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Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

edited 9 October 2018 at 9:56AM in Bankruptcy & Living With It
1.6K replies 381.3K views
Former_MSE_AndreaFormer_MSE_Andrea Forum ManagerFormer MSE
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edited 9 October 2018 at 9:56AM in Bankruptcy & Living With It
StepChange Debt Charity (formerly CCCS) has several counsellors answering questions in our forum.

There are three ways to contact them:

1 - To ask them a question please post it below and Allen, Linsi, Kirsty, Rachael, Joe or Patience will post a reply here.

2 - If you would prefer to ask a question in private you can send a private message to StepChange Private Messages and one of the counsellors will get back to you.

3 – StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an advisor through online chat.

This thread continues from the previous Ask a counsellor a question thread one
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Replies

  • StepChange_JamesStepChange_James Has MSE’s permission to post for company Organisation Representatives - Private Messages may not be monitored
    861 posts
    I have a number of CC debts and loan that are being paid with token payments each month on the advice of StepChange since I lost my job last year.

    I put in a PPI claim with Lloyds, who have informed me that I am due a payment of £690. However, the loan I have is with them and I was informed over the phone yesterday that they may offset my PPI claim against the loan.

    I have heard that there is some way of asking them not to offset in the event of financial hardship (which I am experiencing). I'm not about to jet off on holiday with the money or anything, I'm actually desperate to declare myself bankrupt (again, I was advised that this was the best course of action by StepChange) and there's just no way I'm ever going to raise the fees for this. The payment from Lloyds would be a godsend and would mean I could finally get things sorted once and for all by using the payment to cover my bankruptcy fees.

    Is there some kind of template letter, or is it just a case of writing and pleading poverty with Lloyds? I should add that bankruptcy is my best and only option as my situation will not change in the next four years at least - I am unable to find a job that will cover the cost of childcare and my debts.

    P.S. When I posted this in another part of the forum, another member informed me that it would be fraudulent to use this money to pay for my bankruptcy. Is this true?

    Hello,

    Thanks for posting.

    PPI refunds often are often paid towards the debt they were taken out with. Here's a link to an article about setting off, which refers to all debts, not just PPI refunds but still applies to them: http://www.moneysavingexpert.com/banking/setting-off.

    It would probably be best to put together a brief letter of your own just to explain that not giving you the PPI refund would cause you hardship.

    Using this money to fund the bankruptcy fee sounds like a reasonable idea to me, I can't really see how it would be fraud.

    Hope this helps.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • I know someone that needs financial advice. Over the past few years her partner has convinced her to take out many loans and credit cards.
    2 loans; 10000 and 3000, at least 8% on each.
    2 credit cards; total 2500. 1800 on interest free.
    Store cards; 250

    She's a single mum now he's left her. The large loan is for a car that he has taken (all in her name), and since he paid a few hundred pounds deposit she can't report it stolen.

    She can't afford the repayments on all these agreements, pay rent and buy food for the child.

    Should she declare herself bankrupt? She has nothing of any value.
    Looks like he's gotten away with it.
  • StepChange_JamesStepChange_James Has MSE’s permission to post for company Organisation Representatives - Private Messages may not be monitored
    861 posts
    I know someone that needs financial advice. Over the past few years her partner has convinced her to take out many loans and credit cards.
    2 loans; 10000 and 3000, at least 8% on each.
    2 credit cards; total 2500. 1800 on interest free.
    Store cards; 250

    She's a single mum now he's left her. The large loan is for a car that he has taken (all in her name), and since he paid a few hundred pounds deposit she can't report it stolen.

    She can't afford the repayments on all these agreements, pay rent and buy food for the child.

    Should she declare herself bankrupt? She has nothing of any value.
    Looks like he's gotten away with it.

    Hello,

    It's hard to say if bankruptcy would be a good idea for her. Certainly there is quite a bit of debt there and if she isn't likely to be able to pay the debts back in a reasonable amount of time then bankruptcy could be a way for her to get back on top of her finances.

    One thing I would say if that paying for food and household bills should be the priority for her at the moment. We can help her sort out the debts.

    I'd suggest she gets in touch with us for more detailed advice. This could be done using our online advice service, Debt Remedy (http://www.stepchange.org/msehelp) or if she'd prefer to speak to us she could give us a call (http://www.stepchange.org/Contactus.aspx).

    Thanks for posting.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • Thankyou. I'll pass this on and we'll get in touch with StepChange. I really hope there's something that can be done. She understands its her responsibility now but feels totally lost about how to climb out of this hole.
  • davidgmmafandavidgmmafan Forumite
    1.5K posts
    ✭✭✭
    As this thread is sort of quiet i dont feel too guilty about asking my (admittedly not vital) question.

    Why the name change? The name before stated clearly what the organisation did, the new name is based on somd different philosophy perhaps?

    Dont have to bust a gut to answer as i imagine this is a busy time of year but i am curious to know.
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
  • StepChange_JamesStepChange_James Has MSE’s permission to post for company Organisation Representatives - Private Messages may not be monitored
    861 posts
    As this thread is sort of quiet i dont feel too guilty about asking my (admittedly not vital) question.

    Why the name change? The name before stated clearly what the organisation did, the new name is based on somd different philosophy perhaps?

    Dont have to bust a gut to answer as i imagine this is a busy time of year but i am curious to know.

    Hi David,

    No change in philosophy from us, we are still providing the same service. We changed the name to help us reach out to more people.

    There's more about the reasons for the change on our website here: http://www.stepchange.org/Aboutus/Whywevechangedourname.aspx or you can watch our youtube video about it here: http://www.youtube.com/watch?feature=player_embedded&v=IsUK3-GVqTQ.

    Hope this helps

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • StepChange_JamesStepChange_James Has MSE’s permission to post for company Organisation Representatives - Private Messages may not be monitored
    861 posts
    Hello everyone,

    We've written a guide to help people who're filling out bankruptcy forms. We get a lot of queries asking for help on this subject, so thought it might be worth sharing here too.

    http://moneyaware.co.uk/template-letters-court-forms/how-do-i-fill-in-my-bankruptcy-forms/

    Thanks

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

  • SteveyBSteveyB Forumite
    14 posts
    I am seriously considering declaring myself bankrupt...

    I live in my own property (mortgaged in joint names with my estranged wife)

    There are charging orders on the house in the region of 30K
    The house would fetch maybe 80K if sold and there is in the region of 67K left to pay on the mortgage.

    I am also having a battle with SCM Solicitors at present over a car loan debt (which I don't deny owing and never have done)
    I filled in the financial analysis forms and could afford to pay them £50 per month (debt is 6.5K) ...

    The court have ordered I pay £150 per month and if I fail to do so they will deduct it directly from my wages...

    I've had 2 heart attacks (first one was 7yrs ago and the latest was in September 2012) and I don't much fancy my chances of surviving a 3rd....

    All the debts are down to finance taken out while I was still living with my wife and she is of the same mind as I that bankruptcy is the best option..

    Will I lose the house or will it have to be sold ?

    What is the best way of going about the process ?

    I honestly can't begin to list all the debts there are as they are so many....

    Yes.....I'm in a mess with only myself to blame but it's time it was sorted out....

    I'm not worried about credit ratings as mine stinks anyway....Even my bank wouldn't lend me 1.5K to have my boiler replaced and am currently going through my 3rd winter with no heating in the house what so ever....

    Thanks in advance....

    Steve.
  • Hi,
    If I have a change of circumstances with an IPA, are my payments frozen until it is sorted out? I only ask because Moonbeever have just told me that they will continue as already agrred until any changes are sanctioned by the OR?
    thanks
  • StepChange_JamesStepChange_James Has MSE’s permission to post for company Organisation Representatives - Private Messages may not be monitored
    861 posts
    SteveyB wrote: »
    I am seriously considering declaring myself bankrupt...

    I live in my own property (mortgaged in joint names with my estranged wife)

    There are charging orders on the house in the region of 30K
    The house would fetch maybe 80K if sold and there is in the region of 67K left to pay on the mortgage.

    I am also having a battle with SCM Solicitors at present over a car loan debt (which I don't deny owing and never have done)
    I filled in the financial analysis forms and could afford to pay them £50 per month (debt is 6.5K) ...

    The court have ordered I pay £150 per month and if I fail to do so they will deduct it directly from my wages...

    I've had 2 heart attacks (first one was 7yrs ago and the latest was in September 2012) and I don't much fancy my chances of surviving a 3rd....

    All the debts are down to finance taken out while I was still living with my wife and she is of the same mind as I that bankruptcy is the best option..

    Will I lose the house or will it have to be sold ?

    What is the best way of going about the process ?

    I honestly can't begin to list all the debts there are as they are so many....

    Yes.....I'm in a mess with only myself to blame but it's time it was sorted out....

    I'm not worried about credit ratings as mine stinks anyway....Even my bank wouldn't lend me 1.5K to have my boiler replaced and am currently going through my 3rd winter with no heating in the house what so ever....

    Thanks in advance....

    Steve.
    Hi Steve,

    It sounds like you've had a really rough few years. I don't have enough information about your situation to know if bankruptcy is the best option for you but it certainly sounds like it's worth considering.

    The insolvency has a really useful booklet about how properties are affected by bankruptcy: http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf which should give you a bit of guidance.

    I'd suggest giving us a call to talk through your options. When you go bankrupt the judge will usually ask if you've taken advice and they tend to be happier if they know you've considered your options before going bankrupt.

    You can get advice from us online using our advice tool, Debt Remedy (http://www.stepchange.org/msehelp) but it might be better to give us a call (http://www.stepchange.org/Contactus.aspx) so you can speak to an advisor and they'll be able to answer any questions you have.

    If bankruptcy is the best option then we'll be able to explain the process (it's basically filling in a few forms, paying the fee and arranging a meeting at your local court).

    Hope this helps.

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep

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