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fredjn
Starting Member
30 Posts |
 Posted - 22 August 2009 : 21:38:26
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Hi, We have been told by the CCCS that we would not be allowed to go bankrupt as we have 237 pcm to pay towards 24,500 of debt. We are unable to pay due to ill heath, (transplant), redundancy, and a consequent loss of a third of our income. We want a clean slate and do not want a dmp, do not qualify for an Iva and have been told bankruptcy may be the answer. Now CCCS has told us we wouldn't be allowed is this true?
Of the 24,500 debt about 16,000 is in mt wife name only to HSBC. We have a joint mortgage which is near negative equity.
Can anyone help us?
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 23 August 2009 : 07:16:55
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Provided you are insolvent (i.e. your outgoings are higher than your income) you are able to declare BR and won't be refused.
If the CCCS have calculated that you have £237 available each month are your loans/credit cards repayments more than this? If so then you are insolvent and can declare BR.
With a DMP of £237 you would need 8.5 yrs to pay the £24.5k off and it would take longer if your creditors didn't freeze the interest.
As you have more than £200 available (according to the CCCS) an IVA may be a possibility as well.
It sounds like the CCCS have mis-informed you regarding your options and I would recommend speaking to an Insolvency Practitioner.
Jones Giles (http://www.jonesgiles.co.uk/) post on this board and offer free advice regarding your financial situation. They would also be able to assist you if an IVA were an option you decided to follow. As you have a property that has a small amount of equity this is something that you should take into account in making your decision as well.
Take your time with your decision as it is something that is going to affect you for a long time to come. Don't worry about your creditors as it will take several missed payments for them to start to get aggressive with you. |
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fredjn
Starting Member
30 Posts |
Posted - 23 August 2009 : 12:53:39
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Thanks for the speedy reply. The minimum monthly repayment for the debts is 570 and all we have surlas is 237 per month.
Our mortgage is variable rate and whilst we can afford it right now once the rates go up it is only a matter of time before we wouldn't be able to. Interest only isn't an option as we are virtually in negative equity. If there is any equity I think its between 700 -1,00 only.
We have had six long years of worry about illness, debts etc and would enter into a DMP if we thought it would solve our problems but its very doubtful it would. It'd be ok if the interest rate stayed the same for the next 22 years!
As our money goes into a joint account how would we each draw up a SOA for bankruptcy? just split things up as my wife would go bankrupt first wuith me to follow. The majority of debts are in her name and she earns less than me.
Thank you
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Jane.l
Average Member
511 Posts |
Posted - 23 August 2009 : 13:00:15
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Can you not both go bankrupt on the same day?
This is what me and hubby did, it made things easier, we just duplicated the SOA as most of our debts were joint and the household income goes into one account and bills paid out of that. We both put exactly the same I&E down, we had the OR interview together on the phone.
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 23 August 2009 : 14:20:35
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| The CCCS who on the whole provide wonderfull free support, however they are funded wholly by the banks, and sometimes I wonder about some of the things they tell clients, there is no reason whatsoever you will be refused voluntary bankruptcy on what you have said here |
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Sparkle83
Junior Member
258 Posts |
Posted - 23 August 2009 : 14:45:55
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agreed on the theory of beng able to go BR, if your minimum payments plus expenses equal more than income, then you are insolvent. Definately get proper advice from an insolvancy practioner.
And we both went BR on same day so put down everything jointly.
Weeks of BR
****5****10****15****20****
(EDREV received and returned at exactly 24 weeks)
25****30****35****40****45****50** |
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told we would not be allowed to go bankrupt
