Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

wharty

StepChange_Mat wrote: »

Hi and thanks for your message.

I’d recommend that you hand the car back and include any debt due on the vehicle as part of your bankruptcy.

If the debt is included in your bankruptcy it cannot be enforced after you have petitioned.

It’s important to take free and impartial advice before going bankrupt. I’d recommend that you get in touch with us and we can help you through the process.

I hope this helps.

Kind regards,

Mat

Ok thanks. So i can't just keep the van and include it in my petition?

I was thinking another way of doing it was to just go bankrupt and let the reciever deal with taking it. My concern was the debt could be enforced after my bankruptcy though, is this possible?

I will go and sell the vehicle as soon as possible but i will owe around £600 on it once i have sold it. How will the garage i sell it to deal with this? will they make me pay the finance off before i sell it to them? if so would this be classed as preferring a creditor?

A little confused, i am sure i cant just get rid of the vehicle without clearing the finance.

System

wharty wrote: »

Ok thanks. So i can't just keep the van and include it in my petition?

I was thinking another way of doing it was to just go bankrupt and let the reciever deal with taking it. My concern was the debt could be enforced after my bankruptcy though, is this possible?

I will go and sell the vehicle as soon as possible but i will owe around £600 on it once i have sold it. How will the garage i sell it to deal with this? will they make me pay the finance off before i sell it to them? if so would this be classed as preferring a creditor?

A little confused, i am sure i cant just get rid of the vehicle without clearing the finance.

Hi and thanks for coming back to me.

I’d recommend that you give us a call. I wouldn’t recommend selling the van with any finance attached to it. This could possibly be fraudulent depending on the wording of the agreement you have with the finance company (you’re selling something which may not be yours to sell; this could have repercussions in your bankruptcy).

We can talk you through the whole process. Try and gather as much detail of your financial situation as you can and call our helpline on 0800 138 1111 – it’s a Freephone and that includes mobiles too.

Kind regards,

Mat

wharty

StepChange_Mat wrote: »

Hi and thanks for coming back to me.

I’d recommend that you give us a call. I wouldn’t recommend selling the van with any finance attached to it. This could possibly be fraudulent depending on the wording of the agreement you have with the finance company (you’re selling something which may not be yours to sell; this could have repercussions in your bankruptcy).

We can talk you through the whole process. Try and gather as much detail of your financial situation as you can and call our helpline on 0800 138 1111 – it’s a Freephone and that includes mobiles too.

Kind regards,

Mat

Ok thanks they have told me i can sell the van but i must settle the finance with them too.

They also said i could terminate early but i would have to pay around £2000! If i ring them and terminate they will ask for the payment which i cant afford. It seems like a lose lose situation for me.

I am thinking i will terminate and then tell them i cant pay the fee. What will they do then? I assume they will take court action?

I have already rang step change and was advised to speak to the proper team but i have to wait 24hrs for the system to update.

Thanks

bjoe8559

Hello,

I am currently a bankrupt and will be discharged in about 9 months at the earliest.
My current employer has offered me a position outside the UK, but I am not sure if I may move and be employed by a foreign company until I have been discharged from my bankruptcy. Obviously it is more important for me to finish the bankruptcy first, but this opportunity is quite good. What are the legal implications if I move abroad (non-EU)?

Your insight will be much appreciated!
Joe

System

bjoe8559 wrote: »

Hello,

I am currently a bankrupt and will be discharged in about 9 months at the earliest.
My current employer has offered me a position outside the UK, but I am not sure if I may move and be employed by a foreign company until I have been discharged from my bankruptcy. Obviously it is more important for me to finish the bankruptcy first, but this opportunity is quite good. What are the legal implications if I move abroad (non-EU)?

Your insight will be much appreciated!
Joe

Hi Joe and welcome to the forum.

It may be possible to take this opportunity but you’d need to discuss the situation with the Official Receiver who is dealing with your bankruptcy, it’s best to be upfront and open with them and see what advice they can offer in your own individual circumstances.

I hope this helps.

Kind regards,

Mat

rudegirl1970

my husband has just recently came through his bankruptcy (march 2013), what can he do to re-build his credit and how long should he wait before applying for credit cards, thank you.

LittleLucy

Sorry if this isn't the right place to post this. Looking for some advice please.

I live in Scotland and was made redundant 8 weeks ago and received a small redundancy package (I had only been with the company 6 years) for the past 8 weeks I've been living off the redudancy money and have had no luck in finding another job yet. The redundancy money is now almost gone and next month I won't be able to make all if any payments to my mortgage, loan, credit cards etc plus still need money to buy food etc and there's very little. I was told I couldn't sign on to receive unemployment benefits for a number of months after being made redundant so haven't done so yet. I've also been put on antidepressants from my doctor as I'm so stressed (recently broke up with my partner also) and very depressed about the whole situation and it's making it harder to look for work as I've no confidence and struggle to get out of bed and face the day.
I still owe around £65K for my flat and other flats on my street have been up for sale for around 3-5 years at circa £40-53K so at least £10K+ less than I currently owe. The property is riddled with damp and the roof is in a very bad way so don't think it's even an option to try and sell it. I have very bad neighbours (junkies) which only adds to my worry and depression. I feel the only option I have left is to declare myself bankrupt. I have had conflicting advice (not professional advice) from people who have said that if I declare bankrupt then I will get the house taken off me (which is what I want) and others saying that this might not be the case as the house is almost certainly in negative equity and they might not take the house into consideration as it's not an asset. I don't want to go bankrupt if I'm still stuck with the house at the end of it all. I can't see a way out.

Can someone please give me advice. Much appreciated.

System

rudegirl1970 wrote: »

my husband has just recently came through his bankruptcy (march 2013), what can he do to re-build his credit and how long should he wait before applying for credit cards, thank you.

Hi,

Thanks for your question.

There are some ways your partner can re-build his credit file. MSE offer a brilliant article that tells you all you need to know. You can read it here http://www.moneysavingexpert.com/loans/credit-rating-credit-score

As with all credit it’s best to only use it for emergencies and you should try and pay it off in full each month. Rather than apply for credit your husband could try to save up some savings. This could be used for those small purchases rather than using credit cards.

Thanks,

Jess

System

LittleLucy wrote: »

Sorry if this isn't the right place to post this. Looking for some advice please.

I live in Scotland and was made redundant 8 weeks ago and received a small redundancy package (I had only been with the company 6 years) for the past 8 weeks I've been living off the redudancy money and have had no luck in finding another job yet. The redundancy money is now almost gone and next month I won't be able to make all if any payments to my mortgage, loan, credit cards etc plus still need money to buy food etc and there's very little. I was told I couldn't sign on to receive unemployment benefits for a number of months after being made redundant so haven't done so yet. I've also been put on antidepressants from my doctor as I'm so stressed (recently broke up with my partner also) and very depressed about the whole situation and it's making it harder to look for work as I've no confidence and struggle to get out of bed and face the day.
I still owe around £65K for my flat and other flats on my street have been up for sale for around 3-5 years at circa £40-53K so at least £10K+ less than I currently owe. The property is riddled with damp and the roof is in a very bad way so don't think it's even an option to try and sell it. I have very bad neighbours (junkies) which only adds to my worry and depression. I feel the only option I have left is to declare myself bankrupt. I have had conflicting advice (not professional advice) from people who have said that if I declare bankrupt then I will get the house taken off me (which is what I want) and others saying that this might not be the case as the house is almost certainly in negative equity and they might not take the house into consideration as it's not an asset. I don't want to go bankrupt if I'm still stuck with the house at the end of it all. I can't see a way out.

Can someone please give me advice. Much appreciated.

Hi and thanks for your post.

It sounds like you would benefit from some free and impartial advice.

I’d recommend that you give us a call on our free phone number, we’ll be able to help guide you through this and recommend that best advice.

One option could be to hand the keys back on your property prior to going bankrupt, any negative equity would then be included in the bankruptcy.

We’d need more details before we could give specific advice so I’d recommend you gather details of your income and expenditure (including any assets) and call 0800 138 1111 – we can also check if you’re eligible for any benefits.

I hope this helps.

Kind regards,

Mat

anxioussister

I'm looking for advice for my brother and family who are busy sticking their head in the sand! The bought a house back in 2006/7- a hundred % morgage and a further 10% was offered on top which they took. Since that date they have had 2 kids and my brother has suffered a couple periods of long term illness and being self employed hardly any income. My mum has helped them out with the morgage the last 2 yrs but can no longer do this.

My brother is now working but still self employed so any time off means no money and his wife works p/t which barely covers the nursery. He recently asked me for a loan to pay back a payday loan now £1500!!
Currently he has a £176k morgage, £8k credit card, £10k finance on 2 cars and his payday loan. His house is probably currently worth 150-160k. It looks like a slippery slop to me- Is bankruptsy an option and what would it mean to them!!

I'm trying to give him the best advice I can and would even consider buying a buy to let to house him if he loses the house.