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| T O P I C R E V I E W |
| Mr.E.Guest |
Posted - 06 October 2008 : 15:51:39
Hi All,
We have looked at our situation closely and BR appears to be the only option for us - £3500 going out each month and only £2000 coming in - please don't think we've been living it up - we have just poured money into a business that hasn't worked and accrued debt that is now out of control which in the current retail environment shows no sign of improvement.
To make things worse our mortgage is now going up by 35% and despite trying to negotiate a deal the provider rather make us a repossession case - so we will do a volantary hand over(only 3K equity left anyhow)
If we file for BR in November we have from now until then to find a rental house (so we can avoid bad credit references for the landlord)- also we can set our utilities up etc such as internet / phone so I can continue to run our business ( no longer limited but sole trader).
Anyhow - to my question - if in the meantime we make provisions for the things we have been holding off on such as new tyres, a replacement exhaust etc for the car and put these on our credit cards will the OR look upon our spending as irresponsible or will it be considered as day to day neccassary expentiture?
Ta
Tim
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| 6 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 09 October 2008 : 13:43:44
Hi Tim,
You have to be very careful how you play things from here on as the OR will examine your conduct prior to (and during) your BR. EJ&S should steer you correctly on that one.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| Mr.E.Guest |
Posted - 09 October 2008 : 13:34:57
Hi John,
Thanks for this - I'm not planning on going BR until Dec or ideally Jan - so as far as spending its business as usual - creditors are still being paid we are 100% up to date on cards, mortgage.
As Julian said previously we are in a good position to take our time and plan carefully our BR - this is why I'm trying to get the expensive essentials out of the way now rather than later.
IYO is it better then to use cash than credit - even if this cash is from our already stretched overdraft?
Cheers
Tim |
| JulianDonnelly |
Posted - 09 October 2008 : 13:24:13
Hi Tim,
EJ & S do excellent work in this area. You're in safe hands!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
| John |
Posted - 09 October 2008 : 12:19:56
Hi
as Julian has said be careful as to what you use the credit card for.
The car maybe essential, I doubt that would be argued by the OR. So if you had a capital sum which you used immediately prior to bankruptcy to repair the essential vehicle, no problem.
However, you are contemplating using further credit for the same purpose immediately prior to bankruptcy which is not a good idea.
If the only way out of a catch 22 is to do so I would seriously consider delaying bankruptcy for a while.
I note you are now in contact with EJ&S.
I'm confident they will guide you well, just a pity you cannot meet up with them sooner to set your mind at ease and establish your true position and the best way forward.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Mr.E.Guest |
Posted - 09 October 2008 : 10:29:20
Hi Julian,
Thanks for the info - looked on Parkers and the car is valued at around £3000 - its essential for work so I hope the OR would look favourably on this.
As for the essentials such as tyres and exhaust again the car is aessential for work and bald tyres = points / fines as does a noisy exhaust so I would argue present these as neccesaties???
As a separate note I got a call from EJ&S and should have a meeting set for early November where I guess we can dig down deeper on subjects such as the above.
Cheers
Tim |
| JulianDonnelly |
Posted - 06 October 2008 : 19:06:14
Hi Tim,
You'll have to play this one quite carefully as there's no simple yes or no answer, but like a lot of things in BR, a big grey area. In principle, you should be ok depending on what the values are and, of course, whether you're likely to keep the car in the first place.
The bottom line is that you'll need to provide the OR with a very good explanation for this.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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