Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

tigerfeet2006

Yes, the OR will expecte your partner to pay her fair share of the household bills if she is earning a wage. So if you earn roughly the same then that would be 50%. That will be adjusted in proportion to what you both earn.

You really do need to talk about this properly with someone like Stepchange as the judge will like to make sure you are aware of all the implications of BR and will ask what advice you have taken.

StepChange_James

Turmoil wrote: »

Hi All

My first time here. I will be declaring Bankruptcy shortly. I now live with my current partner in rented accomodation for which I pay all of the house hold bills (Rent, Utilities, TVL, Water etc) I have always paid all of the bills since i moved here 18months ago. My partner does not contribute to any bills. She receives a full time wage, will this effect things when i declare Banmkruptcy?

Hi Turmoil,

Tigerfeet is right. The courts would expect that you only pay a fair amount towards the household bills. From their perspective they'd see it as you are supporting your partner instead of paying your debts.

I'd recommend having a chat with your partner about the situation with the bills and see what you can agree. Once you've done that you could give us a call and we can give you advice.

If you're not paying as much towards household bills it could mean there are other options. If bankruptcy is still your best bet then we can guide you through the process.

Here's the contact details: http://www.stepchange.org/Contactus.aspx.

Cheers

James

stressbags

I just have a quick question. Stepchange are currently helping me apply for a DRO. I've had a letter today from the company I had a personal loan with saying they were passing it to a debt collection agency and registering a default on my credit reference file. Do I need to do anything about this or should I just wait to hear about the next steps of my DRO? Thanks.

System

stressbags wrote: »

I just have a quick question. Stepchange are currently helping me apply for a DRO. I've had a letter today from the company I had a personal loan with saying they were passing it to a debt collection agency and registering a default on my credit reference file. Do I need to do anything about this or should I just wait to hear about the next steps of my DRO? Thanks.

Hi and thanks for your comment.

Well done on moving forward with a DRO, it sounds like a very good step.

Your creditors are just following the normal debt collection process, this won’t affect your DRO application in any way and you should just wait to hear from us.

I hope this helps.

Kind regards,

Mat

thinkpositive1

Dear Mat

Hope you can help with this query....the chances of me petitioning my own bankruptcy soon are very high. I am 3 years into an IVA but this has become unsustainable with my income significantly reduced and payments more erratic (I am self employed) than when I started my IVA.

I will have a mortgage shortfall (possibly £15k to £25K) when I surrender my house and they sell it on and I also have tax arrears.

It has all become unsustainable and even though my IP is confident of negotiating a variation of my IVA with creditors (to include the pending mortgage shortfall) a "time to pay" arrangement with HMRC for tax arrears I am looking into will scupper any surplus to make any IVA viable.

Sorry for the preamble but I am trying to set the context.

I have had advice from CAB, from Business Debtline, a BR solicitor and others and all points to me going BR.

2 of my main outstanding queries are:

Trying to keep my car...I have a car (10 years old, all paid off) valued around £4k to £4.5K if it was in really good condition. More like £2.5K to £3k bearing in mind it needs a fair bit of working doing to it. I would like to keep my car and 2 of the "specialist advisors" have told me not too worry to much as they think an Official Receiver won't treat a car of that value as an asset to be sold and it would be "too much hassle" for the ORs who are over-worked and over-stretched.

Advice on here from bankrupts tend to be very cautious saying anything over £1k will be taken by the OR and sold and I would be given £1k.

If the latter is more likely I would rather sell it now, prior to BR, and use the balance to fund BR fees and other legit costs. As I am self employed and have some business costs I have put on hold for a while (accountant's bill, professional membership cost, website costs I have still to pay a friend etc.) - can I use money from selling my car to cover these or would that been seen as preferential treatment?

Tax arrears - I understand any tax arrears and tax due on work up to and including the day I lodge my BR petition would be included in the BR estate. Is that right?

For PAYE employees I believe no tax is applied to earnings within the tax year BR is petitioned. What is the situation for self employed people? If I went BR at the end of March, do I set aside tax for the April 2014-March 2015 tax year as I go along and pay that after 2014-15 as the norm would be or what happens?

Hope you can advise....

Thanks

george2014_2

I was made bankrupt on 10/09/2013.
The debt was £800, however I have other debts around £6k.

The OR advised me to go for a FTVA however at that time there were no links on the OR site on how to get one and anyone I phoned hadn't heard of one. Infact one debt company told me I was better off with the IPA.

I have a house with approx £45k with shared equity.

I am currently paying £426 per month on the IPA plus £132 in the tax that I am not paying.

I now am very scared cos I we may lose the house.

No trolls please.

System

thinkpositive1 wrote: »

Dear Mat

Hope you can help with this query....the chances of me petitioning my own bankruptcy soon are very high. I am 3 years into an IVA but this has become unsustainable with my income significantly reduced and payments more erratic (I am self employed) than when I started my IVA.

I will have a mortgage shortfall (possibly £15k to £25K) when I surrender my house and they sell it on and I also have tax arrears.

It has all become unsustainable and even though my IP is confident of negotiating a variation of my IVA with creditors (to include the pending mortgage shortfall) a "time to pay" arrangement with HMRC for tax arrears I am looking into will scupper any surplus to make any IVA viable.

Sorry for the preamble but I am trying to set the context.

I have had advice from CAB, from Business Debtline, a BR solicitor and others and all points to me going BR.

2 of my main outstanding queries are:

Trying to keep my car...I have a car (10 years old, all paid off) valued around £4k to £4.5K if it was in really good condition. More like £2.5K to £3k bearing in mind it needs a fair bit of working doing to it. I would like to keep my car and 2 of the "specialist advisors" have told me not too worry to much as they think an Official Receiver won't treat a car of that value as an asset to be sold and it would be "too much hassle" for the ORs who are over-worked and over-stretched.

Advice on here from bankrupts tend to be very cautious saying anything over £1k will be taken by the OR and sold and I would be given £1k.

If the latter is more likely I would rather sell it now, prior to BR, and use the balance to fund BR fees and other legit costs. As I am self employed and have some business costs I have put on hold for a while (accountant's bill, professional membership cost, website costs I have still to pay a friend etc.) - can I use money from selling my car to cover these or would that been seen as preferential treatment?

Tax arrears - I understand any tax arrears and tax due on work up to and including the day I lodge my BR petition would be included in the BR estate. Is that right?

For PAYE employees I believe no tax is applied to earnings within the tax year BR is petitioned. What is the situation for self employed people? If I went BR at the end of March, do I set aside tax for the April 2014-March 2015 tax year as I go along and pay that after 2014-15 as the norm would be or what happens?

Hope you can advise....

Thanks

Hi,

The best thing to do if to ask your IP the questions you've asked. You’re in a form of insolvency and are paying your IP to advise you – they are duty bound to provide you with advice about other solutions.

Thanks,
Jess

System

george2014 wrote: »

I was made bankrupt on 10/09/2013.
The debt was £800, however I have other debts around £6k.

The OR advised me to go for a FTVA however at that time there were no links on the OR site on how to get one and anyone I phoned hadn't heard of one. Infact one debt company told me I was better off with the IPA.

I have a house with approx £45k with shared equity.

I am currently paying £426 per month on the IPA plus £132 in the tax that I am not paying.

I now am very scared cos I we may lose the house.

No trolls please.

Hi George2014,

The process for a Fast Track IVA is that you contact the OR who send you an application that you return which is then proposed to your creditors. If it’s accepted you will be transferred to an IVA. Here is the gov. page with more info https://www.gov.uk/options-for-paying-off-your-debts/fast-track-voluntary-arrangements

I’m unsure much you owe alongside the debt you’ve mentioned. Because of that you need to speak to the OR for more definitive answer over your house.

I hope this helps.

Thanks,
Jess

thinkpositive1

StepChange_Jess wrote: »

Hi,

The best thing to do if to ask your IP the questions you've asked. You’re in a form of insolvency and are paying your IP to advise you – they are duty bound to provide you with advice about other solutions.

Thanks,
Jess

Thanks Jess

Took your advice on that and emailed them - they came back with advice that bankruptcy seems the only way to go now.

The car issue is one they say I shouldn't worry too much over as should be fine to keep!!

CrazyBird

I am currently in a joint IVA with my ex-husband (we split after IVA was started). I am living in a rented room and he is in our mortgaged property. There is also a secured loan on that property that is in both our names. Is there any way I would be able to apply for BR on my own?

I would like to be able to ask my IVA company but I have no faith in them as they seem unable to even send letters to the correct place ie. I get letters for my ex. I have been told this is because I am the first named person! We also asked for a review last year as both our incomes had dropped. This was done but in January (when our annual review was due) we got sent the old information. I called them and asked for the updated information but did not hear anything so am now worried I will be in "breach" of the IVA as we haven't completed our annual review.

Where do I go from here? Please help........