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| T O P I C R E V I E W |
| David.rl |
Posted - 02 July 2010 : 16:44:24
Hi, can anyone help, I think I may have a big problem. I have been reading on this forum about using credit cards whiilst in the process of filing BR.
I have had a Lloyds card for 15years and never had a problem paying it until towards the end of last year when I was made redundant. Also having loans and finance with Black Horse,and a Lloyds bank account I was advised that if I didnt make any payment on these that they would just take it from my Lloyds current account, so I withdraw all but a couple of quid from Lloyds and opened an account with Barclays this March. They also gave me a credit card with a £5k limit. I have been struggling to get by for months without work and because of my car breaking down, failing MOT, household bills etc, I have had to use the new card. I havent bought anything frivolous just everday living expenses, but it would appear that I may be guilty of fraud as I have only just had the first statement which I have paid the minimum amount and I ave an appointment to file at end of July, so I wont have made 3 payments.
I know that I am going to have to get by on £65.00 JSA once I am BR and will not have the option of using credit, but I really didnt think I was doing anything wrong.....I just dont know what to do now....any advice please - if I had'nt of read these posts I would have been none the wiser, now I am worried sick. |
| 8 L A T E S T R E P L I E S (Newest First) |
| David.rl |
Posted - 05 July 2010 : 11:13:41
Many thanks Bridgewood and Richard, I think I will leave things as they are and continue with BR as my debts are too much for my parents to help with, and in any case I already owe them £4K so do not want to add to my debt with them, and not have any real hope of paying them back.
Regarding the credit card, I took this out in April, when I was still working for a sub contractor (albeit on very intermittent hours and still hoping for the promise of long term work to materialise). I did not decide to go BR until I signed on for JSA at the end of June, so hopefully that will cover the fraud aspect. I am no longer using the card.
Once again many thanks
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| Richard P |
Posted - 05 July 2010 : 10:44:04
Hi David
just a thought, if your parents are able to help would it be an idea to try and negotiate a full and final settlement with all of your creditors thus avoiding the need to go BR, and avoiding the need to have the issue of Barclaycard worrying you.
you can negotiate yourself or ask a third party to do so, I know that Paul at Reviva has a dedicated member of staff, who is able to get the creditors to agree to seriously reduced figures.
worth a phone call !
regards Richard |
| Bridgewood |
Posted - 05 July 2010 : 09:04:21
Hi David
Although Richard P is right, technically your parents can do whatever they want with their money - if they give it to you and you pay the Barclaycard debt it is a preference and you will just have made things worse. However, if they choose to pay the Barclaycard debt directly you have not done anything (other than give your parents the payment details) and it is not, therefore, a preference by you.
Having said that, I'd be inclined to leave things as they are - as long as you didn't take out the card after deciding to make yourself bankrupt you haven't committed a fraud - yes you've incurred credit whilst insolvent, but I would guess the majority of people who go bankrupt have done that.
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
| Richard P |
Posted - 02 July 2010 : 20:08:12
no you cannot show preferential treatment to one creditor over another, so although your parents offer is very nice it wont actually help the whole situation.
Richard |
| David.rl |
Posted - 02 July 2010 : 19:06:50
I have just been talking to my parents and they have said they would pay off the new credit card if that would stop me having any problems....does anyone think this might be a good idea, or would this be seen in a bad light?
Sorry to be a pain with all these questions, but you guys are my lifeline at the moment, just knowing that you know what I am going through is real helpful
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| David.rl |
Posted - 02 July 2010 : 18:58:21
Thanks for the replies, I havent reached the limit on the card and I wont use it any more, I will just have to tell the OR the truth and hope for a sympathetic response. I do half expect a BRU because I have been stupid, but I can live with this.
Thanks again
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| Richard P |
Posted - 02 July 2010 : 18:14:01
Hi David
just to try and put your mind at rest
you should not take out credit knowing that you are going bankrupt, from what you have typed you have been trying to avoid going bankrupt and like myself and probably most of the posters on the forum robbed peter and paul just to keep afloat.
now that you have a court date you have made the decision to go BR. No more credit
The official receiver understands that you still have to feed the family and you will have to justify your expenditure. (keep a list of expenditure)
if they think that you have been extravagant you may get a Bankruptcy restriction order. what has been done has been done so dont unduly panic yourself.
for them to push down the criminal fraud act it would have to be a considerable amount of time and action on your behalf, it would probably not be in the public interest.
regards Richard |
| theguvnor |
Posted - 02 July 2010 : 18:06:57
Try not to worry, unfortunatly in a nutshell it sounds like u took the barclaycard at at time when u were insolvent and as such u may be liable to a bankruptcy restrictions order I may suggest fraud is a bit strong if you were obviously hoping to get back in to work and make payments etc etc.
Have u reached the credit limit on the new card? |
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