Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

teacher2mum

Thanks James, but it was over 18 mths ago now , I don't want to fight my ex about it as he will make my life hell. As far as I know the CAB deleted all files when I decided not to go through with the bankrupcy. I'm trying my best to avoid the bankrupcy if possible.
Regards
T2M x

teacher2mum

Thanks, I have just emailed them and will follow it up with a phone call when I get a minute as it's kid's holidays atm x

elsie2

hello hoping someone can give me advice spoke to my OR last week explained to him that my gas and elec have increased by £51 a month he told me to post a copy of the last years worth of bills which i have done. my query is this, i pay the bills they come out of my bank account and always have but for some reason they are in my dh name? only myself went BR not my dh no joint account how is this going to affect what i pay on my ipo/ipa? he not set one up yet says he will wait for the asked for paper work i.e copy of bills etc :eek:

StepChange_James

elsie2 wrote: »

hello hoping someone can give me advice spoke to my OR last week explained to him that my gas and elec have increased by £51 a month he told me to post a copy of the last years worth of bills which i have done. my query is this, i pay the bills they come out of my bank account and always have but for some reason they are in my dh name? only myself went BR not my dh no joint account how is this going to affect what i pay on my ipo/ipa? he not set one up yet says he will wait for the asked for paper work i.e copy of bills etc :eek:

Hi Elsie,

I can't think why there'd be any problems with the bill being in your partner's name as it will clearly be a bill for the property you live in.

They'll look at your personal budget and expect you to contribute a fair amount towards the household costs. The IPA/IPO would be based on what you've got left after you've covered living costs, including your share of the household bills.

Hope this helps.

James

Neslein_2

Hi,

I am just in the process of going BR. I am currently trying to find out which court I will need to go to. There are 2 or 3 that are a similar distance from where I live, will it matter which court I go to? or does it HAVE to be the one which is nearest to me.

Thanks

StepChange_James

Neslein wrote: »

Hi,

I am just in the process of going BR. I am currently trying to find out which court I will need to go to. There are 2 or 3 that are a similar distance from where I live, will it matter which court I go to? or does it HAVE to be the one which is nearest to me.

Thanks

Hello,

There's a handy guidebook from the Insolvency Service which covers how to go bankrupt: http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/howtopetition.pdf.

Section 5 is about which court to use. It suggests using your local court and says if you're unsure you should call your nearest and ask them which court covers your area.

There's also a court finder on the justice.gov website: http://hmctscourtfinder.justice.gov.uk/HMCTS/ which might be handy as not all courts deal with bankruptcy.

I don't know if you've had any advice about bankruptcy yet, but if you've not then we can help. My signature has contact details and we can tell you if bankruptcy would be right for you.

Kind regards

James

Grendel51

Hi, first post and a question regarding going bankrupt and the effect it could have -

A little background, following my son's birth 10 years ago, due to postnatal depression and no family support, out of desperation I started to pay for child care on credit card cheques to give my wife and our son a break for each other - unfortunately over the years it built up to the point I couldn't afford living expenses and the credit card payments so it spiralled - I am even after all this time living with around £30K of debts including two CCJ. I am currently paying my debts from private pension which I took as soon as I reached 50 -effectively stripping out my old age pension. I do work, after two spells of redundancy - but with rising fuel costs etc find very little excess cash at the end of the month - I also help my wife cleaning caravans at the local holiday park at weekends and during the school holidays. We moved into a very small bungalow a few years back to downsize but it is far to small for us - particularly my son who is now 10 - due to bedroom size I tend to end up on the floor sleeping in the kitchen in an old sleeping bag.

My wife has now been on anti depressants for 10 years.

We can't sell the bungalow as we have a mortgage of approx £80k on it and it was valued at approx £61,000 (I am currently paying interest only as my salary, even after 4 years in my job is still less than I was earning pre redundancy - Someone suggested I could go bankrupt and start a fresh - there are three concerns with that - would be lose the property (it is in joint names but the debts are all in my name) how could I afford to go bankrupt when the I couldn't afford the fees to do so and three I have a car which is essential for work - and worth about £3,000 - would that be seized as an asset.

Help would be appreciated

SPELLKASTER

I have around £15K of debt and am currently on an IVA through Debt Free Direct.

I dont qualify for a DRO because of the amount of debt I have.

I would like to know that if I apply for full bankruptcy, will I have to cancel the IVA?

poopscoop

Hi

I've just got a quote from PayPlan saying that for approx £60k of debt we will pay £491.14 towards the creditors. For me this is 55.9p in every £ and for my wife it's 49.2p back in every £.

As I am self employed (Total income around £4500, expenditure £4000) does this sound about right to you or should I shop around as I hear some people can get as low as 10p in a £?

Thanks in advance

StepChange_James

Grendel51 wrote: »

Hi, first post and a question regarding going bankrupt and the effect it could have -

A little background, following my son's birth 10 years ago, due to postnatal depression and no family support, out of desperation I started to pay for child care on credit card cheques to give my wife and our son a break for each other - unfortunately over the years it built up to the point I couldn't afford living expenses and the credit card payments so it spiralled - I am even after all this time living with around £30K of debts including two CCJ. I am currently paying my debts from private pension which I took as soon as I reached 50 -effectively stripping out my old age pension. I do work, after two spells of redundancy - but with rising fuel costs etc find very little excess cash at the end of the month - I also help my wife cleaning caravans at the local holiday park at weekends and during the school holidays. We moved into a very small bungalow a few years back to downsize but it is far to small for us - particularly my son who is now 10 - due to bedroom size I tend to end up on the floor sleeping in the kitchen in an old sleeping bag.

My wife has now been on anti depressants for 10 years.

We can't sell the bungalow as we have a mortgage of approx £80k on it and it was valued at approx £61,000 (I am currently paying interest only as my salary, even after 4 years in my job is still less than I was earning pre redundancy - Someone suggested I could go bankrupt and start a fresh - there are three concerns with that - would be lose the property (it is in joint names but the debts are all in my name) how could I afford to go bankrupt when the I couldn't afford the fees to do so and three I have a car which is essential for work - and worth about £3,000 - would that be seized as an asset.

Help would be appreciated

Hi Grendel,

Thanks for posting, it sounds like things are really tough for you at the moment.

I'll answer your questions in the same order you asked them:

1. - It's not easy to give a straight answer about properties in bankruptcy. We've written an article about what happens to property in bankruptcy which covers most of the outcomes.

The fact there there's negative equity means it's unlikely it would be viewed as an asset, so they're unlikely to force you to sell it on that basis. Though they can review this decision anytime within two years and three months of the bankruptcy to see if the property has swung into equity.

2. Affording the bankruptcy fees is a problem that a lot of people we speak to face. Reducing payments to credit debts and saving that up is a potential option though, I'm afraid I don't know enough about your finances to say if that would work.

3. If you go bankrupt your case would be dealt with by an Official Reciever (OR) who makes the decisions about assets. They'll look at the value of things like cars and decide if they're worth selling.

As a general rule (though it can vary) if a car is worth less than a £1000 they won't be interested in selling it. As your car is worth £3,000 they'll more than likely want it to be sold so the money can be passed on to your debts.

If you can prove to the OR that you need a vehicle for work then they'll make a decision about what to do. It's hard to be certain how they'd view it but they may ask you to sell your car and buy a cheapish car so the difference can be paid to debts.

I'd suggest getting in touch with us for some more in depth advice about bankruptcy. We can have a look at your situation and tell you if bankruptcy is your best option and also let you know if there are alternatives available.

The first thing to do is visit our online debt advice service Debt Remedy (http://www.stepchange.org/msehelp) to help you find a solution to your debt problem quickly.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

If you phone us it may be possible to refer you directly to a debt advisor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

All the best.

James