Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Former_StepChange_Linsi

Hi

Thanks for getting in touch and welcome to the forum.

When creating a budget with ourselves we'd recommend using an average figure based over the last 6 to 12 months if your income fluctuates due to overtime. This will help us to create the most accurate budget and make sure we recommend the right solutions.

If you go bankrupt you'll definitely need to disclose your overtime but I'm not exactly sure how this needs to be reflected in the bankruptcy application. If you call the Insolvency Service helpline on 0300 678 0015 they'll be able to give you further guidance.

If you get stuck or have any more questions about using our online tool I'd recommend contacting us directly rather than using the MSE forum. You can find our contact details by clicking the need help button at the bottom of each page of our online tool.

I hope this helps,

Linsi

Mrhuk wrote: »

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

Mrhuk

Thank you for the information Linsi

NeenyT

Are there laws against lying and misleading insolvency practitioners? Who do I need to take this to if so?

StepChange_Allen

NeenyT wrote: »

Are there laws against lying and misleading insolvency practitioners? Who do I need to take this to if so?

Hi there

Welcome to the forum and thanks for posting.

Insolvency practitioners (IPs) are regulated and will have a complaints process. My understanding is that you'd need to make a written complaint to the IP, and then if the response is unsatisfactory, you can raise it to the Insolvency Practitioners' Association. Their website is here: www.insolvency-practitioners.org.uk/

I hope you managed to get this sorted.

Allen

cheesypuff

Hi
I am looking some advice myself and my husband have been in a dump with Stepchange 9 yrs this may but we still owe £15,500 we also have 4 other cards not on the plan and a credit union loan of £6000. I can’t see any light at the end of the tunnel would we be better going bankrupt?

KittyMoma

Hi,

I have a friend who is in dire need of advice and doesn't know where to turn to.
He is 61 years old, unemployed (no income from any sources), he's living with a friend rent free, no assets (cars, properties, savings etc) and no means of paying his debts for the foreseeable future.

Debt comprises;

HMRC: approx £70,000 (accumulation of assessments which had been determined)
Energy bills: approx £4.5k
Credit cards: amounts to approx £12k
Misc: amounts to approx. £2k (parking etc)

Total approx £90k

He wants to file for bankruptcy but doesn't know where to start and is worried it may incur fees which he again has no way of paying.

Please can you advise.

Thanks.

Former_StepChange_Linsi

[FONT=&quot]Hello[/FONT]

[FONT=&quot]I’m sorry we’ve not been able to respond sooner but thank you for posting.
[/FONT]
[FONT=&quot]It’s impossible to say whether or not bankruptcy is going to be the best option without having a better understanding of your financial situation.
[/FONT]
[FONT=&quot]As you’re already on a DMP with us I’d recommend calling our Client Support team. Their number is available on our website if you don’t already have it. They’ll be able to review your budget (if needed), take the details of the debts that haven’t been included and then [/FONT][FONT=&quot][FONT=&quot]re-evaluate [/FONT]the situation.
[/FONT]
[FONT=&quot]They’ll be able to explain which debt solutions are available to help you become debt free as soon as possible. If bankruptcy is the best option they’ll talk you through the application process and the next steps to take.
[/FONT]
[FONT=&quot]I hope this helps,[/FONT]

[FONT=&quot]Linsi[/FONT]

cheesypuff wrote: »

Hi
I am looking some advice myself and my husband have been in a dump with Stepchange 9 yrs this may but we still owe £15,500 we also have 4 other cards not on the plan and a credit union loan of £6000. I can’t see any light at the end of the tunnel would we be better going bankrupt?

Mattwh9

Hi,

I'm helping my sister fill out a DRO application with StepChange and need some advice regarding one of the questions asked in the application pack.

It asks you have ever been subject to any formal insolvency procedures before, which I'm guessing is because you can't get a DRO if you have had one in the last 6 years (not sure about over types of insolvency). My sister has not had a DRO in the last six years, but she did have one about 8 years ago.

We want to complete all the information correctly but are not sure if it is necessary to mention this previous DRO, and (although she appears to meet the requirements again) my sister is worried that mentioning her previous DRO could have a negative impact on qualifying for a second one.

Would really appreciate some advice on this.

Thanks a lot.

StepChange_Kirsty

Hello there,

Thanks for your post.

Before your friend applies for Bankruptcy I‘d highly recommend he seeks Debt Advice. At StepChange we can definitely provide your friend with help and advice and if Bankruptcy is his best option we’ll advise him on this.

I’d recommend he gives us a call on 0800 138 1111 in order to speak to one of our expert Debt Advisors. They’re available Monday to Friday 8am to 8pm and Saturdays 9am to 2pm. You can also find our website here.

The fee for Bankruptcy is £680 which does need to be paid before the application can be approved. The fee can be paid by instalments or your friend could look to apply for a trust fund to help with the fee. Turn 2 Us may be able to help your friend look for suitable trust fund assistance.

I hope this helps,

Kirsty

KittyMoma wrote: »

Hi,

I have a friend who is in dire need of advice and doesn't know where to turn to.
He is 61 years old, unemployed (no income from any sources), he's living with a friend rent free, no assets (cars, properties, savings etc) and no means of paying his debts for the foreseeable future.

Debt comprises;

HMRC: approx £70,000 (accumulation of assessments which had been determined)
Energy bills: approx £4.5k
Credit cards: amounts to approx £12k
Misc: amounts to approx. £2k (parking etc)

Total approx £90k

He wants to file for bankruptcy but doesn't know where to start and is worried it may incur fees which he again has no way of paying.

Please can you advise.

Thanks.

StepChange_Kirsty

Hi Matt,

Thanks for your post and welcome to the forum.

If the last debt relief order (DRO) was over six years ago, as long as your sister meets the other criteria she would still be eligible to apply again.

We need to know if your sister has ever done a DRO just because this is something the Insolvency Service asks on the DRO application form. It may be that the Insolvency Service would need to conduct additional investigations to understand what has led to the debts for a second time. This will also help them to decide if any additional restrictions should be attached to the DRO.

It’s really important that your sister answers this question honestly as giving false information to the Insolvency Service could be deemed as fraudulent.

I hope this helps,

Kirsty

Mattwh9 wrote: »

Hi,

I'm helping my sister fill out a DRO application with StepChange and need some advice regarding one of the questions asked in the application pack.

It asks you have ever been subject to any formal insolvency procedures before, which I'm guessing is because you can't get a DRO if you have had one in the last 6 years (not sure about over types of insolvency). My sister has not had a DRO in the last six years, but she did have one about 8 years ago.

We want to complete all the information correctly but are not sure if it is necessary to mention this previous DRO, and (although she appears to meet the requirements again) my sister is worried that mentioning her previous DRO could have a negative impact on qualifying for a second one.

Would really appreciate some advice on this.

Thanks a lot.