We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Considering Bankruptcy

17891113

Comments

  • AlanD_3
    AlanD_3 Posts: 312 Forumite
    I've spoken to CCCS and they are calling tommorow. Got the pack but it is all the same information I've got on my spreadsheet (as previously posted).

    Trying to think of any questions I've missed from here.

    Looked at a house for a mutual swap within the housing association but that is a long shot for us.

    Things got so far on top of me this week that I failed a lesson observation on Monday. A four!!! I've never gotten a 4 before. I've been a steady 2 with more and more elements of a one (1 being excellent). Knocked me sideways, I need to get this sorted sooner rather than later, I think my mind just can't live with it any more.

    I'll post how the CCCS thing goes to help those who are thinking of the same route.

    Cheers,

    Alan
  • Hi alan ,good to see your getting there ,sorry work was not so good though,you are great considering where you were at to start with, just remember small steps .
    Official DFW NERD 189

    I may be a woman but dont hold it against me:D

    Officially declared Br 6/11/06


    Discharged Br 4/5/07 (6 months to the day)

    BCSC MEMBER 21
  • AlanD_3
    AlanD_3 Posts: 312 Forumite
    :o:o:o - awww thanks.

    Spoken to CCCS properly today. For those considering it the process it is very painless and quite helpful.

    Basically they send you a pack to fill in beforehand (they can email it). This is a basic list of income/expenditure/creditors as most folk on here would have filled in beforehand (especially if they've asked for advice on here).

    The phone call consists of a basic chat about your situation (nonjudgmental), advice about dealing with creditors and then a run down of what you've filled in on the form (this is what takes the time).

    We've tried to put together a good list of food etc expenditure but have failed. We worked out some figures based on a week and a bits spend. Our figures for clothing were based on the price of items, how many times a year they may need replacing etc.

    I'll confess I was very concerned about our expenditure figures as we were so up in the air about it. CCCS seemed to be very little help on this and were very neutral about the figures offering no assistance... I was a bit worried.

    I needn't have been. I got the feeling afterwards this was partly a ruse to get the true figures, partly due to impartiality, partly to see how they could help us and partly due to some kind of regulation that required us to offer details before they could help.

    Once all the details had been put through they then proved a REAL help. Our figures were compared with the recommended figures recognised by credit agencies, banks, some ORs etc. This was very useful. Some of our figures were adjusted (the ones where we didn't have a clue) and some they put our figures down and popped the recommended figures by them.

    We turned out to be spending more than our income each month... which explains a lot. I confess some things may have been slightly over estimated (not by much) to offer some protection (not deliberately or to be deliberately misleading but partly due to not having a clue and partly 'cause we were just... no that is it, 'cause we didn't have a clue) but after some small adjustments we were calculated as spending almost exactly what we earned each month... which is exactly true!!

    With some fiddling of the figures and taking our situations etc into account the result was that for Credit agency purposes we have no surplus cash and cannot afford to pay anyone which basically leaves us with one option... bankcruptcy. Simple as that.

    As far as the OR is concerned things might not be the same. They will take a different line on what is acceptable spending etc. As CCCS said we will need to manage our spending A LOT better. We know that, it is a plan of ours anyway. It sounds very manipulative but we're a little reticent to drop our spending before bankcruptcy (bills etc) as we would like to be able to hold onto as much for ourselves as we can... is that evil and nasty? If we drop spending after the figure is agreed we'll have a surplus income even if the OR doesn't allow us one... plus we're having a third child and will be getting a pay cut...

    We're being as honest as we can with the figures. We break even each month, we know we do. We also know we are wasteful and we curse ourselves with it. We kick ourselves so much for the waste but we're so glad that we've sorted ourselves out so that we at least break even (until last month !!!!!!! bank fees... :mad: :mad: :mad: :mad: :mad: I think we lost about £300 in the end, maybe more last month that we really need to tighten our belts because of. ONE transaction ONE day too soon (same day I think) that caused a spiral of fees and bouncing due to MORE of their fees :mad: :mad: :mad: Just when we didn't need it due to the need to save up for the filing fee).

    Anyway.

    Things are moving on. We've managed to take another step forward. I hope some of this was helpful.

    Thank you again to those who have offered their support.

    Alan
  • AlanD_3
    AlanD_3 Posts: 312 Forumite
    We applied for a Co-op basic account today.

    Bit weird really. Why would we need to apply for the account? Why do they need to do a credit check? I don't understand at all.

    Surely the whole point of these accounts are that they are for folks who can't get an account elsewhere? I can understand a current account needing credit checks, basically with an overdraft etc they are giving you credit. BUT A BASIC ACCOUNT????

    Just seems so very, very odd.

    ug
  • savagevixen
    savagevixen Posts: 1,276 Forumite
    They check details, like the electoral register. Although it is a basic account, they must verify that you are who you say you are. This can often be done with a credit check. As our was very bad... (pre-BR) we had a referral. This took a couple of weeks. They checked that there was no evidence of fraudulent activity in our names.
    I was assured several times that accounts are always offered unless there is evidence of fraud or a difficulty in verifying your identity.
    :starmod: I am not that savage :heartpuls But I am a Vixen :staradmin
  • Alan, well done on getting so much done! Once you've acknowledged you're in a bind, it's often quite hard to admit that to other people, especially people we think might judge us. I'm glad you've now got professional advice, because now you've started on that road you will continue. :)

    As for the Co-op, they don't do your credit score on that account if you tell them you want the account because you're BR or about to become so, because they know that you won't have one worth looking at. If you didn't mention going BR to them, they'll treat it like any other application. Every account application, whether you're BR or not, will have the CIFAS (fraud) check done though, so the referral team will have to look at it. My application took about 2 weeks to get sorted out (I had to ring them & put the pressure on to get it done that quickly), but I have heard of other people's taking a good bit longer. If you didn't mention going BR to them, I suggest you ring them Friday (to give them time to get the paperwork) & let them know, as that will save them doing the credit score bit & could save it sitting on someone's desk for a couple of days unnecessarily. :)
  • AlanD_3
    AlanD_3 Posts: 312 Forumite
    Ahhh...

    No didn't mention BR because I thought it best not to d'oh!!

    I'll ask Dawn to ring them tomorrow and give a push plus mention bankcruptcy to them... DAWN!!!! Can you do that?

    She nodded... another job down, lol.

    Thanks again for the kind words. It is starting to come together, finally.

    New life to start again soon.

    Just a shame I have some extra cash coming in soon that'll be post BR (some weekend work for school and £1000 for a job I was too ill to do at school, yet they pay me!!) Guessing that it'll all be taken from me by the OR. I am going to seriously enquire about being paid by cheque using my middle name (which happens to be my father's name, lol) but I don't hold up much hope.

    Thank you all again.

    Alan
  • Walter_J
    Walter_J Posts: 206 Forumite
    AlanD wrote: »
    No one will give us a contract phone, we do regret this sometimes but we get by.

    If the debts were cleared we could get a contract phone for a much cheaper rate and package than prepay etc...

    Hi guys,

    I went bankrupt 18 months ago as a result of a business failure and it is really nothing to worry about, particularly if you don't own a property.

    I had a contract phone which was costing me £50 per month. I threw it away and bought a £20 pay as you go jobbie from Morrisons. I put about £15 credit on it per month - it's saved me a fortune. Don't even THINK about ever getting a contract phone. If you've got broadband get an internet phone package from Tesco
  • AlanD_3
    AlanD_3 Posts: 312 Forumite
    Thanks for that. Always good to know about safe journeys through the process.
  • Walter_J
    Walter_J Posts: 206 Forumite
    MABLE wrote: »
    A friend of mine registered for br yesterday to the tune of £38,000. Blames his partner for his downfall. However he has just got a new job and salary of £17,000 per year. My question is would he be able to keep his salary or would be be expected to try and pay something back.
    Any help appreciated.

    I went through the BR process 18 months ago and my understanding from chatting with the nice young lad who conducted my interview was that if, after listing income and expenditure, there was a surplus of over £100 pm then the OR would expect you to make a contribution.

    So, make sure that you list ALL expenditure and minimise your income - at least while you fill the form out! I was never asked to update the information during my 12 months of bankruptcy, despite my earnings increasing dramatically. I was never asked to contribute a penny. I so nearly signed up for an IVA which would have cost me £400pm for 5 years - now that WOULD have bankrupted me!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245K Work, Benefits & Business
  • 600.6K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.