Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

CIS

maxmycardagain wrote: »

A DRO is only achievable via an agent like Stepchange?

The application has to be made through an approved party.

Former_StepChange_Joe

maxmycardagain wrote: »

A DRO is only achievable via an agent like Stepchange?

Hello

Thanks for your post and welcome the forum.

StepChange Debt Charity is an approved intermediary, meaning we can support you with a DRO application if it’s the best solution to your debt problem. We can build a budget with you to see if you'd qualify for a DRO, and a good place to start with this is our online Debt Remedy self-help tool. This is available 24 hours a day and takes about 20 minutes to complete. The tool will guide you through creating a budget and will then offer the best debt solution for your situation.

However, we aren’t the only organisation that can act as an approved intermediary. The gov.uk website has a list of organisations, including ourselves, that can help you find an approved debt adviser to help you apply for a DRO: see section 7 of this article, ‘Getting a Debt Relief Order’

I hope you've found this helpful.

Joe

cornish_donkey

Hi am I right in thinking that if your monthly surplus income after bills is not enough to cover your minimum monthly debt payments you can go bankrupt?

I was speaking to a debt advisor this morning and just wanted to check this was the case.

My hubby is the one with the debt but there is some on my 0% cards would it look bad is I transfer it back?

Can I his wife be left out of the equation? The debt advisor mentioned something about our income being separated although we are on benefits.

Tia

StepChange_Allen

cornish_donkey wrote: »

Hi am I right in thinking that if your monthly surplus income after bills is not enough to cover your minimum monthly debt payments you can go bankrupt?

I was speaking to a debt advisor this morning and just wanted to check this was the case.

My hubby is the one with the debt but there is some on my 0% cards would it look bad is I transfer it back?

Can I his wife be left out of the equation? The debt advisor mentioned something about our income being separated although we are on benefits.

Tia

Hi there

Thanks for posting.

The first line of your message is one of the definitions of insolvency, so yes, it sounds as though it is an option for your husband to go bankrupt. However, that doesn't mean it's the best or even a good solution for him; it entirely depends on the overall situation.

As for the debt on your cards, you won't be able to just transfer the debt to him, whether he goes bankrupt or not.

When you mention being left out of the equation, this really depends on what you mean. Bankruptcy is an individual solution, so it won't affect you directly, but it may do indirectly. Because you're married, you're likely to be financially linked on your credit file. Things like joint bank accounts and joint mortgages/tenancies are other examples of things that can financially link people. Being financially linked to someone bankrupt may have an affect on your credit file.

If you've been left unsure by any advice given, I'd recommend getting back in touch with the team that you or your husband spoke with and asking for further explanation.

I hope this is helpful.

Allen

kelleysam

Hi,
I will be submitting my bankruptcy in December, so wanted to open a new basic bank account now to transfer my wages and rent etc bills.

I have tried applying for a basic account with Halifax, Nationwide, HSBC. All of them tell me that because I am still eligible for a standard current account they can't offer me a basic until after I am bankrupt.

Obviously I'm worried that my wages will be taken by my current bank and there won't be any funds to pay my rent etc.

Silly question but when am I actually bankrupt? When i click submit? or when the OR contacts me ?

Thanks for any help.

broaps

kelleysam wrote: »

Hi,
I will be submitting my bankruptcy in December, so wanted to open a new basic bank account now to transfer my wages and rent etc bills.

I have tried applying for a basic account with Halifax, Nationwide, HSBC. All of them tell me that because I am still eligible for a standard current account they can't offer me a basic until after I am bankrupt.

Obviously I'm worried that my wages will be taken by my current bank and there won't be any funds to pay my rent etc.

Silly question but when am I actually bankrupt? When i click submit? or when the OR contacts me ?

Thanks for any help.

Hi Kelleysam

Your bankruptcy will take a day or so from the day you click your application. For us it was the next day when we received the emails confirming the BR.

With respect to your bank, I had an ordinary Nationwide Flexaccount and it was downgraded to a Flexbasic when I notified them about my BR. I kept the same account number so didn't need to change any of the payments into or out of the account. They just issued a new debit card after a couple of weeks but it was all smooth and seamless and no-one was any the wiser. I found them very friendly and helpful. I had told the OR that this was the account I used for everyday living and they wrote to Nationwide to say they had no interest in the account and it wasn't ever frozen. Hope this helps.

StepChange_Kirsty

Hi Kelleysam,

Thanks for you post and apologies for the delay in responding.

Officially speaking the adjudicator has 28 days to notify you of the outcome of your application from the point you click submit. This can be extended by a further 14 days if the adjudicator needs any further information. As Broaps has said it is usually much quicker, on average around 2 days but don’t let it worry you if it does take a little bit longer than that.

I’m surprised that the banks are not letting you have a basic bank account before you go bankrupt as you don’t need to be bankrupt to have a basic account. Whilst as charity we can’t recommend a specific bank for you as we need to remain impartial, there is a list of basic bank accounts on our website along with some useful information about bank accounts and bankruptcy generally. You can find this article here.

I hope this helps.

Kirsty

kelleysam wrote: »

Hi,
I will be submitting my bankruptcy in December, so wanted to open a new basic bank account now to transfer my wages and rent etc bills.

I have tried applying for a basic account with Halifax, Nationwide, HSBC. All of them tell me that because I am still eligible for a standard current account they can't offer me a basic until after I am bankrupt.

Obviously I'm worried that my wages will be taken by my current bank and there won't be any funds to pay my rent etc.

Silly question but when am I actually bankrupt? When i click submit? or when the OR contacts me ?

Thanks for any help.

rufusthedoofus

My partner has applied to go bankrupt. We have just had the official receiver interview and I am really upset to find that the OR will take my income account when determining how much 'household income surplus' we have between us.
It has take me a really long time to work up to the income I earn now after years of struggling as a single parent (prior to this new relationship with him) , everything I read on here and other places said that they would only look at my partners income and that I would not be liable for his historical debts... but the fact is that I am, Because they will aportion part of my income into the surplus 'household' income and then that will have to go to his creditors, I am so so upset. Worse still, they will assess what we put on their as to whether it is 'reasonable' ad that makes me so angry because I earn my own money and if I want to spend £x on clothing or food then I will and I shouldn't have to be assessed as to whether that is appropriate...
We have been together under two years and moved in together in April of this year.. we are on a tenancy agreement together... only because the agents insisted his name was on their too and said it had to be legally.. I cannot believe that this is happening and I will end up paying for some of these debts....I have never been able to afford to save for a house, and have recently started doing this after years of hard work, and now it seems I won't be able to do that ... how can this be fair? If I had thought this would be the case I would have waited to move in with him
Does anyone have experience of this, and may be able to advise?

StepChange_Allen

rufusthedoofus wrote: »

My partner has applied to go bankrupt. We have just had the official receiver interview and I am really upset to find that the OR will take my income account when determining how much 'household income surplus' we have between us.
It has take me a really long time to work up to the income I earn now after years of struggling as a single parent (prior to this new relationship with him) , everything I read on here and other places said that they would only look at my partners income and that I would not be liable for his historical debts... but the fact is that I am, Because they will aportion part of my income into the surplus 'household' income and then that will have to go to his creditors, I am so so upset. Worse still, they will assess what we put on their as to whether it is 'reasonable' ad that makes me so angry because I earn my own money and if I want to spend £x on clothing or food then I will and I shouldn't have to be assessed as to whether that is appropriate...
We have been together under two years and moved in together in April of this year.. we are on a tenancy agreement together... only because the agents insisted his name was on their too and said it had to be legally.. I cannot believe that this is happening and I will end up paying for some of these debts....I have never been able to afford to save for a house, and have recently started doing this after years of hard work, and now it seems I won't be able to do that ... how can this be fair? If I had thought this would be the case I would have waited to move in with him
Does anyone have experience of this, and may be able to advise?

Hello there

Thanks for your post.

Firstly, I can empathise with this situation and completely understand where you're coming from, and your frustration at this. From what you have said though it sounds as though this is the process that I understand will happen.

It's important to be clear that you're absolutely not being made to pay your partner's debts. What the OR is establishing by doing a joint budget is that your partner is paying only a fair share of reasonable household bills and living costs, and not more than that. This is because have to make sure that creditors are not being disadvantaged.

For example, if you earned exactly the same wages and there was £400/month left over in the budget after essential bills and reasonable living costs, they'd ask your partner to pay £200 into the bankruptcy and you could keep your £200 and do what you like with it; they wouldn't ask for the whole £400. If you earned double the wages of your partner, they'd expect you to pay two thirds of the budget costs, and so on.

To be frank, now that he has applied for bankruptcy and this process has started, it's best just to go along with it, because one way or another, the OR will get what they request. It is based on set guidelines.

I appreciate this may not be what you want to hear, but I hope it provides a bit of clarity.

Allen

rufusthedoofus

Thanks for your response. My issue is that the excess from my income is not household income, and therefore not 'leftover household income that can be apportioned between us. We don't share finances, we don't have joint accounts, we only share household expenses (me 2/3 and him 1/3) so I won't be paying any more than that, and I'm happy for the OR to take me to court on that, because they are not my debts