Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

System

Thingsarelookingup wrote: »

Hi,

New to the site so please forgive me if this should be posted elsewhere....

Me and the wife went bankrupt on 17/10/13 and I've a couple of questions...

Firstly, we owed money to barclaycard... If I set up a new basic bank account with barclays (if accepted) can they set off what was owed to bc from the new account (sure they can't because debt is pre-br but want reassurance:money:)

Secondly, we had our telephone interview with the or (or their clerk) who was really nice and seemed happy with the justification of our expenditure on soa (where only a few pounds was left as disposable) she said i will get put on zero tax but other than this I deduced that an ipa was unlikely - is it likely this will be confirmed in the paperwork to follow or is it common for the or to further scrutinise the figures (I assume any areas they were unhappy with they would've covered in the call).


Appreciate all circumstances are different and it's hard to call without all the details being posted, but at this point I was wondering what the general consensus is.

Also final point, we have a car on hp, essential for work, with little equity. The or clerk suggested car essential and little point in forcing repo/sale. They are going to write to black horse - could bh still force repo if we carry on the payments? From the terms of the hp agreement I can only see they have cause to repo if we don't maintain payments.

Thanks in advance for any advice :j

Hi there,

Welcome to the forum.

Barclaycard and Barclays are separate despite being in the same banking group anyway so there should be no problem with having a Barclays account. Also as you’ve said it is a pre-bankruptcy debt and included in the terms of your bankruptcy.

An income payment arrangement (AIP) for is people with a surplus in their budget – it sounds as though you do have a surplus but it seems only to be a few pounds The Official Receiver seems satisfied with your SOA and you have given the best explanation to them that you can. It should all be confirmed in the paper-work you are to be sent.

Technically Blackhorse could still repo the car even if the trustee agrees the vehicle is exempt. BH can terminate the agreement and repo the car. This is unlikely but it can happen. You should wait to see what BH says to the official receiver.

I hope this helps.

Thanks,
Jess

System

browndog1 wrote: »

Hi All,

Im new to this site but would like a bit of adviceplease.

My husband (estranged, but still lives with me due to hisillness) was declared bankrupt in Sept 2012. He ran his own business and I wasemployed by his business. We had a property together which we both paid themortgage jointly but when we split up in June 2011 he signed the house over tome as I had put over £60k into his business and he had been quite reckless withmoney over the course of our marriage, so since we split (but not divorced) theproperty has been in my name and I have paid the mortgage in my name. (Propertyworth £125k, mortgage left was £16k in 2011)

He has recently applied for a Certificate of dischargewhich there seems to be no problem with (OR has not tried to put a BRO order onhim) but out of the blue I have had a letter from the Bankruptcy Trustee sayingthat the property was transferred at an under value and I am to repay the Trustee(my husbands estate) £125k – 16k mortgage = £54.5k. I have written back to sayover the course of the business I personally put in / given to my husband exceedingly more than £54k of my own money andthis is why my husband his share of the house to me (all of which can besubstainated because it was done via internet banking). I am still payingcredit cards off in my name which have his business debts on. I have checkedwith Land Reg and no charge or claim has been put on my home.

Can you please give me a bit of advice – letter come outof the blue after he has been discharged and I am not sure what to do, I’mworried I’m going to lose my home.

Thanks

Hi,

We have a specialist bankruptcy team you can contact to get some advice – it is difficult to advise over the forum. If you were to contact us, go through a budget so we are aware of you situation we could then direct you to the team.

You would be best to also contact the Bankruptcy Trustee but you may want to seek independent financial advice first. You would need to prove the point that the property was not undersold – this is what you may need legal advice on.

Get in touch and we can go from there.

Thanks,
Jess

Trinitrotoluene

My partner is in the process of filling in the forms to go bankrupt.

In the section 7 outgoings, me (not got any financial ties to my partner) and my partner try to split the bills equally. Because of her issues with debt I have been more or less footing all the household expenditure.

In Section 7.1 on form 6-28, do I put in the total amount spent per month on the bills and including my half contribution in 6.7? Or do I calculate 50% of the bills and put that in?

Their documentation is not very clear on this on the forms so any help would be appreciated.

StepChange_James

Trinitrotoluene wrote: »

My partner is in the process of filling in the forms to go bankrupt.

In the section 7 outgoings, me (not got any financial ties to my partner) and my partner try to split the bills equally. Because of her issues with debt I have been more or less footing all the household expenditure.

In Section 7.1 on form 6-28, do I put in the total amount spent per month on the bills and including my half contribution in 6.7? Or do I calculate 50% of the bills and put that in?

Their documentation is not very clear on this on the forms so any help would be appreciated.

Hello,

Thanks for posting. This section asks about the household costs, so it's best to put in the full amount and include your contribution towards the bills in section 6.7 where it asks about other members of the household.

If it needs a bit of explaining then I'd recommend using section 13 of the bankruptcy form to add in a bit more information to make it as clear as possible how the bills are worked out.

I hope this helps. If your partner would like more in depth advice about bankruptcy she may find it useful to get in touch with us. Our online advice tool Debt Remedy- http://www.stepchange.org/msehelp - will run through her details and can advise on whether bankruptcy is the best solution (or if there are other options).

Kind regards

James

James

grendel666h

Hi, we have DMP with StepChange, which is due for review. In trying to gather all the info about who we owe money to and outstanding balance, I obtained my latest credit file. However, some of the original accounts no longer show on the credit file. I know some have been taken over by debt chasers, but shouldn't they show as well? I'm sure if we stopped paying they'd get in touch, but I don't have all the info, as I tend to shred anything that comes through the door when I think I've finished with it (maybe a bit too eagerly).
Is there a way to find out who wants our money?
Thanks.

Former_StepChange_Rachel

grendel666h wrote: »

Hi, we have DMP with StepChange, which is due for review. In trying to gather all the info about who we owe money to and outstanding balance, I obtained my latest credit file. However, some of the original accounts no longer show on the credit file. I know some have been taken over by debt chasers, but shouldn't they show as well? I'm sure if we stopped paying they'd get in touch, but I don't have all the info, as I tend to shred anything that comes through the door when I think I've finished with it (maybe a bit too eagerly).
Is there a way to find out who wants our money?
Thanks.

Hi there, thanks for posting

From what you've told us, I think the best thing would be is to give us a ring and we'll talk you through what you're best doing moving forward.

Best regards

Rachel

roadtorecovery

original comment: 245 (unsure how to get it all in the one thread without copying and pasting....
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.

StepChange_James wrote: »

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

My solicitor was dealing with the legal paperwork and hence I delayed contacting the Mortgage company. We have now received the banks letter (Ulster Bank), please see extract.

"We have referred your letter to our Documentary Advisory and Compliance Team who advise that the Bank will not consent to any change to the title or mortgage company account without a transfer of title application being approved by the Bank.

We therefore request that (client name) approaches his local Ulster Bank branch to arrange an appointment with a mortgage advisor to apply for a transfer of title to take the mortgage into his sole name"

I'm being very cautious as this is our home and my understanding from this is that they are looking at a view to my husband having a new mortgage. Has anyone else out there in the same situation received a similar letter and what was the outcome.

one2escape

Hi,

Just got a letter from the Inland revenue saying I dont have to pay tax now. I take it I will have to pay it back in April? So should I save this money each month now? I went BR in August.

Thanks!

StepChange_James

one2escape wrote: »

Hi,

Just got a letter from the Inland revenue saying I dont have to pay tax now. I take it I will have to pay it back in April? So should I save this money each month now? I went BR in August.

Thanks!

Hello,

Thanks for posting.

It will probably be best to get in touch with your Official Receiver(OR)'s office to get clarification on this.

Your tax code should go back to normal from next April but you shouldn't have to pay this years tax to the HMRC. However, it's likely that the OR will want this money from you - either by monthly payments or as a one off payment at the end of the year.

Your National Insurance contributions shouldn't be affected.

I hope this goes some way to clearing things up.

Kind regards

James

angelic_enigma

hi
i hope you can help i went bankrupt in september 2013 and i have tons of paperwork regarding the debts that i have included into my bankruptcy including dca letters, bank statements and mortgage statements etc, what paperwork do i have to keep as i currently have round about 3000 pieces of paperwork.
kind regards

michelle