Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Former_StepChange_Richard

Hi there,

Thanks for you message and getting in touch.

A beneficial interest is the share of the equity in a property which a person is entitled to. This is not the same as the ownership or ‘legal title’. Even if a person isn’t named on the mortgage, they may have a beneficial interest in a property.

I can't say for certain if it would be deemed that you have a beneficial interest. Ultimately, this will be decided by the OR. It is worth bearing in mind the amount of equity though:

If the person’s interest is worth less than £1,000, the OR will take no immediate action, but will look again at the case after 2 years and 3 months. If the person’s interest at that point is worth more than £1,000, the OR may seek to realise it.

If the person's interest is worth £1,000 to £10,000, the OR may sell it to a willing purchaser (e.g. family member or partner). If no third party can buy out your interest straight away (usually within 3 months), the OR will look again at the case at 2 years and 3 months. If your interest at that point is worth more than £1,000, the OR may seek to realise it.

If the person’s interest is worth more than £10,000, the OR will usually pass the case to an insolvency practitioner to recover this within a maximum of 3 years.

Please also bare in mind that a decision does not need to be made straight away by the OR. They can wait up to 2 years and 3 months before deciding.

I would suggest that you contact us so we can advise you on this in more detail. You can find our contact details here.

I hope this helps.


Richard.

PJCBEL wrote: »

I have lived at address with my wife for 8 years and have moved out 6 months ago, my name is not on the mortgage but I've been reading that as I had an interest in the property there is a chance it might be included in bankruptcy, is this correct. Currently there is £4000 equity in house?
Thanks

PJCBEL

Thank you Richard I will

G8311374

Hello

my daughter is an Iraq veteran with mental and physical illness which ended her career. She goes through bouts of spending like no ones business usually when she is at her lowest but it helps her to pretend she is ok, she buys expensive gifts, replaces furniture and white goods that isnt old or broke and donates to charities using the online sponsorship sites.
This month sees the anniversary of the most traumatic she had in Iraq and rather than dealing she is spending it's like she can't stop. I have been finding her purchases hidden around the house. when I ask her about them she either gets inconsolable or storms out the house.
I know exactly what she has coming in and out every month so I know there is no way she can repay this latest round. I know that when she gets past this anniversary she will be mortified and won't remember doing a lot of it. I know that she has often got up in the night and bought stuff online and then doesn't remember ordering it. We return what we can but sometimes things can't be returned.
I am worried for my daughter. I know she is worried too but other feelings are getting in the way of it. What should she do? Can she go bankrupt? Can I have something out on her credit file to deter would be lenders?

Thanks

Gibbo81

Hi, I was declared bankrupt in July 2010, and I'm looking to obtain a mortgage after a offer as been accepted on a house. I was wondering if you could tell me which credit reference agency a company would use for a bankrupt person? I have done an Experian check and my credit rating is showing as excellent! There is no bad debt or any previous debt on it. Any advice would be great. Thank you

Gibbo81

I'm sorry for our daughters phlight, it's not nice at all. Does your daughter see a councillor? Of not maybe it might help, and also to see a financial advisor? Depending on how much your daughter owes I wouldn't overly recommend bankruptcy.

G8311374

It's in the thousands. I had a pm suggesting Debtors Annoymous who can help her deal with the spending and getting help with the debt. Local mental health teams have been absolutely no help at all.

Former_StepChange_Richard

Hi there

Thanks for your message. I'm sorry to hear of the issues your daughter is going through. As the previous poster has suggested I would recommend speaking with a professional to help with her health and her GP would be a good start if she hasn't already done so.

We can give advice on how she can deal with any debts she has. We'll need to see a budget for her to show her financial situaiton before we can make a recommenedation. There are two ways to do this with us. She can use our Debt Remedy tool on our website to build a budget in her own time or she can speak with an advisor who will help over the phone, contact details are here.

Credit reference companies can help by adding notes to a person's file. Your daughter can write to each of the companies (Experian, Equifax, Call Credit) and request that they add a note to reject any future applicaitons for credit. Creditors will see this when they access her credit file when checking for suitability.

If you feel it necessary, you could consider becoming a Deputy for her. You can read about this on the gov.uk website here. In this capacity you'll become responsible for making decisions about your daughters financial affairs. You can then notify the credit reference companies of this and they will make notes to consult you before any credit applicaitons are approved.

I hope this helps.


Richard

G8311374 wrote: »

Hello

my daughter is an Iraq veteran with mental and physical illness which ended her career. She goes through bouts of spending like no ones business usually when she is at her lowest but it helps her to pretend she is ok, she buys expensive gifts, replaces furniture and white goods that isnt old or broke and donates to charities using the online sponsorship sites.
This month sees the anniversary of the most traumatic she had in Iraq and rather than dealing she is spending it's like she can't stop. I have been finding her purchases hidden around the house. when I ask her about them she either gets inconsolable or storms out the house.
I know exactly what she has coming in and out every month so I know there is no way she can repay this latest round. I know that when she gets past this anniversary she will be mortified and won't remember doing a lot of it. I know that she has often got up in the night and bought stuff online and then doesn't remember ordering it. We return what we can but sometimes things can't be returned.
I am worried for my daughter. I know she is worried too but other feelings are getting in the way of it. What should she do? Can she go bankrupt? Can I have something out on her credit file to deter would be lenders?

Thanks

Former_StepChange_Richard

Hi there,

Thanks for the message and welcome to the forum.

The notification of the bankruptcy should appear on all three of the agencies (Experian, Equifax, Call Credit) reports for six years. The notification is automatically removed after six years (dependant on restrictions). If you had no extended restrictions, given you were bankrupt in 2010 the notices should have been removed from all three reports by now.

I hope this helps.


Richard.

Gibbo81 wrote: »

Hi, I was declared bankrupt in July 2010, and I'm looking to obtain a mortgage after a offer as been accepted on a house. I was wondering if you could tell me which credit reference agency a company would use for a bankrupt person? I have done an Experian check and my credit rating is showing as excellent! There is no bad debt or any previous debt on it. Any advice would be great. Thank you

Taylomic

Hi I made myself bankrupt 27 march 17 and I have an IPA for a small amount each month. I have received a cheque for tax rebate today 12 June 17 and need to know if I will be allowed to keep it it is for the tax years 2005-2008 will the trustee know about this cheque I have received ?
Thanks

Flyright

You are required to disclose this to the Official Receiver.