Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

elvin67

Amazing i was looking for this info for a very long time thanks for making this thread

spoorthy3210

Thanks for posting this excellent blog about bankruptcy.

Linzy234

Hi,
First time on here, I have done a little browsing but have a couple of questions please...
I have been in financial difficulty for a while now but couldnt consider bankruptcy as my daughter was a guarantor for me a couple of years ago for a couple of loans, one of them being amigo, she now has a very good job and last month paid off the remainder of the loans as she was horrified at the interest and how much I was struggling/worrying... This kind act has now opened up the option for me to consider going bankrupt (as my daughter would not now be implicated/affected) and starting afresh, but how would this be viewed by an OR?
Also, she has provided for me through a family and friends scheme at work (she works in the car industry) a brand new car including insurance and maintenance, it is costing her £200 a month coming out of her wages directly, and I pay her the £200, it is for a year at a time then i/we get another one... would I be allowed to continue this arrangement if bankrupt?... would they need to speak to her or could I just provide the paperwork? I really dont want my daughter to know if I go down this route...
Many thanks...
Linz

Lindsjw2

I was made bankrupt 18 mths ago but have been on maternity leave for most of my bankruptcy order. I return to work in January and will need to fill out my IPA paperwork. I have to pay childcare for my eldest son, will the OR expect my current partner who isn’t the father to my eldest son to contribute 50/50 to his childcare or will they allow the whole of the childcare expense to go in my sole expenditure? I ask because my current partner does not pay towards the childcare and I do not expect him too either but I do not get any maintenance from my sons father either. I don’t want my partner to be penalised by having to contribute 50/50 towards an expense that’s nothing to do with him.

Former_StepChange_Joe

Hello

Thanks for posting and welcome to the forum.

I’m sorry to hear you’ve been struggling and worrying about your debts. Please be assured you’ve done the right thing by getting in touch and I’ll do everything I can to help.

To answer your first question, this wouldn’t be taken into account by the official receiver (OR). Payments made to a client’s debts by a third party aren’t counted as preferential treatment.

Your second question is a little more complicated.

It sounds like this ‘family and friends’ scheme more than likely uses a lease agreement that’s in your daughter’s name. As a general rule, you aren’t allowed to pay towards a debt that isn’t yours when going bankrupt: this wouldn’t be viewed as an allowable expense by an OR. Continuing to pay towards this would likely result in a bankruptcy restriction undertaking or order.

However, it’s possible that the official receiver may view this as an allowable expense if your use of the vehicle is essential and there are no feasible alternatives to you using this scheme.

That being said, I can’t guarantee how this would be viewed by the OR, and it’s not clear if you’d be able to provide details of this scheme without the OR having to contact your daughter. If you want a more comprehensive answer to your question I recommend you contact the Insolvency Service to discuss this in further detail. You can reach them on 0300 678 0015 Monday to Friday 9am - 5pm.

If you haven’t already, I recommend getting in touch with StepChange for some tailored, confidential debt advice. You can use our anonymous online Debt Remedy tool to create a budget, detailing your income, living costs and debts. This will give us a better understanding of your situation so we can give the best advice and recommend the right solution for you. The tool will guide you through creating a budget and will then offer the best debt solution for your situation. This is available 24 hours a day and takes about 20 minutes to complete.

I hope you’ve found this helpful, and we look forward to hearing from you soon.


Thanks

Joe

Linzy234 wrote: »

Hi,
First time on here, I have done a little browsing but have a couple of questions please...
I have been in financial difficulty for a while now but couldnt consider bankruptcy as my daughter was a guarantor for me a couple of years ago for a couple of loans, one of them being amigo, she now has a very good job and last month paid off the remainder of the loans as she was horrified at the interest and how much I was struggling/worrying... This kind act has now opened up the option for me to consider going bankrupt (as my daughter would not now be implicated/affected) and starting afresh, but how would this be viewed by an OR?
Also, she has provided for me through a family and friends scheme at work (she works in the car industry) a brand new car including insurance and maintenance, it is costing her £200 a month coming out of her wages directly, and I pay her the £200, it is for a year at a time then i/we get another one... would I be allowed to continue this arrangement if bankrupt?... would they need to speak to her or could I just provide the paperwork? I really dont want my daughter to know if I go down this route...
Many thanks...
Linz

Former_StepChange_Joe

[FONT=&quot]Hello[/FONT]

[FONT=&quot]Thanks for your post and welcome to the forum.[/FONT]

[FONT=&quot]The Official Receiver (OR) will always require full household income and expenses. Payments into an income payment arrangement (IPA) will be based on a full household budget. However, that’s not to say the OR will force your partner to pay half of your childcare costs.[/FONT]

[FONT=&quot]I recommend getting in touch with the Insolvency Service for more information. You can reach them on 0300 678 0015 Monday to Friday 9am - 5pm.[/FONT]

[FONT=&quot]Thanks[/FONT]

[FONT=&quot]Joe[/FONT]

Lindsjw2 wrote: »

I was made bankrupt 18 mths ago but have been on maternity leave for most of my bankruptcy order. I return to work in January and will need to fill out my IPA paperwork. I have to pay childcare for my eldest son, will the OR expect my current partner who isn’t the father to my eldest son to contribute 50/50 to his childcare or will they allow the whole of the childcare expense to go in my sole expenditure? I ask because my current partner does not pay towards the childcare and I do not expect him too either but I do not get any maintenance from my sons father either. I don’t want my partner to be penalised by having to contribute 50/50 towards an expense that’s nothing to do with him.

broaps

Can I ask a question about the answer you gave to Lindsjw2? I understood that an IPA has to be agreed within 12 months of BR. If the BR of Lindsjw2 was from 18 months ago is it not too late for an IPA and therefore she has nothing to worry about? I

sourcrates

broaps wrote: »

Can I ask a question about the answer you gave to Lindsjw2? I understood that an IPA has to be agreed within 12 months of BR. If the BR of Lindsjw2 was from 18 months ago is it not too late for an IPA and therefore she has nothing to worry about? I

That is also my understanding.

StepChange_Allen

broaps wrote: »

Can I ask a question about the answer you gave to Lindsjw2? I understood that an IPA has to be agreed within 12 months of BR. If the BR of Lindsjw2 was from 18 months ago is it not too late for an IPA and therefore she has nothing to worry about? I

Hi there

Thanks for posting.

I've looked into this further and the upshot is that we'd need more information to be sure. For example, we don't know whether the poster has been discharged or not, what was agreed at the time of the bankruptcy, whether any restrictions were put in place and so on.

We can certainly look into this further if more information is provided, but the Insolvency Service would be the best place to go for confirmation of where they stand.

Thanks

Allen

Mrhuk

Hi,

When filling out the stepchange online tool and if it comes to it the bankruptcy form do I include overtime or without ?

It's just I've noticed the 10% 50% with overtime after but not sure what to put in before