Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

alastairq

always_something wrote: »

Hi,
I've been in chats with You and told that due to my low income (£12,000 pa), high debts (£42,000) and that I'm a single parent, BR is the best option. I rent from a private landlord.

My question is this, my car (07 plate mini) was purchased by my parents for me, and now in my name (was in theirs, but insurance etc seemed complicated.) I guess my car to be worth £5500, but I didn't buy it, will I loose it through BR?

What about TV and sons Xbox?

Do debt collectors come around. Feeling so scared, my parents don't know my situation, but I just need help, breakdown of relationship/recession,a job loss all had a part to play, and I'm left with all this debt.

Thank you.

As long as your parents have an evidence trail [proof] that they bought the car....they are still the actual owners.

It is irrelevant whose name & address is on the V5c..[as it tells you, on the front.]

If your parents own the car, it won't be an asset in your bankruptcy.

The Official Receiver is only interested in assets of significant value.....domestic items are ignored...so the X-box is safe [and won't be 'worth' a significant amount anyway.

[The Rembrandt on the wall is a different matter, however]

Once the BR petition is granted, you will not 'see' anyone at all...if a debt collector does arrive by mistake, send them away with a flea in their ear.

The Official Receiver does not send anyone to your home.

mysticmartin

I have received my bankruptcy order even though my husband and I are doing an IVA. I have to attend an interview 30/04/14. will my bank account be frozen before then? how do they inform my bank?

denso999

I got made bankrupt in August 5th 2013 and have since been summond to court in regard a property i owned that was uninhabitable after the radiators and boilers being stolen.
Apparently i owe £230 for 2012/13 and £1100 for 2013/14.
I am having real trouble getting the Bristol council tax office to tell me whether i am liable.
Can someone please help???

egrescrimp

mysticmartin wrote: »

will my bank account be frozen before then?

Depends, who do you bank with and do you have a significant amount of money in the account? If you are with Barclays and it's a basic account it'll be fine or a co-op cashminder account should be fine also (if opened prior to bankruptcy), any other type of account with any other bank runs the risk of being frozen or closed.

how do they inform my bank?

They send them a letter, depending upon if you have money in the account or not will depend on the content and the instructions given to the bank.

System

denso999 wrote: »

I got made bankrupt in August 5th 2013 and have since been summond to court in regard a property i owned that was uninhabitable after the radiators and boilers being stolen.
Apparently i owe £230 for 2012/13 and £1100 for 2013/14.
I am having real trouble getting the Bristol council tax office to tell me whether i am liable.
Can someone please help???

Hi,

I understand there have been recent changes to council tax exemption. Before recently empty properties with no furniture were exempt for 6 months then 50% discount per month. Houses under repair were exempt for 12 months.

That's no longer the case - now each council has been given the power to decide on exemption periods.

I would think that in your case the exemption should have been applied for 2012/13 2013/14. Bristol Council are the best people to confirm this.

They may have figured the exemption into the bill they've sent you. And I'm not sure how that council plan to structure their payments for unused houses going forward. You will have to persist in trying to get them to clarify things.

Hope this helps.

Thanks,
Jess

CIS

I would think that in your case the exemption should have been applied for 2012/13 2013/14. Bristol Council are the best people to confirm this.

The Class A exemption would be applicable for a maximum period of 12 months for a period prior to 31 March 2013 however there may be trouble proving the property met the criteria at the time.

I am having real trouble getting the Bristol council tax office to tell me whether i am liable.

Don't confuse liability with having something to pay - Your liable by virtue of being the person responsible (in law) for the council tax on the property , whether you have a charge to pay or not is a separate issue.

sillysmurf

Hi

My husband and I are considering joint bankruptcy (around £50k debt currently paying £80 per month in dmp), but I'm not sure how it will work with income payments orders. My husband's salary in commission based and can vary from £1100 to as much as £2500, how would the payments be worked out? I'm worried it will be worked out as an average which would leave us without enough to pay on some of the lower salary months. I am on JSA but sometimes work as a supply teacher. Thanks!

StepChange_James

sillysmurf wrote: »

Hi

My husband and I are considering joint bankruptcy (around £50k debt currently paying £80 per month in dmp), but I'm not sure how it will work with income payments orders. My husband's salary in commission based and can vary from £1100 to as much as £2500, how would the payments be worked out? I'm worried it will be worked out as an average which would leave us without enough to pay on some of the lower salary months. I am on JSA but sometimes work as a supply teacher. Thanks!

Hello,

Thanks for posting.

Having a variable income can make it tricky to work to a budget but Official Recievers are used to dealing with these situations in bankruptcy. It's likely they'll look to take an average and work out if there is a surplus based on the averages.

I've had a look at the technical manual which is used for guidance on these kind of things are there is a section about commission based income. Here's the quote:

In circumstances where the bankrupt is in receipt of staged payments (such as those received by building contractors) or is paid on a commission basis (such as a self-employed sales person) their basic salary may provide insufficient income for an IPA, but in conjunction with staged payments/non- monthly commission income received may provide adequate surplus to agree an IPA. In these circumstances if appropriate, the official receiver could propose an agreement with the bankrupt for him/her to pay (for example) bi-annual or annual contributions.

You can read more here: http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part7/part3/part_3.htm#31.7.37.

How income is worked out in these situations will vary from case to case but if bankruptcy is your best option then I'd not let the income situation put you off.

If your DMP is with StepChange then I'd recommend calling up for a review. We can talk you through the process of going bankrupt and offer you some advice.

If you're not with us at the moment you can still get in touch for bankruptcy advice by using the contact details in my signature below.

Kind regards

James

Embra_Girl

Following the article on this website I made a claim against RBS for a "missold" packaged bank account.

RBS agreed hat it was missold and sent me a cheque for £950 compensation and credited my RBS account with £1498 as a refund of the charges. However, this bank account was in overdraft in excess of this sum and part of my sequestration on 9 Feb 2012. I was under the impression that the account was closed and that any overdraft was "taken care of " by the sequestration. I have pointed out these facts to RBS but their stance is that they've put the account back to the position it was in prior to the charges being levied. and that they will not be paying me or giving me access to this sum I did not think that they could do this because of the sequestration.

Help please! Are they correct? Should I contact them again or do I have a case for the Ombudsmen?

StepChange_Private_Messages

Embra_Girl wrote: »

Following the article on this website I made a claim against RBS for a "missold" packaged bank account.

RBS agreed hat it was missold and sent me a cheque for £950 compensation and credited my RBS account with £1498 as a refund of the charges. However, this bank account was in overdraft in excess of this sum and part of my sequestration on 9 Feb 2012. I was under the impression that the account was closed and that any overdraft was "taken care of " by the sequestration. I have pointed out these facts to RBS but their stance is that they've put the account back to the position it was in prior to the charges being levied. and that they will not be paying me or giving me access to this sum I did not think that they could do this because of the sequestration.

Help please! Are they correct? Should I contact them again or do I have a case for the Ombudsmen?

Hi,

You would be best to contact your trustee. If you're still bankrupt the funds should go into your sequestration to be released to your creditors. If you've been discharged, restrictions may have been imposed for up to three years after discharge.

If you struggle to contact your trustee then you should contact your Account in Bankruptcy (AIB).

I hope this helps.

Thanks,
Jess