Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

fermi

Last year over the whole of England/Wales

Bankruptcies = 20,322

IPAs (voluntary agreements) = 3,768

IPOs (forced by the OR/courts) = 39

Those stats show just how rare it is for the OR to force things with an IPO, and how rare it is for them to be granted by the courts.

Faunus

I am really surprised by those figures. Less than a quarter even have an IPA! I guess that's because there is deemed to be no surplus. Maybe we should argue the things the OR declined on our expenses?
School holidays £30 per month - not a lot to keep 3 children entertained
Social/sports membership £30 month- CAB stated he is allowed a life during bankruptcy and this is an area to cut back on if there are unexpected expenses.
Christmas / Birthdays £30 month for 3 children in education 10, 15, 18.
Mobiles x 2 £22 month (children - declined as not living with us but court order states we must provide one of them)

Thanks again for your help - I'm still doing the other reading you suggested

Faunus

The reading suggests some items are worth arguing for, that's great. It also tells us there are things we could have claimed for but haven't even thought of.

I can't access the Household expenditure sheet (HES) via the links, is there somewhere else I can access this please?

This help has really been invaluable - thank you

Faunus

It's OK, I think I have found it - Household expenditure sheet (HES). As a new member I am not allowed to share the link though, sorry.

fermi

Here: https://www.gov.uk/government/publications/insolvency-service-household-expenditure-survey-in-connection-to-income-payment-agreements-ipa

StepChange_James

Thanks to Fermi for answering Faunus' questions while we were out of the office over the weekend.

Faunus - if you've any further questions then feel free to post them.

pdrskint

I was made bancrupt in 1994 my pension policies were handed back to me with no realistic value, now i can cash these policies what rights has official receiver to these policies, and doesnt my wife have a right to 50%,?
They already took other pensions and cashed them, again wasnt my wife entitled
to half ? Any help appreciated

StepChange_James

pdrskint wrote: »

I was made bancrupt in 1994 my pension policies were handed back to me with no realistic value, now i can cash these policies what rights has official receiver to these policies, and doesnt my wife have a right to 50%,?
They already took other pensions and cashed them, again wasnt my wife entitled
to half ? Any help appreciated

Hi there,

The rules on pensions are a bit different for bankruptcy orders made before 2000 than they are now. So pensions were often treated as assets in bankruptcy back then, which sounds like what's happened in your case.

What rights the Official Receiver has will depend on how they dealt with your pensions back when you went bankrupt.

There's some general information about how pensions are dealt with for pre-2000 bankrutpcies, which you might find useful: https://www.insolvencydirect.bis.gov.uk/casehelpmanual/P/Pensions/Part2.htm.

You may find you can get more information about this by speaking to the Insolvency Service. Here are their contact details:https://www.gov.uk/the-insolvency-service.

Kind regards

James

Tomchris

Hi I wonder if you can advise me on whether we can cancel our life insurance policies after we are discharged from bankruptcy? We haven't been in a position to buy them back, so we wondered if we can cancel them and then get new policies once discharged? Thanks.

StepChange_James

Tomchris wrote: »

Hi I wonder if you can advise me on whether we can cancel our life insurance policies after we are discharged from bankruptcy? We haven't been in a position to buy them back, so we wondered if we can cancel them and then get new policies once discharged? Thanks.

Hi there,

Thanks for posting.

You're probably most likely to get the correct answer to this question by speaking to your Official Receiver's (OR) office and checking with them.

If I've understood your question it sounds like the benefits of the insurance policy would fall within the bankruptcy estate and you wouldn't be able to get the proceeds. Assuming this is the case it would be harsh for you to be expected to continue to pay into a policy that you're not going to get any benefit from.

The OR should be able to confirm this, with the benefit of knowing the details of your case.

Kind regards

James