Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Jamtoe

StepChange_James wrote: »

Hi Jamtoe and thanks for your question.

Your IPO can be changed if you have a change in circumstances but it is up to you to inform your Official Receiver.

I hope this helps.

Kind regards,
James

Hi James,
Could I just expand a little on my circumstances, I have met someone during the last two years whilst I have been trying to sort out my finances. I declared bankrupt last October with my discharge due in November. At the moment both me and my partner live in our own houses, mine rented, hers she has a mortgage on. we would like to move in together but I am not sure how it would affect my IPO as it has got 3 years to run and if we did move in then I would have to inform the OR and re-evalute my finances. One option is to wait until November after my discharge and then move in, but I would still have 2 years left on my IPO do I have to inform the OR and could he still up my payments after my discharge date or would I be safe to move in?

Thank you for your advice.

dmcw

My problem with Barclays is that they are who I owe my debts to so they have declined and the co op no longer offer accounts to bankrupts so there is nowhere else to go.

StepChange_James

dmcw wrote: »

My problem with Barclays is that they are who I owe my debts to so they have declined and the co op no longer offer accounts to bankrupts so there is nowhere else to go.

Hi there,

I think banksshouldworry's comment is consistent with what our bankruptcy specialists have told me recently. If you've gone bankrupt then Barclays are likely to be able to offer you a simple basic account (capable of direct debits) even if you had debts with them that are included in the bankruptcy.

I know some people time their bankruptcy to make sure it happens at a time when the most important bills are covered and income payments have been made, so they've got a bit of time to make arrangements.

While it involves a bit of hassle, you could also arrange to make cash payments on your bills for the month after bankruptcy. If you call the companies involved and explain they'll usually be able to send you out slips to make payments in a bank or post office.

All the best.

James

StepChange_James

Bella_Smythe wrote: »

Hi stepchange people
please would one of you be able to look at my two recent threads (last one is 'so would it matter if we declared BR 3 years apart) its all to do with a house that I owned until July 2012. I 'gifted' it to my ex but have been informed that the OR can overturn this. my ex and sadly my son could become quite violent and abusive if anything happens to this house
please help
Bella

Hi Bella,

I've had a read through your threads and can see this is quite a complicated situation.

It sounds like there are a few factors surrounding the house that could complicate the decision but ordinarily, if you've given a valuable asset away then there's potential for this to be overturned. (I think others have said this too but thought I'd say it anyway.)

You might be able to get a better idea by speaking to someone at the insolvency service: http://www.bis.gov.uk/insolvency/contact-us.

I saw you mention that you're looking at getting advice from us at some point this week. If you call us up we'll be able to give you a full debt advice session. Presuming bankruptcy is your best option we'll give you the contact number for our bankruptcy support team. They'll be able to give you more conclusive advice as they'll have all the information about your situation on their screens.

Kind regards

James

StepChange_James

Jamtoe wrote: »

Hi James,
Could I just expand a little on my circumstances, I have met someone during the last two years whilst I have been trying to sort out my finances. I declared bankrupt last October with my discharge due in November. At the moment both me and my partner live in our own houses, mine rented, hers she has a mortgage on. we would like to move in together but I am not sure how it would affect my IPO as it has got 3 years to run and if we did move in then I would have to inform the OR and re-evalute my finances. One option is to wait until November after my discharge and then move in, but I would still have 2 years left on my IPO do I have to inform the OR and could he still up my payments after my discharge date or would I be safe to move in?

Thank you for your advice.

Thanks for the extra background, it makes it easier to understand the situation.

My understanding is that the OR will still want to know about any changes in your budget while you're on an IPA, even after discharge.

This doesn't automatically mean you'll be paying more though, as the amount you pay will be determined by your budget and it could be that relocating leads to extra travel costs or other bills.

If it does mean you've got more spare income then there's a chance you'll be asked to pay this into your IPA but it definitely shouldn't leave you any worse off than you are now.

Kind regards

James

wabmeburr

Hi

I have been to see a CAB Councellor today. He agreed with my decision until we got to the car situation.

My mum bought a car on finance which I use daily. The car is registered to me as I have main use to it. The finance is in my mums name and the only thing that is in my name is the Registered Keeper.

The CAB said that the car would be taken in the bankruptcy as it is a GIFT even though it isnt. It belongs to my mum. Therefore if the car went she would still have to make the payments for 3 years.

Can you please advice if this is correct as I really cant do that to my mum but otherwise I am stuck with a huge amount of debt that I cant afford.

Thanks

Countrygal_2

I have spoken to your lovely staff and you have helped me so much.
Now i have had my bungalow repossessed you have advised that BK would possibly be the best option.
what happens with the dwp will it affect my benefits and housing ben etc?
also will my gas/elec provider make me have a meter put in...so many questions i know this is the right thing to do just want to make sure everything is clear before i take that final step.
many thanks.

alastairq

wabmeburr wrote: »

Hi

I have been to see a CAB Councellor today. He agreed with my decision until we got to the car situation.

My mum bought a car on finance which I use daily. The car is registered to me as I have main use to it. The finance is in my mums name and the only thing that is in my name is the Registered Keeper.

The CAB said that the car would be taken in the bankruptcy as it is a GIFT even though it isnt. It belongs to my mum. Therefore if the car went she would still have to make the payments for 3 years.

Can you please advice if this is correct as I really cant do that to my mum but otherwise I am stuck with a huge amount of debt that I cant afford.

Thanks

Since you are patently not the OWNER....and your Mum can definitely prove she is...the car cannot be included in your BR...however, you can[may?]claim for its running costs on your SOA.

In fairness, maybe the CAb adviser got hold of the wrong end of the stick?

Ie misunderstood your explanation?

[either that..or CAB need to appraise their advisors regarding V5Cs, , ownership, etc? Probably not au fait, since it is a vehicle documentation issue, rather than a debt issue?]

wabmeburr

Thank you for your response. I have been looking further as I am still concerned. After speak to Step Change and they confirmed to me that the car infact belonged to my mum (or the finance company) that it would not be included. But then I have also found this:

2) How does the official receiver establish who owns the vehicle?

(Amended January 2013)

Obviously, before the official receiver can take any action regarding a vehicle, he/she must be certain that the vehicle is the property of the insolvent. The registration document is usually a good indication as to the ownership of the vehicle although the document in fact only shows the identity of the registered keeper of the vehicle.

To ascertain unconfirmed details of the registered keeper(s) of a vehicle, and vehicle registration and licensing details enquiries will need to be made with the DVLA. Applications for details of a vehicle history need to be made on form VQ615.

Form VQ615 should be completed in black ink and in capital letters. The form needs to be completed correctly in its entirety otherwise it will be returned by the DVLA. Guidance on completing the VQ615 is available HERE. Box one of this form is where details of the official receiver’s office making the request should be entered. Where two offices are twinned by one official receiver it is the official receiver’s primary office address which should be inserted in box one and the text in the first paragraph of the template should be completed accordingly. Box one also requires the ‘Data protection registration number’ of the official receiver making the request. A list of the individual official receiver’s registration numbers is available HERE.

Once the form has been completed, a certified copy of the bankruptcy/winding up order should be attached to it and the enquiry sent under cover of the ‘DVLA enquiry letter’ (template available HERE) to Vehicle Record Enquiries, DVLA, Swansea, SA99 1AJ. Where an official receiver’s office is not twinned with another office, or a twinned office is the primary location of the official receiver in a twinned office setup, the second paragraph of the ‘DVLA Enquiry letter’ should be removed. The DVLA will no longer accept searches submitted on form VQ4 or on Insolvency Service headed paper.

Forms can be ordered from the DVLA stores department by sending a fax, on headed paper, to 01792 783 525 and clearly stating how many pads of form VQ615 are required (a pad contains 50 forms). An example completed form is available HERE.




3) What if an owners identity is uncertain, or has proven to be a third party?

Where the official receiver is uncertain as to the identity of the owner of a particular vehicle, the bankrupt/director and any third parties involved should be asked to produce further proof of ownership e.g. purchase invoice, copy of any loan agreement, sight of bank statements showing transfer of funds, etc.

If the vehicle proves to be the property of a third party, the official receiver should generally take no action to realise it. This could be true for example, where a bankrupt is shown as the registered keeper of a vehicle but it was bought by a parent or spouse. However, where the vehicle is subject to an ongoing finance agreement which means that the finance company is still the owner, the official receiver may still realise the vehicle if appropriate (see paragraph vii).

Otherwise, as long as realising the vehicle will result in a net benefit to the estate, the official receiver must take all the necessary steps to do so.

This has now got me worried again as I have read it that they would still take the car as it is on HP and I drive it. I was advised to put myself as the keeper as it is at my house and my place of work more than my mums as she only uses it occationally. The insurance also prefers it thay way. Arghhhh

StepChange_Pavan

Countrygal wrote: »

I have spoken to your lovely staff and you have helped me so much.
Now i have had my bungalow repossessed you have advised that BK would possibly be the best option.
what happens with the dwp will it affect my benefits and housing ben etc?
also will my gas/elec provider make me have a meter put in...so many questions i know this is the right thing to do just want to make sure everything is clear before i take that final step.
many thanks.

Hi Countrygal and welcome to the forum

I’m glad to hear that you’ve had some helpful advice from us. Your benefits won’t be affected by your bankruptcy, and provided that you can maintain your gas and electricity payments there’s nothing to say that they will insist that you have a meter installed.

If we’ve already recommended bankruptcy as a solution, there should be a contact number in your information pack. If you have any more questions, just give us a call and we’ll be able to put your mind at ease.

Thanks,
Pavan