Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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  • Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa
  • sammie28
    sammie28 Posts: 200 Forumite
    vmedwards wrote: »
    Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa


    Hi, I just opened one with Barclays. Just a basic account. I explained about going BR and he was fine about it. Card and pin came within a week and direct debits all set up. You have to go in to branch and all they asked for was passport or photo driving licence. I was advised to get it all set before going BR.
    Hope that helps
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    vmedwards wrote: »
    Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa

    Hi Vanessa,

    You've got some good advice from sammie28. Barclays allow undischarged bankrupts to have a basic bank account, so they're a good choice.

    You can sort out the new bank account either before or after. I've had a chat with a colleague who speaks to a lot of people going bankrupt and she recommended doing it before.

    You'd need to mention the new account in your bankruptcy petition. The account would be frozen when you go bankrupt, for the courts to carry out a quick investigation but it only takes a couple of days. Once it's unfrozen you should then be back to normal.

    If you do it all before it minimises the time you're between bank account, so usually works out easier for bills being paid. Some people wait until afterwards though, so it's up to you really.

    Hope this helps.

    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

  • tigerfeet2006
    tigerfeet2006 Posts: 14,030
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    Forumite
    vmedwards wrote: »
    Hi there,

    im currently in talks with stepchange and trying to decide whether to go BR or do a DMP. My question is about opening a basic account to pay day to day direct debits. Can you open an account before you file for BR or do you have to wait until afterwards? Im concerned about falling behind on insurance policy payments etc.
    many thank,vanessa

    A little reading for you :)
    http://forums.moneysavingexpert.com/showthread.php?t=3582093
    BSCno.87
    The only stupid question is an unasked one
    Loving life as a Kernow Hippy
  • Hi, I hope you can offer some advice as I am so worried after receiving a huge bill today. I live in N.Ireland and declared myself bankrupt in January 2010. This was my only option after hanging onto a retail business for 4 years and failing to turnover enough to pay the premises costs which were extortionate!
    I have now received a rates demand for the retail unit. I have contacted the rates office and been told that the outstanding amount before my bankruptcy has been written off, but I must pay the vacant rates up until the end of the original lease date of August 2016. I have been billed £21000 for the period up until now!! I am disabled and not working. I own my home along with my husband, and the house is in negative equity of approx. £75k.
    I am praying that this can't be right.
    Thanks in advance.
  • StepChange_James
    StepChange_James Posts: 861 Organisation Representative
    minkysam wrote: »
    Hi, I hope you can offer some advice as I am so worried after receiving a huge bill today. I live in N.Ireland and declared myself bankrupt in January 2010. This was my only option after hanging onto a retail business for 4 years and failing to turnover enough to pay the premises costs which were extortionate!
    I have now received a rates demand for the retail unit. I have contacted the rates office and been told that the outstanding amount before my bankruptcy has been written off, but I must pay the vacant rates up until the end of the original lease date of August 2016. I have been billed £21000 for the period up until now!! I am disabled and not working. I own my home along with my husband, and the house is in negative equity of approx. £75k.
    I am praying that this can't be right.
    Thanks in advance.

    Hello and welcome to the forum.

    I'd recommend getting in touch with the insolvency service in Northern Ireland and asking them to clarify this. Here's there contact details: http://www.detini.gov.uk/insolvency-contacts.htm.

    The key thing to clarify is if they see this bill you've received as a debt you've incurred after the bankruptcy order. If you gather up any details you have about this debt before calling they should be able to tell you where you stand.

    If it's bad news then I'd recommend that you give us a call for advice on what to do next (http://www.stepchange.org/Contactus.aspx). I do hope, in the best possible way, that you don't need to call us though.

    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

  • gibboking
    gibboking Posts: 226 Forumite
    Hi Guy's

    My Hubby (soon to be ex) and I have been seperated for more than 2 years now and I am filing for divorce.
    Originally I moved out of the house and rented (quickest way for me to get out!!) but recently he soon realised that he could'nt afford a 3 bedroom house on his own so me and the kids moved back in. He has agreed that he will keep his name on the mortgage but does'nt expect anything from it when it is of any value.

    Since I have moved back in he has decided that his only option is to go bankrupt.

    So the house is in negative equity of around 12k
    We have joint debts totalling around 12k
    and he has debts in just his name of around 14k

    So my questions are:
    Am I likely to loose the house?
    Will joint debt become my responsibilty.
    Should we sort divorce before he goes bankrupt?

    Things are reasonably amicable between us, and he does'nt want me and the kids to end up loosing our home.

    Any advice is really appreciated
    Look atfer the Pennies and the ££££'s will care for themselves :money:
  • Hi Guys

    Hope you can advise.

    I took out an ill fated NR Together mortgage in 2006 ish when I was very young and very naive. I owe 105,000 on a house that I don't live in and have been renting out I(not agreed by NRAM). I had to move as the house was only 1 bed, and I fell pregnant so took the opportunity to rent a lovely 3 bed house for about £100 less than the 1 bed mortgage!

    Tenants are out now, and I have realised that i do not have anywhere near enough money to be a landlord, its not agreed anyway so it would technically be mortgage fraud maybe? So I'm thinking to sell the house.

    It's been valued at £70,000 - £75,000 and I have someone poss interested. However then I would owe approx £35,000. I also have credit cards totalling £4000 and an overdraft of £2000.

    So as you can see I'm in a big mess. I have a steady secure job (more secure than most but I don't want to reveal the exact nature). I earn about £28,000 but am due to go on mat leave for a year so will earn about half of that roughly for the next year or so. I don't know if I'll be able to go back full time as childcare might make it to be no point, and it's not best for the children. I will always work part time though - I don't want to give up work.

    What are my options? Is bankrupcy the best possibility do you think? I can't see how I can pay it back, and I just have to face facts that a astronomically stupid decision when I was much less financially savvy in my early twenties has possibly ruined my entire life (financially at least!).

    Hope you can help, many thanks for reading x x
  • whichwhydoIturn
    whichwhydoIturn Posts: 564 Forumite
    edited 3 February 2013 at 5:27AM
    Hello,I'm petitioning for BR later this month.
    I'm bit concerned about my work pensions, hope you could advice.
    I have an old work pension which is now been transferred to friends provident as my old work didn't want to carry it.
    I'm working and I pay into a works pension .
    My concern is will either be seen as an asset.
    I don't own my own home, drive or have any jewellery.
    I only have those.
    My old work one is worth 69k.
    I'm early 50 and will hopefully work for the next 15 years .
    Thank you in advance
    mum "e" to the most perfect girl :Awho stood by me through it all nana to my beautiful grandson WLM 27.09.13:j
    mother of the bride September 2014 :love:
    Turning a house into a home :o
    What if the Hokey Cokey is really what it's all about ?
  • hi firstly thanks for any information you can give me in advance ,ok quick potted history marriage collapsed 06/2009 and wife left property and outstanding loans bills etc etc at my feet(to the tune of roughly £30,000,and then there was the house ,which is another story ,but enough to say that i no longer reside there ) and well it wasnt pretty but contacted cccs and spoke at length and was decided that an iva was the logical way forward ,and at the time my (now ex)wife and i had an agreement about child support ,but after a particularly nasty divorce and custody battle i was approached by the c.s.a. and that wiped out my ability to pay my iva and obviously left me open to my creditors after just over a year on a successful iva,anyway fast forward to now ,i have had to leave my rented property and move in with a friend ,and have been struggling to pay my keep,storage for general household items(of no large value ,furniture etc )and money for when i have my daughter which is every weekend ,however things being what they are and no payraises for the last 3 years etc i have been and are struggling to raise the cost of going bankrupt ,is there a specific timeframe in which i have to go bankrupt and when i eventually get my b/r fund sorted ,the information i supply to the b/r court does it all have to be current ,as to ammounts etc ,as i only have the info that i originally had as 0f 06/2012 as i dont want to contact my creditors as they only way they will reply is by post and do not want to involve my friends property in my problems ,as i said at the start any enlightenment you could give me would be hugely appreciated ,

    cheers :-)
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