Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Andrea
    • By Former MSE Andrea 5th Nov 12, 4:58 PM
    • 9,419Posts
    • 22,334Thanks
    Former MSE Andrea
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question
    • #1
    • 5th Nov 12, 4:58 PM
    Ask a StepChange (formerly CCCS) counsellor a bankruptcy question 5th Nov 12 at 4:58 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 Former MSE Andrea; 09-10-2018 at 9:56 AM.
    Could you do with a Money Makeover?


    Follow MSE on other Social Media:
    MSE Facebook, MSE Twitter, MSE Deals Facebook, MSE Deals Twitter, Forum Twitter, Instagram, Pinterest
    Join the MSE Forum
    Get the Free MoneySavingExpert Money Tips E-mail
    Report inappropriate posts: click the report button
    Point out a rate/product change
    Flag a news story: news@moneysavingexpert.com
Page 76
  • StepChange_Kirsty
    Hello,

    Thanks for your post. I appreciate what a difficult time this must be for you as the partner of someone who has been made bankrupt. I will do my best to answer each of your questions in turn.

    It sounds as though the Business Debt Agency may be acting as the Trustee in your partnerís bankruptcy. It is very important that your partner cooperates with both the Official Receiver (OR) and the Business Debt Agency by providing any information they may ask for and by paying any income payment arrangement (IPA) which is set. We cannot say if or how much any IPA would be. Usually the restrictions of bankruptcy are set for 12 months from the date of the bankruptcy order, however, if your partner does not co-operate the restrictions could be extended up to 15 years under a Bankruptcy Restriction Order.

    The OR/ trustee in bankruptcy must decide what they want to do with the property within three years from the date of the bankruptcy order. Itís likely they will approach you first to see if itís possible for you to buy out your partnerís share of the property or to see if you want to try to sell the property on the open market. Your partnerís share of the equity would then need to be paid to the trustee.

    Should a decision be made to apply for possession and sale of the property then for one year from the date of the bankruptcy order either a non-bankrupt spouse/ civil partner would have a right of occupation or a bankrupt would have the right of occupation where it is also the home of a person under the age of 18. After one year it is assumed that the interests of the bankruptís creditors would outweigh all other considerations unless there are exceptional circumstances.

    With regards to the savings, if it can be shown that those savings have been made by you from your income then youíll be able to keep this. However if your partner has also contributed to this savings pot you may be asked to release his share in order it can be paid in to the bankruptcy to offset the loss to his creditors.

    I hope this helps to clears things up for you. You can also contact the Insolvency Service directly with any questions on 0300 678 0015. Theyíre available Monday to Friday 9am to 5pm.

    Kirsty





    Hi

    I am hoping that someone will be able to help.

    My partner is self-employed and I found out last summer that he hadnít been paying his tax bill for the last five years. He had received a letter stating that he needed to attend the Bankruptcy court as he owed £24k. Despite telling me that he was dealing with this, he eventually was made bankrupt at the end of August 2018. I have since found out that he owes £10k on his credit card and has a loan approx. £8k. Initially, he would not speak to the OR, but after pleading with him, he eventually spoke to him in November. He agreed to transfer to a local Business debt agency, but so far, I am only aware that he has met with this company once since November. Unfortunately he will not discuss this with me telling me that this is none of my business but Iím worried as he still appears to be burying his head in the sand and still ignoring this Ė he has changed his address to his mums, so I no longer see any post.

    We have a joint mortgage of £30k with a house value of £180k+ and joint earning of £3K (my partner 2K and me 1k). We also have two children, one is due to take is GCSEís this May. At present, his account have been closed, so all the d/dís etc. are paid by me. As I understand with the bankruptcy process, he will need to enter an IPA as we have surplus cash, but again have no idea what this repayment figure will be.
    I have no clue what is happening and as the debt is not mine, no-one will talk to me.

    My questions are

    If he continues to do nothing, what will happen? Whoís responsible to chase this - the OR or the Business debt Agency?
    Will they force a sale of the house? If so, what timescales are there? I am concerned that this may affect my sons GCSE results, so am hoping that nothing happens at the moment.
    Prior to the Bankruptcy, I had also saved money to go on holiday this year. The savings are in my name, will we still be able to go abroad?

    Thanks
    Originally posted by STW1966
    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.
    • Scottishlc2019
    • By Scottishlc2019 11th Apr 19, 6:38 PM
    • 1 Posts
    • 0 Thanks
    Scottishlc2019
    Hi
    I hope someone can give advise on this. I am currently a contractor working for one of the main banks. I have been caught up in a mess with hmrc dating back 10 years (all over the headlines just now 2019 loan charge) and I am thinking for me my best option is BR. I have been offered a full time role in a bank and I hoped to secure
    My job and all checks whilst things are in good standing. Do banks credit check yearly? If so and they find out will I loose my job? FSA is my only background
    And to loose my career and go BR would just be horrendous as I would have no income.
    Any advise appreciated
    • STW1966
    • By STW1966 11th Apr 19, 7:22 PM
    • 9 Posts
    • 1 Thanks
    STW1966
    Hi Kirsty,

    Thanks for your response. I wondered if you would be able to answer a couple of quick questions regarding your reply

    I have completed a SOA and have approx. £300 surplus. Am I right is stating that the trustees/ OR would set up an IPA for this amount. I have read that and IPA has a maximum of 3 years, if my partner pays £300 over three years this will only totals £10800 and considerably short of his debt. What would normally happen next bearing in mind that we have equity of £150k+. Could they still force the sale of the property to realise the remaining debt?

    The OR contacted me in September to advise that he has an interest in his share of the equity. Unfortunately, I am unable to purchase his share, although I am unaware of the exact debt as he will not discuss this with me.

    Finally, what is considered an exceptional circumstance regarding the sale of the property? My son is due to take his GSCEís this summer and my daughter the following year. If possible, I donít want this to have an impact on their education, but understand that this may not be deemed as an exceptional circumstance.

    Thanks in advance
  • StepChange_Allen
    Hi
    I hope someone can give advise on this. I am currently a contractor working for one of the main banks. I have been caught up in a mess with hmrc dating back 10 years (all over the headlines just now 2019 loan charge) and I am thinking for me my best option is BR. I have been offered a full time role in a bank and I hoped to secure
    My job and all checks whilst things are in good standing. Do banks credit check yearly? If so and they find out will I loose my job? FSA is my only background
    And to loose my career and go BR would just be horrendous as I would have no income.
    Any advise appreciated
    Originally posted by Scottishlc2019

    Hi there

    Welcome to the forum and thanks for posting.

    My advice would be to first check whether bankruptcy, or indeed any debt solution, would impact on any employment that you'd be looking at in the future. If it would, and you don't want that issue, then you could look at alternative options.

    I can't advise how often or when a bank or employer in general would credit check their staff, other than probably upon application if in banking. It may depend on one to another, but it's certainly possible that this would be mentioned in your employment contract and ongoing checks could happen.

    If you'd like some free and impartial debt advice, you can register with us, all details can be found here: 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.
  • StepChange_Allen
    Hi Kirsty,

    Thanks for your response. I wondered if you would be able to answer a couple of quick questions regarding your reply

    I have completed a SOA and have approx. £300 surplus. Am I right is stating that the trustees/ OR would set up an IPA for this amount. I have read that and IPA has a maximum of 3 years, if my partner pays £300 over three years this will only totals £10800 and considerably short of his debt. What would normally happen next bearing in mind that we have equity of £150k+. Could they still force the sale of the property to realise the remaining debt?

    The OR contacted me in September to advise that he has an interest in his share of the equity. Unfortunately, I am unable to purchase his share, although I am unaware of the exact debt as he will not discuss this with me.

    Finally, what is considered an exceptional circumstance regarding the sale of the property? My son is due to take his GSCEís this summer and my daughter the following year. If possible, I donít want this to have an impact on their education, but understand that this may not be deemed as an exceptional circumstance.

    Thanks in advance
    Originally posted by STW1966

    Hi there

    Thanks for your reply.

    Yes it's certainly possible that the property will have to be sold in order to pay your partner's share of the proceeds into the bankruptcy. This is one of the main reasons that organisations will petition for someone's bankruptcy; that there's an asset that will see them paid back.

    It's hard to give specific examples of what would class as an exceptional circumstance, but I'd be surprised if a child with exams coming up would fall into this category.

    As Kirsty mentioned, it may be useful to speak with the Insolvence Service for more information on all this.

    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.
    • doorstep54
    • By doorstep54 16th Apr 19, 4:49 PM
    • 28 Posts
    • 14 Thanks
    doorstep54
    I wounded if someone can help please with a question I have, 2016 I went bankrupt and in 2017 was discharged from bankruptcy, its about my pension I have as am near pension age I have been told I can cash my bit of pension in its £5000 but am worried if I do cash it in I may have to pay it to crediters but all my debts was in bankruptcy so I don't have any debt now so would I be able to keep my pension money? and help please would be very grateful thanks
  • StepChange_Rachael
    Hi

    Thanks for your message to the forum.

    Iíd always recommend getting pension advice before releasing any cash lump sum so you know the benefits and potential risks. However, itís my understanding that once youíre discharged from bankruptcy, if you receive any cash lump amount then due to the discharge you wouldnít have to pay it into your bankruptcy. Cash lump sums that are received during bankruptcy will be at risk but those sanctions donít apply once youíre discharged.

    Hope this helps.

    Thanks
    Rachael











    I wounded if someone can help please with a question I have, 2016 I went bankrupt and in 2017 was discharged from bankruptcy, its about my pension I have as am near pension age I have been told I can cash my bit of pension in its £5000 but am worried if I do cash it in I may have to pay it to crediters but all my debts was in bankruptcy so I don't have any debt now so would I be able to keep my pension money? and help please would be very grateful thanks
    Originally posted by doorstep54
    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.
    • doorstep54
    • By doorstep54 17th Apr 19, 3:44 PM
    • 28 Posts
    • 14 Thanks
    doorstep54
    Thank you so much for replying ..keep up the good work step change you are a god sent to people in debt you was there for me and can't thank you enough
    • KDR
    • By KDR 22nd Apr 19, 12:39 PM
    • 2 Posts
    • 1 Thanks
    KDR
    IPA Question
    Hi,
    I have filed for bankruptcy and have a meeting with the OR soon.
    I am wondering if an IPA is always for 3 years or if it can sometimes be for less time?
    Also, will the OR discuss the IPA at this first meeting?
    Thank you.
  • StepChange_Allen
    Hi,
    I have filed for bankruptcy and have a meeting with the OR soon.
    I am wondering if an IPA is always for 3 years or if it can sometimes be for less time?
    Also, will the OR discuss the IPA at this first meeting?
    Thank you.
    Originally posted by KDR

    Hi there

    Welcome to the forum and thanks for posting.

    My understanding is that an IPA almost always lasts for 36 months, though very occasionally can be shorter. I'm not sure for what reasons it would be shorter though.

    I don't know when the IPA will be discussed to be honest. You could contact the Insolvency Service for some information on this.

    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.
    • KDR
    • By KDR 24th Apr 19, 7:06 PM
    • 2 Posts
    • 1 Thanks
    KDR
    Thank you for taking the time to reply to my post. Much appreciated.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,807Posts Today

7,068Users online

Martin's Twitter
  • Have a great Easter, or a chag sameach to those like me attending Passover seder tomorrow. I?m taking all of next? https://t.co/qrAFTIpqWl

  • RT @rowlyc1980: A whopping 18 days off work for only 9 days leave! I?ll have a bit of that please......thanks @MartinSLewis for your crafty?

  • RT @dinokyp: That feeling when you realise that you have 18 days of work and only used 9 days of your annual leave! Thanks @MartinSLewis h?

  • Follow Martin