Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

Jaxoncook · 21 March 2018 at 9:03PM

Hi
I am mentally ill and have a bad memory due to tablets i am on. I went bankrupt and because of my illness i panicked and told the OR i gave my mum £3000. I felt intimidated by the lady and panicked as i got out 3 loans vety quickly as i had forgotten what i spent them on. Now the solicitor of the Official Receiver had sent a letter to my mum asking for money back she dont know what to do as i havent gave her any money.

BeeCat · 21 March 2018 at 11:13PM

Hoping this is in the correct place, and apologies if I have double posted this. Trying to get used to the forums set up.

I’m planning to apply for bankruptcy imminently and I was just wondering if anybody knows how much/what information is given to your creditors when they are informed of your bankruptcy?

My reason for asking is that some of my debts/creditors are family/friends and I was curious as to whether they get informed of the full extent of your bankruptcy/debts? Ie. Do they get provided a full list of who and what you owe or are they just informed you have gone bankrupt?

StepChange_Rachael · 22 March 2018 at 10:10AM

Hi

Thanks for getting in contact.

I’m sorry to hear you’re going through a difficult time with the bankruptcy, I can see how this would be causing added stress due to suffering with mental illness.

I’m a little confused as the first post mentions you borrowed £3000 from your mum but the second seems to imply that you gave your mum £3000.

If you owe your mum £3000 because you borrowed this amount then this can be classed as a debt included in bankruptcy and will legally be written off.

If you advised the Official Reciever (OR) that you had given your mum £3000 then yes the OR can reverse this transaction by asking for the money back, as this is seen as an asset and the OR will look to release assets to help form the bankruptcy.

If this was a mistake then I’d suggest contacting the Insolvency Service to discuss this further with them. It might also be worth mentioning to them that you struggle with mental illness and this has caused some confusion with the information provided in the bankruptcy.

Take care
Rachael

Jaxoncook wrote: »

Hi
I am mentally ill and have a bad memory due to tablets i am on. I went bankrupt and because of my illness i panicked and told the OR i gave my mum £3000. I felt intimidated by the lady and panicked as i got out 3 loans vety quickly as i had forgotten what i spent them on. Now the solicitor of the Official Receiver had sent a letter to my mum asking for money back she dont know what to do as i havent gave her any money.

MLouise_2 · 22 March 2018 at 10:30AM

Hi All,It!!!8217;s a very long story but....I bought a house when I was very young..had bad advice from a broker & ended up with an awful NRAM Mortgage.Due to numerous situations the house was repossessed 5 years ago..the negative equity was on our credit files then disappeared almost 2 years ago so we !!!8216;moved!!!8217; on.Then we received the dreaded debt letter in December.We owe £56k...on top of the affordable £10k debt we now have!I feel like our only option with this amount is Bankruptcy!Can someone that has recently been through it help me?How strict is the OR?What will they look at?Bank statements?Proof of bills?Will I lose my car (approx £2k value) Will I lose my mobile phone contract?I have considered a repayment plan direct with NRAM but I could not pay this back in my working lifetime & don!!!8217;t want to have to deal with the constant harrasment & income/expenditures!I know it!!!8217;s my debt etc but I would like to eventually move on with my life..but another house etc!My head is spinning with it all!!

StepChange_Rachael · 22 March 2018 at 5:14PM

Hi

Thanks for your post.

When you apply for bankruptcy the bankruptcy will become public knowledge as it’s recorded in the public insolvency register. Anyone can search the register and bankruptcies are still recorded in the London Gazette. However, you'd have to activly search someone on the register so this is relativly unlikely.

The details of how much information is available to creditors I’m not entirely sure of. I can’t imagine that they would be advised of the full details of the bankruptcy including debts but obviously they’d be made aware that any debt owing to them is included in the bankruptcy and is no longer enforceable.

The best people to contact would be the Insolvency Service directly as they should be able to inform you of how the bankruptcy will be formed before submitting your application.

Take care,
Rachael

BeeCat wrote: »

Hoping this is in the correct place, and apologies if I have double posted this. Trying to get used to the forums set up.

I’m planning to apply for bankruptcy imminently and I was just wondering if anybody knows how much/what information is given to your creditors when they are informed of your bankruptcy?

My reason for asking is that some of my debts/creditors are family/friends and I was curious as to whether they get informed of the full extent of your bankruptcy/debts? Ie. Do they get provided a full list of who and what you owe or are they just informed you have gone bankrupt?

StepChange_Allen · 23 March 2018 at 9:51AM

MLouise wrote: »

Hi All,It!!!8217;s a very long story but....I bought a house when I was very young..had bad advice from a broker & ended up with an awful NRAM Mortgage.Due to numerous situations the house was repossessed 5 years ago..the negative equity was on our credit files then disappeared almost 2 years ago so we !!!8216;moved!!!8217; on.Then we received the dreaded debt letter in December.We owe £56k...on top of the affordable £10k debt we now have!I feel like our only option with this amount is Bankruptcy!Can someone that has recently been through it help me?How strict is the OR?What will they look at?Bank statements?Proof of bills?Will I lose my car (approx £2k value) Will I lose my mobile phone contract?I have considered a repayment plan direct with NRAM but I could not pay this back in my working lifetime & don!!!8217;t want to have to deal with the constant harrasment & income/expenditures!I know it!!!8217;s my debt etc but I would like to eventually move on with my life..but another house etc!My head is spinning with it all!!

Hi there

Thanks for posting.

I understand that you're worried about this and that it's sent your head spinning. I can also understand why the immediate thought is that bankruptcy is the only option, but it's important to get some expert advice to confirm (or otherwise) that this is the best way forward.

We'd be happy to help you look at things free of charge, and whatever solution we recommend we'd explain all the ins and outs of it for you. If you'd like to get our advice please visit www.stepchange.org and use our online Debt Remedy tool or you can call us for advice.

If your mind is already made up that bankruptcy is the solution, I'd suggest speaking with the Insolvency Service to ask specific questions as they're the experts in bankruptcy. Their details can be found here: www.gov.uk/government/organisations/insolvency-service

I hope this is helpful.

Allen

milliemoo7 · 24 March 2018 at 11:31AM

I went bankrupt in 2011 and have now been discharged. The last four weeks I have been receiving letters from my previous mortgage company saying that they will send a field agent to visit my home to review my current financial position. Or obtain a county court judgement for the full debt (37,009) with 8% interest. I am now extremely worried and where things were just starting to go right I feel like I!!!8217;m going backwards again! This debt was included in my bankruptcy order . I had the mortgage with a ex who I no longer have any contact with will this make any difference? Thank you

System · 24 March 2018 at 4:24PM

Hi there, ive currently changed jobs due to depression and i have had a major decrease in income. I earn around £950 a month and my boyfriend earns around £1300 a month - we split everything evenly as i earned more before but debts took up a large portion of my income.
Ive used stepchange online tool and its reccommended a DRO now my partner isnt aware of my debts fully and i think hed be angry if he knew the extent of it.
Ive asked him if he can pay more towards the house now im earning less but unfortuantley he cant as he co runs a business which uses roughly £400 a month of his income with no profit and hes learning how to drive and paying off his own debts.
Will i be asked to provide my boyfriends income? Hes not listed on my tenancy agreement or any of the bills either but pays me a set amount of £400 towards bills and food etc.
Im just really worried about it being rejected if i submit it or my boyfriend having to pay my debts.
Any help or experiences would be appreciated

StepChange_Allen · 26 March 2018 at 9:35AM

milliemoo7 wrote: »

I went bankrupt in 2011 and have now been discharged. The last four weeks I have been receiving letters from my previous mortgage company saying that they will send a field agent to visit my home to review my current financial position. Or obtain a county court judgement for the full debt (37,009) with 8% interest. I am now extremely worried and where things were just starting to go right I feel like I!!!8217;m going backwards again! This debt was included in my bankruptcy order . I had the mortgage with a ex who I no longer have any contact with will this make any difference? Thank you

Hi there

Thanks for posting.

I can understand that this is worrying, but as the debt was included in your bankruptcy order you should have no liability for this debt. I'd just give them a call (or send a letter) and provide your bankruptcy number and that should be the end of it. If your ex-partner is not bankrupt, then the bank can pursue them for the whole debt.

Please get back in touch if you have any further issues with this.

Allen

StepChange_Allen · 26 March 2018 at 9:48AM

Catlady121 wrote: »

Hi there, ive currently changed jobs due to depression and i have had a major decrease in income. I earn around £950 a month and my boyfriend earns around £1300 a month - we split everything evenly as i earned more before but debts took up a large portion of my income.
Ive used stepchange online tool and its reccommended a DRO now my partner isnt aware of my debts fully and i think hed be angry if he knew the extent of it.
Ive asked him if he can pay more towards the house now im earning less but unfortuantley he cant as he co runs a business which uses roughly £400 a month of his income with no profit and hes learning how to drive and paying off his own debts.
Will i be asked to provide my boyfriends income? Hes not listed on my tenancy agreement or any of the bills either but pays me a set amount of £400 towards bills and food etc.
Im just really worried about it being rejected if i submit it or my boyfriend having to pay my debts.
Any help or experiences would be appreciated

Hi there

Welcome to the forum and thanks for posting.

There's a quite a bit going on here so it'd be best to speak with us so we can go through the situation in detail. If you log back into Debt Remedy through our website and click 'Need help' in the bottom corner, it'll give you the phone number to speak with the right team here and discuss your budget.

We'll be able to check whether the DRO seems to be the right option, and if it is, explain all the ins and outs before you decide to go ahead.

I hope this is okay; we look forward to hearing from you.

Allen

Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

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