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  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 5th Nov 12, 5:58 PM
    • 9,313Posts
    • 22,175Thanks
    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, Joe or Patience 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; 09-10-2018 at 10:56 AM.
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Page 69
    • stevieatlas
    • By stevieatlas 26th Jul 18, 1:04 AM
    • 1 Posts
    • 0 Thanks
    stevieatlas
    Taking out a credit card to go bankrupt
    Can i take out a high interest payday loan of £700 to pay for the bankruptcy? (if I pass their credit check) - I feel the answer will be no, but if there's a way that would be great!

    My debt level is 21,000 , it's over the DRO level by 1000 as I share a £2000 estate agent fee debt with my silly ex wife, Is there any way I can get a DRO?

  • StepChange_Patience
    Hi there

    Thanks for getting in touch.

    I understand your concerns with paying for the bankruptcy fee and as you mentioned taking out additional credit to cover this such as a high interest pay day loan may not be the best way to cover this.

    Taking out additional credit to cover the fee may be considered an Ďoffenceí by the Official Receiver (OR).

    It may be the case they would look into your financial history in closer detail if there are any Ďoffencesí 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/

    If however you already have available credit, you may be able to use this to pay for the bankruptcy.

    Another option, instead of using credit to cover this could be to save for the fee. You can pay it in instalments but the full amount will need to be paid before it can be submitted or you could consider looking into a trust fund or grant.

    You can do a grant search here: https://www.turn2us.org.uk/

    The Insolvency Service do have a set criteria for a debt relief order (DRO), but if you would like to get an idea of the alternative options you could look at, StepChange have an anonymous online tool you could try and you can find it here: https://www.stepchange.org/Debtremedy.aspx

    I hope this helps.

    Patience


    Can i take out a high interest payday loan of £700 to pay for the bankruptcy? (if I pass their credit check) - I feel the answer will be no, but if there's a way that would be great!

    My debt level is 21,000 , it's over the DRO level by 1000 as I share a £2000 estate agent fee debt with my silly ex wife, Is there any way I can get a DRO?

    Originally posted by stevieatlas
    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.
    • olgredtix
    • By olgredtix 3rd Aug 18, 8:46 PM
    • 3 Posts
    • 0 Thanks
    olgredtix
    I think that such analysis always comes down to one. It is worth waiting with the opinion.
    • Three7six
    • By Three7six 4th Aug 18, 12:24 PM
    • 11 Posts
    • 3 Thanks
    Three7six
    Hi, couple of questions regarding bankruptcy online application. I've 2 credit cards with approx 700 quid available credit on them, would it be an offence to use that to pay the bankruptcy fee?
    I had sofas on up through dfs, a friend took over the payments for me, is that going to be a problem?
    Also, I had a joint account with a flatmate that was supposed to be for shared costs but we never bothered in the end so I used it for a bit to just put 'spendable' money in, then closed it earlier this year, I can't find anything on it such as statements who since I've moved, the form asks for accounts held in the last 2 years, how would I complete that?
    Sorry
  • StepChange_Linsi
    Hello

    Thanks for posting and welcome to the forum.

    Iíll do my best to be as specific as possible when answering your questions but each bankruptcy is looked at on a case-by-case basis and the official receiver will make any final decisions.

    1. You could get a restriction undertaking or order for ĎIncurring debt without reasonable expectation of paymentí if you pay for the bankruptcy fee using your credit card. Having said this itís very rare for an official receiver to do this if you only use the available credit to pay for the fee.

    There are alternative ways you could pay for the fee:
    • Reduce or stop payments to non-priority debts to save the £680 and pay the fee in installments
    • Sell goods or assets (ensuring that they are sold for their correct market value and proof is kept)
    • Apply to a trust fund (Turn2us have a search tool you can use)

    2. If your friend is making payments directly to the creditor for the sofa this shouldnít cause any issues. If your friend gives you the money to then pay the creditor it may be seen as preferential treatment if youíve fallen behind on any payments to other creditors.

    Assuming the credit agreement is solely in your name this debt will be included and written off in bankruptcy. The means neither yourself nor your friend will need to keep paying.

    3. If you canít remember the name of the bank you could check your credit report for free using Noddle, ClearScore or MSE Credit Club. As you only closed your account this year I would imagine the bank will be able to provide the information youíll need to complete the form.

    For more guidance completing the form Iíd recommend you call the Insolvency Service Helpline on 0300 678 0015.

    Although youíve started your bankruptcy application Iíd recommend you get debt advice (if you havenít already) just to make sure this is the right solution for you. You can create a budget and get advice online using our Debt Remedy tool. Hereís the link.

    I hope this helps,

    Linsi

    Hi, couple of questions regarding bankruptcy online application. I've 2 credit cards with approx 700 quid available credit on them, would it be an offence to use that to pay the bankruptcy fee?
    I had sofas on up through dfs, a friend took over the payments for me, is that going to be a problem?
    Also, I had a joint account with a flatmate that was supposed to be for shared costs but we never bothered in the end so I used it for a bit to just put 'spendable' money in, then closed it earlier this year, I can't find anything on it such as statements who since I've moved, the form asks for accounts held in the last 2 years, how would I complete that?
    Sorry
    Originally posted by Three7six
    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.
    • Three7six
    • By Three7six 7th Aug 18, 1:26 AM
    • 11 Posts
    • 3 Thanks
    Three7six
    Thank you, I was considering a dro but I completed the debt remedy and it said I had too much money. It included my DLA as income but didn't have anywhere I could put the care expenses in, so I assumed I'd have to go bankrupt instead?
  • StepChange_Allen
    Thank you, I was considering a dro but I completed the debt remedy and it said I had too much money. It included my DLA as income but didn't have anywhere I could put the care expenses in, so I assumed I'd have to go bankrupt instead?
    Originally posted by Three7six

    Hi there

    Thanks for your reply.

    Yes we advise that you include all income and all expenses on your budget to make sure it's fully accurate and therefore you get the correct advice. We can add your care costs into your budget if you call our Digital Support team. If you log into Debt Remedy and click on 'Need help' it will allow to contact us via phone or online chat.

    It's essential that your budget is right before you follow any advice, so I'm glad you raised this.

    We look forward to speaking with you soon.

    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.
    • JunePeacock_20000
    • By JunePeacock_20000 12th Aug 18, 10:46 AM
    • 2 Posts
    • 0 Thanks
    JunePeacock_20000
    Hi. Iíve completed the debt remedy tool with StepChange and my options are DRO and a token payment in the interim. Based on my wage, and outgoings I have £48 left a month which certainly wont cover 18 creditors totalling to £15500.

    Iíll be calling stepchange first thing tomorrow morning to get the ball rolling but after a few hours reading forums, Iím wondering if my husbands wage and his property will complicate matters. He has a house (that we donít live in) we rent from a family member. Iím not named on his mortgage.

    I know that Iíll gain more clarity about matters tomorrow but wondered if anyone else had been in a similar situation?

    His house is in negative equity
    • glentoran99
    • By glentoran99 12th Aug 18, 12:07 PM
    • 5,473 Posts
    • 4,661 Thanks
    glentoran99
    unless any of the debts are joint debts then his circumstances shouldn't affect you
    • JunePeacock_20000
    • By JunePeacock_20000 12th Aug 18, 2:44 PM
    • 2 Posts
    • 0 Thanks
    JunePeacock_20000
    Thank you !!!128522;
    • SFROSTY
    • By SFROSTY 12th Aug 18, 4:53 PM
    • 3 Posts
    • 0 Thanks
    SFROSTY
    just a quick question re BR.
    I earn at present £359 per week after stoppages,I can boost this pay weekly by overtime usually around an extra £30-£35.Also I can earn a lot extra if I wish to work my rest week.What %of overtime does a OR consider taking ?In short is it going to be worth it?
  • StepChange_Allen
    Hi. Iíve completed the debt remedy tool with StepChange and my options are DRO and a token payment in the interim. Based on my wage, and outgoings I have £48 left a month which certainly wont cover 18 creditors totalling to £15500.

    Iíll be calling stepchange first thing tomorrow morning to get the ball rolling but after a few hours reading forums, Iím wondering if my husbands wage and his property will complicate matters. He has a house (that we donít live in) we rent from a family member. Iím not named on his mortgage.

    I know that Iíll gain more clarity about matters tomorrow but wondered if anyone else had been in a similar situation?

    His house is in negative equity
    Originally posted by JunePeacock_20000

    Hi there

    Thanks for posting.

    If the house is in negative equity then it shouldn't be an issue; if there was equity then you may have beneficial interest in the property as you're married. If this was over £1000, you'd be ineligible for a DRO.

    Once you call us we'll discuss everything in full with you, and check whether the DRO is definitely an option for you.

    We look forward to hearing from 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.
  • StepChange_Allen
    just a quick question re BR.
    I earn at present £359 per week after stoppages,I can boost this pay weekly by overtime usually around an extra £30-£35.Also I can earn a lot extra if I wish to work my rest week.What %of overtime does a OR consider taking ?In short is it going to be worth it?
    Originally posted by SFROSTY

    Hi there

    Thanks for posting.

    All overtime and bonuses are treated as income by the OR and all would be taken if you have an income payment arrangement (IPA) in place.

    I can't say much more without knowing anything about your financial situation; if you'd like some debt advice, please have a look on our website at how to get started: www.stepchange.org/Contactus

    I hope this helps.

    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.
    • DebtFreeWannabe31
    • By DebtFreeWannabe31 15th Aug 18, 12:06 PM
    • 1 Posts
    • 0 Thanks
    DebtFreeWannabe31
    Hi

    I'm hoping someone can help me as I think I have been given a default on my credit report unfairly.
    In 2009 I was struggling to pay my debts so instructed a debt management company called Money Tailor - I believe they no longer exist.
    They took over managing my debts and I paid the same monthly payments to them for the entire time of the debt management programme and never missed a payment - all of my lenders then contacted Money Tailor directly and no letters got sent to myself - Money Tailor agreed all monthly payments with the lenders.
    However one lender - Arrow Global Limited agreed with the debt management programme an amount and this was paid every month directly from Money Tailor, then in 2016 a default was put on my credit report as it turned out money tailor were not paying them the set amount agreed with Arrow Global but i had no idea about this as they contacted each other directly.
    Upon discovering the default and the issue I cancelled my debt management programme with Money Tailor having nearly done 5 years with them and agreed the amounts with lenders myself as their wasn't much left to pay by this time. - all accounts were settled in full in 2016.

    So basically for a debt that was being dealt with from 2009 with a debt management company and a lender, i got a default in 2016 for it and wondered if their would be anyway this could be removed as I don't believe i should have had it. - if i was to be defaulted then i believe it should have been in 2009 when i couldn't afford to pay them and started the process with the debt management company not in 2016 - 7 years later when my credit report was just starting to pick up!
    Any help would be greatly appreciated.

    Many thanks
    Gemma
  • StepChange_Kirsty
    Hi Gemma,

    Thanks for your post and welcome to the forum.

    Generally speaking a creditor would usually issue a default notice around 3 to 6 months after you first start reducing or missing payments. Some creditors will hold off on a default if you have made an agreement with them and have stuck to it which appears to be what has happened here. If Money Tailor changed the amount they were paying this may explain why the default has been registered so long after the debt management plan started.

    As Arrow Global are a debt purchaser, if the debt it relates to was regulated by the Consumer Credit Act then the original creditor should have registered the default before they sold the debt. Also as the debt can only default once, Arrow Global should not have been the ones to register the default. It may be worth finding out when Arrow Global took over the debt and as a minimum the default should be backdated to before the debt was sold.

    If you feel there was an unreasonable delay in registering the default you can make a complaint. First of all to the company who registered the default and then if necessary (if you are unhappy with the response or you havenít received a response after 8 weeks) you can escalate the complaint to the Financial Ombudsman Service who will be able to investigate this further.

    I hope this helps.

    Kirsty



    Hi

    I'm hoping someone can help me as I think I have been given a default on my credit report unfairly.
    In 2009 I was struggling to pay my debts so instructed a debt management company called Money Tailor - I believe they no longer exist.
    They took over managing my debts and I paid the same monthly payments to them for the entire time of the debt management programme and never missed a payment - all of my lenders then contacted Money Tailor directly and no letters got sent to myself - Money Tailor agreed all monthly payments with the lenders.
    However one lender - Arrow Global Limited agreed with the debt management programme an amount and this was paid every month directly from Money Tailor, then in 2016 a default was put on my credit report as it turned out money tailor were not paying them the set amount agreed with Arrow Global but i had no idea about this as they contacted each other directly.
    Upon discovering the default and the issue I cancelled my debt management programme with Money Tailor having nearly done 5 years with them and agreed the amounts with lenders myself as their wasn't much left to pay by this time. - all accounts were settled in full in 2016.

    So basically for a debt that was being dealt with from 2009 with a debt management company and a lender, i got a default in 2016 for it and wondered if their would be anyway this could be removed as I don't believe i should have had it. - if i was to be defaulted then i believe it should have been in 2009 when i couldn't afford to pay them and started the process with the debt management company not in 2016 - 7 years later when my credit report was just starting to pick up!
    Any help would be greatly appreciated.

    Many thanks
    Gemma
    Originally posted by DebtFreeWannabe31
    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.
    • Fifiwench17
    • By Fifiwench17 17th Aug 18, 5:03 PM
    • 1 Posts
    • 0 Thanks
    Fifiwench17
    I am thinking of filing for bankruptcy but was wondering if the OR accepts payments to family in your budget. I owe my mum and brother in law around £6000.
    We have joint tax credit,council tax and rent arrears. Husband's name is on tax credit,council tax bill and rent account. Will all those debts become my husband's if i go BR ?

    Thanks
  • StepChange_Rachael
    Hi

    Welcome to the forum and thanks for posting.

    Once you apply for bankruptcy the OR will look into the financial position and decide how the bankruptcy will be formed. The OR can set an income payment arrangement (IPA) into the bankruptcy if there's money left over after general living costs and household bills have been paid. The OR is highly unlikely to allow money to be paid to family and friends during bankruptcy and this debt would be legally written off through the bankruptcy. Any money you set aside in your budget for family and friends is likely to form part of the IPA to all your creditors, this means your family would receive some payment but this is likely to be much smaller than the amount youíd agreed.

    Any debts that are in joint name including household bills will become the full responsibility of the other party. So yes your husband would become responsible for paying them back if he wasnít also going ahead with insolvency.

    Bankruptcy can be a great solution for some people, however there are many different types of debt solutions, and different types of insolvency.

    If you havenít already, Iíd recommend getting tailored debt advice to explore all your options. You can find a link to Stepchange self-help tool Debt Remedy here.


    Thanks
    Rachael






    I am thinking of filing for bankruptcy but was wondering if the OR accepts payments to family in your budget. I owe my mum and brother in law around £6000.
    We have joint tax credit,council tax and rent arrears. Husband's name is on tax credit,council tax bill and rent account. Will all those debts become my husband's if i go BR ?

    Thanks
    Originally posted by Fifiwench17
    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.
    • realgonekid
    • By realgonekid 25th Aug 18, 12:53 PM
    • 44 Posts
    • 15 Thanks
    realgonekid
    Step change,

    What damages are excluded from bankcrupty( only personal injury ( mental and physical) and what damages can be included in bankruptcy?
    • joeyhawks
    • By joeyhawks 28th Aug 18, 9:57 AM
    • 6 Posts
    • 0 Thanks
    joeyhawks
    Hi
    I am a single parent, no maintenance or child support, employed full time but have about 26k of credit card debts which means my outgoings exceed my income and therefore I rely on using credit to pay for essentials such as food and petrol. Despite my best efforts, I have come to the realisation that the debt is affecting my mental health and have decided to get help. I have looked into IVA and bankruptcy which looks like the best option, but I was wondering what is the longer term impact if I go down the bankruptcy route - what restrictions would I be under and for how long?

    Thanks for lending an ear .....
  • StepChange_Rachael
    Hi

    Thanks for posting.

    There are different types of debt that arenít included in insolvency solutions like bankruptcy, but in terms of damages then yes debts from personal injury claims arenít included. So for example if a car wasnít insured and in an accident there was a personal injury claim this wouldnít be written off with insolvency. If the claim was for damages to the vehicle then they would be included.

    Also all financial penalties made by a magistrateís court or by a higher criminal court also arenít written off. This includes fines, costs orders, compensation orders and victim surcharges.

    Hope this helps.

    Thanks
    Rachael






    Step change,

    What damages are excluded from bankcrupty( only personal injury ( mental and physical) and what damages can be included in bankruptcy?
    Originally posted by realgonekid
    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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