Bankruptcy Help & URGENT Advice Please

[Cosmic Kitty]

Hi, I was just wondering if someone could give my husband & I some advice please as we are feeling very lost and confused.


My husband & I have been visiting with our local Citizens Advice Bureau over the last 4-6 weeks with regards to several priority & non priority debts that go as far back as 2009/2010.

These debts include Business Rates for a business that ceased in 2010 but 3 account are currently with bailiffs (these have been passed through several bailiff companies for many years so all we seem to be paying is their fees and not the council), A HMRC tax bill that consists of purely fines - My husbands is currently pursuing but my balance was zero'd and placed as "not currently being perused" after making contact and explaining my personal situation,A House Council Tax Bill which is also with the bailiffs and several other non priority debts, where I have either had them closed due to being Statute Barred or worked with the creditors and had them closed down and zero'd due to our circumstances.


We were first informed that Citizens Advice would help us to arrange affordable payments with everyone, some being token payments for the non priority debts and low payments for the priority debts give our poor financial status and personal circumstances. On the first visit we were given a debt pack to fill in and send back so an appointment with their debt specialist could be made.


We have just come back from such appointment and have been left totally confused - They said that they would not be helping us to make any agreements as they doubt any would be accepted despite HMRC advising us to appeal under the same ground as mine was, to see if the debt could be reduced or even cleared ....... all they suggested was Bankruptcy, Bankruptcy, Bankruptcy.


QUESTIONS

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Now we are not opposed to proceeding with Bankruptcy but we do have some questions and are very cautious in the fact that we have rent arrears of approx £3800 to which we have an agreement to pay back at a small rate per month on top of the normal rent (we have a good relationship with our landlord as we have lived here for 4 years but obviously there is a limit to his good nature).

We have been advised to put his arrears into the bankruptcy but remain paying him out of our housekeeping in order to save the house ... But can that really happen? is he lightly to accept that? is it not dodgy and fraudulent to the bankruptcy??


We were also told that with bankruptcy we would not be able to include our Sky TV & Internet Only Contract into our budget even though we are completely reliant on internet for paying bills & internet banking as we live in a very rural village that is not on a bus route and my husband works nights meaning we have no way of getting out in the day to organise such things. Is that right?


We were told that our mobiles were too expensive and that we wouldn't be able to claim for all of it but they could adjust the figures to fit into the budget and as long as we are not behind with the payments we would be able to keep them - But how? as part of the bill is for the airtime and the other is for the device (loan) so is that not classed as credit and needs to be included in the Bankruptcy?


They also mentioned that our monthly prescriptions costs was too much but we only put down for my ppc payment, my husbands one prescription cost per month, cost for glasses for both my husband & myself and two dental check ups a year each for my husband, myself and our just turned 18 year old daughter - We did not budget for any dental treatment that may be needed. We can't change the price of the prescriptions, they are what they are so is that right to be told they are too much?


We also have a Washing Machine on HP but as it is classed as an essential item and we have no launderette in the local vicinity (nearest is over 5-6 miles away) Would we be able to keep it?


Would we need to close all of our bank accounts?


Citizen Advice also said that we need to include all old debts even if they have been zero’d or become Statute Barred - Is this correct?? seems odd as they have now gone.


Would we be able to get any help with finding the fees to go Bankrupt??

As £680 each is completely impossible in our situation - We are not claiming any benefits but my husband is the sole provider for himself, me and our just turned 18 year old daughter and has been since 2010 due to my health issues.


Sorry for the long post but I just wanted to get as much detail in as I could - Any help and advice would be greatly appreciated - Thank you

[Amethyst]

Good Morning,

It sounds like CAB were suggesting a debt management plan but once you'd listed the debts and incomings/outgoings you ended up with a negative figure so they'd changed their recommendation to bankruptcy? Obviously they can see your full circumstances so know best - it sounds like you've been struggling with things since 2010 when the business closed and your health deteriorated - so 9 years? and it doesn't seem things are going to end/improve anytime soon so bankruptcy could just draw a line under things and let you move on. It's not sitting right with you though and you aren't sure it is the right option. It could be worth going through things with Stepchange and seeing if they come to a similar conclusion. Also MSE have a bankruptcy forum with lots of people who are going through and have been through the process so they are likely to know more about the minute of things https://forums.moneysavingexpert.com...play.php?f=136 - also Debt Camel 's website has some info about the fees https://debtcamel.co.uk/help-with-bankruptcy-fees/and lots of other helpful down to earth articles on the bankruptcy process.

You don't say how much the debts actually are with HMRC,Business Rates or others
When you say the HMRC debts are fines, what are they for? How much is left? Have you started your appeal yet?
How much are the outstanding Business Rates? and why 3 accounts ? You were a sole trader rather than a Ltd Company ?
Are the debts in joint names?

The other debts, presumably you included those that were statute barred / written off in the list. Do you have letters from the creditors confirming the status of the accounts ? Including them will mean they are definitely gone for good but if you're working through them so they aren't actually needing paying then don't include them in your IE sheet when you're working out if a DMP is an option for what remains.

[Debt Camel]

This forum isn't really the best place to look at this sort of problem. You need somewhere where there are a few debt advisors with experience of bankruptcy around. As Amethyst says the MSE forum is really good.

Without seeing the detailed figures - what each debt is, how much is owed, whether they are joint debts or whose debt etc it's hard to say what your best option is. Making low payments to prioirity debts is often not a possible option. The adviser may have seen the priority as getting rid of all debts to enable you to repay the rent arrears. But I am guessing...

You don't have to go bankrupt at the same time of it takes a while to get the fees together.

Your 18 year old - are they still at school? working? a student