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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 8,965Posts
    • 21,690Thanks
    MSE Andrea
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question
    • #1
    • 5th Nov 12, 5:58 PM
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question 5th Nov 12 at 5:58 PM
    StepChange Debt Charity (formerly CCCS) has several counsellors answering questions in our forum.

    There are three ways to contact them:

    1 - To ask them a question please post it below and Allen, Linsi, Kirsty Rachael or Richard will post a reply here.

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

    3 Ė StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an advisor through online chat.

    This thread continues from the previous Ask a counsellor a question thread one
    Last edited by MSE Andrea; 14-12-2016 at 1:40 PM.
    Could you do with a Money Makeover?


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Page 63
  • StepChange_Kirsty
    Hello,

    Thanks for your post.

    I can see that Fermi has started a new thread for you and youíve now received some useful advice about the CCJ.

    In the situation, given the time restraints for your new job I think itís best to be proactive as you are by completing the application to set aside the judgment.

    If you need any further help and advice you can also contact the Insolvency Service helpline on 0300 678 0015 Monday to Friday 9am to 5pm.

    I hope you manage to get everything resolved.

    Kirsty

    Hi guys.

    I received a fine in the post from a private parking company way back in 2016. Anyway, I went bankrupt in February 2017, having not responded to any of the threatening letters I had received, I advised the Official Receiver about this debt as I had received a letter regarding a county court claim for this fine. The Official Receiver wrote to Civil Enforcement LTD advising them of the bankruptcy order and that all correspondence etc was to go to them now. Anyway fast forward around 2 weeks I receive a CCJ in the post. Me being a bit naive I ignored this (thinking that the OR would be taking care of this). Anyway, I have checked my credit file in January 2018 as I am excited to be at the end of my bankruptcy order and I see an active CCJ for this fine on my credit file. I have contacted my OR who it turns out is someone different now as the previous guy has left, she has confirmed to me in writing that this matter should have been dealt with, that the debt had been included in my bankruptcy. I found Civil Enforcement LTD address online and wrote then a very strongly worded letter (see below) on the 16th January, this was delivered and signed for the next day. I contacted the County Court about this and they emailed me saying they do not have the training to remove this CCJ and that I should contact the creditor (which I have). My OR also says they do not directly deal with the county court business centre and that I have to sort it myself with Civil Enforcement LTD. Anyway, here is the letter:

    I am writing to you today with regards to a PCN issued to myself on 22/04/2016. A bankruptcy order was made against me on 28/02/2017. I have enclosed documentation to confirm this. I contacted yourselves and notified you of this by phone soon after to which I was advised to send proof of this to your office in Horton House, Liverpool. I sent this to you on 21/03/2017. It was to my surprise that I received another letter from you dated 07/04/2017 advising you had issued this claim to the County Court Business Centre, therefore clearly ignoring my previous correspondence to you.
    At this point I sought advice from my insolvency practitioner who informed me they would write to you themselves confirming the fact that I had indeed been declared bankrupt and that the debt should have been included in this, as I am sure you are very well aware.
    This brings me to the point of the County Court Judgement which was made against me on 08/05/2017. I have sought further advice regarding this matter from my solicitor, my insolvency practitioner and the County Court Business Centre who have all informed me that as you were informed of my bankruptcy before the county court claim was issued, it should have never been referred to them and the debt should have been settled within the bankruptcy order.
    The purpose of this letter is to inform you of all the circumstances surrounding this mistake you have made and to give you the opportunity to make amends. You are being advised to amend your records and show this debt as being settled. You are also being advised to inform the County Court Business Centre of this mistake and ensure that this CCJ is set aside and removed from any records.
    If I have not received confirmation of this within 28 days of this letter being sent, I will be referring this case to my solicitor. You may contact me by letter or email.


    This was received on the 17th January and whilst 28 days have not yet passed, I am a bit worried they will just ignore this letter. I need this CCJ removed from my credit file as I have obtained an offer of employment abroad for a foreign exchange company who have stated this offer will not stand if I can not get it removed. I am due to start on March 20th.

    Given the fact that I have proof that the claimant was advised about my bankruptcy order before the CCJ was issued, what else can I do to get this sorted if they ignore my letter ?

    I appreciate this has been a long winded first post, I am really just at my wits end with this now.

    I also did try and start a thread for this however I cannot find the start thread button.

    Thank you.
    Originally posted by Rscott93
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Kirsty
    Hi there,

    Thanks for your post.

    As you did an IVA you can answer no on the application form because itís specifically asking about bankruptcy. If it asked if youíd ever been made insolvent then you would need to answer yes as an IVA is a form of insolvency.

    An IVA should normally come off your credit file 6 years after the IVA was approved and removed from the Insolvency register three months after the IVA was completed. Given that your IVA started in January 2011 I would expect it should have been removed by now.

    Kind regards,

    Kirsty


    Hi, when obtaining quotes for contents insurance, I am asked if I have ever been made bankrupt. I took out an IVA in January 2011 and repaid early however I understand IVA is one step away from being made bankrupt so will answer 'no'. Is this correct?
    And will the IVA stay on my credit file for 6 years from the repayment date?
    Thanks in advance.
    Originally posted by DrowninginDebt
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • DrowninginDebt
    • By DrowninginDebt 5th Feb 18, 5:32 PM
    • 28 Posts
    • 3 Thanks
    DrowninginDebt
    Hi Kirsty (Step Change), many thanks for your reply regarding my spent IVA - excellent advice! Very grateful for your help. Cheers!
    Profile name now out of date as, thankfully, with lots of help from this site, have cleared my debts 18 months early (apart from the mortgage which I am working on!). Many thanks MSE!!
    • eggyf7
    • By eggyf7 6th Feb 18, 5:03 AM
    • 50 Posts
    • 8 Thanks
    eggyf7
    Hi im currently in the process of being made bankrupt(MAP) with StepChange charity in Scotland but i have a question re my mobile phone contract.
    I am paying £65 a month and have 14months left of my contract with an early termination fee of £540 - can this be included in creditors? When my advisor asked for an ingoings/outgoings breakdown i listed £65 a month for phone but nothing was discussed further about my phone. i would prefer a PAYG sim
    Also stupidly never included my PayPal credit debt of £750 as i thought it would effect my use of Paypal purchases using a bank card could this be added?
  • StepChange_Rachael
    Hi

    You could also try Charis grants or have a look into energy/water companies you use or have used before. I can see you already mentioned Britsh Gas.

    You can even check current or previous employers, for example some employers have support or trust funds set up for things like bankruptcy fees.

    Best of luck
    Rachael

    Thank you for your reply, I have had a look on turn2us website but canít seem to find any charities that offer help !!!128542;

    Kind regards
    Originally posted by worried789
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    Yes these types of debts can be included. If you decide to end the contract and go with a pay as you go option, the £540 is left over and this is a debt that can be included.

    Iíd suggest contacting the department helping you go forward with MAP so this can be discussed further with you. There are limits to the amount of debt for MAP to be successful.

    You can find StepChanges contact details here.

    Thanks
    Rachael



    Hi im currently in the process of being made bankrupt(MAP) with StepChange charity in Scotland but i have a question re my mobile phone contract.
    I am paying £65 a month and have 14months left of my contract with an early termination fee of £540 - can this be included in creditors? When my advisor asked for an ingoings/outgoings breakdown i listed £65 a month for phone but nothing was discussed further about my phone. i would prefer a PAYG sim
    Also stupidly never included my PayPal credit debt of £750 as i thought it would effect my use of Paypal purchases using a bank card could this be added?
    Originally posted by eggyf7
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • DawnMcUK
    • By DawnMcUK 7th Feb 18, 2:40 PM
    • 4 Posts
    • 0 Thanks
    DawnMcUK
    Money woes
    Hello,

    I have a complicated issue that I need advice on desperately. A little background: my husband and I declared bankruptcy in 1997, returned the house to the mortgage company, rented elsewhere and were fully discharged in 2001/2. I didnít realise at the time what was controlling the spending until in 2007, when we had built our status back up, had good jobs and had bought the home we rented, then our only child died suddenly aged 16. We were in a spiral and debt began mounting. I then realised that my mental health was a major trigger for spending. We entered into an Iva which was extended twice when both my husband and I could no longer return to work. My physical health deteriorated quickly and I was registered disabled by 2009. We paid what we could and were released from the Iva in 2012.

    Now though, things are back to crisis point. I have been extremely poorly and only receive employment support allowance and DLA (which was at highest rate for care and mobility); which has now been changed to PIP (which awarded me enhanced care but standard mobility - meaning I may lose my car). My husband is my carer and receives Carers allowance. We were managing ok, had a couple of credit cards and catalogues, but paid them ok, until early 2017, mere months after my step brother committed suicide and my step father died from lung cancer in the same month, a charity my husband and I set up in our sonís memory was taken from us (I donít wish to explain further at this point). My health, both physical and mental plummeted, and my husbands mental health suffered massively too. We began to spend money on more cards and catalogues to fill the void. We had to move to a housing association bungalow in September 2017 after I was really poorly again, as I could no longer manage stairs or the house itself. We would not be able to afford to sell the house in its unloved condition; owing £73000 on the mortgage and similar houses struggling to get up to £75 - 80000 in perfect condition.

    We just last week relinquished the house to the mortgage company as we cannot pay that on top of rent in the bungalow. We are still liable for council tax on the house so have received papers filing for the full year to April 2018 (and possibly beyond). We owe for utilities from the house and maxed out our 8 credit cards (approx £10,500) and our 5 catalogues (approx £5,500). We also have a loan with 2yrs left (approx £2,200) and are sick with worry as to what the mortgage company will say we are liable for. Iíve had to stop payments on the cards and catalogues today as Iíve been unable to shop for food for over 4 weeks, and we are so lost. Iím appealing my PIP as if I lose the car we would not be able to get another, meaning I would be practically housebound. I know my spending is directly related to my anxiety and depression, which then becomes worse due to debt worries. Iíve already caused us to enter insolvency solutions twice before, and Iím scared that there is nowhere else to go, or that I will be evicted from the bungalow! Please help!!
  • StepChange_Rachael
    Hi

    Thank you for posting and sharing your personal situation. Iím sorry to hear youíve been through such difficult circumstances. I canít imagine what you and your partner have had to deal with but there is definitely help, support and a way forward for you both.

    The most important thing is that youíre able to concentrate on your health and that your income is being prioritised for your household bills and your living costs so that you donít have to worry about losing your property.

    Iíd suggest speaking to us at StepChange so we can discuss your options with you. I think itís important that youíre able to explore all the options and that the solutions take into account your full situation so you're able to access the right support.

    You can find StepChanges contact details here.

    Take care,
    Rachael



    Hello,

    I have a complicated issue that I need advice on desperately. A little background: my husband and I declared bankruptcy in 1997, returned the house to the mortgage company, rented elsewhere and were fully discharged in 2001/2. I didnít realise at the time what was controlling the spending until in 2007, when we had built our status back up, had good jobs and had bought the home we rented, then our only child died suddenly aged 16. We were in a spiral and debt began mounting. I then realised that my mental health was a major trigger for spending. We entered into an Iva which was extended twice when both my husband and I could no longer return to work. My physical health deteriorated quickly and I was registered disabled by 2009. We paid what we could and were released from the Iva in 2012.

    Now though, things are back to crisis point. I have been extremely poorly and only receive employment support allowance and DLA (which was at highest rate for care and mobility); which has now been changed to PIP (which awarded me enhanced care but standard mobility - meaning I may lose my car). My husband is my carer and receives Carers allowance. We were managing ok, had a couple of credit cards and catalogues, but paid them ok, until early 2017, mere months after my step brother committed suicide and my step father died from lung cancer in the same month, a charity my husband and I set up in our sonís memory was taken from us (I donít wish to explain further at this point). My health, both physical and mental plummeted, and my husbands mental health suffered massively too. We began to spend money on more cards and catalogues to fill the void. We had to move to a housing association bungalow in September 2017 after I was really poorly again, as I could no longer manage stairs or the house itself. We would not be able to afford to sell the house in its unloved condition; owing £73000 on the mortgage and similar houses struggling to get up to £75 - 80000 in perfect condition.

    We just last week relinquished the house to the mortgage company as we cannot pay that on top of rent in the bungalow. We are still liable for council tax on the house so have received papers filing for the full year to April 2018 (and possibly beyond). We owe for utilities from the house and maxed out our 8 credit cards (approx £10,500) and our 5 catalogues (approx £5,500). We also have a loan with 2yrs left (approx £2,200) and are sick with worry as to what the mortgage company will say we are liable for. Iíve had to stop payments on the cards and catalogues today as Iíve been unable to shop for food for over 4 weeks, and we are so lost. Iím appealing my PIP as if I lose the car we would not be able to get another, meaning I would be practically housebound. I know my spending is directly related to my anxiety and depression, which then becomes worse due to debt worries. Iíve already caused us to enter insolvency solutions twice before, and Iím scared that there is nowhere else to go, or that I will be evicted from the bungalow! Please help!!
    Originally posted by DawnMcUK
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • twotone10
    • By twotone10 9th Feb 18, 9:52 AM
    • 2 Posts
    • 0 Thanks
    twotone10
    Bankrupt/PPI
    Hello to the Forum (new member).

    I fully understand that PPI is classed as an asset if agreement was before going bankrupt. I had a £15,000 loan with the Halifax when I was made redundant and as a result I went bankrupt as I could not make the repayments and was unaware I had the payment protection. (15 years ago). 2 years ago I wrote to the Halifax to see if I had in fact had PPI at the time and I did to the value of £12,000. Obviously this went to the Official Receiver who will send straight back to the Halifax. I feel like the bank did not do their job at the time and basically ruined my life as bankruptcy stays with you forever. Is there nothing you can do if you can prove it as a result of the lender misspelling lead to your bankruptcy in the first place. Many thanks.
    • twotone10
    • By twotone10 9th Feb 18, 9:54 AM
    • 2 Posts
    • 0 Thanks
    twotone10
    Sorry that should have read misselling!!!
  • StepChange_Allen
    Hello to the Forum (new member).

    I fully understand that PPI is classed as an asset if agreement was before going bankrupt. I had a £15,000 loan with the Halifax when I was made redundant and as a result I went bankrupt as I could not make the repayments and was unaware I had the payment protection. (15 years ago). 2 years ago I wrote to the Halifax to see if I had in fact had PPI at the time and I did to the value of £12,000. Obviously this went to the Official Receiver who will send straight back to the Halifax. I feel like the bank did not do their job at the time and basically ruined my life as bankruptcy stays with you forever. Is there nothing you can do if you can prove it as a result of the lender misspelling lead to your bankruptcy in the first place. Many thanks.
    Originally posted by twotone10

    Hi there

    Welcome to the forum and thanks for posting.

    I'm sorry to hear that you've had a tough time going bankrupt. I can understand why you feel the way you do about this, but I'm not sure if anything can now be done or not.

    The only suggestion I can make is to make a complaint to Halifax, stating what you're unhappy about, why, and what you want the outcome of the complaint to be. If you're not happy with the outcome of that complaint, you can refer to the Financial Ombudsman to rule on the dispute.

    I hope it works out for you.

    Allen
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • Kthomas6
    • By Kthomas6 14th Feb 18, 10:15 AM
    • 1 Posts
    • 0 Thanks
    Kthomas6
    Hi; I was made bankrupt in August 2017 following a failed IVA. I have been paying £900 per month towards the bankruptcy (IPA) and am voluntarily selling my house to aid this. The problem is that the interest and charges are going up and up and my origional IVA was for £53K and now the debt has reached over £100K. I feel that they are making an example of me and setting me up to loose. I have been completely compliant and admit I have made bad financial decisions in the past, but 'm trying to get back on my feet and feel like I'm fighting a loosing battle. Can you help?
    • Floorwalker
    • By Floorwalker 14th Feb 18, 10:34 AM
    • 4 Posts
    • 0 Thanks
    Floorwalker
    Hi, hope you can help with this. Some 20 years ago for a very small debt due to circumstances I was made bankrupt. At the time we had just sold our home and with a joint profit of £72K they took my £36K and the debts which at the time I worked out to be less than £25K in total inc all bills etc should hjave been cleared. At the time I had around £64K in a private pension fund and another £11K in an opt out fund from the thatcher years. The trustees were worse than useless to the point of insultingly obstructive and lack of response. Years on I have never had an answer as to why at the time another £75K was removed from me and now at pension age I have to rely on the state rather than my own. The discharge came 3 years after inception
  • StepChange_Kirsty
    Hi there,

    Thanks for your post and welcome to the forum.

    It sounds odd that your debts keep going up due to interest and charges. When you enter into an IVA, the creditors must freeze all interest and charges. If that IVA fails then the creditors can apply interest and charges backdated to when the IVA began. When the Bankruptcy was approved, interest and charges should have been frozen again.

    The costs associated with Bankruptcy can be quite large and this may be what the Official Receiver is expecting you to pay from the equity in the property when it sells. I would recommend speaking your Official Receiver to find out why the debt seems to be increasing and you could also ask them to provide you with a breakdown of costs.

    If it still doesnít make any sense you could call the Insolvency Services helpline on 0300 678 0015 for further help and advice. Theyíre available Monday to Friday 9am to 5pm.

    Regards,

    Kirsty

    Hi; I was made bankrupt in August 2017 following a failed IVA. I have been paying £900 per month towards the bankruptcy (IPA) and am voluntarily selling my house to aid this. The problem is that the interest and charges are going up and up and my origional IVA was for £53K and now the debt has reached over £100K. I feel that they are making an example of me and setting me up to loose. I have been completely compliant and admit I have made bad financial decisions in the past, but 'm trying to get back on my feet and feel like I'm fighting a loosing battle. Can you help?
    Originally posted by Kthomas6
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Allen
    Hi, hope you can help with this. Some 20 years ago for a very small debt due to circumstances I was made bankrupt. At the time we had just sold our home and with a joint profit of £72K they took my £36K and the debts which at the time I worked out to be less than £25K in total inc all bills etc should hjave been cleared. At the time I had around £64K in a private pension fund and another £11K in an opt out fund from the thatcher years. The trustees were worse than useless to the point of insultingly obstructive and lack of response. Years on I have never had an answer as to why at the time another £75K was removed from me and now at pension age I have to rely on the state rather than my own. The discharge came 3 years after inception
    Originally posted by Floorwalker

    Hi there

    Thanks for your message.

    This is a difficult one to give any firm advice on because the OR (official receiver) process isn't something I'm overly familiar with; at least with something like this. What's clear is that the value of assets taken is way in excess of the debt that was included in bankruptcy. My understanding is that the OR's fees can stretch well into the multiple thousands of pounds, but I would be surprised if they were anywhere near an amount leaving you with nothing.

    I'd suggest that you contact the OR to ask them for a breakdown of how the money they took from you has been broken down, and whether you're entitled to some of that money back. If you're not satisfied with their response, please have a look at the complaints process on the Insolvency Service website: https://www.gov.uk/government/organisations/insolvency-service/about/complaints-procedure

    I hope you manage to get somewhere with this.

    Allen
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • Gellerbing
    • By Gellerbing 15th Feb 18, 7:53 AM
    • 28 Posts
    • 2 Thanks
    Gellerbing
    Hi,
    I've asked for forms to make a start on a dro. I just wondered how long i should expect to recieve them? I tried emailing from the website twice but ive had no reply. By May ill have no money whatsoever so i want to get these forms done ASAP.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    It seems strange that youíve not had a reply to your emails yet but email response times will depend on how many emails weíve received into the department.

    The quickest way for us to help you going forward is to give us a call. You can find the StepChange contact details here.

    Weíll look forward to hearing from you.

    Thanks
    Rachael


    Hi,
    I've asked for forms to make a start on a dro. I just wondered how long i should expect to recieve them? I tried emailing from the website twice but ive had no reply. By May ill have no money whatsoever so i want to get these forms done ASAP.
    Originally posted by Gellerbing
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • willamy02
    • By willamy02 15th Feb 18, 7:55 PM
    • 3 Posts
    • 1 Thanks
    willamy02
    Bankruptcy?????
    Hi

    I have a number of Credit Card accounts (maxed out, approx 40k in total) and a couple of catalogues accounts and we are struggling to manage the payments as our household income over the past 18 months has taken a nose dive due to children growing up and leaving home etc (even after getting work) we are now trying to survive month after month on about £900 a month less income than bills and I have been trying to keep it going as long as I can but it seems time to make a decision.

    My concerns are
    1. Although all the accounts are in my name, my wife has a home run self employed beauty business that is fairly new and does not have a big turnover or profit anyway but we are scared that this will be looked at (it is was her dream which we brought to life) she is now worried it will be affected??

    2. We have a motability vehicle for our disabled son which we are named drivers on but only personally have use of a cheap £300 Nissan Micra (that is registered to me) that the wife uses for running around for stock and for me to get to work on nights etc ..... will this be touched ???

    3. I bank with Halifax and have an current account with overdraft facility which I have only gone into once, I would like to keep the account (without an overdraft of course) does this ever happen or is it always a case of freezing and getting a basic account???

    4. Do you have to have stopped paying debts and get into arrears etc to apply or can I apply now before it goes any further.

    and finally I went bankrupt back in 2005 as a younger man will deciding to do so again put me in a bad light with the OR or is this more common than I am thinking??? are they used to this sort of thing ???

    Any advice would be really helpful as it even though I have been through it before it is still a scary thought
  • StepChange_Allen
    Hi

    I have a number of Credit Card accounts (maxed out, approx 40k in total) and a couple of catalogues accounts and we are struggling to manage the payments as our household income over the past 18 months has taken a nose dive due to children growing up and leaving home etc (even after getting work) we are now trying to survive month after month on about £900 a month less income than bills and I have been trying to keep it going as long as I can but it seems time to make a decision.

    My concerns are
    1. Although all the accounts are in my name, my wife has a home run self employed beauty business that is fairly new and does not have a big turnover or profit anyway but we are scared that this will be looked at (it is was her dream which we brought to life) she is now worried it will be affected??

    2. We have a motability vehicle for our disabled son which we are named drivers on but only personally have use of a cheap £300 Nissan Micra (that is registered to me) that the wife uses for running around for stock and for me to get to work on nights etc ..... will this be touched ???

    3. I bank with Halifax and have an current account with overdraft facility which I have only gone into once, I would like to keep the account (without an overdraft of course) does this ever happen or is it always a case of freezing and getting a basic account???

    4. Do you have to have stopped paying debts and get into arrears etc to apply or can I apply now before it goes any further.

    and finally I went bankrupt back in 2005 as a younger man will deciding to do so again put me in a bad light with the OR or is this more common than I am thinking??? are they used to this sort of thing ???

    Any advice would be really helpful as it even though I have been through it before it is still a scary thought
    Originally posted by willamy02

    Hi there

    Welcome to the forum and thanks for posting.

    I'll answer these questions as best I can as you've asked them; please bear in mind that it's very difficult to give certain answers with bankruptcy, so I can only give my best thoughts on them:

    1. I wouldn't have thought that your wife's business would be directly affected because she's not the one looking at going bankrupt. It is likely that her credit rating will be affected though as most married people are financially linked. If she relies on credit for stock or anything, there could be an impact on that. You could always contact Business Debtline to get more expert advice on this: www.businessdebtline.org

    2. A car worth £300 is unlikely to be an issue as long as it's essential for use, which you getting to work would likely mean. I can't guarantee it but I'd be surprised if it was taken into the bankruptcy.

    3. If you have debts with Halifax, they may not allow you to bank with them, but this isn't certain. Some banks will automatically downgrade a current account to a basic account if not, or possibly even still close; it's at their discretion. Accounts will at least be frozen for a short period when the bankruptcy goes ahead whilst transactions are checked.

    4. No, you can go bankrupt at any time when you can no longer meet your financial commitments, there doesn't have to be a particular amount of arrears.

    5. There's nothing to say that the previous bankruptcy will be any issue, though it's possible that the OR may discuss it with you and could explore why financial difficulty has arisen again, and whether it might after this bankruptcy. There's no way of knowing at this stage though. You could call the Insolvency Service to see if they could give you more certainty on this.

    If you'd like us to have an impartial look at your finances, to see if bankruptcy is the best way forward, please find our contact details on our website: www.stepchange.org/Contactus

    I hope this is helpful.

    Allen
    I work as a debt advisor for StepChange Debt Charity 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.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • willamy02
    • By willamy02 16th Feb 18, 3:20 PM
    • 3 Posts
    • 1 Thanks
    willamy02
    Thank you for the advice
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