Your Advice Needed Please...

fatbelly

PHM12 wrote: »

Thanks for the great advice. I have spoken again with CCCS, and they have advised me to contact the court and apply for a redetermination on the Forthwith order. I also had a deficit in my budget, and was advised that I wouldnt be able to apply for bankruptycy, until this balanced. So we took out even more essentials, and it now does. So this is the avenue they have suggested. The only potential issue is, that as my budget is the very very basic....with only the minimum food allowance, transport and nothing else. That when/if I am entitled to any help down the line with Mortgage interest payments, then this will present around £300 surplus...which the OR may decide to use towards debts. So, do i start the ball rolling now...or wait until I this is sorted (could be 13 weeks or more). I am not wanting budgets for any extravagence....just bit more food, clothing, school trips, pocket money etc.. If i wait, the Creditor may apply for a Charging Order on the property. There is probably a negative equity, I am concerned is because it is our family home and I have two children...

I hardly slept last night...

I don't want to turn this into a CCCS-bashing thread nor to make you feel that we (well Gimpsdad and Fatbelly!) are pushing you unreasonably.

However, I do want to make a couple of other points. You have 2 x ccjs and CCCS are suggesting trying to vary the order (on both?) from a forthwith judgement to an instalment order. No court will make such an order given your income/expenditure, so at best this is a delaying tactic. It would be very easy for those creditors to apply for a charging order and, while an order for sale is very very unlikely, it means that that debt attaches to the property and would not be discharged by bankruptcy.

Provided the charging order was made absolute prior to the commencement of the liquidation or bankruptcy (prior to the petition in a liquidation, prior to the bankruptcy order in a bankruptcy), a creditor would normally be entitled to retain the benefit of the charging order.

PHM12

Thank you, Thank you, Thank you.....Gimpsdad and Fatbelly Your advice and comments have been a huge help, and have given me some peace of mind. I have decided that this is the route I am going to pursue, and have printed off the forms...No, I have no desire to have any of the careers that you mentioned, and Im not bothered about my next mortgage either....your also right, I have nothing to lose, as I have nothing. The most valuble things to me are my children, and to be able to have peace of mind is what this is all about. I havent had an overdraft or used credit cards etc for over 12 months, and I have no intention of using them again. Saving is the way to go for me!!

I hope that you can please answer a few more questions for me please...

1) Do i need to make an appointment at the Court, or just go along with my forms and fee?

2) I have made an appointment at Barclays to open an account next week, and told them that I am in the process of applying for Bankruptcy. I was going to transfer my DD and income into this, then close all other accounts (I dont have any overdrafts or owe them money), Is this a good idea?

3) I have mentioned before that just before I finished work I received some Maternity Pay arrears. I have bought a bed for me and my son (as we were on airbeds), a pushchair for my daughter, and a few other small bits, decorating etc....I have read that spending money before applying for Bankruptcy isnt good...is this right? Will it have any effect? I have agreed monthly instalments with all my creditors, which I have kept up to date with. It is just the one that wouldnt agree, and took the route of a CCJ, then the payment forthwith. The other CCJ is an older one, and I have been making payments too. I do owe a small amount to my Gas & Elec supplier (approx £150), as they messed my DD details up, and 2 payments were missed. I have a payment arrangement with this, but was wondering if I should pay this off?

4) I have sold some items on ebay, mainly my little ones no longer needed baby stuff....is this ok to do so? Are they more concerned about larger items?

5) Finally...for now Could you help me with my outgoings please? What I can allow for/how much is reasonable etc, or point me in the direction of where to find this info. As I havent yet received any confirmation of my entitlements, as I have only just applied, do I use estimated figures on the application? Do i take into account the estimated income for help with Mortgage Interest, even though I wont receive this for a number of weeks?

6) Would the OR allow me to keep any money put aside for living expences/mortgage payments that I saved from my last wage/Mat pay? (its only enough for a month or two?) until any entitlement is sorted and the Mortgage help starts? So i dont default on the Mortgage (which at present is up to date).

I appreciate that you can not say for sure on maybe a few of the questions, as each case is individual.. but your advice is very much appreciated!!

Once again.....thanks. This is such a fab place to get help and support from you good people out there....

Gimpsdad

1) Depends on where you live, but probably. Some courts are busier than others.
2) Yes. Not a massive fan of Barclays personally, but they are very good with people in BR, so fair play to them for that. Transferring everything is a good idea.
3) Fear not. Had you have spent money on frivolous items then you may have had questions to answer, but beds, a pushchair and a little decorating? I want to give you a big hug rather than castigate you. What a good mum you sound. You cannot pay any debt off though, that is preferential, and while I do not believe you would actually get into trouble for doing it it is best to stick to the basic fairness principles.
4) No problem at all, don't give it a 2nd thought.
5) If you look hard enough, you can find an idea on the internet, but I had a look yesterday myself and a single persons allowance for food was either 204 or 206. It doesn't matter though, as if your income is 100% benefits based you cannot be subject to an IPA or IPO. Maybe log onto CCCS debt remedy and enter what you actually consider you need, see what it prompts you to put and get an idea from there. Rest assured though that if you make a mistake on the forms as regards I&E the OR will allow you what they can anyway, so you have nothing to fear at all.
6) Yes!! You are on benefits, they cannot take anything off you and you can spend your money however you so choose.

I wish you all the best, please come back when you have more news and let us know how you got on.

PHM12

Once again...Thank you Gimpsdad...your comments have been much appreciated and your advice has once again been great!!

Im so sorry to be a pain though, with all theses questions...!! I have started to complete the SOA petition, and could do with some clarification on a few of the questions....the advice from you has been far better, explained well, and to the point..than the other source I have used!

Section 3..Assets

1. Cash in hand...(I assume this is what I have upon my person, in my purse at the time i lodge the petition).

2. Cash in Bank/Building Society Acoounts...(Does this include any savings accounts that I have for my children? If so, is there an age that this is up to?)

12. Pension...( I paid into an NHS pension, do I put this one in? N ot sure of the value though, would have to get in touch with them)

16. Nat Savings..(again, I have a savings bond in my sons name (taken out a while ago..£20..does this count?)

Section 4; Secured Creditors

Do I enter my current Mortgage details here? (only it's asked for again later on)

Unsecured Creditors...I assume this is for utilities, loans, store cards etc...and credit cards are listed under banks? Also, do i write the name and address of the original Creditor or the company that has the debt now? EG Moorcroft ot Lowell

And finally....

Do I write my current income (which at the moment is Child Benefit, Child Suppor and 4 week run on of Tax Credits...which will change after then) Or do I write what my expected income to be, based on the esimates given to me, that will include IS and Mortgage Interest payments? Only this will effect what my outgoings will be too. I know that you said if my oncome is entirely made up of benefits (which at present it is), then it wont be taken into account. So I am just asking, in order that I write the correct info on the form.

Oh yes...one more thing.. it asks about money due from a will...does this mean any money that you are expected to receive, that is in the process of being issued, as oppsed to being a named person on a family members will?

No doubt there maybe more questions along the way!! I am just so grateful of your help....Thank you

Grumpelstiltskin

PHM Now you have decided on bankruptcy I would ask your questions on here.

http://forums.moneysavingexpert.com/forumdisplay.php?f=136

Start a new thread on that section but refer them to your thread on here.

They will give you all the help you need in completing the forms.

PHM12

Just thought I would give you an update. I applied for Bankruptcy, and have my interview with my OR the beg of June!! So its now a matter of waiting at the mo. I cant thank you enough for your help, support and advice Thank you x