Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

StepChange_Aidan

simmies12 said:

Hi I wonder if there is anyone who can help. I have been separated for 2 years and my ex has run away and not living in the home. I am also not in the home. House is about to get repossessed and I can’t sell it as he is uncontactable and is going to result in a CCJ. I have spent the last 2 years trying to sort this all out but there has been nothing out there that can help me. It’s like the financial damage is being done to me and I have no control. If anyone can help or point me in the right direction I would be so grateful.

Hi,

Thanks for your post and welcome to the forum.

StepChange can certainly help you but we’ll need to know more about your situation before we can give any specific advice. I’d suggest calling us to speak with our Debt Advice team, our contact details can be found here.

Is the property due to be repossessed because of mortgage or secured loan arrears? If it is, I’d recommend getting in touch with your lender if you haven’t already to let them know about your circumstances and discuss your options. You could also ask if they can put a hold on the repossession process while you’re getting advice.   

Kind regards,

Aidan

StepChange_Aidan

Hammers01 said:

Hello,
Would some be able to tell me if a pre-paid card like cash plus shows up on your file when you apply for bankruptcy please as I want to be able to use a  prepaid debit cash card like cash plus or pocket, or will this kind of card flag up and be shut down

Hi,

Thank you for posting.

You can usually continue to use a prepaid card account after going bankrupt, but it would be worth checking with your lender to make sure. 

As with other types of bank account, it’s likely that it will be frozen for a few days while the official receiver checks your transaction history.

We wouldn’t normally recommend using prepaid card accounts as they tend to have high monthly fees and transaction charges. All high street banks offer basic accounts which can be opened before or after bankruptcy. There’s some more information on basic bank accounts here.

I hope this helps.

Aidan  

dmcw

Hi

I bank with NatWest and during my bankruptcy my bank account was frozen for a day and then when released it was downgraded to a basic bank account. 

WulfV

Could you tell me please if a bankrupt has bought a Purchased Life Annuity well in advance of having any money problems would the PLA be treated as 'exempt' or would the Official Receiver treat it as an asset and take if from him? The PLA was bought with savings and is not a pension. Or would it just be treated as income for an IPA?

StepChange_Aidan

WulfV said:

Could you tell me please if a bankrupt has bought a Purchased Life Annuity well in advance of having any money problems would the PLA be treated as 'exempt' or would the Official Receiver treat it as an asset and take if from him? The PLA was bought with savings and is not a pension. Or would it just be treated as income for an IPA?

Hi,

Thanks for posting and welcome to the forum.

Usually an annuity is treated as an income, so it would be taken into account when the Official Receiver (OR) decides whether to set an Income Payment Arrangement.

If the annuity was purchased in the last five years, the OR may examine it more closely to determine if a transaction at undervalue had taken place. If the amount paid was substantially more than the annuity was worth the transaction could be reversed.

It may be worth contacting the Insolvency Service (in England/Wales) directly for further guidance. Their call centres are currently closed due to the Coronavirus situation, but you can send enquiries using the form on their website.

For Scotland, you can contact the Accountant in Bankruptcy, and for Northern Ireland the NI Insolvency Service.

Kind regards,

Aidan

dolphins04

Bankruptcy Help needed!
I live with my partner and wonder whether he has to be included when declaring houshold income?
If I didn't include him will they question this?
If so, do they take into account his un-secured debt?
(If they didnt it would like like he has alot of money left over after bills) which is not the case due to his loans & credit cards.
Trying to look forward whether I will have to pay into an IPA as they could see how much he earns & see we're left with a surplas & take it all into account for an IPA?
We have no financial connection/link to each other. 
Last question - Do they work out an IPA on your current circumstances? Taking into account my current debt? Or will they look for an IPA ignoring the debt as effectivly will be written off after discharge?
E.g my debts totals to £662pm - I take home £973pm so can't even afford to pay much of a share of bills!
But will they work out the IPA based on having the debt or not having?
Hope this makes some sense! SOA is below if anyone can see whether this would be acceptable? 
Thank you so much for reading & hope someone can help! x
SOA below:
**(DOES NOT INCLUDE PARTNERS DEBT - TOTALLING AROUND £22k @ £436pm)**

Summary

Monthly Budget Summary	Amount(£)
Total monthly income	3,273
Monthly expenses (incl. HP & secured loans)	2,982
Available for debt repayments	291
UNsecured debt repayments	621
Amount short for making debt repayments	-330

Personal Balance Sheet Summary	Amount(£)
Total Assets (things you own)	2,300
Total Secured & HP Debt	-0
Total Unsecured Debt	-23,443
Net Assets	-21,143

Household Information

Number of adults in household	2
Number of children in household	3
Number of cars owned	1

Income, Expense, Debt & Asset Details

Income	Amount(£)
Monthly income after tax	833
Partners monthly income	2300
Benefits	140
Other income	0
Total monthly income	3273

Expenses	Amount(£)
Mortgage	0
Secured/HP loan payments	0
Rent	714
Management charge (leasehold property)	0
Council tax	156
Electricity	55
Gas	101
Oil	0
Water Rates	35
Telephone (land line)	15
Mobile phone	100
TV Licence	13
Satellite/Cable TV	30
Internet services	30
Groceries etc.	580
Clothing	150
Petrol/diesel	220
Road tax	23
Car Insurance	33
Car maintenance (including MOT)	25
Car Parking	10
Other travel	0
Childcare/nursery	0
Other child related expenses	140
Medical (prescriptions, dentists, opticians etc.)	30
Pet Insurance/Vet bills	30
Buildings Insurance	10
Contents Insurance	9
Life Assurance	43
Other Insurance	0
Presents (birthday, christmas etc.)	100
Haircuts	30
Entertainment	150
Holiday	100
Emergency Fund	50
Total monthly expenses	2982

Secured & HP Debt Description	Debt(£)	Monthly(£)	APR(%)
Mortgage	0	(0)	0
Secured & HP Debt totals	0	-	-

Unsecured Debt Description	Debt(£)	Monthly(£)	APR(%)
Tesco Loan	12352	220	0
Natwest Loan	4644	142	0
MBNA	1930	142	0
Debt collector	967	17	0
Overdraft	1750	0	0
Aqua	1800	100	0
Unsecured Debt totals	23443	621	-

Asset Description	Value (£)
Cash	0
House Value (Gross)	0
Shares and bonds	0
Car(s)	2300
Other assets (e.g. endowments, jewellery etc)	0
Total Assets	2300

StepChange_Aidan

dolphins04 said:

Bankruptcy Help needed!
I live with my partner and wonder whether he has to be included when declaring houshold income?
If I didn't include him will they question this?
If so, do they take into account his un-secured debt?
(If they didnt it would like like he has alot of money left over after bills) which is not the case due to his loans & credit cards.
Trying to look forward whether I will have to pay into an IPA as they could see how much he earns & see we're left with a surplas & take it all into account for an IPA?
We have no financial connection/link to each other. 
Last question - Do they work out an IPA on your current circumstances? Taking into account my current debt? Or will they look for an IPA ignoring the debt as effectivly will be written off after discharge?
E.g my debts totals to £662pm - I take home £973pm so can't even afford to pay much of a share of bills!
But will they work out the IPA based on having the debt or not having?
Hope this makes some sense! SOA is below if anyone can see whether this would be acceptable? 
Thank you so much for reading & hope someone can help! x
SOA below:
**(DOES NOT INCLUDE PARTNERS DEBT - TOTALLING AROUND £22k @ £436pm)**

Summary

Monthly Budget Summary	Amount(£)
Total monthly income	3,273
Monthly expenses (incl. HP & secured loans)	2,982
Available for debt repayments	291
UNsecured debt repayments	621
Amount short for making debt repayments	-330

Personal Balance Sheet Summary	Amount(£)
Total Assets (things you own)	2,300
Total Secured & HP Debt	-0
Total Unsecured Debt	-23,443
Net Assets	-21,143

Household Information

Number of adults in household	2
Number of children in household	3
Number of cars owned	1

Income, Expense, Debt & Asset Details

Income	Amount(£)
Monthly income after tax	833
Partners monthly income	2300
Benefits	140
Other income	0
Total monthly income	3273

Expenses	Amount(£)
Mortgage	0
Secured/HP loan payments	0
Rent	714
Management charge (leasehold property)	0
Council tax	156
Electricity	55
Gas	101
Oil	0
Water Rates	35
Telephone (land line)	15
Mobile phone	100
TV Licence	13
Satellite/Cable TV	30
Internet services	30
Groceries etc.	580
Clothing	150
Petrol/diesel	220
Road tax	23
Car Insurance	33
Car maintenance (including MOT)	25
Car Parking	10
Other travel	0
Childcare/nursery	0
Other child related expenses	140
Medical (prescriptions, dentists, opticians etc.)	30
Pet Insurance/Vet bills	30
Buildings Insurance	10
Contents Insurance	9
Life Assurance	43
Other Insurance	0
Presents (birthday, christmas etc.)	100
Haircuts	30
Entertainment	150
Holiday	100
Emergency Fund	50
Total monthly expenses	2982

Secured & HP Debt Description	Debt(£)	Monthly(£)	APR(%)
Mortgage	0	(0)	0
Secured & HP Debt totals	0	-	-

Unsecured Debt Description	Debt(£)	Monthly(£)	APR(%)
Tesco Loan	12352	220	0
Natwest Loan	4644	142	0
MBNA	1930	142	0
Debt collector	967	17	0
Overdraft	1750	0	0
Aqua	1800	100	0
Unsecured Debt totals	23443	621	-

Asset Description	Value (£)
Cash	0
House Value (Gross)	0
Shares and bonds	0
Car(s)	2300
Other assets (e.g. endowments, jewellery etc)	0
Total Assets	2300

Hi,

Thanks for your post.

When applying for bankruptcy, you’ll need to include details about your partner’s income. This is so the Official Receiver (OR) can calculate your fair share of the household spending if they decide to set up an Income Payment Arrangement (IPA).

If you or your partner are unwilling to confirm his income, the OR would assume that bills and living costs are split 50/50.

The OR decides to set an IPA on a case-by-case basis, so we can’t say for sure that you will have to pay into one, but it’s likely if you have a surplus of over £20 in your monthly budget after your essential living costs have been paid. Please be aware that some of the expenses included in your SOA, such as Holidays and Presents may be viewed as non-essential by the OR and ignored in their calculations.

Payments that you’re currently making towards your debts are not counted in your expenses. Your SOA shows that your combined monthly income is £3,273, the living costs to £2,982, so this shows there is £291 available.

There’s some more information about Income Payment Arrangements here.

Before going ahead with Bankruptcy I’d recommend discussing your situation and options with a debt advisor. If you’d like to get in touch with StepChange our contact details can be found here.

I hope this helps.

Aidan 

phyl9876

Hi, I need to message an advisor from StepChange in private. Can you set this up? I don't want the details of my question posted on a public forum.

StepChange_Aidan

phyl9876 said:

Hi, I need to message an advisor from StepChange in private. Can you set this up? I don't want the details of my question posted on a public forum.

Hi,

Thanks for posting and welcome to the forum.

We’re not currently able to send private messages on the MSE Forum, but if you’d like to contact us directly with any questions our details can be found on our website.

Kind regards,

Aidan

funnystrawberry

I was made bankrupt in 2015 and came to a repayment plan agreement with the trustees whilst they out a charge on all my properties. I am still in this repayment plan and the amount seems to be reducing exceptionally slowly due to the charges the trustees are applying. I have seen an advert for a bankruptcy expert who will look at the plan and the trustees charges to see if I am being overcharged, however her fee is 800£ with no real assurance that she would be able to reduce the amount. Can anyone advise if they have used a service lime this before with any success or if there is a free service to assess the charges?