Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

4f02

Thank you stepchange...

The BRO does that just keep the restrictions on you taking out debt and thr usual BR restrictions bur for longer? Cos i will not be doing it ever again .im 50 and learnt a hard lesson.

What is a BRU?

StepChange_Rachael

Hi


Thanks for posting; I think your previous message which I’ve found posted elsewhere is the site is the one you want replying to from a few days ago.

When it comes to bankruptcy and assets it’s ultimately up to the OR as to how they’ll form part of the bankruptcy, if at all.

If the vehicle is essential for travel it’s more likely the OR will allow you to keep the vehicle, if they value the vehicle at over £1000 they might look to sell it and give part of the payment back for you to buy a cheaper vehicle. If they decide that alternative travel such as public transport would be cheaper this may also form part of their decision.

I’d suggest contacting the Insolvency Service to find out more about the guidance they use to give you a better idea of what price they are likely to value the vehicle at.

The OR will take into account damage when working out the re-sale value which also makes it harder to estimate, as the OR will ultimately decide this after the application has been submitted it’s difficult for me to say exactly.

I’d advise being careful of selling assets before bankruptcy as this can be seen as disposing of assets and the OR can reverse transactions made prior to bankruptcy as far back as 5 years. They’ll also want to know what was done with the money from the sale and might look to have this paid into the bankruptcy.

I think the best thing to do is contact the Insolvency Service to get a clearer picture of the likelihood of the car being taken based on your situation.


I hope this helps.

Thanks
Rachael

927 wrote: »

Hello - I’m trying to post a question but I can’t for some reason. Can you tell me if car valuations are private or trade price please?

StepChange_Rachael

Hi

Yes the restrictions that can be set are the same but they can be set for much longer, up to 15 years.

The restrictions can be set under a bankruptcy restriction order (BRO) or a bankruptcy restriction undertaking (BRU). If the bankrupt doesn’t agree with the BRO then they can refuse the terms and it will then go to court for the judge to decide.

If this happens and the judge sides with the Official Receiver then the restrictions will be set in place as an undertaking rather than order and it’s likely to be set for much longer than if the bankrupt had initially agreed to the order.

Hope this helps

Thanks.
Rachael

4f02 wrote: »

Thank you stepchange...

The BRO does that just keep the restrictions on you taking out debt and thr usual BR restrictions bur for longer? Cos i will not be doing it ever again .im 50 and learnt a hard lesson.

What is a BRU?

4f02

ok SC ive posted my statement of affairs, my question is this, i hope you understand what im asking.
ive currently got £104 spare after ive paid everything
my question if i went BR and got my iPA which i know take 100% of ya spare money, so based on what you are allowed to claim for in SOA on top of the £900 board( that covers all bills food etc) would i be better off toughing this out and not go BR
have i missed anything?
i hope you get what im asking.




Statement of Affairs & Personal Balance Sheet
Summary
Monthly Budget Summary Amount(£)
Total monthly income 1,900
Monthly expenses (incl. HP & secured loans) 1,030
Available for debt repayments 870
UNsecured debt repayments 894
Amount short for making debt repayments -24
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -24,938
Net Assets -24,938
Household Information
Number of adults in household 2
Number of children in household 1
Number of cars owned 0
Income, Expense, Debt & Asset Details
Income Amount(£)
Monthly income after tax 1900
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1900
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 900
Management charge (leasehold property) 0
Council tax 0
Electricity 0
Gas 0
Oil 0
Water Rates 0
Telephone (land line) 0
Mobile phone 20
TV Licence 0
Satellite/Cable TV 0
Internet services 0
Groceries etc. 0
Clothing 20
Petrol/diesel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 10
Other travel 10
Childcare/nursery 0
Other child related expenses 10
Medical (prescriptions, dentists, opticians etc.) 15
Pet Insurance/Vet bills 10
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 15
Haircuts 0
Entertainment 20
Holiday 0
Emergency Fund 0
Total monthly expenses 1030
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 0 (0) 0
Secured & HP Debt totals 0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
credit card 2847 123 30
credit card 110 5 37
credit card 450 12 37
loan 2000 80 30
loan 3000 123 25
loan 9400 321 25
credit card 900 38 35
credit card 1931 80 35
credit card 2950 50 35
credit card 1350 62 35
Unsecured Debt totals 24938 894 -
Asset Description Value (£)
Cash 0
House Value (Gross) 0
Shares and bonds 0
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 0
Comments on the results

You do not have enough monthly income to meet your expenses and your minimum monthly debt repayments. Seek ways to increase your income and/or reduce your expenditure by £24. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at https://www.stoozing.com.
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Nidge72

Hi, could I ask why there are 2 public records entries against my BR? Both are dated same day but only one has a reference number?

Former_StepChange_Joe

Hello

Thanks for your message.

It’s true that when you go bankrupt, the Official Receiver may set an income payment arrangement (IPA). If this is set, you could be paying this to the Insolvency Service for up to 3 years.


However, if you feel that you’d prefer to pay your budget surplus towards your debts rather than applying for bankruptcy, this is also an option.

StepChange will be able to build a budget with you and give you some advice on the solutions open to you. If you’re able to pay off the debts over a long period of time, they’ll help you do this. If not, they can give you advice on making smaller payments until your situation improves, or on applying to have your debts written off.


A good place to start with this is the Debt Remedy self-help tool. You can find it here.

Thanks

Joe
Digital Support Debt Advisor

4f02 wrote: »

ok SC ive posted my statement of affairs, my question is this, i hope you understand what im asking.
ive currently got £104 spare after ive paid everything
my question if i went BR and got my iPA which i know take 100% of ya spare money, so based on what you are allowed to claim for in SOA on top of the £900 board( that covers all bills food etc) would i be better off toughing this out and not go BR
have i missed anything?
i hope you get what im asking.




Statement of Affairs & Personal Balance Sheet
Summary
Monthly Budget Summary Amount(£)
Total monthly income 1,900
Monthly expenses (incl. HP & secured loans) 1,030
Available for debt repayments 870
UNsecured debt repayments 894
Amount short for making debt repayments -24
Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -24,938
Net Assets -24,938
Household Information
Number of adults in household 2
Number of children in household 1
Number of cars owned 0
Income, Expense, Debt & Asset Details
Income Amount(£)
Monthly income after tax 1900
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1900
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 900
Management charge (leasehold property) 0
Council tax 0
Electricity 0
Gas 0
Oil 0
Water Rates 0
Telephone (land line) 0
Mobile phone 20
TV Licence 0
Satellite/Cable TV 0
Internet services 0
Groceries etc. 0
Clothing 20
Petrol/diesel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 10
Other travel 10
Childcare/nursery 0
Other child related expenses 10
Medical (prescriptions, dentists, opticians etc.) 15
Pet Insurance/Vet bills 10
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 15
Haircuts 0
Entertainment 20
Holiday 0
Emergency Fund 0
Total monthly expenses 1030
Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 0 (0) 0
Secured & HP Debt totals 0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
credit card 2847 123 30
credit card 110 5 37
credit card 450 12 37
loan 2000 80 30
loan 3000 123 25
loan 9400 321 25
credit card 900 38 35
credit card 1931 80 35
credit card 2950 50 35
credit card 1350 62 35
Unsecured Debt totals 24938 894 -
Asset Description Value (£)
Cash 0
House Value (Gross) 0
Shares and bonds 0
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 0
Comments on the results

You do not have enough monthly income to meet your expenses and your minimum monthly debt repayments. Seek ways to increase your income and/or reduce your expenditure by £24. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere. Thankyou for using the SOA Calculator at www.stoozing.com.
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Former_StepChange_Joe

Hello
Thanks for getting in touch.

This might be worth taking up with the Insolvency Service. They should be able to look into this for you in further detail.

You can reach them on 0300 678 0015, Monday to Friday 9am – 5pm. You can also visit their website.
Thanks

Joe
Digital Support Debt Advisor

Nidge72 wrote: »

Hi, could I ask why there are 2 public records entries against my BR? Both are dated same day but only one has a reference number?

Crowlikethebird

Hi
I just thought I'd post a quick update. After getting as much free advice as possible I've decided bankruptcy is the best option for me. I will be submitting my application at the beginning of next week :eek:
I applied to a charity for a grant for fees and was lucky enough to receive one.
Presently massively anxious and it's affecting every area of my life but am glad that I've made the decision and know that even if I have to pay an IVA it will be better than the £600+ min payments I was somehow making every month.
I just wanted to say thank you to the posters who replied here and for anyone else who is contemplating this massive life event-information is power! Read and ask all the questions! :money:

Wondering which thread is most appropriate to post updates to in the future?

Crowlikethebird

I meant IPA not IVA obvs !!!55357;!!!56904;

Kendoddsdog

Hi.
If made bankrupt by HMRC how far back can the OR ask to see your bank statements?