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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 9,178Posts
    • 22,016Thanks
    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 – 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 68
    • Crowlikethebird
    • By Crowlikethebird 4th Jul 18, 8:14 PM
    • 10 Posts
    • 1 Thanks
    Crowlikethebird
    I meant IPA not IVA obvs !!!55357;!!!56904;
    • Kendoddsdog
    • By Kendoddsdog 4th Jul 18, 9:12 PM
    • 3 Posts
    • 0 Thanks
    Kendoddsdog
    Being made bankrupt by HMRC
    Hi.
    If made bankrupt by HMRC how far back can the OR ask to see your bank statements?
    • Flyright
    • By Flyright 5th Jul 18, 5:42 AM
    • 337 Posts
    • 191 Thanks
    Flyright
    The OR can obtain bank statements for as far back as they deem necessary. Please be aware that failure to pay tax in itself can be grounds for the OR to seek a BRO.
  • StepChange_Patience
    Hi there

    Thanks for getting in touch, I’ll help as much as I can with this.

    When bankruptcy is put forward, either through a Statutory Demand from a creditor or if it was something you were considering applying for yourself, what they would look to do as part of the bankruptcy is check your financial history for things like ‘transactions under value and preferences’.

    Whilst the Official Receiver has the power to reverse transactions undervalue in the five years prior to the bankruptcy order and potentially request proof for this, is in very set circumstances.

    It may be the case they would look into your financial history in closer detail if there are any ‘offences’ they believe have taken place, you can find out further information about this here: https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/bankruptcy-offences/

    I hope this helps, but please get back in touch if you need anything else.

    Patience


    Hi.
    If made bankrupt by HMRC how far back can the OR ask to see your bank statements?
    Originally posted by Kendoddsdog
    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.
    • chereb
    • By chereb 5th Jul 18, 11:28 PM
    • 23 Posts
    • 4 Thanks
    chereb
    Hi brief outline of my situation. I have a joint mortgage with ex. I live here with two children 13, 19 and both in education. My house is valued at £63000 with a £31000 balance remaining. Payments are all up to date. Most of the marital debt is in my name and currenyly i am on benefits due to illness. Ex pays mortgage but the total debt in my name is £43000. Before the marriage ended i vould afford all the payments had an excellent credit rating and am ashamed to find myself in this position. The only other thing i own is a 12 year old car worth about £600. I am currently in a dmp and really struggling to live and pay that. I am now considering bankruptcy as my only option going forward. Will i be made to sell the home with me having £16000 equity? I have nowhere to turn, no family, no nothing. Conpletely out of my depth here and dont know what to do.
    • Cbn2000
    • By Cbn2000 6th Jul 18, 2:35 PM
    • 2 Posts
    • 0 Thanks
    Cbn2000
    Advise if I s;hould consider bankruptcy
    Hi,


    I wonder if you could give me some direction. I am considering Bankruptcy as a means to getting out of the debt I have been in for 6 years as per the following:


    - My Debt is approx. £54000
    - The debt has been accrued through marital debt, divorce and losing all my assets to my wife.
    - All the debt is credit card and overdraft.
    - I earn £52K a year but my out-goings, without debt payment match my income - I'm currently pay only a token amount for towards my debts. My high expenditure commitments are Rent, CSA payments for my 17 year old son, then University costs for older daughter University. This will be the case for the next 2 years, then my situation will improve - but I'd rather act now whilst I am in this situation.
    - My assets consist of a £1500 car, some household possessions and about £3000 savings.
    - I'm 49 years old


    I much appreciate any advise you can give me
  • StepChange_Joe
    Hello

    Thanks for posting and welcome to the forum.

    First of all, please don’t feel ashamed. You’ve experienced some very big life changes, and these often bring financial changes with them that are beyond your control. Please be assured you’ve done the right thing by getting in touch.

    If your house has some equity, then this would be taken into account if you went bankrupt. Only your share of the equity would be passed to the Official Receiver (OR), but the house could still be sold.


    However, this wouldn’t necessarily mean the sale of your home right away. Firstly, the OR may do nothing with the house for now and review the situation in 2 years and 3 months. Secondly, even if the OR applied to the court for an ‘order for sale,’ your family’s welfare would be considered, and a court can postpone an order for sale by up to 12 months to allow you time to move.

    If you’re on a DMP at the moment, but this isn’t working out for you, I’d recommend getting in touch with StepChange so they can take a closer look at your budget, and recommend some other solutions. They can give you some more tailored and impartial advice based on your financial situation.

    A good place to start is their online Debt Remedy self-help tool. This is available 24 hours a day and takes about 20 minutes to complete. The tool will guide you through creating a budget and will then offer the best debt solution for your situation.

    I hope you’ve found this helpful.


    Take care


    Joe

    Hi brief outline of my situation. I have a joint mortgage with ex. I live here with two children 13, 19 and both in education. My house is valued at £63000 with a £31000 balance remaining. Payments are all up to date. Most of the marital debt is in my name and currenyly i am on benefits due to illness. Ex pays mortgage but the total debt in my name is £43000. Before the marriage ended i vould afford all the payments had an excellent credit rating and am ashamed to find myself in this position. The only other thing i own is a 12 year old car worth about £600. I am currently in a dmp and really struggling to live and pay that. I am now considering bankruptcy as my only option going forward. Will i be made to sell the home with me having £16000 equity? I have nowhere to turn, no family, no nothing. Conpletely out of my depth here and dont know what to do.
    Originally posted by chereb
    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_Joe
    Hello

    Thanks for your message and welcome to the forum.

    Bankruptcy can certainly be a good option if you’re unable to pay towards the debts and clear them over a longer period of time.

    However, bankruptcy would likely mean losing assets such as savings and non-essential luxury goods, and your vehicle could be affected regardless of its value.

    Equally, if you’re situation is likely to improve in the next two years, and if that means you’ll be able to offer more to your debts, then waiting for this to happen could mean avoiding bankruptcy.

    I’d recommend getting in touch with StepChange to discuss the options available to you. A good place to start is their online Debt Remedy self-help tool. This is available 24 hours a day and takes about 20 minutes to complete. The tool will guide you through creating a budget and will then offer the best debt solution for your situation.


    I hope you’ve found this helpful.



    Take care
    Joe
    Hi,


    I wonder if you could give me some direction. I am considering Bankruptcy as a means to getting out of the debt I have been in for 6 years as per the following:


    - My Debt is approx. £54000
    - The debt has been accrued through marital debt, divorce and losing all my assets to my wife.
    - All the debt is credit card and overdraft.
    - I earn £52K a year but my out-goings, without debt payment match my income - I'm currently pay only a token amount for towards my debts. My high expenditure commitments are Rent, CSA payments for my 17 year old son, then University costs for older daughter University. This will be the case for the next 2 years, then my situation will improve - but I'd rather act now whilst I am in this situation.
    - My assets consist of a £1500 car, some household possessions and about £3000 savings.
    - I'm 49 years old


    I much appreciate any advise you can give me
    Originally posted by Cbn2000
    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.
    • Crowlikethebird
    • By Crowlikethebird 7th Jul 18, 2:49 PM
    • 10 Posts
    • 1 Thanks
    Crowlikethebird
    Hi
    Do you know if the bankruptcy process effects the switching service?
    I thought I had all my ducks in a row until I realised that my current account would be closed as it has an overdraft (£10, not used).
    I applied to switch my Barclays current account to my Metro account, the date for the switch is 16/7/18 but I am planning on submitting the application on Monday as rent is due 19/07. Should I wait until after this date but then risk my salary being frozen as it's paid on last working day of the month?
    I am not sure if one option is better than another.
    Thanks for any advice (again).
  • StepChange_Joe
    Hello

    Thanks for your message.

    It’s unlikely that going bankrupt will affect your ability to use the switching service. There are a few things worth bearing in mind, however.

    I’d recommend you switch to your new basic account before you go bankrupt. When you switch, your income and priority payments will be moved over to this new account. This reduces the risk of missing any bill payments. However, the new account will still be frozen for a short time after your bankruptcy.
    If you wait until after your bankruptcy to switch, your old account will likely have been frozen or closed already, increasing the risk of missing payments to your household bills and losing a portion of your income.

    If you’re still unsure, I’d recommend getting in touch with the Insolvency Service as soon as possible to find out more. You can reach them on 0300 678 0015 Monday to Friday 9am – 5pm.

    I hope you’ve found this helpful.

    Joe
    Hi
    Do you know if the bankruptcy process effects the switching service?
    I thought I had all my ducks in a row until I realised that my current account would be closed as it has an overdraft (£10, not used).
    I applied to switch my Barclays current account to my Metro account, the date for the switch is 16/7/18 but I am planning on submitting the application on Monday as rent is due 19/07. Should I wait until after this date but then risk my salary being frozen as it's paid on last working day of the month?
    I am not sure if one option is better than another.
    Thanks for any advice (again).
    Originally posted by Crowlikethebird
    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.
    • Cbn2000
    • By Cbn2000 9th Jul 18, 1:36 PM
    • 2 Posts
    • 0 Thanks
    Cbn2000
    Hi - and thank you for your response. My other question relating to my situation is, would in not be better for me to bankrupt myself now, whilst I have high financial demands and no assets? Rather than wait some years until I have some spare income - but then be consumed by debt repayment for the rest of my working life.


    Regards


    Cbn2000
  • StepChange_Joe
    Hello

    Thanks for your message.

    How you decide which is the best way forward is entirely up to you. Each debt solution has its pros and cons, of course.

    Making a fair offer of payment towards your debts wouldn’t necessarily protect you from collections action, but it would avoid the impacts that bankruptcy can have. It could however mean paying towards the debts over a much longer period of time.

    Bankruptcy, however, would protect you completely from collections action and could mean being debt free in 12 months. Even if an income payment arrangement (IPA; a monthly payment to the Insolvency Service) is set by the Official Receiver (OR), this would last no more than 3 years. Bankruptcy would however mean losing your assets and savings. It would also have wider reaching impacts on your credit file, ability to get onto a future tenancy, mortgage or remortgage, among other things.

    It’s also worth bearing in mind that if the IPA is set for 3 years, and your budget surplus increased during that time, you’d need to report this to the OR so your IPA can be increased to take into account the available surplus.

    To help you make your decision, StepChange can take a closer look at your financial situation and make recommendations based on that.

    I recommend getting in touch with StepChange so they can assess your financial situation more closely, and give you some tailored debt advice. A good place to start is the Debt Remedy self-help tool.


    Thanks

    Joe
    Hi - and thank you for your response. My other question relating to my situation is, would in not be better for me to bankrupt myself now, whilst I have high financial demands and no assets? Rather than wait some years until I have some spare income - but then be consumed by debt repayment for the rest of my working life.


    Regards


    Cbn2000
    Originally posted by Cbn2000
    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.
    • Hitmanandher
    • By Hitmanandher 17th Jul 18, 12:19 AM
    • 3 Posts
    • 0 Thanks
    Hitmanandher
    I am having sleepless nights working about a creditor bankrupting us. We are in a DMP (self managed) and they have accepted very small payments for last 3 years. However they have not sold the debt on. The amount we are owe is over 50k, roughly the equity in our home.
    All the info I find on bankruptcy is about people making themselves bankrupt. What is like to know is, do creditors do it to people with unsecured debts? With thanks
  • StepChange_Allen
    I am having sleepless nights working about a creditor bankrupting us. We are in a DMP (self managed) and they have accepted very small payments for last 3 years. However they have not sold the debt on. The amount we are owe is over 50k, roughly the equity in our home.
    All the info I find on bankruptcy is about people making themselves bankrupt. What is like to know is, do creditors do it to people with unsecured debts? With thanks
    Originally posted by Hitmanandher

    Hi there

    Thanks for posting.

    It's possible for a creditor to try and bankrupt someone, but in the majority of cases it would only be considered if they would gain something as a result. For example, if someone owned a valuable property but had no cash flow each month, and wouldn't consider releasing equity, a creditor may try and make them bankrupt to force sale of the property and get paid out.

    However, this isn't common and in the scenario you explain with your debt and equity, it's unlikely though not impossible. By the time bankruptcy costs and fees were considered, and the property probably selling undervalue at auction, there's no guarantee that they would get their money back.

    Has something led you to worry about the possibility, has a creditor mentioned something?

    Best wishes

    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.
    • Megmeg
    • By Megmeg 18th Jul 18, 7:38 AM
    • 1 Posts
    • 0 Thanks
    Megmeg
    Important
    I went bankrupt in 2017 but wanting to a degree will this effect me getting a student loan or do y Y think I should look into getting my bankruptcy lifted???
  • StepChange_Joe
    Hello

    Thanks for posting.

    A bankruptcy can’t be reversed or lifted, as such. It can be ‘annulled’, which is when the court cancels a bankruptcy order. This can only happen in the following circumstances:

    • The bankruptcy order should not have been made, for example because of an error in the process
    • You can pay or secure all of their debts and the Insolvency Service's and any trustee's fees.
    • An IVA can be agreed with the creditors as an alternative.

    However, bankruptcy won’t impact your ability to apply for a place at university, or your eligibility for a student loan. According to the GOV.uk website, whether you qualify for student finance depends on:

    • your university or college
    • your course
    • if you’ve studied a higher education course before
    • your age
    • your nationality or residency status

    I hope you’ve found this helpful.


    Thanks

    Joe

    I went bankrupt in 2017 but wanting to a degree will this effect me getting a student loan or do y Y think I should look into getting my bankruptcy lifted???
    Originally posted by Megmeg
    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.
    • TopsyMum
    • By TopsyMum 24th Jul 18, 9:24 AM
    • 48 Posts
    • 321 Thanks
    TopsyMum
    Stepchange debt remedy tool suggests bankruptcy but I'm not sure, seems so big!! And also What do you actually have to do/supply to become bankrupt when you apply?? What reasons do they ask??
    Worried they'll pick apart all bank statements etc and scrutinise everything then refuse? I know I've been stupid. And there are personal circumstances but I do t want to be effectively selling a sob story
    • Mark Myx
    • By Mark Myx 24th Jul 18, 2:57 PM
    • 1 Posts
    • 0 Thanks
    Mark Myx
    Bankruptcy petition sent
    Hello .. I've I'm going through a bankruptcy process being brought against me from HMRC. The petition date is for Mon 31 July 2018, in a few days time. I've owed them back taxes for a number of years which I failed to deal with at the time. My partner was diagnosed with cancer a few years back, this is when the mess started. Her illness lasted three years and she died in Nov 2012, we have daughter who was 12 at the time. I now know I was suffering from depression during and after this period, which resulted in my debt, currently £ 45,000. My main concern is keeping positive for my daughter.

    My question is on the date of the petition hearing is this when my bankruptcy will begin ?
    Do I have to be there ?
  • StepChange_Kirsty
    Hi there,

    Thanks for your message.

    In order to apply for Bankruptcy you will need to complete the online application at https://www.gov.uk/apply-for-bankruptcy. When you apply for Bankruptcy you'll need to make sure you have any wage slips, benefit or pension statements, bills and letters from any bailiffs or enforcement agents to hand.

    If you’re looking at Bankruptcy you can start the online form and see which questions you’ll need to answer that apply to your circumstances. You don’t actually need to submit the form until you feel ready and you'll also have needed to pay the fee of £680.

    As you’ve completed our online Debt Remedy tool, if you’re not sure if Bankruptcy is right for you I would recommend giving us a call on 0800 197 1704 in order to speak to a Debt Advisor. We’re available Monday to Friday 8am to 8pm and Saturday 9am to 2pm.

    You can also speak to the Insolvency Service who may be able to tell you more about what they would be looking out for on your bank statements. They’re available Monday to Friday 9am to 5pm on 0300 678 0015.

    All the best

    Kirsty



    Stepchange debt remedy tool suggests bankruptcy but I'm not sure, seems so big!! And also What do you actually have to do/supply to become bankrupt when you apply?? What reasons do they ask??
    Worried they'll pick apart all bank statements etc and scrutinise everything then refuse? I know I've been stupid. And there are personal circumstances but I do t want to be effectively selling a sob story
    Originally posted by TopsyMum
    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 Mark,

    Thanks for your post and welcome to the forum.

    I’m sorry to hear about your partner’s illness, it sounds like this will have been a very difficult time for you and your family.

    If the creditor’s petition is successful then yes the date of the hearing is when the Bankruptcy period will begin. We would always recommend you attend the hearing whether or not you plan to oppose the Bankruptcy. If you do intend to oppose the Bankruptcy then attending the hearing is essential.

    I would recommend you look into whether or not Bankruptcy would be right for your circumstances by speaking to a Debt Advisor. You’ve mentioned the petition has been made by HMRC due to unpaid taxes. If you’re self-employed I would recommend speaking to Business Debtline who can let you know if allowing the Bankruptcy would be best taking into consideration the effects it would have on your business.

    If you’re not self-employed you can speak to ourselves at StepChange and we can offer you help and advice on your best solutions for dealing with the outstanding debt.

    I hope this helps,

    Kirsty


    Hello .. I've I'm going through a bankruptcy process being brought against me from HMRC. The petition date is for Mon 31 July 2018, in a few days time. I've owed them back taxes for a number of years which I failed to deal with at the time. My partner was diagnosed with cancer a few years back, this is when the mess started. Her illness lasted three years and she died in Nov 2012, we have daughter who was 12 at the time. I now know I was suffering from depression during and after this period, which resulted in my debt, currently £ 45,000. My main concern is keeping positive for my daughter.

    My question is on the date of the petition hearing is this when my bankruptcy will begin ?
    Do I have to be there ?
    Originally posted by Mark Myx
    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.
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