Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Scottishlc2019 · 11 April 2019 at 7:38PM

Hi
I hope someone can give advise on this. I am currently a contractor working for one of the main banks. I have been caught up in a mess with hmrc dating back 10 years (all over the headlines just now 2019 loan charge) and I am thinking for me my best option is BR. I have been offered a full time role in a bank and I hoped to secure
My job and all checks whilst things are in good standing. Do banks credit check yearly? If so and they find out will I loose my job? FSA is my only background
And to loose my career and go BR would just be horrendous as I would have no income.
Any advise appreciated

STW1966 · 11 April 2019 at 8:22PM

Hi Kirsty,

Thanks for your response. I wondered if you would be able to answer a couple of quick questions regarding your reply

I have completed a SOA and have approx. £300 surplus. Am I right is stating that the trustees/ OR would set up an IPA for this amount. I have read that and IPA has a maximum of 3 years, if my partner pays £300 over three years this will only totals £10800 and considerably short of his debt. What would normally happen next bearing in mind that we have equity of £150k+. Could they still force the sale of the property to realise the remaining debt?

The OR contacted me in September to advise that he has an interest in his share of the equity. Unfortunately, I am unable to purchase his share, although I am unaware of the exact debt as he will not discuss this with me.

Finally, what is considered an exceptional circumstance regarding the sale of the property? My son is due to take his GSCE’s this summer and my daughter the following year. If possible, I don’t want this to have an impact on their education, but understand that this may not be deemed as an exceptional circumstance.

Thanks in advance

StepChange_Allen · 12 April 2019 at 3:00PM

Scottishlc2019 wrote: »

Hi
I hope someone can give advise on this. I am currently a contractor working for one of the main banks. I have been caught up in a mess with hmrc dating back 10 years (all over the headlines just now 2019 loan charge) and I am thinking for me my best option is BR. I have been offered a full time role in a bank and I hoped to secure
My job and all checks whilst things are in good standing. Do banks credit check yearly? If so and they find out will I loose my job? FSA is my only background
And to loose my career and go BR would just be horrendous as I would have no income.
Any advise appreciated

Hi there

Welcome to the forum and thanks for posting.

My advice would be to first check whether bankruptcy, or indeed any debt solution, would impact on any employment that you'd be looking at in the future. If it would, and you don't want that issue, then you could look at alternative options.

I can't advise how often or when a bank or employer in general would credit check their staff, other than probably upon application if in banking. It may depend on one to another, but it's certainly possible that this would be mentioned in your employment contract and ongoing checks could happen.

If you'd like some free and impartial debt advice, you can register with us, all details can be found here: www.stepchange.org/Contactus

I hope this is helpful.

Allen

StepChange_Allen · 12 April 2019 at 3:12PM

STW1966 wrote: »

Hi Kirsty,

Thanks for your response. I wondered if you would be able to answer a couple of quick questions regarding your reply

I have completed a SOA and have approx. £300 surplus. Am I right is stating that the trustees/ OR would set up an IPA for this amount. I have read that and IPA has a maximum of 3 years, if my partner pays £300 over three years this will only totals £10800 and considerably short of his debt. What would normally happen next bearing in mind that we have equity of £150k+. Could they still force the sale of the property to realise the remaining debt?

The OR contacted me in September to advise that he has an interest in his share of the equity. Unfortunately, I am unable to purchase his share, although I am unaware of the exact debt as he will not discuss this with me.

Finally, what is considered an exceptional circumstance regarding the sale of the property? My son is due to take his GSCE’s this summer and my daughter the following year. If possible, I don’t want this to have an impact on their education, but understand that this may not be deemed as an exceptional circumstance.

Thanks in advance

Hi there

Thanks for your reply.

Yes it's certainly possible that the property will have to be sold in order to pay your partner's share of the proceeds into the bankruptcy. This is one of the main reasons that organisations will petition for someone's bankruptcy; that there's an asset that will see them paid back.

It's hard to give specific examples of what would class as an exceptional circumstance, but I'd be surprised if a child with exams coming up would fall into this category.

As Kirsty mentioned, it may be useful to speak with the Insolvence Service for more information on all this.

Best wishes

Allen

doorstep54 · 16 April 2019 at 5:49PM

I wounded if someone can help please with a question I have, 2016 I went bankrupt and in 2017 was discharged from bankruptcy, its about my pension I have as am near pension age I have been told I can cash my bit of pension in its £5000 but am worried if I do cash it in I may have to pay it to crediters but all my debts was in bankruptcy so I don't have any debt now so would I be able to keep my pension money? and help please would be very grateful thanks

StepChange_Rachael · 17 April 2019 at 9:55AM

Hi

Thanks for your message to the forum.

I’d always recommend getting pension advice before releasing any cash lump sum so you know the benefits and potential risks. However, it’s my understanding that once you’re discharged from bankruptcy, if you receive any cash lump amount then due to the discharge you wouldn’t have to pay it into your bankruptcy. Cash lump sums that are received during bankruptcy will be at risk but those sanctions don’t apply once you’re discharged.

Hope this helps.

Thanks
Rachael

doorstep54 wrote: »

I wounded if someone can help please with a question I have, 2016 I went bankrupt and in 2017 was discharged from bankruptcy, its about my pension I have as am near pension age I have been told I can cash my bit of pension in its £5000 but am worried if I do cash it in I may have to pay it to crediters but all my debts was in bankruptcy so I don't have any debt now so would I be able to keep my pension money? and help please would be very grateful thanks

doorstep54 · 17 April 2019 at 4:44PM

Thank you so much for replying ..keep up the good work step change you are a god sent to people in debt you was there for me and can't thank you enough

KDR_2 · 22 April 2019 at 1:39PM

Hi,
I have filed for bankruptcy and have a meeting with the OR soon.
I am wondering if an IPA is always for 3 years or if it can sometimes be for less time?
Also, will the OR discuss the IPA at this first meeting?
Thank you.

StepChange_Allen · 24 April 2019 at 3:28PM

KDR wrote: »

Hi,
I have filed for bankruptcy and have a meeting with the OR soon.
I am wondering if an IPA is always for 3 years or if it can sometimes be for less time?
Also, will the OR discuss the IPA at this first meeting?
Thank you.

Hi there

Welcome to the forum and thanks for posting.

My understanding is that an IPA almost always lasts for 36 months, though very occasionally can be shorter. I'm not sure for what reasons it would be shorter though.

I don't know when the IPA will be discussed to be honest. You could contact the Insolvency Service for some information on this.

Best wishes

Allen

KDR_2 · 24 April 2019 at 8:06PM

Thank you for taking the time to reply to my post. Much appreciated.

Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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