Ask a CCCS counsellor a bankruptcy question

sunshune · 8 September 2010 at 10:28PM

Thanks for your advice

klpotter · 9 September 2010 at 1:25PM

Hi can you tell me if my husband would lose his house if I was to be made bankrupt, the mortgage is in his name only and I do not work so therefore do not really contribute to it.

CCCS_Sue · 10 September 2010 at 1:20PM

klpotter wrote: »

Hi can you tell me if my husband would lose his house if I was to be made bankrupt, the mortgage is in his name only and I do not work so therefore do not really contribute to it.

Hi klpotter and thank you for your message,

If there are no joint debts with your husband and the property is in his name only and you have no beneficial interest, then there should be no problem.

However, if you were considered to have any beneficial interest in the property, then this would be considered as an asset and the Official Receiver could ask for your share of any equity in the property.
Beneficial interest is based on contributions you have made to the purchase of the property, how long you have lived there etc. It can be very complex.

I have attached a link for you which explains ‘What happens to your home in Bankruptcy’ which may help.

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf

In order to discuss this in more detail before you look at going bankrupt, I would recommend you call for an appointment to speak to one of our debt counsellors about your situation.
To book an appointment with one of our trained counsellors you would need to contact our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.
Alternatively you can visit our online debt advice facility called Debt Remedy. This link will take you directly to Debt Remedy www.cccs.co.uk/ref/drcu

Regards,
Sue

Marvintheparanoidandroid · 17 September 2010 at 5:08PM

Hi, I have been advised by the CCCS that bankruptcy is my only option, with debts of around 30k.

My main worry is that I am renting. I live with my wife but the rent is in my name. I earn more than my wife so I pay the rent and most bills.

Also, we are thinking of moving closer to work in London. The rent will be higher but overall we will save money because of our travelling costs currently.

What is the best thing to do - rent in my name, rent in joint names, rent in my wife's name or does it make any difference? I will still need to pay the majority of the rent though.

What other consequences could there be? Another consideration is that I have 2 children who stay with me once a month.

Thanks in advance

Rob

StepChange_Pavan · 20 September 2010 at 2:27PM

Marvintheparanoidandroid wrote: »

Hi, I have been advised by the CCCS that bankruptcy is my only option, with debts of around 30k.

My main worry is that I am renting. I live with my wife but the rent is in my name. I earn more than my wife so I pay the rent and most bills.

Also, we are thinking of moving closer to work in London. The rent will be higher but overall we will save money because of our travelling costs currently.

What is the best thing to do - rent in my name, rent in joint names, rent in my wife's name or does it make any difference? I will still need to pay the majority of the rent though.

What other consequences could there be? Another consideration is that I have 2 children who stay with me once a month.

Thanks in advance

Rob

Hi Rob and thanks for your message.

It would only affect you if there is anything in the terms and conditions of renting the property. If bankruptcy is going to affect your tenancy it might be better to put it in your wife’s name. If there is nothing in the rental agreement about bankruptcy then it shouldn’t make a difference.

With regards to your 2 children – did you mention this to your counsellor? If you need to, you should allocate any costs relating to their visits in your budget. If you haven’t already, call our support team to discuss any areas in your budget that need to be amended.

Hope this helps.

Kind regards
Pavan

900triumph · 20 September 2010 at 4:35PM

Prior to bankruptcy a relative made a loan to me to pay vat. As part of this arrangement, I offered my motorcycle as security for the loan. This arrangement was accepted by the OR, confirmed by my relative. Following discharge I have begun to buy back the bike by paying the relative £200 a month. Now my elderly relative has received a letter from the OR asking her to confirm that she is registered keeper. She is not, I am, although until I've finished paying for it she is still the owner. The creditors ( vat ) had the whole benefit of the loan that was secured in this way. Does the communication from the OR indicate any likely further action? Have i acted illegally? There was no bankruptcy order associated with the bankruptcy and I do not make any payments whatsoever. My relative is very worried. How should I proceed?

Hermin · 21 September 2010 at 6:47AM

I am not professional in this field, but I think bank should be responsible for this .

CCCS_Sue · 21 September 2010 at 11:57AM

900triumph wrote: »

Prior to bankruptcy a relative made a loan to me to pay vat. As part of this arrangement, I offered my motorcycle as security for the loan. This arrangement was accepted by the OR, confirmed by my relative. Following discharge I have begun to buy back the bike by paying the relative £200 a month. Now my elderly relative has received a letter from the OR asking her to confirm that she is registered keeper. She is not, I am, although until I've finished paying for it she is still the owner. The creditors ( vat ) had the whole benefit of the loan that was secured in this way. Does the communication from the OR indicate any likely further action? Have i acted illegally? There was no bankruptcy order associated with the bankruptcy and I do not make any payments whatsoever. My relative is very worried. How should I proceed?

Hi 900triumph and thank you for your message

Trustees usually investigate any transactions made by a debtor before they are declared bankrupt to ensure that no assets are given away to avoid being included in the bankrupt's assets.
But, in your case, as the arrangement was originally accepted by the OR, then I would recommend that you contact them to clarify your situation.

Regards
Sue

zenmarsh · 21 September 2010 at 4:28PM

HI all.
I recently went bankrupt and have had my initial meeting with the OR. I own my home jointly with my wife (who is not part of the bankruptcy) and have secured debts of around £130,000. I was led to believe that the OR would require a valuation of my home so I asked an estate agent for 3 valuations: forced sale, 6-8 weeks sale and open market valuation. I was surprised that the OR intends to use the open market valuation to calculate my beneficial interest as other advice I have been given suggests they would use the forced sale or 6-8 week sale valuation. The OR told me that I could not challenge this decision. Is that correct? And should they really be using this figure?
The OR stated that as they have 3 years to deal with my home, then I should be happy with the decision as they could wait to see if there was any increase in valuation over that period!
Does anyone have any experiance of this or any ideas how to negotiate/challenge the decision?

Thanks in advance
Kind regards

Mark

CCCS_Sue · 22 September 2010 at 11:17AM

zenmarsh wrote: »

HI all.
I recently went bankrupt and have had my initial meeting with the OR. I own my home jointly with my wife (who is not part of the bankruptcy) and have secured debts of around £130,000. I was led to believe that the OR would require a valuation of my home so I asked an estate agent for 3 valuations: forced sale, 6-8 weeks sale and open market valuation. I was surprised that the OR intends to use the open market valuation to calculate my beneficial interest as other advice I have been given suggests they would use the forced sale or 6-8 week sale valuation. The OR told me that I could not challenge this decision. Is that correct? And should they really be using this figure?
The OR stated that as they have 3 years to deal with my home, then I should be happy with the decision as they could wait to see if there was any increase in valuation over that period!
Does anyone have any experiance of this or any ideas how to negotiate/challenge the decision?

Thanks in advance
Kind regards

Mark

Hi Mark and thank you for your message

It is entirely at the discretion of the OR.

I have attached a link to the Insolvency Services Technical Guide which may help you further regarding this. Section (v ) is relevant to your query.

http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/S/SaleBankruptsInterestSolelyOwnerProperty.htm

Regards
Sue

Ask a CCCS counsellor a bankruptcy question

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