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daisy duck
Junior Member
United Kingdom
201 Posts |
 Posted - 04 January 2009 : 22:17:46
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I went BR in July. I found an old credit card which I had forgotten about and not disclosed to OR just before xmas and as it only had a limit of £500 I bought some presents for the family.
I spent about £200 and am paying it off this month but i am worried about the OR finding out.
Will the OR definatley find out and if so what am I likely to face.
Thanks for help if you can
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John
New Member
United Kingdom
73 Posts |
Posted - 04 January 2009 : 23:59:22
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Hi
I assume the balance on the card at the time of your bankruptcy was zero.
If so, you did not need to declare it as a debt as you owed nothing at the time.
Nor have you applied for credit since the bankruptcy as the facility was already in place.
However, you should have declared the existence of the card but, as is quite commonly the case, you had forgotten about this one as you owed nothing at the time.
I can't see how the OR would find out so pay it off as planned and leave it in the draw in case of dire emergency.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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RHB
Senior Member
1159 Posts |
Posted - 05 January 2009 : 07:21:57
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| I would cut it up, definitely not use it again. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 January 2009 : 08:28:02
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Hi i too would cut it up as its too much temptation esp for me if i had one still lying around.
It may be better not to keep for emergencies and just destroy it.
Thats only my opinion and that is what "I" would do.
LOL
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
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RHB
Senior Member
1159 Posts |
Posted - 05 January 2009 : 08:43:29
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| I just don't think that it would look good to the OR if you had "forgotten" to tell them about a credit card but were using it unless you want the risk of having a BRO over your head |
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John
New Member
United Kingdom
73 Posts |
Posted - 05 January 2009 : 13:43:40
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Hi
morally the choice of action is yours.
Legally it's a grey area too.
a) It wasn't a debt at the time of bankruptcy as you had not used it.
b) A bankrupt is entitled to credit up to £500 (the limit of your card) without disclosing to the lender.
c) If I were the OR and this came to my attention I would view the fact that you have the facility no differently than if you had applied for it post bankruptcy which is perfectly legal but lender's shy away.
d) The lender will have noted your bankruptcy in the London Gazette and could have terminated the arrangement at that time.
I'm therefore not convinced that you have done much if anything wrong other than you forgot to list it as a card available to you at the time of bankruptcy.
Had the limit been more than the legal limit for disclosure in bankruptcy (£500) you may have a problem. As it is not I don't see a legal issue here. That's my view of legal aspect.
Morally the decision is yours whether to keep it or cut it up. I would not want to encourage further borrowing for any bankrupt but the question requires a legal answer as well as a moral one.
If you have the necessary self discipline, and bearing in mind you are, at the least, virtually half way through your period of bankruptcy, you could keep it and not use it.
It's a perfect way, once you are discharged, to rebuild your credit rating by using the card for very small purchases on a regular basis after discharge and paying it off in full each time.
Most ex bankrupts are unlikely to get the chance to rebuild their credit rating in this way for a good 3 years or more after discharge.
Hopefully you can now see the advantages and disadvantages of having this card at this time.
The choice now is yours.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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debtrider
Junior Member
494 Posts |
Posted - 05 January 2009 : 13:46:20
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Hi Daisy Duck
Not a good idea in getting into more debt once bankrupt.
Pay off what you owe on this card as soon as possible and cut it up.
Debtrider
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zamfir
Junior Member
303 Posts |
Posted - 05 January 2009 : 22:28:45
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A friend of mine is going BR, and has two bank accounts. One of them (Barclays) has a nil balance and no credit facility in place, and the other (RBS) is the one with all the debt etc.
She seems to think it's ok to not disclose the Barclays account on the SoA based on the fact it has no borrowing/debt, but I've told her that she needs to.
Who is right please? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 January 2009 : 22:43:54
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I suspect that the major problem here is about disclosure.
One has an obligation to update the OR on any changes to circumstances - income. outgoings etc - and I believe that this would fall under the category or required OR update.
The worst scenario is that the OR may believe that one has deliberately misled them which would result in a massive enquirey and probably a BRO.
always better to be upfront and then you know you have done nothing wrong and would probably get an early discharge which is better than a credit card
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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using an old credit card while br
