Questions you have before making a decision to go Bankrupt and the Bankruptcy process

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DCG wrote:No David your input is much appreciated!

I will , trust me follow yor posts over the next few days and will give you the benefit of both my experiances and of those that I have gained over the past 10 months.from others.......In the past 10 months..I have never given advice that anyone has come unstuck on.....and I have given my fair share......more than...
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By Nicky
#3119 David, your input is a great help to lots of people you have given advice to. Nice to see you back :wink:
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By JaneClack
#3129 Yes as I said earlier on another thread it is very nice to see you back!

I just pointed out that we do give professional advice too! Although we do recommend personal research and the free debt advice agencies too.
#3158 Good morning,
I have just spoken to my bank, and it is possible for me to remove myself from the joint bank account, even with it being overdrawn. Will this stop the account from being frozen? Also I have managed to cancel the direct debit to my loan, should I send them a token payment,or wait until they contact me?


#3162 Another couple of questions:

When filling in the bankruptcy forms, do I have to put my partner's I&E too, or can I just put the money I receive in my own name, and the bills I actually pay in my name?

I currently get £253 child tax credit 4 weekly
£110 child benefit 4 weekly.
Are these classed as income?

The bills I have in my name at present are:
rent £240 p/m
tv license £10 p/m
water rates £27 p/m
council tax £88 p/m

All the other utilities are in his name (or are in the process of changing over) and are paid by his wages. Any disposable income he does have will be going into his DMP.
Can I separate our money or not?
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By Nicky
#3163 Hi there

With your name being taken off you account, that should stop it from being frozen as long as whoever the named person on the account keeps the account running properly.

Coming into this late, sorry...cancelled the DD to the loan? I'm assuming this is one with no connection to your current bank account. If so, you would be wise to put a letter together explaining your current situation with a token payment of goodwill in it.
#3164 Thanks Nicky

The loan is actually from the bank my current account is with. The payments were coming out of the joint account (partners wages) But he can no longer afford it so I cancelled the DD with a view to paying it from my separate account. However there will be no money in my account either. Should I let them try and take payment from my account or can I still make a goodwill payment?
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By Nicky
#3165 Right, well, if the money is supposed to be coming out of the joint account (the one you were asking about taking your name off to prevent it from being frozen) and you have cancelled the DD (how did you managed to cancel it in the first place!?) whos name is the loan in? (sorry if you have given all this information before). If it is in your name, then, basically make the goodwill payment, but make sure its all done after your name has been removed from the joint account otherwise, that account could still get frozen.

If it is in joint names, then both accounts could still get frozen anyway if the payment isnt met. I dont understand how you managed to cancel the DD from the bank?
#3167 The loan is solely in my name, but was paid for by the joint account.
I was told it probably wouldn't be possible to cancel the DD but I logged onto internet banking this morning and thought i'd try anyway. It was cancelled straight away. Is this a bad thing? The payment is due to be made tommorrow, and I intend on removing my name from the account tommorrow. Do you think we may have problems?
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By Nicky
#3169 I'm not sure it would really have been cancelled? Computers sometimes are not that reliable. The bank could take the money anyway because they have the right of offset, which means, if you owe them money, they can take if from your accounts Direct Debit or no direct debit. Normally what would happen in this situation if it wasnt your bank, you would get a letter saying "Do you realise your Direct Debit was cancelled, please set it up again", so you bank could either do that, or take the money anyway. It probably wasnt the wisest of things to do, especially when you are trying not to have your joint account frozen. If there is no risk to your income, then it would of really mattered and the letter and goodwill payment would have sufficed, however, if your income is still going into either of the accounts, if might be worth contacting your bank and explaining what you did "by accident" sort of thing.
#3170 Do you think if I ring and ask them to take payment from my own account it might help.
It woul put me over my OD but that's ok?
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By Nicky
#3171 There is no harm in asking, I'm sure they would be happy to do that. As long as they get the money from somewhere, I would of that would be fine.

Oh, hang on...over your overdraft? be honest, if you are worried about the joint account being frozen, you would just be better talking to them about your loan payment anyway. You could always ask them if you can make a reduced payment this month from your joint account. Its generally better to be open and honest with them, especially when you want something from them :wink:
#3172 Nicky,

I have just spoken to the bank. They are transferring the DD to my account from the joint account. I told them I had 'accidentally' cancelled the original DD, and they said I could arrange a one off payment from my account, and that it wouldn't matter if it was a few days late.

So basically, the original DD from the joint account is cancelled.
I am waiting for the new one to be set up on my account.
In the meantime I am to offer payment via other means for this months payment.

If I can find the money, do you think it would be wise to pay this in full?

The loan is and has always been paid up to date, and the bank are unaware of our difficulties, as we are still arranging somewhere for our income to go.
Sorry for rambling. I feel like I'm making this worse. I am just trying to separate my finaces from my partner.
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By Nicky
#3173 Your not making anything worse at all. It was probably just a bit of a mistake to cancel the DD :D but you have dealt with that now.

I never like suggesting making the full payments if it means you are going to struggle because of it. But, because you want to protect the joint account from being frozen, it might be a good idea to pay it, like I said, the only other thing, is to ask them if you can make a reduced payment for this month.

Once your name is off the joint account, it wont matter so much because your finances will be separate, but, until that time, you need to tread carefully, if you think you cant make the payment, speak to them to arrange a reduced payment for this month.
#3174 We will be taking me off the joint account tommorrow, and the loans department are already expecting my payment to be late.
By the time the payment goes through, the joint account will be in my partners name alone.

In this situation, do you think I can ask for a reduced payment, if I ask after my name is off the joint account.

I hope I am making sense. I think I may be losing the plot!