Hi all. I am concerned about something I read on the forum as part of a reply to another question. It seemed to say it would be wrong or frowned on by the OR to have run up credit card debts on the final run up to BR. I have been living on my credit cards and using my overdraft facilities to keep up with my monthly minimum payments for the last few months. I will go Br this month or next as I've just about run out of credit and options so have now stopped paying back everyone and will go BR this month or next. Have I done something wrong in 'robbing peter to pay paul' and basically living on the remains of my credit to stave off BR as long as possible. I am now worried I have, please can you advise? Thanks, steve
You have not done anything wrong, most people in a debt situation rely on credit cards and overdraft to get by, what would be wrong however, would be to draw out the cash on a credit card to fund the bankruptcy fee! although I technically see nothing wrong with using your salary to meet the fee and using your credit cards and overdraft to meet the costs of your monthly expenditure. Large purchases or dare I say it holidays (don't laught it has been known ) to be funded via credit cards immeadiately prior to filing for bankruptcy aas you in fact incurring credit which you know you have no intention of paying- this sort of thing can result in a BRO, but not day to day expenditure/living costs Hope this explanation helps
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
'robbing peter to pay paul'
Posted - 05 March 2009 : 21:28:44
