Bankruptcy - National Debtline say I can, CCCS say I can't

StillStanding · 19 January 2012 at 8:01PM

Hi all.
Really don't know what to do here. I'm strongly considering filing for bankruptcy in the near future, and have spoken to both CCCS (with whom I have a DMP with), and National Debtline. Both advisors seemed very knowledgeable, but the CCCS really seemed determined to stop me from going for bankruptcy, saying the Judge would refuse me. (she did say my case was not very straightforward) Here is my situation, which I've updated from a thread I posted a few months ago:

I'm currently on a DMP (debts of approx £17000, started plan in early 2009) with the CCCS, and the majority of my debts are starting to decrease, although it would take at least another 4 years to be totally debt free However over the past few months certain events in my life have made me have a major rethink: In April I was TUPE'D into a new company, and my job role has changed significantly which is causing me a lot of stress, it's basically a whole new job which I do not feel qualified to do.
I have a mortgage on my house (just in my name) that I live in with my wife. My house is in negative equity, and the area in which I live has become a real high crime area over the past few years. I was attacked near my house a few months ago, and this attack has left my wife and I scared to leave the house.
My father in law also passed away last year, leaving my mother in law living by herself. My wife is really worried about her mother (she is an only child) and has made the decision to move back to take care of her. The trouble is, it's in the USA.
What I wanted to know with the debt charities is can I go bankrupt, and move to the USA where I can be with my wife and mother in law (would have some job interviews in the pipeline). Would the courts allow me to do this ? Or would they say "You're paying through a DMP, the debt is decreasing, therefore you must continue with it"? If this was the case, I wouldn't see my wife for 4 years as I'm so sick of seeing her so scared over here.
I'm aware that I have to provide the OR with details of where I have moved to and changes in income etc, and paying into an IPA. (The CCCs advisor said I sounded very knowledgable of bankruptcy terms - which is all thanks to ths forum!)
I just don't know who to believe. I could try CAB as well, but one of my ex work colleagues works there, and I don't want my employers knowing about this at present.

:(:(

fermi · 19 January 2012 at 8:05PM

If you are insolvent; i.e. cannot pay all your debts as they fall due, then you should not be refused by a judge.

StillStanding · 19 January 2012 at 8:09PM

Thanks Fermi. Have to admit I was really surprised when CCCS said that. Are they under pressure to keep people on DMP's or something ?

IF · 19 January 2012 at 8:13PM

National Debtline don't advise BR lightly so it must be an option. I think you have now found your switch and we'll help you all the way.

Best wishes
If...x

fermi · 19 January 2012 at 8:16PM

More likely just a member of staff that hasn't got the correct end of the stick when they were trained.

There does seem to be a certain lack of understanding of BR with many CCCS staff. Had similar cases before.

CCCS have some very knowledgeable advisers on these boards.

Might be worth giving them a PM, as they may be able to help.

Or perhaps better, as CCCS has a separate dedicated bankruptcy support team, put you in touch with them.

MSE_Wendy wrote: »

The Consumer Credit Counselling Service (CCCS) has several counsellors answering questions in our forum. There are three ways to contact them:

2 - If you would prefer to ask a question in private you can send a private message to CCCS Private Messages and one of the counsellors will get back to you.

StillStanding · 19 January 2012 at 8:18PM

ifwisheswerehorses... wrote: »

National Debtline don't advise BR lightly so it must be an option. I think you have now found your switch and we'll help you all the way.

Best wishes
If...x

Thanks. I love the quote on your signature!

StillStanding · 19 January 2012 at 8:50PM

fermi wrote: »

More likely just a member of staff that hasn't got the correct end of the stick when they were trained.

There does seem to be a certain lack of understanding of BR with many CCCS staff. Had similar cases before.

CCCS have some very knowledgeable advisers on these boards.

Might be worth giving them a PM, as they may be able to help.

Or perhaps better, as CCCS has a separate dedicated bankruptcy support team, put you in touch with them.

Thanks Fermi. The CCCS advisor did give me the bankruptcy support team number, which confused me even more! :think:

debt_doctor · 19 January 2012 at 9:21PM

fermi wrote: »

If you are insolvent; i.e. cannot pay all your debts as they fall due, then you should not be refused by a judge.

Yes indeed. The fact that you are in a DMP by definition demonstrates that you cannot pay the contractual amount of your debts, you are insolvent.

DD

niku2 · 19 January 2012 at 11:23PM

OP, we are in a very, very similar situation.

We are heading back to the states as soon as my husband's visa is granted (I'm the American). We're saddled with a house which is in negative equity and we just can't shift it in this market.

We have just made the decision to seriously consider bankruptcy, as there does not seem to be any realistic way out. Once we both quit our jobs here in the UK, there's no way we can continue to pay our debts. We're terrified, to be honest.

Hope you find some guidance.

StillStanding · 19 January 2012 at 11:33PM

niku2 wrote: »

OP, we are in a very, very similar situation.

We are heading back to the states as soon as my husband's visa is granted (I'm the American). We're saddled with a house which is in negative equity and we just can't shift it in this market.

We have just made the decision to seriously consider bankruptcy, as there does not seem to be any realistic way out. Once we both quit our jobs here in the UK, there's no way we can continue to pay our debts. We're terrified, to be honest.

Hope you find some guidance.

Hope you do too. It's been a very tough twelve months for us. PM me if you need any guidance with the Visa stuff

beckyfojo · 20 January 2012 at 11:46AM

CCCS also advised me to go into a DMP even though I clearly could not afford it (I don't have to pay an IPA) and I would say I feel they are going way over the top to stop people going bankrupt. And I mean people for whom it obviously is the best option. I spoke to advisors from other charities in the end because I felt once the CCCS advisor said I should get a DMP there was no easy way to get advice on bankruptcy from them.

I don't know if it is the case of it being one advisor or policy, because I have spoken to them on 3 separate occasions over the last 18 months and had the same response, which tbh delayed the inevitable and caused me a lot of unnecessary stress. Just my own experience, obviously.

Good luck.

Bankruptcy - National Debtline say I can, CCCS say I can't

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