| T O P I C R E V I E W |
| Sticky Situation |
Posted - 24 October 2008 : 13:53:10
My wife and I are experiencing financial difficulties due to losing a couple of well paid jobs over the last two years, we are currently living with parents, but will be moving into council accomadation in the next two weeks. We intend to go bankrupt once we move (so that the parents address is not blackmarked in any way - I know this is unlikely).
We have various unsecured debts totalling £80,000 and we have no wasy of payng these. I lost my job last week.
I need to know whether I can use the credit cards for living expenses between now and when we decide to file for bankruptcy, and what the implications are. I also need to know whether I should attempt to open a new bank account now, or after we have gone bankrupt, we are £4,000 overdrawn so I assume our current bak will close the account. |
| 9 L A T E S T R E P L I E S (Newest First) |
| Jo. |
Posted - 25 October 2008 : 09:34:39
Hi SS
I would get a plan of action together and keep to it.
I would also give one of us a call and let us help you in making that plan.
If you know how to go about things then what seemed like a dark corner once will start to shed some light onto you and you are not alone when it comes to BR.
We are all here to help and guide you through but i would def get that military precsion plan in place and you will start to feel more in control.
Best of luck
Jo Nye
x
Forum Adviser on behalf of:
www.bankruptcyhelp.org.uk
Tel: 0800 078 9367
You can read my blog for other information here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| Reviva UK |
Posted - 24 October 2008 : 23:15:11
Hi
couple of things
1. on the Bankruptcy Petition ( the 2 page form ) it requires you to identify a very recent address so you should really be putting the parents house on the forms in the correct place. It is also likely that the OR will put in the advert "and lately residing at ....."
You can disassociate yourself from parent by filling in the forms with the credit reference agencies so they are not impacted. Also there is no longer such a thing as a black listed property as credit it reviewed per person.
2. Bank account ; no reason at all why you don't open up a new COOP Cashminder bank account as they are fine with people in Br. It appears to be ony in Brighton that the OR insists that the account is closed and then reopened ( much to the excitement of the bank!)
3. Really worth you getting a strategy sorted so you have a timeline, and you know what you need to do by when etc.
4. Not recommended that you use further credit once you have decided to commit to the Br process, however as an emergency I can't see the OR getting too stressed if you need to buy food.
The important thing is to open a new bank account so you are in control of your money on a daily basis and so your income from whatever source is not swallowed up in charges / interest payments etc .
Get a plan and get your ducks in a row. you will feel a lot better when you treat this as a military operation.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
For a Free Impartial Review before taking the leap call me @ Reviva UK
www.revivauk.com |
| Sticky Situation |
Posted - 24 October 2008 : 21:44:36
Thanks Jo,
I haven't contacted anyone yet, and yes, have only in the last few weeks started getting behind. But if i'm honest this has been getting worse for months.
Once I have an occupation date for the new property I intend to redirect all mail to that address. After I have confirmed by receiving statements there that the new address is registered, I will go BR.
Obviously this is not an ideal situation, but the most important thing is to deflect all the impacts away from family.
Do the creditors have any power to turn up on your doorstep once you have committed to going BR and registered with the courts. I think I can keep them away until then.
When creditors contact you, is it bettter to make up an excuse?, i.e. moving house, losing job etc, or? be honest and say I am considering bankruptcy.
I am really surprised at how many people are in the same boat as me.
Thanks for the advice |
| Jo. |
Posted - 24 October 2008 : 17:40:29
Hi SS
If you have only just started to miss payments etc you have a few more weeks before anything like that would happen.
When you move as you say you hope to get the BR soon after, to have a date to try and work towards means that you can get some sort of plan of action in place.
Have you called your local court to find out if you need to make an appt or just turn up, as also you may be able to get a reduction in the fee if you are on certain benefits or on a very low income.
Jo Nye
x
Forum Adviser on behalf of:
www.bankruptcyhelp.org.uk
Tel: 0800 078 9367
You can read my blog for other information here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| Sticky Situation |
Posted - 24 October 2008 : 17:26:12
Thanks for all your help and advice, we were thinking of groceries etc, nothing extravegant, so we should be ok. To be honest we don't have much choice.
As mentioned previously we are currentlt living with parents and intend to go BR when we move to new address.
What is the situation with bailiffs and debt collectors knocking on your door. Obviously thia would be very distressing for the children at our new address or our parents at our old adress.
Thanks for your help
|
| 369 |
Posted - 24 October 2008 : 16:22:03
I think the thing here is....is to be careful with what you do....don't take out any more credit when you have no intention of paying it back....if you are just opening a new account to get an overdraft then i would not advise this.
If you are using credit cards to "live" then as long as this is what you are going to be doing and not going on holiday etc, then it should be fine...but if you are going BR it would be better to do this sooner rather than later, and not spend so much on your credit card. And explain this to the OR, be honest with them and they will be likely to treat you better if you do.
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| Jo. |
Posted - 24 October 2008 : 14:14:03
Hi Eamonn
As you are aware not everyone stops using their credit right up until BR as they need to live, yes your right it could be frowned upon but when its for essential living expsenses and can be clearly shown as that then the OR does not always frown upon it.
Obviously we would be talking £1000's to get a very large BRU but in this case as long as its not running into the £1000's then the OR will look more favourably.
Jo Nye
x
Forum Adviser on behalf of:
www.bankruptcyhelp.org.uk
Tel: 0800 078 9367
You can read my blog for other information here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| eamonn |
Posted - 24 October 2008 : 14:10:04
hi sticky situation
firstly welcome to the forum
i would wait to open a new account until after you have gone br you can do it on the same day this because the banks can freeze all accounts which are open at the time of br
with regard using credit cards the or is likly to be against this because you are using credit without any way/intension of repaying it this could result in a bro/bru which means that the restrictions of bankruptcy would be extended(but not your discharge date)by upto 15years(although you would need to have done a lot more wrong than just using credit immediatly prior to br to get 15years)
i hope this helps |
| Jo. |
Posted - 24 October 2008 : 14:07:15
Hi Stickysituation and welcome
As long as you dont spend it on say a new car or an antique chesterfield then that should be ok.
We all have to live and as it can be seen to show essential living then it should not really be a problem.
If you want a more one to one chat please do give us a call, we can go through your options in a little more depth.
Jo Nye
x
Forum Adviser on behalf of:
www.bankruptcyhelp.org.uk
Tel: 0800 078 9367
You can read my blog for other information here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
