Can anyone help me with this question please? I am currently considering either an IVA or bankruptcy. I have already spoken to my creditors (credit card) and informed them I am only able to make token payments of £50, as from January 2009. The problem is that I also have a loan with my bank and the monthly payment on this is £406. However, they have received this payment for January and I don't yet have another bank account set up, so I am unable to transfer funds from my present bank account. Until I have a separate bank account, I cannot stop the direct debit from going out as this will mean me going into the bank and asking them to cancel the loan direct debit, which I am sure they won't agree to without asking why. This is very confusing. I'm worried that any future dealings with the OR/IP will see this as preferential treatment over other creditors.
I would suggest that you open a new Basic Bank Account with a different Bank right away and get all your pay / bills / Direct Debits etc. paid into and coming out of this.
I opened 2 online a few months back and I was in the same situation as yourself. I did it online and the Accounts were up and running within days.
I am not sure if what you said would be classed as preferrential payments but there is surely a chance that it would be.
Then you could make equal token payments to all the Creditors and give you a bit more time to decide what you are going to do - IVA / BR.
From my experience (I went BR on 05/01/09) I would suggest you make your mind up pretty quickly and stick with it - I like you worried and thought about it for a long time and those weeks / months were hell - sleepless nights etc.
You will feel a lot better once you have got the ball rolling and can see a route to follow.
Happy New Year to Everyone!Can anyone help me
Posted - 09 January 2009 : 23:04:40
