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sue26
Starting Member
7 Posts |
 Posted - 11 June 2010 : 20:58:26
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| Hi. Myself and my husband have realised we need to declare bankruptcy. We sought advice from a local debt management company whose advisor agreed it was our only option. He told us that it didn't matter if we carried on using our credit cards (max them out he said) and use them to draw out cash to cover our legal fees. We have used them over the past few days and bought about a thousand pounds worth of goods (a bed, table and wardrobe). However I am increasingly worried that this isn't ok and am panicky that we shouldn't have done this. We can't undo it but advice gratefully received. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 11 June 2010 : 22:32:09
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Hi and welcome to the forum.
I'm afraid that the advice that you have been given is completely wrong. Once you realise that you are insolvent you should stop using credit immediately and I'm afraid that you could end up with a Bankruptcy Restriction Undertaking (BRU) for using credit that you have no way of repaying. Can you return any of the items you've bought.
I would recommend taking advice from an Insolvency Practitioner as BR many not be the only option for you. Have a look on www.iva.com for reviews of companies.
Good luck x
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
35 IPA payments made, 1 to go - 19 days and counting! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 11 June 2010 : 22:32:35
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HI Sue
to use credit to pay to go bankrupt and your legal fees is ok.
to pay for household essentials that you can justify the need would be OK
to max out the credit cards knowing that you are going bankrupt Is not OK
regadrs Richadr |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 11 June 2010 : 22:39:32
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I would disagree Richard - I know some people do it, but some OR's would frown on this and you would run the risk of a BRU.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
35 IPA payments made, 1 to go - 19 days and counting! |
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sue26
Starting Member
7 Posts |
Posted - 11 June 2010 : 23:56:20
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Zquote:
Originally posted by sue26
quote:
Originally posted by Skippy13
I would disagree Richard - I know some people do it, but some OR's would frown on this and you would run the risk of a BRU.
View my blog at http://skippy13.blogs.bankruptcyhelp.
Have spoken to my husband. We can cancel most of it in the morning and I am going to do that. I suppose we would just have to come clean and say we were poorly advised and as soon as we realised that 5 days later we cancelled everything we could. Do you think that will help?
Very worried indeed now. |
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RHB
Senior Member
1159 Posts |
Posted - 12 June 2010 : 08:12:01
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| If you have cancelled everything then I wouldn't worry. Knowingly taking on more credit when you know you have financial difficulties will lead to a BRU/BRO. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 13 June 2010 : 10:08:20
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as has been said incurring debts pre BR that you know you cannot pay is grounds for a BRO/U but realistically court fees and reasonable necessary spending pre BR may be frowned upon but to get a BRO if you do not agree to a BRU it requires a judge to agree that ypou deserve one.
I believe most ORs would not pursue this course of action unless you had been very reckless with your spending and not just court fees and some food etc.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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sue26
Starting Member
7 Posts |
Posted - 13 June 2010 : 13:15:25
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quote:
Originally posted by chester2005
as has been said incurring debts pre BR that you know you cannot pay is grounds for a BRO/U but realistically court fees and reasonable necessary spending pre BR may be frowned upon but to get a BRO if you do not agree to a BRU it requires a judge to agree that ypou deserve one.
I believe most ORs would not pursue this course of action unless you had been very reckless with your spending and not just court fees and some food etc.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!!
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sue26
Starting Member
7 Posts |
Posted - 13 June 2010 : 13:23:51
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We have now returned everything that we could. We have improved the situation by about 80%. We can do no more. We have also worked out how we can get the fees together with out using our credit cards or over draft to do it. Would anyone recommend making a complaint about the advice we were wrongly given? Does anyone think coming clean and apologizing to the or is a good idea or should we just not draw attention to it. Thanks for the advice folks, I am finding it increasingly hard to cope with the constant fear and panic state I am in.
Would anyone recommend appointing a specialist practitioner rather than trying to do it alone. I think we should be able to raise the money to pay for one. Any comments gratefully awaited. Thanks. Sue. |
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debtinfo
forum expert
2826 Posts |
Posted - 13 June 2010 : 13:36:55
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| If you need to speak to an expert, there is a list on the left hand side, generallt reviva is recommended and has been attached to this site for a long time |
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RHB
Senior Member
1159 Posts |
Posted - 14 June 2010 : 07:28:16
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| A lot of people manage by themselves tbh. Also, the fact that you corrected an error means you will be fine I'm sure. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 14 June 2010 : 10:25:16
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Hi Sue
you have now acted correctly well done. it will be looked at positivly.
speak to any of the experts most will allow an initial consultation phone call, some people are able to declare themselves bankrupt without help others need guidance and support.
I used Paul and his team at Reviva and would recomend their services
regards Richard |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 14 June 2010 : 10:43:31
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Hi Sue
In the first instance I would go back to the company that gave you the advice and make a formal complaint - it may be that the "adviser" is giving advice that they don't know about
Secondly, don't worry about what you did - it isn't a defence to say "I was advised it was okay" but you have put right as much as you can, and shouldn't have too much to worry about with the OR.
Thirdly, it's your choice whether to do the bankruptcy yourself or seek assistance - it depends on individual circumstances regarding how complicated your financial affairs are, and also how comfortable you are doing it yourself - it may be an idea to talk it through with an expert (but not the one you contacted first!) before deciding whether you need formal assistance
Good luck
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. |
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I am increasingly worried that this isn't ok
