Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

woodyswanton

Hi
I have recently been onto step change and they have advised I look into bankruptcy as opposed to a debt relief order.
I am a little confused as my debts are just below the £20k threshold and I am left with only £20 disposable income, clearly I want to avoid paying the £900 bankruptcy fee as I just don't have it.
Thanks in advance

Soosuki1

Hi. I just wonder if there's anyone out there that can give me some advice. I am a nurse and work via an agency through my ltd. co. I am unable to work at present as I am not well. I am concerned as I am unsure when I will be able to work again. I have a mortgage and no savings and may have to declare bankruptcy. Can anyone shed any light on this or point me in the right direction. I really would appreciate any help/guidance at all. Many thanks, Soosuki1

ukman2012

ukman2012 said:

I had a CCJ registered against me in august 2014.  I then took a DRO in 2015 june, which has all my debts listed including the CCJ.  After the year of the DRO memorandum, everything was marked at 0 balance apart from the CCJ which remains on file and active.  Should it not have been removed and just the DRO showing. 
In a few months time it will be 6 years will it just come off?

Can anyone help with this?

fatbelly

woodyswanton said:

Hi
I have recently been onto step change and they have advised I look into bankruptcy as opposed to a debt relief order.
I am a little confused as my debts are just below the £20k threshold and I am left with only £20 disposable income, clearly I want to avoid paying the £900 bankruptcy fee as I just don't have it.
Thanks in advance

Bankruptcy is £680 but I agree - if everything else is equal, a DRO is generally the way forward. 

If they are recommending bankruptcy when you meet the criteria for a DRO you need to ask them why and keep asking until you understand their thinking, which you are then free to agree or disagree with

fatbelly

Soosuki1 said:

Hi. I just wonder if there's anyone out there that can give me some advice. I am a nurse and work via an agency through my ltd. co. I am unable to work at present as I am not well. I am concerned as I am unsure when I will be able to work again. I have a mortgage and no savings and may have to declare bankruptcy. Can anyone shed any light on this or point me in the right direction. I really would appreciate any help/guidance at all. Many thanks, Soosuki1

Bankruptcy is risky for homeowners. You don't actually say anything about debts.

Why not post on the Debt Free Wannabe forum and we can ask you for some detail.

fatbelly

ukman2012 said:

ukman2012 said:

I had a CCJ registered against me in august 2014.  I then took a DRO in 2015 june, which has all my debts listed including the CCJ.  After the year of the DRO memorandum, everything was marked at 0 balance apart from the CCJ which remains on file and active.  Should it not have been removed and just the DRO showing. 
In a few months time it will be 6 years will it just come off?

Can anyone help with this?

It will drop off at the 6-year point in August. Not worth bothering about.

NWatson2711

Hi 

I hope someone can help us, it looks like we will both ( my husband and I ) apply for BR as he’s business has just collapsed and we don’t have anywhere near enough to pay our own individual debts. 

My main worry is our car I own it and it is a 7 seater as we have 4 boys and I need the car to take them to 3 different schools each day and to get to the new job I have just started part time. It’s worth about 4K in this current climate and I’m so worried if we are made to sell it and buy one for 1000 that we won’t be able to fit everyone in and it will constantly break down causing more money to fix and they won’t be able to get to school 

fatbelly

NWatson2711 said:

Hi 

I hope someone can help us, it looks like we will both ( my husband and I ) apply for BR as he’s business has just collapsed and we don’t have anywhere near enough to pay our own individual debts. 

My main worry is our car I own it and it is a 7 seater as we have 4 boys and I need the car to take them to 3 different schools each day and to get to the new job I have just started part time. It’s worth about 4K in this current climate and I’m so worried if we are made to sell it and buy one for 1000 that we won’t be able to fit everyone in and it will constantly break down causing more money to fix and they won’t be able to get to school 

Bankruptcy may or may not be the best move.There are many options out there and you should both take advice. As his debt is business related I would suggest Business debtline. If yours isn't then try National Debtline.

As for the car get a free valuation from Parkers Guide - take the lower figure. You are correct that a 4k asset would be something to take into consideration. It would be an issue if you went for bankruptcy or a DRO. It wouldn't be an issue fr an IVA or dmp. You might not need any of those solutions - chat it through with National Debtline.

NWatson2711

Hi 
The business will be made insolvent separately. But both our individual debt outweighs what we now have coming in unfortunately. 

I will try and contact step change but it’s very hard to get through at the moment as is the debt line. 

We wouldn’t have any disposable income after bills to be able to get an Iva etc 

dmcw

NWatson2711 said:

Hi 

I hope someone can help us, it looks like we will both ( my husband and I ) apply for BR as he’s business has just collapsed and we don’t have anywhere near enough to pay our own individual debts. 

My main worry is our car I own it and it is a 7 seater as we have 4 boys and I need the car to take them to 3 different schools each day and to get to the new job I have just started part time. It’s worth about 4K in this current climate and I’m so worried if we are made to sell it and buy one for 1000 that we won’t be able to fit everyone in and it will constantly break down causing more money to fix and they won’t be able to get to school 

Hi,

Sorry to hear you are having to both declare bankruptcy. I am coming towards my 6th year now. My bankruptcy was during a divorce. Ex declared bankruptcy, therefore I was forced as all his debts came over to me. I had a car which 12 months before bankruptcy I sold to my parents, (market price), this released money to go towards my family’s s needs (food etc)  My parents then allowed me to have use of the car until I was in a position to buy a run around and then they sold the car at a later date. I had a receipt from my parents which was shown to the insolvency. The insolvency also contacted my parents. They do go after every asset. They even took my life insurance policy and sold this back to me for £50. The house was a nightmare. Please make a list and ring the insolvency enquiry line. They can only advise before bankruptcy and not once you have declared bankruptcy.