Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

alastairq

I had an example of a loan from BArclaycard [BArclayloan], and another loan obtained via my BArclays current account.

The Barclayloan could not take unauthorised monies from my BArclay current account.

The other loan could.

The credit card arm of BArclays is a separate entity from the banking arm.

In any event, once the bankruptcy petition is granted, no offsetting of any sort can legally be conducted, for unsecured debts.

Barclays know this.

StepChange_James

Hello everyone,

I think there might have been a bit of confusion on this, hopefully I can clear things up a little bit.

There are two things I’ll try to address.

1. Barclays/Barclaycard right of offset (when not going bankrupt)

Barclays and Barclaycard operate under different credit licences but they are seen by the Bank of England as the same bank and are entitled to use the right of offset. We’ve talked to people who’ve had money taken out of Barclays accounts for Barclaycard debts through the right of offset, so we know this does sometimes happen. If someone has gone bankrupt then Barclays wouldn’t be able to take money from an account as the debt would be part of the bankruptcy.

2. What happens to a Barclays bank account when you go bankrupt with Barclays debts

Barclays are currently the only high-street bank that will offer bank accounts to undischarged bankrupts. They’ve told us recently that they’ll shut accounts down if the person going bankrupt had Barclays debts (including Barclaycard). In practice this might not happen in every case but if they know there are Barclays debts included in the bankruptcy they’re likely to close the account down.

So we’d recommend not relying on a Barclays Cashcard account staying open after bankruptcy if you’ve got Barclays debts.

Sorry if there was any confusion with the earlier messages, let me know if there’s anything that doesn’t make sense now.

Kind regards

James

woodformoretrees

I have phoned Stepchange desperately trying to get advice for my husband (non bankrupt) in the sale of our family home (due to my bankruptcy) and they have said that they cannot help us. They told me to go to Civil Legal Advice who in turn said they cannot help us, and told us to go to PayPlan, where a man didn't even ask me any questions but told us that he couldn't help us, and told me to go back to CAB... who I tried to get an appointment with in the TWO years leading up to my bankruptcy, and couldnt, during the ONE year of my bankruptcy, and couldn't, and SINCE my bankruptcy and have been unable to.

Is there anyone that can give advice to a non-benefit claiming, non-bankrupt partner who earns a reasonable wage but is broke due to having to cover joint loans, etc, and is having the house sold out from under him? Anywhere? PLEASE?

couldntgetworse

Hi,

I had a CCJ served against me on the 22/10/2010.

I was made bankrupt on the 17/11/2010, and was discharged on the 17/11/2011, as there was a delay in getting the letter about the CCJ/filing in the bankruptcy form it wasn't included (the original account was).

I'm trying to sort out my credit rating (I know I've left it late), so wrote a letter explaining the CCJ date/bankruptcy date/discharge date, and they've replied saying that they can't issue a satisfaction certificate as the judgement debt is outstanding in a bankruptcy order that is ultimately discharged, and that I would need to provide a payment in full letter from the claimant or their solicitors.

I'm rather confused now as to what to do, no one has been after any money from this for 3.5 years, but if I contact them are they likely to try and get the money back ???

Could you give me any advice on what to do (other than send stuff to the OR when it arrived, which I know I should have done now)

Thanks

couldntgetworse

woodformoretrees wrote: »

I have phoned Stepchange desperately trying to get advice for my husband (non bankrupt) in the sale of our family home (due to my bankruptcy) and they have said that they cannot help us. They told me to go to Civil Legal Advice who in turn said they cannot help us, and told us to go to PayPlan, where a man didn't even ask me any questions but told us that he couldn't help us, and told me to go back to CAB... who I tried to get an appointment with in the TWO years leading up to my bankruptcy, and couldnt, during the ONE year of my bankruptcy, and couldn't, and SINCE my bankruptcy and have been unable to.

Is there anyone that can give advice to a non-benefit claiming, non-bankrupt partner who earns a reasonable wage but is broke due to having to cover joint loans, etc, and is having the house sold out from under him? Anywhere? PLEASE?

If there's equity in the house, they'll be after your half for your creditors, it's amazing what happens to a house price if some things are broken/gardens overgrown etc.

woodformoretrees

Hi, There is plenty of equity in the house.
We both understand that the house needs to be sold and we are looking upon it as a new start. My issue is protecting my husband's 50%, not in trying to buy him out.
I need genuine advice that seems impossible to get if you aren't on some form of benefit. I've been turned away at every place I've been to, yet because my husband is now paying the full costs of our joint debts he doesn't have enough income to pay for legal advice.

We want to maximise profits in our property.

ETA: Thank you though....don't wish to appear ungrateful x

longtermplanner

hi woodformoretrees,

If your husband can't buy your share out, then the house has to be sold, but the OR will only take 50% of the realised equity from this, not your husband's half. I understand that you probably feel panicky about the situation, but it's not clear to me what legal advice you actually need.

woodformoretrees

Thank you - I (or he, because I have no choice) don't know how to assess if he's being fairly treated in relation to how much we are made to sell for, etc.

I've only in recent months escaped the grips of depression and anxiety to the point of view where I am able to contact people for help. I wasn't able to do it pre bankruptcy and so never had any advice before I was made bankrupt.

If there is no doubt that he will be treated fairly then I guess we don't need any advice (?) and just sit back and let them get on with it.

One of my main issues is that the IP is talking about making us move out prior to the house selling.....the council will not house us (they will find us temp B&B housing but we can do that) and we do not have six months deposit to offer a landlord. - I guess it's stuff like this that he needs help with?

We're not after financial handouts, we're after advice on how to get safe and secure (paid for by us) accommodation for us and our children before he has no money from the house being sold.

I know I'm not entitled to anything because it's my bankruptcy, but he and my children surely could get some advice from somewhere?

StepChange_James

couldntgetworse wrote: »

Hi,

I had a CCJ served against me on the 22/10/2010.

I was made bankrupt on the 17/11/2010, and was discharged on the 17/11/2011, as there was a delay in getting the letter about the CCJ/filing in the bankruptcy form it wasn't included (the original account was).

I'm trying to sort out my credit rating (I know I've left it late), so wrote a letter explaining the CCJ date/bankruptcy date/discharge date, and they've replied saying that they can't issue a satisfaction certificate as the judgement debt is outstanding in a bankruptcy order that is ultimately discharged, and that I would need to provide a payment in full letter from the claimant or their solicitors.

I'm rather confused now as to what to do, no one has been after any money from this for 3.5 years, but if I contact them are they likely to try and get the money back ???

Could you give me any advice on what to do (other than send stuff to the OR when it arrived, which I know I should have done now)

Thanks

Hi there,

It's good news and bad news with this situation I'd say. The good news is that this debt is from before your bankruptcy, so you'd only need to pay it back if it was the kind of debt that isn't included in bankruptcy (student loans, criminal fines, child support payments).

The bad news is that the dates you mention above suggest that this CCJ was applied before your bankruptcy which means it will stay on your credit file for six years. CCJ debts that are included in bankruptcy will continue to show as unsatisfied until they drop off your file (which should be in October 2016 by my reckoning).

So I don't think there's much you can do to tidy up the CCJ on your credit history but the debt should by included in your bankruptcy and therefore not need to be repaid.

If they start asking for payments then it would be best to talk to the Official Receiver's office that dealt with your bankruptcy about it.

Kind regards

James

StepChange_James

woodformoretrees wrote: »

Thank you - I (or he, because I have no choice) don't know how to assess if he's being fairly treated in relation to how much we are made to sell for, etc.

I've only in recent months escaped the grips of depression and anxiety to the point of view where I am able to contact people for help. I wasn't able to do it pre bankruptcy and so never had any advice before I was made bankrupt.

If there is no doubt that he will be treated fairly then I guess we don't need any advice (?) and just sit back and let them get on with it.

One of my main issues is that the IP is talking about making us move out prior to the house selling.....the council will not house us (they will find us temp B&B housing but we can do that) and we do not have six months deposit to offer a landlord. - I guess it's stuff like this that he needs help with?

We're not after financial handouts, we're after advice on how to get safe and secure (paid for by us) accommodation for us and our children before he has no money from the house being sold.

I know I'm not entitled to anything because it's my bankruptcy, but he and my children surely could get some advice from somewhere?

Hello,

Thanks for posting. If your husband needs advice about dealing with the joint debts that he's having to repay then we can help him draw up a budget and offer advice about how to deal with the debts.

It sounds like the biggest issue is to do with how the house is being dealt with following your bankruptcy, which is something we wouldn't be in a position to give advice about.

If you feel that the Official Receiver isn't dealing with your case fairly then you could make a complaint by filling out the form on this page: http://www.insolvencydirect.bis.gov.uk/complaintform.htm (if it was a private Involvency Practitioner dealing with your case then there's a link on the above page that will take you to the place to complain about them). They'll investigate and give a written response to complaints they receive, usually within 10 days.

You mentioned some issues around where to live after leaving the house. The best people to talk to for advice about housing issues are Shelter. They've got a housing advice helpline which you might find useful: http://england.shelter.org.uk/get_advice/how_we_can_help/housing_advice_helpline.

Kind regards

James