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| T O P I C R E V I E W |
| adi_t |
Posted - 21 November 2009 : 09:23:58
Hi there
My husband and Imanaged to accumulate some debt which became difficult to manage and consequently went on a Dept Management Program through CCCS. After several months our repayments dropped from £300 pm to £30 pm due to me losing my job and receiving jobseeker's allowance. I am also pregnant and expeting our baby this month (and receiving maternity allowance currently). My husband is considering bancruptcy. His debt is £17,500 and mine is £6,000 therefore I will go for DRO.I have a few questions however...
Q1: Do I have to go for DRO before my husband applies for Bancruptcy? I heard that if he goes bancrupt I would be responsible for his depts...?? - and this would obviously make my debts higher than £15,000.
Q2: We have a joint account with Barclays - it has been kept very well and tidy, we don't owe Barclays any money and never have. Would the OR or Barclays close this bank account? My husband's wages are paid there. What about the money that are in there? Are they going to be taken away? We need this money to pay our bills - we have very little spare income (perhaps about £50 pm)
Is there a possibility that he will be able to keep this bank account? Or shall we take his name off it before he applies for bancruptcy?
Q4: Once he is granted bancruptcy, what happens to his salary? does it get paid to his bank account or to Official Receiver?
Q5: Exactly to what extent does OR control the bancrupt's finanses during the 12 months period?
Many thanks in advance.
Regards
Adie
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| 5 L A T E S T R E P L I E S (Newest First) |
| Housing |
Posted - 21 November 2009 : 19:37:43
Hi
I see in a post that you were worried about being rendered homeless and that you had only just started a tenancy.
DO NOT worry - even if there were arrears of rent, the tenancy must first of all run until the end of a fixed term (I assume you are in the private sector and have an assured shorthold tenancy). The fized term will be no less than 6 months and possibly 12 months.
If there were arrears of more than 2 months then they would have to serve a notice (one month) - then apply for a court hearing (another 2 months) and then the DJ would give the landlord a suspended possession order ( at least 28 days) and up to 56. Then and ONLY then can the landlord apply for a bailiffs warrant to evict you (another 4 weeks or more - depending how busy the bailiffs are!!
So even if you already have arrears (I do not see that there are any at the moment) then you have months and months before any glimmer of a chance of you facing homelessness.
I hope that things work out for you, Richard
"There are no problems - only solutions..." |
| debtinfo |
Posted - 21 November 2009 : 15:39:28
Hi, it is not the OR that freezes accounts that have the normal household money in them. The OR only freezes savings accounts. Just tell them when you speak to them the first time which account you would like left open.
However the bank may freeze an account either because they dont want you as a customer or because they want an ok from the OR befire releasing the money. It is often said that if you obtain a co-op or barclays basic account before the bankruptcy (as these are bankrupt friendly) and transfer everything over before hand then most of the time it will not be frozen at all |
| adi_t |
Posted - 21 November 2009 : 14:59:20
Hi again!
Many many thanks for your answers, much appreciated! It seems all just so scary especially that we are expecting our first baby any time.
There is one more thing I worry about - I heard that at the beginning of bancruptcy the account of the bankrupt is frozen and that for some time it may be difficult to recover the money that has been in this account. For how long exactly? And obviously the salary gets paid to this account as well, so...what exactly happens when the account gets frozen - are we left with no money to pay our bills and rent? How do we pay direct debits (bills)? What my husband earns covers the bills and rent and there is very little left afterwards. I just worry that if the OR freezes my husband's account we will be left with nothing to eat and unpaid rent which could render us homeless as we only recently moved into the property.
Many thanks
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| chester2005 |
Posted - 21 November 2009 : 13:00:47
as above but i would add (and no there wasn't a Q3)
yes the OR has official control of a BRs finances but in reality he does not... your wages/benefits still get paid to you as before into your bank accounts and it is yours to do what you want with except for any agreed amount that you would be paying in the form of an IPA Income Payment Agreement which you pay 50%-70% of any Disposable Income DI towards your debts for 36 months (this is reassessable if income goes up or down, but windfalls after discharge ie, lottery or inheritance are safe.)
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
| gettingoutofdebt |
Posted - 21 November 2009 : 11:41:59
Hi,
1. If the debts are joint debts then once your husband declares BR the debts will revert to you. If the are sole debts in your husband's name only then they will be written off when he declares BR.
2. This account will be closed by Barclays. As a BR you are only entitled to a basic bank account. You should open a Co-op Cashminder account as they are very BR friendly. I am not too sure on the restrictions when in a DRO but I would still recommend opening a Cashminder account. If you have any spare cash in your account when you declare BR this can be taken by the OR .
3. Was there a Q3???
4. His salary will be paid into his bank account as normal.
5. The OR has complete control over a BR's finances until they are discharged. |
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