I am preparing for BR. Using mail order catalogue and making monthly payment for essential goods has enabled me to keep going but I have not been able to make any payment on other major debts. The amount outstanding on mail order is only £250 and the company have been good to me but I have kept up regular payments. When completing SOA presumably I have to include this as a creditor but is OR likely to say that I have given preference to this creditor and demand any money from them. The items involved are necessities like bed linen towels childrens clothes and a bed for one of the two growing children.
You have no worries with regard to 'preference' this can be classed as monthly expenditure and the amount is not excessive. Preference comes into being if you have for example used a credit card to withdraw money to repay a family loan or another debt, you should not clear existing debt by incurrring debt you have no means to pay. Good luck with filing for bankruptcy and i hope my brief explanation helps, remember where we are if you get stuck on anything. Have you booked a date yet?
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
Thankyou Melanie. No date booked yet. Just working through the SOA and getting the evidence in order which hopefully will be seen as helpful by OR. Should be ready to book a date by the end of the coming week. Have already had a chat with local court advisors and they are waiting my next call.
I am preparing for BR.
Posted - 22 March 2009 : 14:56:25
