I am going to make the call!

greenpastures

I am finally going to make the call to the CCCS to go bankrupt.

I am very scared, I rang the other day and the CCCS told me what steps to take ie: re-filling in budget. I am currently on a DMP but it won't be paid until 2036!!! They couldn't have been nicer and more helpful.

I have a major worry though - Can I up to the point of going to court pull out? I am asking as I cannot lose the family home, there is no equity in it, we are not in arrears and my husband pays the mortgage but it is in joint names. CCCS have stated that they probably won't bother with the house but will the BR people decide that before telling me to book a date in court?

It is only me going BR and all the debts are unsecured.

I have no assets except an old banger of a car which I think they would just laugh at however it gets me from A to B, the book value maybe £600/700 but it is cosmetically in a bad way so would probably fetch 300 at most but have 3 young children so do need it.

I only work part time so have a minimal income including a few benefits, my husband pays all the bills and I pay for food and stuff for the kids.

Does anyone know what allowances I am allowed like how much on the kids clubs/trips/clothing etc. I can do without but they just don't stop growing!

Any advice would be very welcome

Thanks

CreditMonkey

I found my Official reciever very helpful and reassuring. I don't know about your house someone else will advise i'm sure. As for your car they almost certainly won't bother. Your OR will talk you through your budget. The only bad bit is the waiting for ages at county court for your 5 minutes in the judge's office. BR has not stopped me doing anything i did before and has freed me from the mistakes that would have ruined the rest of my life. I wish you the best.

sniggings

not too up on morgages but CCCS will give you the full answer but I think your husband can buy your share of the house for £1 and the fees involved,as said I'm not 100% but cant see the house being a problem,yes the house will all be sorted before your BR case is heard and you can back out of BR but if papers are signed for house etc that may not be so easily stopped,as you are only on parttime work the chances are your wont have a IPA so no budget will be set for clothes etc only if you will be getting a IPA is when you would be told the amounts allowed for expenses and the remainder would partly be given to the OR,car should be OK too,after your CCCS call you will better understand things,hope that helps for now.

greenpastures

Not to sound stupid but does IPA stand for and is there a list of abbreviations as everyone seems to use them and I am just guessing!

Thanks for your replies its really appreicated.

This has been a huge costly and emotional learning curve that WON'T be repeated!!!

SteveABC

Couple of things to consider - CCCS should be able to confirm, if correct.

1. I believe the equity (or beneficial interest) can no longer be bought for £1 straight away. I think there is now a period of time (something like 2 years and 9 months) where the OR will look at the equity at that time. If it is still in negative equity then, someone might be able to buy the beneficial interest for £1. However, if it has returned to equity at that time, the purchaser of the beneficial interest might have to find more to pay the OR.

2. You said it is only you going BR. Are the unsecured debts you mentioned in joint names? If so, the other party will then become reposnsible for paying them, as you are both "jointly and severally" liable.

I'm no expert, so please check these things out.

CCCS were really helpful for me too.

Good luck.

greenpastures

No the debts are all in my name, my husband has his own and is paying off and should be finished in 2 years so don't want any of mine to affect him. He does know about mine but as they are in my name only I want to keep him out of it.

Thanks

sniggings

income payment agreement,if you earn more than your allowed for living expenses, one will be set, to give you allowed amounts for food etc then the rest will be given to the OR to pay of some of your debt but not all of the reminder,they let you keep some too,if on low income then no IPA ,so no budget will be set,so any money you have will be yours to spend how you want,also rember if it is only you going BR it is only your wages they look at,your husband will be expect to pay his half for expenses but it's just your wage the IPA is based on.

SteveABC

IPA is "Income Payment Arrangement". The OR looks at your income and expenditure post BR and will tell you how much you have to pay towards your BR debts for a period of three years.

They allow reasonable living expenses, but do expect 100% of your disposible income after this to form the IPA.

Again, CCCS will give more info.

SteveABC

My car was worth £1500, and I was allowed to keep it as it was needed for work.

greenpastures

I will be ringing the CCCS tomorrow to go through my renewed budget and get the ball rolling.

Thanks again

SteveABC

Best of luck Greenpastures.