Bankruptcy????

[Stank08]

I am seriously considering declaring myself bankrupt. I have a large amount of debt and have been struggling with it for a number of years and it just seems to be growing. I’m self employed and run my own business. Whilst I know declaring bankruptcy will affect my business I see no other way out. Due to lack of work and past illnesses I have struggles to earn. And unfortunately I spilt with my partner meaning there is only my wage to live on.

As I said I have a large amount of debt. Including CSA debt, credit cards, loans and house hold bills. I just feel that I need to “wipe the slate clean” and start again before it all gets too much for me to deal with.

I was looking for some advice please, if anyone can help on whether or not bankruptcy will clear off the debt from the CSA? They are a big part of my debt. I have also read on some web sites that it may still be possible to keep my home even if I do take this route. Is this true, there is very little equity in it at the moment so would not make any dent in my debt.

What would happen about all the arrears on the house hold bills?

Any advice would be very much appreciated.

[TUTTSI]

Re: Banckruptcy????

Hi Stank

I am sorry to learn of your situation.

Could you please give us an indication of the size of your debts as it will help us advise you further and please give an indication of what creditors you have ie Bank, Credit Cards, Taxes, personal debts and business debts.

Do you have young children living at home with you?

With regards to your home are you in arrears with your mortgage payments?
Do you have a large mortgage and is there something in your mortgage conditions that if you enter into an IVA or Bankruptcy the mortgage company or bank would forclose.

You will also loose your credit cards and overdraft facilities and it may become difficult to have a bank account and or take credit in the future.

There is also something called an IVA - where you come to an agreement with your creditors and agree with them to pay then xxxx per month. But from what you are saying you would rather the bankruptcy route.

In bankruptcy you will have an official receiver appointed and he decides what assets he will take including motor vehicles. I would only take this route at a very last resort, Also, the largest creditor could sway the situation and this could turn nasty and they could want the house.

These are just my initial thoughts,

Tuttsi

[Stank08]

Re: Banckruptcy????

Tuttsi

I have considered an IVA but to be honest I have far too much debt.

I owe the CSA about 25k. I have been to court with them already and im meant to pay them back each week. They have also put an order on my house.

I do have arrears on my mortgage but I have been receiving a lot of help with that from the mortgage company and they have been very understanding. And have given me information on how I may be able to get help with that.

Im awear of the implications with bank accounts and such if I do take this route but feel that in the long run it would be a small price to pay.

I have Credit cards, personal loans, business loans, credit with various suppliers, over drafts with my personal bank and business bank, I have arrears on all my home bills. As I say I work for myself and sometimes don’t get a wage for 5 to 6 weeks at a time. All together not including the mortgage I have some where in the region of 60k. And I just don’t see any way out!

Stank

[Amethyst]

Re: Banckruptcy????

Debts to the CSA are not included in a bankruptcy. Once you are bankrupt the CSA can still collect on that debt.

What arrangement do you currently have and do you have all the information from them re how the arrears have been calculated?

Also you say you are meant to pay them each week - are you doing so? If you don't and they have a charge on your house they could apply for a sale order anyway.

[TUTTSI]

Tuttsi

I have considered an IVA but to be honest I have far too much debt.

I owe the CSA about 25k. I have been to court with them already and im meant to pay them back each week. They have also put an order on my house.

I do have arrears on my mortgage but I have been receiving a lot of help with that from the mortgage company and they have been very understanding. And have given me information on how I may be able to get help with that.

Im awear of the implications with bank accounts and such if I do take this route but feel that in the long run it would be a small price to pay.

I have Credit cards, personal loans, business loans, credit with various suppliers, over drafts with my personal bank and business bank, I have arrears on all my home bills. As I say I work for myself and sometimes don’t get a wage for 5 to 6 weeks at a time. All together not including the mortgage I have some where in the region of 60k. And I just don’t see any way out!

Stank

Stank

Could it be that you have paid a fair amount of bank/mortgage charges and if so under the hardship rules under the FSA waiver you may be able to reclaim some or all of you bank charges depending on which bank.

Tuttsi

[Stank08]

Re: Banckruptcy????

Amethyst

Thank you that’s a big help. The CSA took me to court in Jan and if I don’t Pay at least £10 a week they can apply to have me arrested and in jail for up to 31 days. I have been trying my best to keep to the agreement but its very hard when im not receiving a wage. I have been keeping in contact with them and they are awear of my situation but not very helpful. I have no info from them as to the charges/arrears all I got was a summands to court. In fact they sent me a letter after taking me to court saying I had paid nearly £2000 too much?!? How they get that when im so far in arrears I don’t know!!!!

[Amethyst]

Re: Banckruptcy????

Okay - you need to send the CSA a full subject access request for information they hold on you. They won't give you any information of details etc your ex partner has given them but it should show whats gone on with your account.

Theres also a couple agencies can assist which I will sort out contact info for. You really need someone specialist to deal with CSA.

Regarding the rest of your debts - if you could list them all - company and amounts - we might have a better idea if its worth trying to get things written off/repayment plans or if bankruptcy really is the best option.

[WendyB]

Re: Banckruptcy????

Hi, and welcome to Beagles..

I think the best thing you can do is take a deep breath, then sit down and write down excactly what your situation, with facts and figures. If you could fill in the LB expenses sheet that would help, and give a clearer picture of how much you owe to whom, then we would be in a better position to make suggestions and help. If you don't want your details in open forum, then email the I/E sheet to one of the Team,

There may be charges on your bank accounts and credit cards that you could reclaim. especially on the credit cards, whch are not covered by the OFT case. Also, as Tuttsi says, you may be able to reclaim some of your bank charges under the Hardship rules.

[TUTTSI]

Income and expenditure summary link http://www.legalbeagles.info/forums/...ead.php?t=5102

Also, the debts you say of £60k is this in addition to the £25K

[Stank08]

Re: Banckruptcy????

Thank you all so much for your help and info!!! I will sort out all my ependiture and forward it, any help would be great! Espesially with the CSA as i dont have a clue when it comes to this!!

Tuttsi - the 60k in including the 25k for the CSA.

[Tools]

Re: Bankruptcy????

Here is a letter to send for all the information they hold about you

YOUR ADDRESS HERE

The Child Support Agency Data Protection Unit
Room BP6002
DWP Benton Park View
Longbenton
Newcastle upon Tyne
NE98 1YX.
DATE:
Date of Birth : National Insurance Number :


CSA Reference No: xxxxxxxxxxxxxxxxxx
Dear sir or madam
Please send me the information to which I am entitled to under section 7(1) of the Data Protection Act 1998. I request all computer and clerical records to which I am entitled, and would ask that the notepad sections of the computer files are dated.
If you need further information from me, or a fee, please let me know as soon as possible.
If you do not normally handle these requests for your organisation, please pass this letter to your Data Protection Officer or another appropriate official.
Yours faithfully