Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

StepChange_James

XYZ1000 wrote: »

Hi I don't quite know what to do and wondered if you can help please. I currently am on a debt management plan. i am due for a update yearly look at my out goings ect. It's just I in the middle of looking for a job.i have one part time one.usually my plan is based on full time hours. Should I still do the update ?

Hello,

It sounds like there's more reason than ever to have a review of your DMP. If your income is lower then it's likely that your payments are set too high for you to manage.

I notice that you've put this question up on the bankruptcy board. If your debt management plan is with StepChange Debt Charity then our advisor will be able to talk you through the pros and cons of bankruptcy during your review.

It would depend on your circumstances whether bankruptcy would be better than a DMP but we can give you advice if that is something you're currently looking into.

I hope this helps.

James

XYZ1000

Thank you very much I will contact them this week

mountme

Hi, I'm seriously considering bankruptcy or maybe a DRO and just need a little advice on what details to actually put down for my finances. It would be a single claim as all the debt is in my name and none in my wife's name.
The only paid income we currently have is from my wages which are less than plentiful and then tax credits child benefit etc. However, I'm filling out the budgeting tool on the CAB website and was wondering if I should include the Child Benefit and Child Tax Credit as they are paid directly into my wife's account?
I want to get the information as accurate as humanly possible before speaking to people face to face about it all.
Thanks
George.

StepChange_James

mountme wrote: »

Hi, I'm seriously considering bankruptcy or maybe a DRO and just need a little advice on what details to actually put down for my finances. It would be a single claim as all the debt is in my name and none in my wife's name.
The only paid income we currently have is from my wages which are less than plentiful and then tax credits child benefit etc. However, I'm filling out the budgeting tool on the CAB website and was wondering if I should include the Child Benefit and Child Tax Credit as they are paid directly into my wife's account?
I want to get the information as accurate as humanly possible before speaking to people face to face about it all.
Thanks
George.

Hi George,

I'm not entirely sure how the CAB's budgeting tool works, but I know that our advice tool (Debt Remedy - http://www.stepchange.org/msehelp) can deal with this situation one of two ways:

1. Include all the household income (including tax credits and child benefit) and also include all household outgoings

2. Include just your income from wages but only include the household expenses that your wages cover in the expenditure. Then adding in comments that explain the way the household finances are divided.

The first option tends to be the simpler to work out if you pool all the money together.

If you'd like to read more about DROs there's information about them on our blog: http://moneyaware.co.uk/2013/02/debt-relief-orders-dros-everything-you-wanted-to-know-but-were-afraid-to-ask/.

All the best.

James

Loveagreatbargain

Hi,

I'm hoping someone can help give me some advice on what to do as I find myself in a new downward spiral. I ran up some debts on my credit cards which were to pay bills etc whilst I was ill and in and out of hospital and suffering from PND I found it hard to keep on top of everything.

I managed to get back on top of things and went back to my employer who I have been working for donkey's years working part-time as per doctors recommendations and have been able to pay the £250 a month payments on time.

I recently found out that I am the only 1 at risk of redundancy and that it is likely to happen soon. It has already altered my mood in a downward spiral and I will be unable to work for sometime as I've hit rock bottom. I will not be able to make the £250 per month payment on benefits.

What are my options?

StepChange_James

Loveagreatbargain wrote: »

Hi,

I'm hoping someone can help give me some advice on what to do as I find myself in a new downward spiral. I ran up some debts on my credit cards which were to pay bills etc whilst I was ill and in and out of hospital and suffering from PND I found it hard to keep on top of everything.

I managed to get back on top of things and went back to my employer who I have been working for donkey's years working part-time as per doctors recommendations and have been able to pay the £250 a month payments on time.

I recently found out that I am the only 1 at risk of redundancy and that it is likely to happen soon. It has already altered my mood in a downward spiral and I will be unable to work for sometime as I've hit rock bottom. I will not be able to make the £250 per month payment on benefits.

What are my options?

Hello,

Thanks for posting. It sounds like a really tough time at the moment. While it's easier said than done, I'd recommend not worrying too much about the debt side of things. Your health is more important.

In terms of options, there are a quite a few different ways to deal with debts when you're struggling.

If it's likely to be a temporary blip then it's often best to reduce payments down to very small, gesture amounts and request interest and charges be stopped.

If it's a longer term problem and it's unlikely you'll be able to repay your debts in a reasonable timescale then there are other solutions that can deal with debts. There's bankrutpcy, IVAs or DROs which can be used depending on the circumstances.

I'd recommend going through our Debt Remedy tool -http://www.stepchange.org/msehelp - to get a personal action plan which will recommend the best way forward and tell you if any of these solutions suits your situation.

I hope this helps.

James

speedyblue66

Hi
I was a customer of Step Change until going bankrupt at the start of July.
The Official Reciever has said I do not need to have an interview, and has sent me a letter confirming an IPA agreement.
It appears that I will be on an NT IPA, and there is no mention of any other payments being made. My surplus money at the end of each month is only around £20.
Would this mean that I will only have the NT IPA that runs until the end of the tax year? Or will they ask me to take the 3 year IPA as well?
Any help would be appreciated

System

speedyblue66 wrote: »

Hi
I was a customer of Step Change until going bankrupt at the start of July.
The Official Reciever has said I do not need to have an interview, and has sent me a letter confirming an IPA agreement.
It appears that I will be on an NT IPA, and there is no mention of any other payments being made. My surplus money at the end of each month is only around £20.
Would this mean that I will only have the NT IPA that runs until the end of the tax year? Or will they ask me to take the 3 year IPA as well?
Any help would be appreciated

Hi and thanks for your post.

You’ll start April 2014 with a new tax code and a fresh start in that regard (unless your situation changes in the meantime).

If you're unsure of anything further I'd recommend that you contact the OR dealing with your bankruptcy.

I hope this helps.

Kind regards,

Mat

speedyblue66

Thanks for the reply Mat

stressbags

Hi, I've just gone through the debt remedy tool (which was really good) and it's suggested a DRO which I am trying to look into. I was wondering what happens to credit cards I have no balance on if I take out a DRO? I have an american express card with zero balance. Would this need to be closed before hand? Thanks.