Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

limbangmogul

Dear All,

I find myself in apposition of worry on a constant basis. Several years ago my ex wife, spent to the limit on credit cards, overdrafts, had tennent in home but kept the mortgage and the house (after i paid thousands in arrears-want sustainable) was taken back by the bank. I then discovered that she had forged my signature with a loan company against the house. This didn't come up until the repossession, as she wasn't paying this and i was jointly responsible for the loan. I was even chased to Cyprus via the Consulate as i was serving over seas at that time tore informed about most of this. I immediately set about putting this right. I contacted the loan company etc and attempted to prove it was fraudulent, but they said although a different signature that due to it being more than 5 years previous (Shocked me at this point), that they couldn't verify it not me. My ex wife then entered an IVA and over the last few years I have paid something £49,000 in arrears via payplan.
I was employed in the military then, but I've left this last year to study at university and so far i've almost kept up the payments, but i am full time Uni attempting to work full time inbetween and i just can't sustain it at this level and i am at uni until 2019. I really do not want to enter into bankruptcy, I have a DMP now, i am considering IVA but also as i have a pension, bursary, and wage (no where near my military wage) but on zero/flexble hours contract so really don't know what me options are with regards to that. I have a Payplan annual review today. But wondered if anyone could offer advice. due to my ex wife and her IVA she hasn't contributed fro 3 years so I've been left with in effect all her debt..... £100,00 ish still outstanding. Many Thanks.

limbangmogul

Dear All,

I find myself in apposition of worry on a constant basis. Several years ago my ex wife, spent to the limit on credit cards, overdrafts, had tennent in home but kept the mortgage and the house (after i paid thousands in arrears-want sustainable) was taken back by the bank. I then discovered that she had forged my signature with a loan company against the house. This didn't come up until the repossession, as she wasn't paying this and i was jointly responsible for the loan. I was even chased to Cyprus via the Consulate as i was serving over seas at that time tore informed about most of this. I immediately set about putting this right. I contacted the loan company etc and attempted to prove it was fraudulent, but they said although a different signature that due to it being more than 5 years previous (Shocked me at this point), that they couldn't verify it not me. My ex wife then entered an IVA and over the last few years I have paid something £49,000 in arrears via payplan.
I was employed in the military then, but I've left this last year to study at university and so far i've almost kept up the payments, but i am full time Uni attempting to work full time inbetween and i just can't sustain it at this level and i am at uni until 2019. I really do not want to enter into bankruptcy, I have a DMP now, i am considering IVA but also as i have a pension, bursary, and wage (no where near my military wage) but on zero/flexble hours contract so really don't know what me options are with regards to that. I have a Payplan annual review today. But wondered if anyone could offer advice. due to my ex wife and her IVA she hasn't contributed fro 3 years so I've been left with in effect all her debt..... £100,00 ish still outstanding. Many Thanks.

Former_StepChange_Linsi

Hi there

Thanks for your post.

If your DMP isn’t affordable now that you’re a student you’ve done the right thing to contact PayPlan to review your budget.

It’s difficult for me to say if an IVA, or any other debt solution, would be a better option for you without knowing more about your financial situation.

If you’d like a second opinion on dealing with your debts, you can use our anonymous Debt Remedy tool to create a budget to get free and impartial debt advice online.

Once you’ve completed Debt Remedy you’ll be able to access your personal action plan which contains our tailored advice and information on all the debt solutions available to you. You can access our Debt Remedy tool here.

You mentioned the loan was taken out fraudulently without your knowledge. Action Fraud is the UK’s national centre for reporting fraud and cybercrime, here’s a link to their website for further information.

I hope this helps and good luck with your studies.

Linsi

limbangmogul wrote: »

Dear All,

I find myself in apposition of worry on a constant basis. Several years ago my ex wife, spent to the limit on credit cards, overdrafts, had tennent in home but kept the mortgage and the house (after i paid thousands in arrears-want sustainable) was taken back by the bank. I then discovered that she had forged my signature with a loan company against the house. This didn't come up until the repossession, as she wasn't paying this and i was jointly responsible for the loan. I was even chased to Cyprus via the Consulate as i was serving over seas at that time tore informed about most of this. I immediately set about putting this right. I contacted the loan company etc and attempted to prove it was fraudulent, but they said although a different signature that due to it being more than 5 years previous (Shocked me at this point), that they couldn't verify it not me. My ex wife then entered an IVA and over the last few years I have paid something £49,000 in arrears via payplan.
I was employed in the military then, but I've left this last year to study at university and so far i've almost kept up the payments, but i am full time Uni attempting to work full time inbetween and i just can't sustain it at this level and i am at uni until 2019. I really do not want to enter into bankruptcy, I have a DMP now, i am considering IVA but also as i have a pension, bursary, and wage (no where near my military wage) but on zero/flexble hours contract so really don't know what me options are with regards to that. I have a Payplan annual review today. But wondered if anyone could offer advice. due to my ex wife and her IVA she hasn't contributed fro 3 years so I've been left with in effect all her debt..... £100,00 ish still outstanding. Many Thanks.

london1973

Hi, with regard to the response to Yogibare's question above, my understanding was Right to set off couldn't apply after bankruptcy? I've just opened an account with Barclays a month after BR, with a sizeable debt to barclaycard going into my BR, please tell me any funds in my new Barclays account are not, and will not be , under threat?!

philnicandevan

london1973 wrote: »

Hi, with regard to the response to Yogibare's question above, my understanding was Right to set off couldn't apply after bankruptcy? I've just opened an account with Barclays a month after BR, with a sizeable debt to barclaycard going into my BR, please tell me any funds in my new Barclays account are not, and will not be , under threat?!

if it's a barclays basic account you should be fine they cannot offset if the account is opened AFTER bankruptcy....they were my largest creditor in my bankruptcy and they pestered most days to open another account for me...decided in the end though to go to the co op as they allowed online banking/app banking etc where as barclays dont till your discharged for most people ...

london1973

Thanks for that, just to update the forum Barclays are now offering online and mobile banking straightaway + contactless

Kerry511

Hi
I went bankrupt on 7th Nov 2016....... I have started to receive letters
1- from Thames water stating they were advised of my bankruptcy and have closed my account and opened a new one (but the new one is more expensive) I am confused why this happen! Is it the normal practise? It has only increased 50p per week but nevertheless it he still increased for the same service and I am not using any extra water!

2- From council tax, Before I went BR my normal payment date for council tax was 25th each month by direct debit £133. Before I went I bankrupt I had to cancel the direct debit for Octobers payment but I called up and made the payment early in the 21st......so my next payment would have been due on 25th November (after the BR) I received a letter today stating that I will be summons if I don't pay £68???..... I called them and said my next payment isn't due till 25th Nov but they said as I am not paying by dd and I am now a cash payer that I have to pay on the 5th each month!..... therefor the payment due on 25th Nov was recalculated and was due on 5th Nov for £200 :-(
It has all confused me! Do I pay it or not? I told her about the BR she said to send the stuff in but the summons will continue until balance is paid.........! Or the balance written off due to being BR...... very confusing

CIS

Kerry511 wrote: »

Hi
I went bankrupt on 7th Nov 2016....... I have started to receive letters
1- from Thames water stating they were advised of my bankruptcy and have closed my account and opened a new one (but the new one is more expensive) I am confused why this happen! Is it the normal practise? It has only increased 50p per week but nevertheless it he still increased for the same service and I am not using any extra water!

2- From council tax, Before I went BR my normal payment date for council tax was 25th each month by direct debit £133. Before I went I bankrupt I had to cancel the direct debit for Octobers payment but I called up and made the payment early in the 21st......so my next payment would have been due on 25th November (after the BR) I received a letter today stating that I will be summons if I don't pay £68???..... I called them and said my next payment isn't due till 25th Nov but they said as I am not paying by dd and I am now a cash payer that I have to pay on the 5th each month!..... therefor the payment due on 25th Nov was recalculated and was due on 5th Nov for £200 :-(
It has all confused me! Do I pay it or not? I told her about the BR she said to send the stuff in but the summons will continue until balance is paid.........! Or the balance written off due to being BR...... very confusing

If you went bankrupt then any council tax should be written off to 31 March 17 (Chapter 40.53 of the insolvency technical manual - https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part2/part_2.htm#40.50) unless you have a partner who is jointly liable, in which case they will be held liable for the payments.

In respect of instalments, if they're offering anything other than the statutory cash instalment on the 1st of the month, the council can set the dates on which instalments are taken for a particular payment method. Before the payment was due they would have issued a demand notice giving at least 14 days notice of the payment. They would also need to issue a reminder notice (and give 14 days to clear the balance) before a summons could be issued.

If it's simply that they have no proof of the BR yet then they will continue with any action until they receive the proof (although they could check the insolvency register)

If there is still a charge to pay for the property - then you can pay the missing money and then ask for the instalments to be put on 12 month payment plan (as is your statutory right) - this will spread payments all the way to March 17. You can only do this though if you haven't lost the right to pay by instalments (i.e you must settle the reminder within 7 days).

Craig

StepChange_Allen

london1973 wrote: »

Hi, with regard to the response to Yogibare's question above, my understanding was Right to set off couldn't apply after bankruptcy? I've just opened an account with Barclays a month after BR, with a sizeable debt to barclaycard going into my BR, please tell me any funds in my new Barclays account are not, and will not be , under threat?!

Hello

Thanks for your post.

I just wanted to confirm that indeed right of set off cannot be used when a debt has already been included in a bankruptcy. Some banks might not accept an application from someone that has had a debt with them go into bankruptcy recently, but if they do then that's fine, there's no problem or risk.

Allen

StepChange_Allen

Kerry511 wrote: »

Hi
I went bankrupt on 7th Nov 2016....... I have started to receive letters
1- from Thames water stating they were advised of my bankruptcy and have closed my account and opened a new one (but the new one is more expensive) I am confused why this happen! Is it the normal practise? It has only increased 50p per week but nevertheless it he still increased for the same service and I am not using any extra water!

2- From council tax, Before I went BR my normal payment date for council tax was 25th each month by direct debit £133. Before I went I bankrupt I had to cancel the direct debit for Octobers payment but I called up and made the payment early in the 21st......so my next payment would have been due on 25th November (after the BR) I received a letter today stating that I will be summons if I don't pay £68???..... I called them and said my next payment isn't due till 25th Nov but they said as I am not paying by dd and I am now a cash payer that I have to pay on the 5th each month!..... therefor the payment due on 25th Nov was recalculated and was due on 5th Nov for £200 :-(
It has all confused me! Do I pay it or not? I told her about the BR she said to send the stuff in but the summons will continue until balance is paid.........! Or the balance written off due to being BR...... very confusing

Hello

Thanks for your post.

To cover the two debts you've asked about:

1. If you're on a water meter all arrears up to the date of the bankruptcy are included in the order. If you're on an unmetered supply all arrears and this year's bill are included in the bankruptcy. However the water company can issue a new bill after the bankruptcy for the rest of the year. There's no reason for bankruptcy itself to change the monthly cost, so it could be that you were underpaying slightly before, or that their tariffs have simply increased. I'm sure if you ask them the reasons they'll explain.

2. As CIS said, (your liability for) all council tax for the current year is included in the bankruptcy order so normally you don't have to pay again until April 2017. If other adults live there then they will become fully liable instead. The only other exception to this if a liability order was obtained against you before the bankruptcy order was made. This then allows the use of a warrant of control by enforcement agents until the debt is paid or you're discharged from bankruptcy.

I hope this is clear, please let us know if we can assist further.

Allen