📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Options
12728303233183

Comments

  • Hi am hoping you can help me.
    I was declared bankrupt in 2011 discharged last year and have an IPA until December 2014. Everything has been going smoothly and I am just waiting till my IPA ends.
    Unfortunately I am now being sued in a civil case. I have spoken to a solicitor and he has advised me that worse case scenario if the case is successful and an amount is awarded (at present figures being quoted is in the region of £35,000) I would have to look at going bankrupt again!
    What I am hoping you can answer is 1 would this type of debt be able to be dealt with by bankruptcy 2 Am I am able to file for bankruptcy so soon after doing it the first time and 3 would I be able to file whilst still having an IPA?
    Many thanks
    Today is the first day of the rest of my life
    :T:dance:
  • System
    System Posts: 178,349 Community Admin
    10,000 Posts Photogenic Name Dropper
    Hi am hoping you can help me.
    I was declared bankrupt in 2011 discharged last year and have an IPA until December 2014. Everything has been going smoothly and I am just waiting till my IPA ends.
    Unfortunately I am now being sued in a civil case. I have spoken to a solicitor and he has advised me that worse case scenario if the case is successful and an amount is awarded (at present figures being quoted is in the region of £35,000) I would have to look at going bankrupt again!
    What I am hoping you can answer is 1 would this type of debt be able to be dealt with by bankruptcy 2 Am I am able to file for bankruptcy so soon after doing it the first time and 3 would I be able to file whilst still having an IPA?
    Many thanks


    Hi and thanks for your question.

    You can go bankrupt again (even whilst being subject to an IPA). However, it’s worth checking if this possible civil case debt is covered by your first bankruptcy (this is possible depending on your circumstances). Either way you’d need to speak to the OR dealing with your bankruptcy to clear this up.

    I hope this helps.

    Kind regards,

    Mat
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Hi,

    My home was repossessed in July last year, there is a outstanding balance of 485k and the property is still unsold at 360k, what happens to the balance?

    If I am liable, how long can the bank pursue me for? Will the bank bankrupt me?

    The property repossessed is in my sole name, I have another property in joint names (ex wife and 4 kids live in ) with no equity, will they try to take this property?

    Thanks for the response.
  • Thanks for your quick response.

    I am presuming it won't be included as I went bankrupt Oct 2010 discharged in 2011 and this case started Feb this year. Am I correct in thinking that as this debt (if it goes all the way) will be incurred after discharge even though I am subject to an IPA will not be covered by original bankrupcy.
    Could you also clarify what type of debts are NOT covered by bankrupcy please.
    Thanks again

    Quote:
    Originally Posted by The Duchess viewpost.gif
    Hi am hoping you can help me.
    I was declared bankrupt in 2011 discharged last year and have an IPA until December 2014. Everything has been going smoothly and I am just waiting till my IPA ends.
    Unfortunately I am now being sued in a civil case. I have spoken to a solicitor and he has advised me that worse case scenario if the case is successful and an amount is awarded (at present figures being quoted is in the region of £35,000) I would have to look at going bankrupt again!
    What I am hoping you can answer is 1 would this type of debt be able to be dealt with by bankruptcy 2 Am I am able to file for bankruptcy so soon after doing it the first time and 3 would I be able to file whilst still having an IPA?
    Many thanks



    Hi and thanks for your question.

    You can go bankrupt again (even whilst being subject to an IPA). However, it’s worth checking if this possible civil case debt is covered by your first bankruptcy (this is possible depending on your circumstances). Either way you’d need to speak to the OR dealing with your bankruptcy to clear this up.

    I hope this helps.

    Kind regards,

    Mat
    Today is the first day of the rest of my life
    :T:dance:
  • Former_StepChange_Rachel
    Former_StepChange_Rachel Posts: 252 Organisation Representative
    Hi,

    My home was repossessed in July last year, there is a outstanding balance of 485k and the property is still unsold at 360k, what happens to the balance?

    If I am liable, how long can the bank pursue me for? Will the bank bankrupt me?

    The property repossessed is in my sole name, I have another property in joint names (ex wife and 4 kids live in ) with no equity, will they try to take this property?

    Thanks for the response.


    Hi there

    If the house is repossessed for an amount higher than the available equity in the house, the leftover balance becomes a shortfall. What this means is that it becomes an unsecured debt, much like the balance of a loan.

    If the payments on the other property your ex partner lives in are up to date, then it will be safe, especially as there's no equity in the house to tempt a creditor to pursue you for.

    It's not unheard of for a creditor to petition for your bankruptcy if you owe them a high amount, but it's not guaranteed this would happen.

    The bank has a timeframe of 12 years to establish payment with you on a mortgage shortfall. If they don't contact you to establish payment in that time, the debt can become statute barred, meaning that it's no longer enforceable. This is called the Limitation Act and is meant to protect people from being unduly harassed.

    Sometimes people can mistakenly think that if they 'lay low' for a certain amount of time, then the debt is written off and they're not liable for it. This isn't the case. If the creditor goes to court and gets a county court judgment, then the debt will not fall under the Limitation Act. If the person ignores correspondence from the creditor, this can be interpreted as avoiding the debt which would also mean the Limitation Act would not apply.

    From what you've mentioned, it certainly sounds like you would benefit from some free and impartial debt advice. We can gave a look at your budget and give you some options on what you can do moving forward.

    Our anonymous advice tool Debt Remedy can provide a solution for your debt in just 20 minutes: http://www.stepchange.org/debtremedy.aspx?domain=www.MoneyAware.co.uk

    You can also talk to one of our friendly advisors over the phone: http://www.stepchange.org/Contactus.aspx

    Hope this helps

    Best regards

    Rachel
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at [url="http://www.needtosleep.org]Need to Sleep[/url]

  • System
    System Posts: 178,349 Community Admin
    10,000 Posts Photogenic Name Dropper
    Thanks for your quick response.

    I am presuming it won't be included as I went bankrupt Oct 2010 discharged in 2011 and this case started Feb this year. Am I correct in thinking that as this debt (if it goes all the way) will be incurred after discharge even though I am subject to an IPA will not be covered by original bankrupcy.
    Could you also clarify what type of debts are NOT covered by bankrupcy please.
    Thanks again

    Quote:
    Originally Posted by The Duchess viewpost.gif
    Hi am hoping you can help me.
    I was declared bankrupt in 2011 discharged last year and have an IPA until December 2014. Everything has been going smoothly and I am just waiting till my IPA ends.
    Unfortunately I am now being sued in a civil case. I have spoken to a solicitor and he has advised me that worse case scenario if the case is successful and an amount is awarded (at present figures being quoted is in the region of £35,000) I would have to look at going bankrupt again!
    What I am hoping you can answer is 1 would this type of debt be able to be dealt with by bankruptcy 2 Am I am able to file for bankruptcy so soon after doing it the first time and 3 would I be able to file whilst still having an IPA?
    Many thanks



    Hi and thanks for your question.

    You can go bankrupt again (even whilst being subject to an IPA). However, it’s worth checking if this possible civil case debt is covered by your first bankruptcy (this is possible depending on your circumstances). Either way you’d need to speak to the OR dealing with your bankruptcy to clear this up.

    I hope this helps.

    Kind regards,

    Mat

    Hi and thanks for getting back to me.

    This new debt would be covered by bankruptcy. Criminal fines are the sort of thing that isn't covered.

    I'd still recommend speaking to the OR about this situation as he/she may have some more specialist advice.

    It also sounds like you may need more legal advice so I'd recommend speaking to your solicitor about your intentions should the worst happen.

    I hope this helps.

    Kind regards,

    Mat
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Hi
    Im currently on a DMP with Step Change and having read your advice about reclaiming PPI I wonder if you are able to offer some advice.

    I had a car loan a few years ago (2006), which has now been repaid fully. the car was purchased from Carcraft and they also arranged the loan through BCT. At the time of purchase I was on maternity leave and also would receive full sickness pay for 6 months followed by half pay for a period of time so therefore no need for the PPI. I was encouraged by the sales person to take this out as this would help the process even though this was explained to him and politely refused. However it appears that the box on the application must have been ticked which I didnt realise at the time (having been in showroom for 2 hours and a very young/tired/hungry baby I think we just wanted out and didnt really read the papers properly). Anyway when the loan documents came out there was paperwork from Carcraft for PPI was I telephoned their head office shortly after and cancelled. What I didnt realise was that included in the loan payment to BCT was a PPI payment, and this only became apparent when I received my final statement.

    I would like to try and reclaim this PPI as it was required or wanted, and would really help towards becoming debt free! however Im not sure how to go about this as I have read on various forums both Carcraft and BCT will claim I should contact the other! Any advice you can offer on how to go about this and who to contact would be great!

    Thanks :)
  • I am looking for some advice. Just over 7 years ago, around Sept 2006, I was served a bankruptcy order for £3000. The debt was with fish4 for advertising fees. At the time I had a number of personal issues and was in a violent relationship with my partner. My bankruptcy was issued when I had moved back to my parents around the time of leaving my partner. I was naive in dealing with the bankruptcy and more or less ignored the notice. I was also at the time trying to deal with police regarding the abuse. I was then contacted by the official receiver and attended a meeting. At the meeting I stated that I wanted to repay the debt in full. I didn’t have any other outstanding debt to add to the order and this was the only creditor I owed. In addition, I had no personal possessions/property that counted towards the order.
    I arranged an income payment agreement with the OR and this was then transferred to Moonbeaver solicitors which I paid back on a monthly basis. At the start this was a low payment (£20) but as I have finally got my life back on track, got a full time job, and started to build myself back up, this increased to £100 and the debt was finally settled at the end of 2012.
    I wanted to ask anyone if they could advise if I could get the order annulled? The order came off my credit report this year and apart from this, my report is clean. In the near future I would like to apply for a mortgage but am worried that the order will count against me even though this has been paid in full. I have done a search on the Insolvency Register and can find no information on my details but I am worried that any lender will see the bankruptcy as an instant ‘no‘ decision. Is it possible to annul an order from so long ago and does anyone have any advice on this? Would it be better to seek the advice of a solicitor or speak to someone at the court. I have spoken to the OR but don’t seem to be any clearer.
  • System
    System Posts: 178,349 Community Admin
    10,000 Posts Photogenic Name Dropper
    Hi
    Im currently on a DMP with Step Change and having read your advice about reclaiming PPI I wonder if you are able to offer some advice.

    I had a car loan a few years ago (2006), which has now been repaid fully. the car was purchased from Carcraft and they also arranged the loan through BCT. At the time of purchase I was on maternity leave and also would receive full sickness pay for 6 months followed by half pay for a period of time so therefore no need for the PPI. I was encouraged by the sales person to take this out as this would help the process even though this was explained to him and politely refused. However it appears that the box on the application must have been ticked which I didnt realise at the time (having been in showroom for 2 hours and a very young/tired/hungry baby I think we just wanted out and didnt really read the papers properly). Anyway when the loan documents came out there was paperwork from Carcraft for PPI was I telephoned their head office shortly after and cancelled. What I didnt realise was that included in the loan payment to BCT was a PPI payment, and this only became apparent when I received my final statement.

    I would like to try and reclaim this PPI as it was required or wanted, and would really help towards becoming debt free! however Im not sure how to go about this as I have read on various forums both Carcraft and BCT will claim I should contact the other! Any advice you can offer on how to go about this and who to contact would be great!

    Thanks :)

    Hi and thanks for your post.

    I’d be prepared to contact both companies if you needed to.
    As you’re on a DMP with us there’s a specific blogpost we’ve written regards reclaiming PPI here http://moneyaware.co.uk/2012/06/reclaim-ppi-for-free/

    Good luck with your claim.

    Kind regards,

    Mat
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • System
    System Posts: 178,349 Community Admin
    10,000 Posts Photogenic Name Dropper
    Money_1977 wrote: »
    I am looking for some advice. Just over 7 years ago, around Sept 2006, I was served a bankruptcy order for £3000. The debt was with fish4 for advertising fees. At the time I had a number of personal issues and was in a violent relationship with my partner. My bankruptcy was issued when I had moved back to my parents around the time of leaving my partner. I was naive in dealing with the bankruptcy and more or less ignored the notice. I was also at the time trying to deal with police regarding the abuse. I was then contacted by the official receiver and attended a meeting. At the meeting I stated that I wanted to repay the debt in full. I didn’t have any other outstanding debt to add to the order and this was the only creditor I owed. In addition, I had no personal possessions/property that counted towards the order.
    I arranged an income payment agreement with the OR and this was then transferred to Moonbeaver solicitors which I paid back on a monthly basis. At the start this was a low payment (£20) but as I have finally got my life back on track, got a full time job, and started to build myself back up, this increased to £100 and the debt was finally settled at the end of 2012.
    I wanted to ask anyone if they could advise if I could get the order annulled? The order came off my credit report this year and apart from this, my report is clean. In the near future I would like to apply for a mortgage but am worried that the order will count against me even though this has been paid in full. I have done a search on the Insolvency Register and can find no information on my details but I am worried that any lender will see the bankruptcy as an instant ‘no‘ decision. Is it possible to annul an order from so long ago and does anyone have any advice on this? Would it be better to seek the advice of a solicitor or speak to someone at the court. I have spoken to the OR but don’t seem to be any clearer.

    Hi and welcome to the forum.

    The bankruptcy will no longer show on your credit report or the insolvency register, however, some mortgage lenders will ask if you have ever been bankrupt in the past and you’d need to be honest about this on any application you make.

    There are dedicated specialist companies that can have a bankruptcy annulled, but this involves paying the whole of the debt and all the fees involved in bankruptcy as well as the company fees for specialist advice. This can be very expensive and isn’t a simple process but it would mean that bankruptcy would be reversed.

    I’d recommend taking the time to rebuild a healthy credit rating and saving for as large a deposit as possible to make yourself attractive to mortgage lenders. (You should seek advice from an independent mortgage advisor who will be able to give you more details of the market).

    You can find out more about how credit ratings work and how to improve them here - http://www.moneysavingexpert.com/loans/credit-rating-credit-score/

    I hope this helps.

    Kind regards,

    Mat
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.