Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

StepChange_Aidan

Sadmum23 said:

Hi,
My husband was made bankrupt in 2009 by a firm of solicitors. Due to various circumstances and mounting debt he is considering making himself bankrupt - how would thus be viewed by OR? Thank you

Hi,

Thanks for your post.

The Official Receiver (OR) will check to see if a person has been made bankrupt previously, but as long as your husband was discharged more than six years ago this should not affect his application.

Sadmum23 said:

Sorry also meant to ask whilst there are debts, there are no arrears would this make any difference? - thank you

As part of the bankruptcy application, your partner would need to confirm that he’s insolvent. The OR may query this if he doesn’t have arrears on his debts and his income/expenses suggest that he can afford to service them.

There could be some other options for your husband that may be better for his situation. If he hasn’t already, I’d recommend that he gets some additional help from a debt advisor. If he’d like to get in touch with StepChange our contact details are here.

I hope this helps.

Aidan

Sadmum23

Thank you, there are currently no arrears, however he is doing the robbing  Peter to pay Paul. Credit cards are near max so trying to plan ahead .

thank you 

scotty1971

Would I need to tell step change debt charity if I was going to make extra payments to a creditor? Currently on a DAS. Thanks 

StepChange_Aidan

scotty1971 said:

Would I need to tell step change debt charity if I was going to make extra payments to a creditor? Currently on a DAS. Thanks 

Hi,

Thanks for your post.

Making additional payments to a debt would be against the conditions of the DAS (Debt Arrangement Scheme) and may lead to your plan being revoked. This is because all creditors are meant to be treated fairly and making an extra payment would be viewed as preferential treatment.

If your situation has changed and you feel that you can afford to pay more into a DPP (Debt Payment Programme) you could apply for a variation to increase the monthly payments. 

I’d recommend getting in touch with our DAS team to discuss your options. Their contact details are here.

I hope this helps.

Aidan

adz2ka

Hi

Moved to Leeds a few years ago and have tried to get by myself. I've moved around a bit through Spareroom and staying with friends. 
About last January I moved in with a different friend who knows my situation and so on and knows I've been struggling. It's now at the point I'm going to declare bankruptcy and they're fine with it, but the only concern is about beneficiary interest as I pay £600 a month for a room and use of the house & bills. Am I right to presume this doesn't apply providing a) I have a tenancy agreement in place and b) we're just friends and not partners?

dave3dtg

Hi

My Dad passed in April after I declared myself bankrupt with 20 years worth of debts totalling 65K.

In 2007 my parents had a weird will written up. In it it said that half of his half was to go to my Mum and the remaining half was to be split equally between me and my two brothers. 

So I'm bankrupt but have an 8.33% share in a property that could be worth 650K.

My Mum is a very frail 83 years.

Will the OR make her homeless?

Cheers

fatbelly

dave3dtg said:

Hi

My Dad passed in April after I declared myself bankrupt with 20 years worth of debts totalling 65K.

In 2007 my parents had a weird will written up. In it it said that half of his half was to go to my Mum and the remaining half was to be split equally between me and my two brothers. 

So I'm bankrupt but have an 8.33% share in a property that could be worth 650K.

My Mum is a very frail 83 years.

Will the OR make her homeless?

Cheers

Sorry to butt in to a stepchange thread but that clause in the will could only be valid if the house was NOT owned jointly, i.e. it was owned as tenants-in-common. Or the will explicitly changed that ownership from joint to TIC.

dave3dtg

fatbelly said:

dave3dtg said:

Hi

My Dad passed in April after I declared myself bankrupt with 20 years worth of debts totalling 65K.

In 2007 my parents had a weird will written up. In it it said that half of his half was to go to my Mum and the remaining half was to be split equally between me and my two brothers. 

So I'm bankrupt but have an 8.33% share in a property that could be worth 650K.

My Mum is a very frail 83 years.

Will the OR make her homeless?

Cheers

Sorry to butt in to a stepchange thread but that clause in the will could only be valid if the house was NOT owned jointly, i.e. it was owned as tenants-in-common. Or the will explicitly changed that ownership from joint to TIC.

Should I have started an independent thread for this?

As far as I know they owned 50% each.

fatbelly

dave3dtg said:

fatbelly said:

dave3dtg said:

Hi

My Dad passed in April after I declared myself bankrupt with 20 years worth of debts totalling 65K.

In 2007 my parents had a weird will written up. In it it said that half of his half was to go to my Mum and the remaining half was to be split equally between me and my two brothers. 

So I'm bankrupt but have an 8.33% share in a property that could be worth 650K.

My Mum is a very frail 83 years.

Will the OR make her homeless?

Cheers

Sorry to butt in to a stepchange thread but that clause in the will could only be valid if the house was NOT owned jointly, i.e. it was owned as tenants-in-common. Or the will explicitly changed that ownership from joint to TIC.

Should I have started an independent thread for this?

As far as I know they owned 50% each.

The default mode of ownership is joint. When the first party  dies, ownership transfers to the second and the property does not form part of the estate of the first , so they cannot give part of it away in their will.

Are you saying  that you definitely know that ownership was transferred to tenants in common? It's possible Some people do it for inheritance tax purposes.

StepChange_Aidan

adz2ka said:

Hi

Moved to Leeds a few years ago and have tried to get by myself. I've moved around a bit through Spareroom and staying with friends. 
About last January I moved in with a different friend who knows my situation and so on and knows I've been struggling. It's now at the point I'm going to declare bankruptcy and they're fine with it, but the only concern is about beneficiary interest as I pay £600 a month for a room and use of the house & bills. Am I right to presume this doesn't apply providing a) I have a tenancy agreement in place and b) we're just friends and not partners?

Hi,

Thank you for posting.

If you live in someone who has a mortgaged property in their name, the Official Receiver can in some cases decide that you own a share of the home (known as Beneficial Interest) and treat it as if you jointly own it.

In practice, this almost always applies where current or former partners have been living together. If you are not a couple and have a tenancy agreement in place, it’s extremely unlikely that you will have an interest in the property.

Beneficial Interest can be complex, so if there’s any uncertainty I’d recommend getting some specialist legal advice.

I hope this helps.

Aidan