Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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  • StepChange_Jen
    StepChange_Jen Posts: 102 Organisation Representative
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    badger12 wrote: »
    Hi
    In July 2007 I entered a TD at £100 per month. In the November I was phoned and told one bank wouldn't accept the TD and the people handling my case said I should go Bankrupt - which they dealt with. I paid the TD amount til Nov 2010. I have never had any paperwork from them to say what was going on. I rang them in the Nov to ask if I could cancel my DD. The chap on the phone didn't say he'd need to look at a file or anything he just said "yes".....


    Is this normal?

    [FONT=&quot]Hi badger12,[/FONT]
    [FONT=&quot]
    [/FONT]
    [FONT=&quot]Thanks for getting in touch.[/FONT]
    [FONT=&quot]
    [/FONT]
    [FONT=&quot]When you say, TD, I presume you’re talking about trust deeds?[/FONT]
    [FONT=&quot]
    [/FONT]
    [FONT=&quot]The best way to get an answer is to speak to the company who dealt with your trust deed. They should be able to confirm your account is closed.[/FONT]
    [FONT=&quot]
    [/FONT]
    [FONT=&quot]Generally speaking direct debits are quite easy to cancel so it’s not unusual for it to be a fairly simple process.

    [/FONT]
    [FONT=&quot]I hope this helps,[/FONT]
    [FONT=&quot]Jenny [/FONT]
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at [url="http://www.needtosleep.org]Need to Sleep[/url]
  • badger12
    badger12 Posts: 37 Forumite
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    Hi


    Ah, didn't make my question very clear - should I have continued paying a Trust Deed for another 36 months after they made me bankrupt? Surely if I were paying a TD then they would have been paying creditors something but if I was Bkpt then the creditors wouldn't have gotton anything ....


    Thanks
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
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    badger12 wrote: »
    Hi


    Ah, didn't make my question very clear - should I have continued paying a Trust Deed for another 36 months after they made me bankrupt? Surely if I were paying a TD then they would have been paying creditors something but if I was Bkpt then the creditors wouldn't have gotton anything ....


    Thanks

    Hi Badger12,

    If you went bankrupt then that would deal with the debts and you'd not be expected to continue payments on the trust deed.

    If you had spare income you might be expected to make a contribustion towards the debts but that would be organised by the trustee of the bankrutpcy.

    It sounds like you're worried about it all being tied up properly, so you may find it useful to contact the people who dealt with your trust deed to make sure they tied up all the loose ends on your file.

    Kind regards

    James
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at Need to Sleep
  • candyflossco
    candyflossco Posts: 7 Forumite
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    hi new to this site, out of bankruptcy now two years, is it possible if i keep my finances to myself ,ie no joint accounts / names is it possible to get married without affecting my partner ? thanks for your help
  • Former_StepChange_Rory
    Former_StepChange_Rory Posts: 145 Organisation Representative
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    candyflossco wrote: »
    hi new to this site, out of bankruptcy now two years, is it possible if i keep my finances to myself ,ie no joint accounts / names is it possible to get married without affecting my partner ? thanks for your help

    Hi there, welcome to the forum :)

    It's a common myth that being married means that you're linked financially to your partner. In fact, it's usually financial links such as joint bank accounts, loans or other types of credit that are the main reason why your credit file might be linked to someone else.

    It is possible to try and remain separate if that's what you'd prefer, just make sure that you check any agreements you sign to make sure that it won't cause a link. Sometimes utility companies, tenancy agreements and other types of bills can show up as a financial connection so that's something to be aware of too.

    If you'd like more information then you can contact one of the three credit reference agencies, Experian, Equifax and Call Credit for more information. You can also get a free copy of your credit report from Call Credit by visiting www.noddle.co.uk.

    I hope that helps,

    Rory
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at [url="http://www.needtosleep.org]Need to Sleep[/url]
  • fishercollins69
    fishercollins69 Posts: 1 Newbie
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    Hi
    My husband has been made bankrupt and will have his interview with the official receiver next week. When we filled out the paperwork for the court we put my contribution to the household as £100 per month, I only work part time as we have 4 children, I have since read they will want to know my actual income which is fine but what happens with my expenditure that i pay eg my credit cards and my mobile phone as the £100 I pay is what is left out of my wages after my expenses
  • egrescrimp
    egrescrimp Posts: 573 Forumite
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    fishercollins69 wrote: »
    Hi
    My husband has been made bankrupt and will have his interview with the official receiver next week. When we filled out the paperwork for the court we put my contribution to the household as £100 per month, I only work part time as we have 4 children, I have since read they will want to know my actual income which is fine but what happens with my expenditure that i pay eg my credit cards and my mobile phone as the £100 I pay is what is left out of my wages after my expenses

    If you have only £100 left after paying your commitments, that's all the OR can have :)

    They won't make you struggle to pay your commitments. You don't need to tell them what your commitments are or explain why you have those outgoings. It's up to you how much you divulge to the OR about your circumstances, just be honest :)
  • StepChange_Jen
    StepChange_Jen Posts: 102 Organisation Representative
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    fishercollins69 wrote: »
    Hi
    My husband has been made bankrupt and will have his interview with the official receiver next week. When we filled out the paperwork for the court we put my contribution to the household as £100 per month, I only work part time as we have 4 children, I have since read they will want to know my actual income which is fine but what happens with my expenditure that i pay eg my credit cards and my mobile phone as the £100 I pay is what is left out of my wages after my expenses

    Hi there,

    Thanks for getting in touch.

    It’s best to let the official receiver know about all of your income, honesty is the best policy. The main reason the OR would ask you questions about your own financial situation is to get complete clarity before the bankruptcy goes ahead. It’s their job to know the full picture beforehand, for the benefit of all concerned.
    egrescrimp is right, if the OR can clearly see that you have £100 left to contribute then that’s all the official receiver can have. They won’t make you struggle to pay for your own commitments.
    As your husband is going bankrupt your money shouldn’t be affected unless you have a joint account with him.

    For a bit more in-depth advice, you may want to consider getting in touch with the Insolvency Service. Their contact details can be found here: https://www.gov.uk/government/organisations/insolvency-service

    I hope this helps. Please let us know if you’ve got any more questions.

    Thanks,

    Jen
    I work as a debt advisor for StepChange Debt Charity (formerly CCCS) and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy

    If money worries are keeping you awake, read Paul's success story at [url="http://www.needtosleep.org]Need to Sleep[/url]
  • walker1627
    walker1627 Posts: 19 Forumite
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    I took out DMP with payplan 4 years ago. Since then my circumstances have changed drastically. My husband and I separated and sold our house (no real equity) and I now rent a home with my 2 children.
    I had been paying £100 a month into DMP but been struggling for months. I did a financial statement with PP yesterday which shows I do not have a penny left after expenses. I have agreed to cancel AA membership in order to make a £20 payment to DMP. The advisor suggested a DRO to me and having done some research, I think I qualify. I have a Santander bank account which is £1400 overdrawn and not inc in DMP. Would I be able to include it in DRO?
    Also, how do they decide the value of car? Mine is borderline for being under £1000 although it's 11 years old and basically a skip on wheels!
    What would happen down the line if my circs changed eg I got re-married or inherited money?
    Also, I'm not yet divorced, hubby and I applying in jan (non contested) what happens about the court fees?
    I'm wary of doing a DRO but at my current payment, I won't be debt free until 2051 :eek: so I'm thinking this might save me a lot of future worry!
    Thanks in advance for your help.
  • alastairq
    alastairq Posts: 5,030 Forumite
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    How much debt do you have, overall?
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
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