Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

AliceD84

Hi

I'm just about to set the ball rolling on declaring myself bankrupt. I had my phone call this morning with Step change and it was agreed that this is my best option. I've printed out the forms and am ready to fill them out.

I had a massive list of questions which the step change lady answered and gave me lots of info on but I've since thought of something I forgot to ask and wondered if anyone could help on here.

I'm currently unemployed so have no income whatsoever. The only asset I have is my car which is probably £1500 in value which I told the lady about on the phone. My question is... If I have no way of getting the £700 fees together can I privately sell my car to raise the funds prior to going to court? I know that getting rid of any assets before hand is frowned upon but didn't know if it's different if you're using the money to pay for the bankruptcy. And obviously I'd pass the remainder of cash over aswell.

Or is that what the OR does? I'm a bit confused about what order things happen in. Do I speak with an OR/ examiner and pass assets over before going to court and paying? Or does the OR interview and hand over of assets happen after you've been to court with your forms and fees? I didn't know if your assets are sold by the OR and then they use the proceeds to firstly pay the £700 (if there's no other way of that being raised) and then distribute the remainder of whats left between the creditors?

Sorry! So many questions. I just want to set the ball rolling on this sooner rather than later and don't want to do anything that is going to be looked upon as fraudulent.

Thanks in advance!

Alice

System

AliceD84 wrote: »

Hi

I'm just about to set the ball rolling on declaring myself bankrupt. I had my phone call this morning with Step change and it was agreed that this is my best option. I've printed out the forms and am ready to fill them out.

I had a massive list of questions which the step change lady answered and gave me lots of info on but I've since thought of something I forgot to ask and wondered if anyone could help on here.

I'm currently unemployed so have no income whatsoever. The only asset I have is my car which is probably £1500 in value which I told the lady about on the phone. My question is... If I have no way of getting the £700 fees together can I privately sell my car to raise the funds prior to going to court? I know that getting rid of any assets before hand is frowned upon but didn't know if it's different if you're using the money to pay for the bankruptcy. And obviously I'd pass the remainder of cash over aswell.

Or is that what the OR does? I'm a bit confused about what order things happen in. Do I speak with an OR/ examiner and pass assets over before going to court and paying? Or does the OR interview and hand over of assets happen after you've been to court with your forms and fees? I didn't know if your assets are sold by the OR and then they use the proceeds to firstly pay the £700 (if there's no other way of that being raised) and then distribute the remainder of whats left between the creditors?

Sorry! So many questions. I just want to set the ball rolling on this sooner rather than later and don't want to do anything that is going to be looked upon as fraudulent.

Thanks in advance!

Alice

Hi Alice,

Welcome to the forum!

It is an option for you to sell your car to raise the funds for the bankruptcy but it’s best to check the best way to go about is first. It’s a possibility that a bankruptcy restriction be placed on you if it were deemed you’d been dishonest – which you’re not you just need some clarification.

To avoid confusion I would contact your local county court and ask to be put through to your Official Receiver. You can then ask how they would like you to approach this – they may want you to get a couple of valuations from agreed sources before you sell it.

Once you're absolutely clear you can go ahead with selling the car to raise the bankruptcy funds.

Hope this helps.

Thanks,
Jess

StepChange_James

roadtorecovery wrote: »

recently became bankrupt (May 2013). Matrimonial home 50/50. OR has offered my interest to spouse which he is going to acquire for a fee. when speaking to solicitor to arrange deeds be send to OR and necessary paperwork to be undertaken. He enquired what the mortgage company are going to do. Is was my understanding that the bank/mortgage company would not be concerned at this mortgage has always been paid. We are in a fixed rate mortgage for 5 years. We have 2 childern and his wages would not be enough to get a mortgage on his own. Will the mortgage company request my spouse go through application process for another mortgage? House is in negative equity. Grateful for any advice.

Hello,

Thanks for posting.

I think the best thing to do would be to speak to someone at the mortgage company. It's hard to say what their procedure would be in these situations but the fact that the mortgage has consistently been paid should definitely count in your favour.

As there'll be no new money borrowed I'd hope there'd be no need to apply for a new mortgage but it'd be best to speak to the mortgage company to get their official answer.

Kind regards

James

YYP123456

Hi: hello, your website is very popular, I like it very much

advicerequest

Thanks so much for all the advice on here - I have a query regarding credit files and Bankruptcy. I declared bankruptcy in Nov 2007 and was discharged 12 months later. I also had a BRU which was effective from 16/06/2008 for 3 years. From my calculations, the bankruptcy order part should come off my file in Nov this year (finally!) however I thought the BRU only stayed on credit files whilst it was actually in place? (so for me it would have been June 2008 - June 2011). I've just checked my Experian file and it says the following: Bankruptcy Restriction Undertakings appear on your credit report for six years from the original date shown unless the end date is over six years, in which case the Bankruptcy Restriction Undertaking will remain on your report until the end date shown. ?

There is a note in a different section which says the following: If you are bankrupt, the court may make a bankruptcy restrictions order against you if it decides you have been dishonest or are in some way to blame for your bankruptcy. We hold these records for as long as the court order lasts, which can be up to 15 years.

So I'm confused as to whether it should've already come off in 2011 or do I need to wait until next June for it to no longer show?

StepChange_James

advicerequest wrote: »

Thanks so much for all the advice on here - I have a query regarding credit files and Bankruptcy. I declared bankruptcy in Nov 2007 and was discharged 12 months later. I also had a BRU which was effective from 16/06/2008 for 3 years. From my calculations, the bankruptcy order part should come off my file in Nov this year (finally!) however I thought the BRU only stayed on credit files whilst it was actually in place? (so for me it would have been June 2008 - June 2011). I've just checked my Experian file and it says the following: Bankruptcy Restriction Undertakings appear on your credit report for six years from the original date shown unless the end date is over six years, in which case the Bankruptcy Restriction Undertaking will remain on your report until the end date shown. ?

There is a note in a different section which says the following: If you are bankrupt, the court may make a bankruptcy restrictions order against you if it decides you have been dishonest or are in some way to blame for your bankruptcy. We hold these records for as long as the court order lasts, which can be up to 15 years.

So I'm confused as to whether it should've already come off in 2011 or do I need to wait until next June for it to no longer show?

Hello,

It's fairly standard for negative information on your credit rating to stay on there for six years from the date it is entered, so I'd expect your BRU to drop off in June next year.

It sounds like the other section is referring to BRUs that are set to last over six years.

Kind regards

James

gettingonwithit

Hi,

I went br on the 30th July and am awaiting my interview with the OR tomorrow. I live with my partner who is the sole owner of the apartment we live at. I have lived with her for around 2 years at this address and been paying her rent. Could the OR deem me to have a beneficial interest in this property?

StepChange_James

gettingonwithit wrote: »

Hi,

I went br on the 30th July and am awaiting my interview with the OR tomorrow. I live with my partner who is the sole owner of the apartment we live at. I have lived with her for around 2 years at this address and been paying her rent. Could the OR deem me to have a beneficial interest in this property?

Hello,

Potentially yes, but there are lots of factors to take into account. If you'd signed some sort of contract that clearly stated you were the equivalent of a lodger you'd more than likely be covered.

If you'd paid for an extension from money you'd borrowed and paid the mortgage for 2 years then it's more likely they'd see you as having some beneficial interest.

If you've just been chipping in towards the household bills and upkeep of the property then I'd hope you'd not be seen as having any interest.

Ultimately it's up to the OR, so it's best to be completely up front and give them all the information they ask for.

Good luck for your meeting.

Kind regards

James

marksteer

Hi! Just to say many thanks to everyone at StepChange for all the help they have given me and still are with my debt problems.
I would very much urge anyone who has debt problems to speak to their very helpful people.

System

marksteer wrote: »

Hi! Just to say many thanks to everyone at StepChange for all the help they have given me and still are with my debt problems.
I would very much urge anyone who has debt problems to speak to their very helpful people.

Hi Marksteer and thanks for your kind words!

We’re glad that helped and thanks again for the recommendation.:j

Kind regards,

Mat