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anyone know anything on bankruptcy?

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my friend has been to the advice beaureo and was told her best option would be to file for bankruptcy, i dont know much about it myself and she was told they take some material things like lose the ca… Read More
angelfacexx Avatar
8y, 5m agoPosted 8 years, 5 months ago
my friend has been to the advice beaureo and was told her best option would be to file for bankruptcy, i dont know much about it myself and she was told they take some material things like lose the car (maybe) and although she only owes 15k they said a new thing has come into light which she would look into but she has a holiday booked and has paid almost all of it off she worried they may take the holiday back how does this work will they do this? told her if shes going bankrupt she probably shouldnt of booked it lol she can afford to pay for it as not much left can anyone bring some light onto this?!? please bear with me on replys as its a 3 way conversation and only know so much
angelfacexx Avatar
8y, 5m agoPosted 8 years, 5 months ago
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#1
phone these people....http://www.cccs.co.uk/ they give you the best advice and make sure bankruptcy is absolutely the last option

0800 138 1111
#2
If the stuffs not in her name they can't touch it, if you get my drift.
#3
phone these people....http://www.cccs.co.uk/ they give you the best advice and make sure bankruptcy is absolutely the last option

0800 138 1111

Seconded brilliant !!!
#4
can't you do an IVA under £15k?
#5
bargain surfer
If the stuffs not in her name they can't touch it, if you get my drift.

he holiday is in her name as shes going lol
#6
chrishill
can't you do an IVA under £15k?
the advice thingy is looking into it but not sure if its under 15k so getting back to her
#7
are you in england ?
does your friend own property
how can she afford a holiday (and to make regular payments for it) and I suspect have spending money too and yet not be able to come to an arrangement over 15k ?
is the 15k one or many creditors ?

in general she will lose any realisable asset that is non essential. she is allowed a car if she needs it to get to work as long as it has a value of £1000 or less. if more it will be sold and she will have to get a cheaper car.

Any non essential assets of real value (jewellery, art, state of the art TV's, expensive mobile phones) may be sold to pay back the creditors. it is touch and go what the bankruptcy people will think important. any savings etc will obviously be taken.

they will want to see all her income and outgoings (payslips, bank statements) and the bankruptcy people will allow her an amount to live on based on acceptable outgoings (this does not include large amounts for clothes, socialising, holidays etc)and they will take the rest to pay the creditors.

if in england, a bankruptcy lasts 1 year, in scotland 3 years.
#8
angelfacexx
he holiday is in her name as shes going lol


Is she going alone? If not then i am sure the other person would not mind "paying" for it.
#9
for £15k??? That's the worst advice I have ever heard. Bankruptcy means you are bankrupt plain and simple, it's not pretty and it's not easy. They will take a charge on any house she may own or if it's mortgaged they will repossess, sell it and take the £15k from the proceeds.

Cars are tricky, you can claim they are a necessity but it depends on her circumstances, does she work, is it essential, where does she live etc, if it's not deemed essential by a judge again they will take it and sell it.

First thing - is the debt with one party? i.e a bank - if so she needs to go and see them and sit down and work out a repayment plan, put it in an agreement and stick to it, if she does this and they refuse and try to make her bankrupt a judge will likely throw it out for their unreasonableness. STOP making unnecessary purchases, again judges frown upon such things and take pity on those that have just fallen into it through no general fault of their own, I've seen it a dozen times. Judges are only human.

If it's to multiple parties then although not favorable, she should look into a consolidation loan, use that to pay the 15k and then repay the single lump sum owed.

Bankruptcy is not for the faint hearted, it stays on your record for 12 months legally but in reality makes life very hard for years to come, i.e. getting credit, it will be very hard if not impossible to get a mortgage or even pass the security and financial checks to rent a place.

15K in the scheme of things is very small and I would definitely not advice anybody to declare themselves bankrupt for that sort of money, life will be tough paying it back fro a few years but it'll be a lot easier than being bankrupt.

Go and see a debt specialist, there are IVA'a available so long as creditors agree and these do not carry the stigma of bankruptcy and normally are not declarable unless asked.
banned#10
Boo hoo she might miss out on a holiday she can't afford to pay for anyway. People like this make me sick!

Bet shes also swanning about in designer gear bought on her store cards which she had no intention of paying. Wouldnt be suprised if shes got the full sky package and all other nicetys she doesn't deserve.

Seriously who books a holiday when they are 15 grand in debt?
#11
Banjo String
Boo hoo she might miss out on a holiday she can't afford to pay for anyway. People like this make me sick!

Bet shes also swanning about in designer gear bought on her store cards which she had no intention of paying. Wouldnt be suprised if shes got the full sky package and all other nicetys she doesn't deserve.

Seriously who books a holiday when they are 15 grand in debt?


Harsh mon brave, gotta agree if that's the case though.
#12
shut up banjo get off ur high horse she asked for advice not a attack what a total idiot
banned#13
She should be putting her holiday spending money towards her debts.

People like her make credit more expensive for people that really need it!

The shortfall has to be paid for by someone
#14
ok ty everyone for all the advise been passed across her car is not worth over 1000 so should beable to keep it great advice ty, the holiday was mostly paid for before problems arouse, and dosnt go around in designer gear she has nothing debts are all over the place not just one company, basically what happened is shes a working mum with 2 kids and her job ended in which she took employment with someone else which was lower paid not her fault many are losing jobs etc, so now cant afford to pay all the bills so went to cab for advice and they helped alot she was doing fine with results until the council now told her the benifits she was getting have ceased and has been overpaid so now she in in stook, which means she has no money left to pay all the bills so no offence but some of the comments were bit harsh she is a working mum and trys very hard but mistakes by council etc have messed her up shes in council property btw she always has paid her bills has no credit cards and never overspent!!! she owes this money as at one point could afford to pay it but now things have changed!!!
#15
tinkerbell28
It sounds like the cab gave her the correct advice then, also her benefit debt would be written off in BR. She certainly is no candidate for an IVA with her circumstances. She can phone cccs for a second opinion. Tell her under no circumstances, should she get more debt, all the best.


Before your friend seriously considers bankruptcy, please get her to also think about her other options as she does still have a few. As previously mentioned, these companies on tv that say they'll get you debt free in 3 or 5 years are not the solution as they charge you fees each month and are not really independent as they're trying to benefit themselves at the end of the day as they're a company. I worked for a mortgage company before I became a mum, so we were given quite a bit of info on all sorts of possible customer problems. If the benefit overpayments were not known about by your friend, it's worth her writing to the benefits manager and asking for the outstanding amount to be written off as there was no way she could have known that overpayments were happening so it's not her fault. I'm not saying they'll agree to it, but it has happened before.

Credit companies tend to try and help out customers with money problems as long as she is open and upfront with them about her circumstances. If she explains that she's had to take a lower paid job (for whatever reasons) and as a result can't afford her previous repayments and also does an income and expenditure and sends that to them, 99% of them will accept a reduced payment. Things like gas, electric, rent, council tax and secured/hp loans are classed as high priority debts and payments for these should be taken into consideration before she starts looking at what's left to offer the other creditors. Even if she makes reduced payments to her other creditors of say £10 a month until she's got herself straight with trying to clear priority debts off straight away, they should accept this as long as she then tries to pay them as much as she can sensibly afford after the priority debts have been cleared. She should also request when writing that all interest and charges are frozen as she is currently struggling to repay her debts and continuing to add interest won't help. I think the cccs has template letters she can use.

The reason companies will more than likely accept reduced payment offers, even amounts of £10, is because even if they took your friend to court, as long as she is making payment of something to her debtors each month, a judge will look at her income and expenditure and as long as she has been honest and realistic, they'll agree that she can't pay what she doesn't have and tell the company they have to accept the payments. Credit companies will threaten people with court action simply because it scares people who have no idea what these companies can and can't do and people pay up out of fear, which shouldn't happen if your friend gets proper advice about what these credit companies can and can't actually do.

Bankruptcy may sound like the idea solution, but it affects absolutely everything, such as any mobile phone contract, Sky tv, even having a bank account with a debit card.
#16
ms2005
for £15k??? That's the worst advice I have ever heard. Bankruptcy means you are bankrupt plain and simple, it's not pretty and it's not easy. They will take a charge on any house she may own or if it's mortgaged they will repossess, sell it and take the £15k from the proceeds.

Cars are tricky, you can claim they are a necessity but it depends on her circumstances, does she work, is it essential, where does she live etc, if it's not deemed essential by a judge again they will take it and sell it.

First thing - is the debt with one party? i.e a bank - if so she needs to go and see them and sit down and work out a repayment plan, put it in an agreement and stick to it, if she does this and they refuse and try to make her bankrupt a judge will likely throw it out for their unreasonableness. STOP making unnecessary purchases, again judges frown upon such things and take pity on those that have just fallen into it through no general fault of their own, I've seen it a dozen times. Judges are only human.

If it's to multiple parties then although not favorable, she should look into a consolidation loan, use that to pay the 15k and then repay the single lump sum owed.

Bankruptcy is not for the faint hearted, it stays on your record for 12 months legally but in reality makes life very hard for years to come, i.e. getting credit, it will be very hard if not impossible to get a mortgage or even pass the security and financial checks to rent a place.

15K in the scheme of things is very small and I would definitely not advice anybody to declare themselves bankrupt for that sort of money, life will be tough paying it back fro a few years but it'll be a lot easier than being bankrupt.

Go and see a debt specialist, there are IVA'a available so long as creditors agree and these do not carry the stigma of bankruptcy and normally are not declarable unless asked.


+1.

Good advice, that.
banned#17
Still 15k

Even running that up over 1-2 years is a hell of a lot of overspend especially with a job AND BENEFITS!!!!!

And people wonder why there is a recession
#18
Banjo String;4121037
Still 15k

Even running that up over 1-2 years is a hell of a lot of overspend especially with a job AND BENEFITS!!!!!

And people wonder why there is a recession


i have to agree with you Banjo - this lady seems only bothered about her holiday - well i bet she will have spending money for this little jaunt. My daughter decided to get finance for a car, both she and her husband work and they have a little girl then disaster struck she got made redundant just as she was going on maternity leave. I worked out all her incomings and outgoings and the car was one of the things that had to go - after all its not only the finance payments but tax, insurance, mot, petrol, repairs etc. She was gutted but I made an appointment with her to go see the CAB and they were great - she was told about what she could do and if she really wanted to go for bankruptcy she could. Because of now being out of a job she just didnt have enough money to pay all the bills but one thing for sure as much as she wanted the car she had the sense to realise that it had to go.... just like your friend needs to let the holiday go.... unless of course she is just taking the easy option out. My daughter is slowly paying off her debts and I'm pleased to say has now got another job - she has a bit more money coming in now but at least her debts are not getting any higher

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