Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

broaps

Hello. I don't want to disagree with a Stepchange advisor but what they said in their reply to your question about bank accounts is not the experience either myself or my husband had in our recent BR. We both had standard Flex accounts with Nationwide before applying for BR. Both accounts had about £100 in as we had drawn out a reasonable amount in case the accounts were frozen and we had no debts with Nationwide. We also timed the BR applications until just after important DDs had been paid. The OR asked us both which account we used for our daily living expenses and then said she would write to Nationwide to say they had no interest in these accounts. Nationwide did not freeze our accounts even for a day and they just downgraded the Flex accounts to Flexbasic with the account numbers and sort codes kept exactly the same. All payments into and out of the accounts continued without pause. You don't say which bank you have used for your basic account but Nationwide are fantastic with a proper debit card, no charges and full internet access. Of course, different banks may have a different policy.

Former_StepChange_Joe

Hello

Thanks for posting and welcome to the forum.

I recommend getting in touch with Clarke Willmott. They should be able to confirm when the payments will begin.

Thanks

Joe

nikkinoo75 wrote: »

Hi,
So Bankruptcy has all gone through smooth as most people have detailed on here previously

We have agreed the IPA payment amount and the IP has confirmed that they have sent the information off to Clarke Willmott that deal with collections.

My questions is, when will they expect the first payment? In our initial letter they said a payment by 13th Dec but the paperwork has been slow. Is it possible to agree with this firm that payments can come out on the 1st of the month starting january?

Thank you any help welcomed

LeicesterT

Hi I have a question about bankruptcy.

I’m about to press the button and have included my partners income on the application and all the income and outgoings etc apart from the fact that my wife owns a house in her name only that she rents out. The rent covers her mortgage again all totally in her name and nothing to do with me.

Should I mention this in the application??

Thanks

StepChange_Kirsty

Hi there,

Thanks for your post.

As you don’t live in that property and you have not contributed towards it financially, unless you have any written agreement in place which gives you an interest in the property it is unlikely that the property would be involved.

However the Official Receiver might still need to know about the property just so they can rule it out and you may need to provide evidence that you have no interest in this property. In the circumstances I would recommend speaking to the Insolvency Service helpline who should be able to give you more guidance on completing the form. Their number is 0300 678 0015 and they’re available Monday to Friday 9am to 5pm.

I hope this helps.

Kirsty

LeicesterT wrote: »

Hi I have a question about bankruptcy.

I’m about to press the button and have included my partners income on the application and all the income and outgoings etc apart from the fact that my wife owns a house in her name only that she rents out. The rent covers her mortgage again all totally in her name and nothing to do with me.

Should I mention this in the application??

Thanks

Kwalker

Hi there, I was declared bankrupt due to a bad divorce in 2012. A year later I was discharged. In 2016 I remarried and my husband owns his own house outright. We are currently in the process of renewing our wills and he wants to put me on the deeds of the house so that if anything happens to him then the house would come to me without having to go through probate. I am concerned that my bankruptcy would affect this? If so I’m happy not to be on the deeds but he really wants me to be?

Can you advise please.

Many thanks
Kind regards

Kwalker

StepChange_Rachael

Hi

Thanks for getting in contact.

I can understand your concerns, it’s important to make sure that anything that you do won’t have a negative impact on your future.

Assets received before you’re discharged from bankruptcy can be taken by the Official Receiver to form part of the bankruptcy. However, assets received after discharge won’t be taken in to account. So you should be fine to be included on the will. As it’s been a few years since discharge the OR won’t have any claim on future assets from my understanding.

If you want to discuss this in more detail you can always contact the Insolvency Service.

Thanks
Rachael

Kwalker wrote: »

Hi there, I was declared bankrupt due to a bad divorce in 2012. A year later I was discharged. In 2016 I remarried and my husband owns his own house outright. We are currently in the process of renewing our wills and he wants to put me on the deeds of the house so that if anything happens to him then the house would come to me without having to go through probate. I am concerned that my bankruptcy would affect this? If so I’m happy not to be on the deeds but he really wants me to be?

Can you advise please.

Many thanks
Kind regards

Kwalker

Former_StepChange_Patience

Hi there

It’s great to hear about your experience with the bankruptcy application, it sounds like there was minimal disruption for you both with your bank accounts and your important direct debits.

Bankruptcy can be such an individual experience and as my colleague mentioned, generally bank accounts can be frozen whilst the official receiver does their investigations.

Our website: https://www.stepchange.org/debt-info/bank-accounts-after-bankruptcy.aspx explains a little more detail on what people could usually expect.

You’re right, some banks may have different processes when someone does go through bankruptcy, but it’s wonderful to hear Nationwide made this a seamless process for you.

I hope this helps.

Patience

broaps wrote: »

Hello. I don't want to disagree with a Stepchange advisor but what they said in their reply to your question about bank accounts is not the experience either myself or my husband had in our recent BR. We both had standard Flex accounts with Nationwide before applying for BR. Both accounts had about £100 in as we had drawn out a reasonable amount in case the accounts were frozen and we had no debts with Nationwide. We also timed the BR applications until just after important DDs had been paid. The OR asked us both which account we used for our daily living expenses and then said she would write to Nationwide to say they had no interest in these accounts. Nationwide did not freeze our accounts even for a day and they just downgraded the Flex accounts to Flexbasic with the account numbers and sort codes kept exactly the same. All payments into and out of the accounts continued without pause. You don't say which bank you have used for your basic account but Nationwide are fantastic with a proper debit card, no charges and full internet access. Of course, different banks may have a different policy.

Jess9258

Hi,

I am currently considering bankruptcy. I have read on other posts and the Government website that the Insolvency Service (IS) rings the applicant after the application is submitted. I cannot reliably use the phone (or the Next Generation Text Relay System) due to disabilities and health conditions (which are multiple including physical and mental health, and autism), do you know of how the IS deals with this?

Thanks.

Butts

Jess9258 wrote: »

Hi,

I am currently considering bankruptcy. I have read on other posts and the Government website that the Insolvency Service (IS) rings the applicant after the application is submitted. I cannot reliably use the phone (or the Next Generation Text Relay System) due to disabilities and health conditions (which are multiple including physical and mental health, and autism), do you know of how the IS deals with this?

Thanks.

I believe you may be called in for an Interview face to face if one is deemed necessary.

If you are unable to fulfill this - over to the experts !!!

StepChange_Allen

Jess9258 wrote: »

Hi,

I am currently considering bankruptcy. I have read on other posts and the Government website that the Insolvency Service (IS) rings the applicant after the application is submitted. I cannot reliably use the phone (or the Next Generation Text Relay System) due to disabilities and health conditions (which are multiple including physical and mental health, and autism), do you know of how the IS deals with this?

Thanks.

Hi Jess

Welcome to the forum and thanks for posting.

I've had a look into this and my understanding is that there's definitely a phone conversation that needs to take place, though one would imagine the Insolvency Service must have a process in place to help people in your situation.

My suggestion would be to get a friend or family member to call the Insolvency Service on your behalf, explain the situation, and see what their process would be. Maybe someone can be allowed to speak on your behalf, I'm not sure. Their number is 0300 678 0015.

I hope this is helpful.

Allen