Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

credit_crunch · 26 February 2018 at 2:55PM

Hi
Both my husband & I were declared bankrupt in 2015.
My understanding is that we were discharged after 12 months. Is that correct? We live in Northern Ireland - not sure if it’s any different over here?

Anyways, over the last 6-12 months I’ve been checking our credit scores & ive successful taken 2 different credit cards out.

I applied for one for my husband & Tesco have declined the application saying he already has the maximum amount of cards from them. He hasn’t had any credit whatsoever since BR. They have said it’s on his Experian report.

So my question is, should those debts relating to our bankruptcy not be removed from credit files by now?

Thanks in advance

StepChange_Kirsty · 26 February 2018 at 4:57PM

Hi there,

Thanks for your post.

In Northern Ireland you would normally be discharged after 12 months unless a bankruptcy restriction undertaking (BRU) or a bankruptcy restriction order (BRO) has been made. You should have received confirmation of your discharge. This is the same as in England and Wales.

When it comes to your credit file the bankruptcy will show for 6 years from the date bankruptcy was approved, again this can be longer if a BRU or BRO is in place. The default marks will also be showing on your credit file for 6 years but all of your debts should!!!8217;ve defaulted before the date of the bankruptcy order. This is probably why your husband is struggling to obtain credit at this time.

I hope this makes sense and answers your question.

Kirsty

credit_crunch wrote: »

Hi
Both my husband & I were declared bankrupt in 2015.
My understanding is that we were discharged after 12 months. Is that correct? We live in Northern Ireland - not sure if it!!!8217;s any different over here?

Anyways, over the last 6-12 months I!!!8217;ve been checking our credit scores & ive successful taken 2 different credit cards out.

I applied for one for my husband & Tesco have declined the application saying he already has the maximum amount of cards from them. He hasn!!!8217;t had any credit whatsoever since BR. They have said it!!!8217;s on his Experian report.

So my question is, should those debts relating to our bankruptcy not be removed from credit files by now?

Thanks in advance

credit_crunch · 26 February 2018 at 9:58PM

StepChange_Kirsty wrote: »

Hi there,

Thanks for your post.

In Northern Ireland you would normally be discharged after 12 months unless a bankruptcy restriction undertaking (BRU) or a bankruptcy restriction order (BRO) has been made. You should have received confirmation of your discharge. This is the same as in England and Wales.

When it comes to your credit file the bankruptcy will show for 6 years from the date bankruptcy was approved, again this can be longer if a BRU or BRO is in place. The default marks will also be showing on your credit file for 6 years but all of your debts should!!!8217;ve defaulted before the date of the bankruptcy order. This is probably why your husband is struggling to obtain credit at this time.

I hope this makes sense and answers your question.

Kirsty

Hi Kirsty
Is there anything we can do at this stage to start rebuilding his credit score? We lost our house, and most debts were joint names yet I’ve got 2 cards, a mobile contract & a catalogue account, yet he hasn’t got any credit at all.
Thanks in advance

StepChange_Allen · 27 February 2018 at 9:54AM

credit_crunch wrote: »

Hi Kirsty
Is there anything we can do at this stage to start rebuilding his credit score? We lost our house, and most debts were joint names yet I’ve got 2 cards, a mobile contract & a catalogue account, yet he hasn’t got any credit at all.
Thanks in advance

Hi there

Thanks for your reply.

The best thing I could suggest would be to have a read of this page on the main MSE site: www.moneysavingexpert.com/loans/credit-rating-credit-score

This is more comprehensive than anything I could post on here.

Let us know if you have any questions about it.

Best wishes

Allen

pmj77151 · 28 February 2018 at 11:32PM

Hello. I am in an Iva but struggling with the payments. My income fluctuates and I recently moved in with my fianc!e. I!!!8217;m confused how bankruptcy works, I understand I will need to pay any extra income into an IPA, but how does it work when some months I get paid £400 less than others? How do they calculate my expenditures? As my fianc!e earns significantly less than me, do they account for her wages into our household budget? Or just go off on everything I pay for? Sorry for the ramble I!!!8217;m confused and stressed about all this

StepChange_Rachael · 1 March 2018 at 10:32AM

Hi

Thanks for posting.

Firstly I’d suggest contacting your insolvency practitioner if you’re struggling with payments to your IVA. IVA’s are relatively flexible and it’s possible that payments can be altered. A debt solution shouldn’t be putting you in a worse financial situation.Your practitioner should discuss bankruptcy with you if they feel an amended IVA isn’t suitable.

In general if a payment arrangement is set in bankruptcy it will be calculated after your household bills and general living costs have been deducted. Your income should be worked out as a yearly average if it fluctuates so that it’s not causing you to struggle or cut back on living costs.

In bankruptcy the Official Receiver might want to check that what you pay is a fair payment towards the household bills, this is to make sure what you pay towards the bankruptcy is also fair. They might want to see a household budget for this reason.

As an IVA is legally binding I can only offer general advice but if you’d like to discuss your situation in more detail and to look at your options further I’d suggest first speaking with your Insolvency Practitioner or the Insolvency Service.

All the best,
Rachael

pmj77151 wrote: »

Hello. I am in an Iva but struggling with the payments. My income fluctuates and I recently moved in with my fianc!e. I!!!8217;m confused how bankruptcy works, I understand I will need to pay any extra income into an IPA, but how does it work when some months I get paid £400 less than others? How do they calculate my expenditures? As my fianc!e earns significantly less than me, do they account for her wages into our household budget? Or just go off on everything I pay for? Sorry for the ramble I!!!8217;m confused and stressed about all this

Andysgriff · 7 March 2018 at 12:20PM

Hi,

I was declared bankrupt in Dec 2017 and hopefully will be discharged Dec 2018. I have a Ltd Co that I resigned as director from in Dec 2017 as per requirements. The Ltd Co has not been wound up as the bankruptcy order was for personal debts and company debts from another Ltd co that I d been director for 8 years. The older Co is now wound up.

My questions are;

!) Can I appoint a member of the family to act as director of this current Ltd Co so it can continue to trade? I have offers of work but I cannot use this Ltd Co with me as a director but can it trade with me as an employee?. The Client will not accept umbrella contracting so no route there.
2) If I do receive payments from the Ltd Co for work i do, as I will have to inform the OR of my change of circumstances, will the OR start a repayment plan to recover costs for 3 years or so? I really need some income, however I would rather not start short term contracts of this will result in incurring a long term repayment plan to the OR

Hope this makes sense and looking for some advice
Many Thanks

StepChange_Kirsty · 8 March 2018 at 2:25PM

Hi there,

Thanks for your post and welcome to the forum.

In your circumstances I would highly recommend contacting Business Debtline for further advice. At StepChange we don’t specialise in business related matters so I wouldn’t want to advise you incorrectly on this.

Business Debtline are available Monday to Friday 9am to 8pm on 0800 197 6026.

Kind regards,

Kirsty

Andysgriff wrote: »

Hi,

I was declared bankrupt in Dec 2017 and hopefully will be discharged Dec 2018. I have a Ltd Co that I resigned as director from in Dec 2017 as per requirements. The Ltd Co has not been wound up as the bankruptcy order was for personal debts and company debts from another Ltd co that I d been director for 8 years. The older Co is now wound up.

My questions are;

!) Can I appoint a member of the family to act as director of this current Ltd Co so it can continue to trade? I have offers of work but I cannot use this Ltd Co with me as a director but can it trade with me as an employee?. The Client will not accept umbrella contracting so no route there.
2) If I do receive payments from the Ltd Co for work i do, as I will have to inform the OR of my change of circumstances, will the OR start a repayment plan to recover costs for 3 years or so? I really need some income, however I would rather not start short term contracts of this will result in incurring a long term repayment plan to the OR

Hope this makes sense and looking for some advice
Many Thanks

gellerbing · 12 March 2018 at 5:08PM

Hi, i recieved an email from stepchange saying there's an issue with my DRO application and they want me to phone them. This has put my anxiety through the roof and now worried about what they might say, ive got nothing to hide i just really don't like using the phone. Could i email or use live chat instead?

Avocadotoast · 13 March 2018 at 9:19AM

Hi there, I wonder if you could possibly help me.

I am currently bankrupt (in my first year) and unemployed. I would like to go for a job with CAB as a telephone advisor. However, I wonder if bankruptcy prevents me from working in this role as part of it is giving debt advice. I know you can't be an insolvency practitioner once bankrupt but I'm unsure if this applies to a generalist debt advice role. Do you know if I am allowed to undertake this kind of position or if I am banned?

Am I best to apply for the role then disclose if I am offered it?

Thank you,

Avo

Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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