojoman

This why I always put CCS at the bottom of the 3 debt charities when advising people to use one:)

debt_doctor

Ineedaname wrote: »

I guess that's really my point DD, to just end the conversation on that and let the client walk away not knowing where to turn next, except MSE BR forum, is just not good enough.

I agree.

DD