Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Former_StepChange_Richard

Herewego wrote: »

Hi

I'm back again looking for more advice, we have heard today from the trustee that in one final attempt to resolve the issues they want the consent of my friend to put the property to auction. He has made numerous offers to resolve this over the months more that what is required after equitable accounting has been taken into account. However 50% of what they are trying to recover is their fees, interest and charges this cant be right ??

1. Can they force him to sell, the bankruptcy is his ex wifes and she only has a small amount of money in the property less than what the bankruptcy was for.
2. If taken to court will it be taken into account he has made all these offers
3. Can we suggest they recover the money from her as she is in a very good job now although she has lied and moved house many times without telling them.

Not sure if you can help with limited information but have tried to cover the basics

Many thanks HWG

Hi HWG

Thanks for your message.

Without seeing the exact figures and details it's difficult to say if they are doing anything wrong in including the fees, interest and charges. This is allowed in most cases and as long as there isn't anything being added on without a valid reason it's likely they are entitled to do this.

To try and answer your questions:

1. Yes they can force him to sell.
2. I can't answer this one unfortunately, it would be up to the court to decide what they do and don't take into consideration.
3. You can suggest this, but they wouldn't have to act on it if they don't want to.

I realise these may not have been the answers you were hoping for, but I hope this helps a little.

Keep us posted on how things progress.

Richard.

goggles99

Hi
I have been issued with a form 6.7 after failing to agree a suitable repayment schedule with the creditor. They wanted more than i could honestly afford to pay but i have been paying them a monthly installment since my business failed. Its a personal guaranteed debt.
What happens in this court hearing?
Am i allowed to explain myself or do i just sit there and listen?
I have explained to them that the equity in my house wont even scratch the surface on what they are claiming for but they have gone ahead.

thanks in advance

Ashobbs84

Hi I'm looking to go bankrupt but unsure on a few things.
I earn £1600 after tax and my outgoings are around 1300. I have just managed to get a car last month on finance as a change in job role required a reliable car for work. I pay £239 per month for the next five years for this.
My question is if I go bankrupt will they allow me to keep the car? And will I have to pay any money from my wages? And if so, for how long? My debts add upto around £90,000 due to my home being repossessed in 2011 after a breakdown and losing my business.

Many thanks

StepChange_Allen

goggles99 wrote: »

Hi
I have been issued with a form 6.7 after failing to agree a suitable repayment schedule with the creditor. They wanted more than i could honestly afford to pay but i have been paying them a monthly installment since my business failed. Its a personal guaranteed debt.
What happens in this court hearing?
Am i allowed to explain myself or do i just sit there and listen?
I have explained to them that the equity in my house wont even scratch the surface on what they are claiming for but they have gone ahead.

thanks in advance

Hello there

Thanks for posting.

It's important to get some expert advice on dealing with a creditor trying to make you bankrupt, especially if you want to try and stop the bankruptcy going ahead. I'll summarise a few general points for you, but to get specific advice for your situation, please contact us as soon as you can (time to respond is limited).

1. You should have received form 6.19 to respond on. If you're willing for the bankruptcy to proceed, then there's no need to fill in and send this back as it's used to try and stop the bankruptcy going ahead.

You should still let the creditor and court know that you don't intend to oppose the bankruptcy petition, and we'd recommend still attending the hearing.

2. If you wish to stop the bankruptcy going ahead, you need to complete form 6.19 and send a copy to both the creditor and court to arrive at least 7 days before the hearing date. We can give some tips on how to go about filling this if you call us.

If you want to oppose the bankruptcy you must attend the hearing. If you get in touch with us, we can explain what may be valid grounds to oppose the petition or ask for an adjournment of the hearing.

I hope this is of some help, please do contact us if we can provide further assistance.

Allen

StepChange_Allen

Ashobbs84 wrote: »

Hi I'm looking to go bankrupt but unsure on a few things.
I earn £1600 after tax and my outgoings are around 1300. I have just managed to get a car last month on finance as a change in job role required a reliable car for work. I pay £239 per month for the next five years for this.
My question is if I go bankrupt will they allow me to keep the car? And will I have to pay any money from my wages? And if so, for how long? My debts add upto around £90,000 due to my home being repossessed in 2011 after a breakdown and losing my business.

Many thanks

Hi there

Welcome to the forum and thanks for your post. I'm sorry to hear that things have been very tough for you over the last few years.

The answer to the question on the car depends on a number of things; for example, is the car on 'finance', or is it hire purchase or a PCP agreement? A lot of people I speak to in my role are unsure of the differences and can get them mixed up - I can understand why people get confused between them.

It's likely that the debt advice we'd give you would be quite different depending which one of these agreements the car is on. If it's on finance, it means you're the owner of the car, and the finance (loan) would be written off if you went bankrupt. However, it's possible that if the car is worth quite a bit of money that the official receiver (OR) , who oversees bankruptcies, may require the car to be sold to pay money into the bankruptcy.

If it's hire purchase, anything could happen, but it's certainly possible that you might not be able to keep the vehicle.

With regards to paying into the bankruptcy, it's common to be required to pay something into it for a period of 3 years, on what's called an 'income payment arrangement'. The amount will be decided by the OR, and in simple terms will likely be the money left from your wages after you cover essential household bills and living costs.

If you'd like some advice on dealing with your debts, then we provide a free service to assess your situation and look at your best options to get the debt sorted out. Details of how to get in touch are on our website. If bankruptcy is a suitable solution for you, we can discuss your car with you, and all the benefits and consequences of bankruptcy. We'll do similarly for any other debt solutions that could work for you.

I hope this helpful, and we hope to hear from you.

Allen

Formalpay

I was made bankrupt on 2008 discharged in 2009 it cost me







I was made bankrupt in 2008 and discharged in 2009.it cost me £100 now I find myself going into sequestration again and have been told I can go with the MAP way which will cost £90. I thought that I would have too pay £200 as I had been bankrupt before, can I still go the MAP way as I am on ESA support now and Disability.




3

Former_StepChange_Matthew

I was made bankrupt on 2008 discharged in 2009 it cost me







I was made bankrupt in 2008 and discharged in 2009.it cost me £100 now I find myself going into sequestration again and have been told I can go with the MAP way which will cost £90. I thought that I would have too pay £200 as I had been bankrupt before, can I still go the MAP way as I am on ESA support now and Disability.




3

Hi there,

Thanks for getting in touch.

The cost for sequestration is currently £200 however, the Minimal Asset Process (MAP) currently costs £90. If you apply for bankruptcy through this process but do not meet the conditions, you will have to pay a further £110 to meet the £200 cost for sequestration. Going bankrupt before would not change your eligibility for the MAP unless you had been bankrupt in the past 5 years however, it is likely that you would have to attend a mandatory financial education course before you would be discharged.

To be able to proceed with a MAP, A money adviser will need to assess your income and expenditure to identify if this is a suitable solution for you. At StepChange we can help you find the suitable solutions available to manage your debts. If a MAP is suitable, we have money advisers here that can help you with the MAP application.

To see what options are suitable for you, you can use our online debt advice tool called Debt Remedy. You can access this here.

If you would prefer to speak to someone over the phone, you can contact our Helpline who will be able to help you. You can find their contact details here.

I hope this helps
Matthew

GrantS

am about to file for bankruptcy on the advice of my Debt Management Co (Payplan). However I'm concerned about my bank account being frozen an DD's for things like my car insurance being paid. I have recently moved in with new partner, who has suggested I transfer DD's and have my salary transferred to their current account to avoid any problems. Does anyone know if this is permissable?

StepChange_Rachael

Hi

Thanks for getting in contact.

When you declare yourself bankrupt the official receiver (OR) will freeze your bank account for around two days. It could be longer while the OR conducts initial investigations.

Most banks now allow an un-discharged bankrupt to have a basic account with them as long as there’s no overdraft facility.

You’d need to ask the bank you were looking to move to if you could have an account with them while going through bankruptcy but recently there's been changes which mean more banks are allowing for this.

So you should be able to open an account with a bank you don’t have any debt with whilst your in bankruptcy. These accounts will allow for direct debits and a cash card.

Some people do choose to use their partner’s accounts instead. This allows for income to go in and direct debits like car insurance to go out and that’s also fine to do.

I assume that you’ve looked into all your options and have decided bankruptcy is the best way forward but if you did want a second opinion before declaring yourself bankrupt you can contact StepChange debt charity here for free and impartial advice tailored to your individual situation.

Thanks
Rachael

GrantS wrote: »

am about to file for bankruptcy on the advice of my Debt Management Co (Payplan). However I'm concerned about my bank account being frozen an DD's for things like my car insurance being paid. I have recently moved in with new partner, who has suggested I transfer DD's and have my salary transferred to their current account to avoid any problems. Does anyone know if this is permissable?

Davejba

Hello,

I am going currently going through a separation, and due to a high amount of unsecured debt and my soon to be ex not having an income, it looks like I may be facing bankruptcy...:( I will leave the whole story for another thread, but could you please help me with the following question?

I took on a large bank loan to fund my degree (which still has 30k remaining). A few years ago when I was starting to struggle with finances my parents very kindly offered to "buy" the loan from the bank so that I could repay them without paying further interest.

Now that I am facing bankruptcy, how would this be looked at? From what I can gather, they would be considered a creditor and therefore be given a percentage of any money collected through an IVA. However, would I be allowed to continue/increase my payments to them after the IVA finishes? How is this checked/regulated?

Secondly, I read everywhere that an IVA "usually" lasts three years. Are there occasions when this is extended?

Thanks you so much in advance for your response.

David