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chick1983
Starting Member
United Kingdom
9 Posts |
 Posted - 02 April 2009 : 15:19:53
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Hi all,
I currently owe 40k, and pay 147 per month towards my debts through paypal (debt management company).
I haven't work since 2007 when my maternity leave finished and have been using my tax credits/child benefit to pay my fee. My partner covers everything else as he works full time.
My partner has now said that we cannot keep going like this and I have arrange for all tax credits/child benefit to be paid into his account. All bills (direct debts) that come out of my account are paid by my partner putting money into my account.
As I have no income and due to the amount I owe many people have said I'd be better off declaring myself bankrupt.
I would like more information on what will happen. Alot of things bill wise, i.e BT, Sky, Water, Council tax, Contract mobile are all in my name, what happens with regards to them?
Thanks |
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xmas baby
Average Member
537 Posts |
Posted - 02 April 2009 : 15:54:46
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Hello,
I can only tell you what has happened with me. I went bankrupt in early March and all the household bills are in my name. As far as I am aware, these continue as normal once you are bankrupt, and you shouldn't have a problem with providers like Virgin, as long as you pay on time and don't go into arrears. Council tax and water bills are being paid by direct debit as normal and I have not been informed to the contrary, so I am assuming everything is okay. I might be wrong so hopefully someone will come along and confirm this, but as I said I personally haven't had any problems with any of my bills being paid or accounts being terminted.
Hope this helps
xmas baby |
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chick1983
Starting Member
United Kingdom
9 Posts |
Posted - 02 April 2009 : 16:30:36
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| So are you still allowed to hold a bank account then? |
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peppa-pig
Starting Member
26 Posts |
Posted - 02 April 2009 : 16:40:35
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Hi Chick
Yes you are still allowed to hold a bank account. However, it will have to be one without the facility of an overdraft or cheque book.
The Co-op Cashminder account is quite popular and accepts bankrupts or soon to be bankrupts. You can set up direct debits and also have a Visa Electron Card. You can also do online banking. Usually the new account is set up within 10 working days.
It is a good idea to have the new account set up before bankruptcy if you can and ensure any direct debits and benefit payments are changed to the new account.
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chick1983
Starting Member
United Kingdom
9 Posts |
Posted - 02 April 2009 : 17:02:50
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| So before doing anything I should set up this new account, and re arrange all direct debts then it will all be in place for bankruptcy? Am I still allowed to hold accounts with BT, Sky, T-mobile as it it a form of credit? |
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xmas baby
Average Member
537 Posts |
Posted - 02 April 2009 : 17:24:33
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As far as I am aware you can still keep contract you have, for example with Virgin or Sky. I informed my OR about this as I wasn't sure if this was counted as 'credit', but it isn't, so you will be okay. As long as you keep payments up to date and don't go into arrears, these providers don't care. However if you don't pay for any reason, then they are most likely to cancel your contract and it will be harder (maybe impossible) to begin a new any contract once you become bankrupt.
xmas baby |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 02 April 2009 : 18:42:11
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As soon as you are BR you are not allowed to get credit of more than £500 without telling the person you're applying to.
Unless you run up a bill over £500 with sky or virgin (lots of pay per view!!), you should be fine.
Some companies eg. mobile phone companies will let you keep your contract others will not i think it depends on the company.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.
Life's too short!!! |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 02 April 2009 : 19:35:56
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Hi
If you owe any monies outside the usual monthly payment to your utilities such as Sky, bt etc then they will be classed as creditors
If I was you I would ring up Sky, BT, TMobile etc and see whether they accept Bankrupts, I know BT Do as they tried to sell me the internet the other day, but I think TMobile will close your account.
So its best to ring up now and see, that way you can save some money before going Bankrupt.
Your bank account will be frozen unless it is a "bankruptcy friendly" account these are currently Coop and Barclays Basic Cash card account, the other accounts open are the managed accounts such as thinkbanking, spectrum finance and credecard services.
Best of luck
Stu J Byron |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 02 April 2009 : 20:12:55
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Personally if I wasn't in arrears with Sky, T Mobile etc I wouldn't tell them myself. The OR may inform them, but I know they never informed Vodafone of my BR and I still have the contracet.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
22 IPA payments made, 14 to go - on the home straight! |
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chick1983
Starting Member
United Kingdom
9 Posts |
Posted - 02 April 2009 : 21:34:53
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Thanks everyone for your replies!
Once I have been decleared so I have to pay anything, monthly payments or anything l;ike that? I have no income other than what my partner gives me in pocket money! |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 02 April 2009 : 21:53:25
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If you have no disposable income DI or less than £99 per month then the OR will not expect you to pay anything towards your debts and no IPA income payment agreement
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.
Life's too short!!! |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 02 April 2009 : 22:14:02
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Hi
it depends on your outgoings, if they are seen as extravagent then the OR will suggest lower amounts as backed by the insolvency service.
Onething that the OR may look at is Sky Television, if this is not at the basic package, he may suggest this, likewise for BT.
Is your partner financially linked to you, do you have any joint debts, personally if you have no income then I would state income is £0, and would leave out everything else if your partner is not a joint or linked to your finances.
Could you swap your contracts with Sky, BT and TMobile over to your partners name, and stop your partner paying into your account. This would help you case, I would think
Best of luck
Stu J Byron |
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chick1983
Starting Member
United Kingdom
9 Posts |
Posted - 02 April 2009 : 23:12:31
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| My partner is not linked to me, I think the only thing that is in joint names is our council tenancy and council tax. Things like sky and bt were taken in my name because he has poor credit, but he pays for them. All tax credits etc that were being paid to me have just been changed and are noe made into his bank account, so I am £0 income. I have asked bt and they can arrange direct debts to be changed into my partners name but the account has to stay in my name unless i want to cancel the agreement and be charged a fee, i explainned what i was planning on doing but they said it doesnt change anything. havent asked sky as we have only been with them a few months but that is also comes out my account and in my name soley! |
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chick1983
Starting Member
United Kingdom
9 Posts |
Posted - 02 April 2009 : 23:16:13
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Would the best thing to be arrange direct debts for everything into partners name and coming out his account so I have £0 income and no money coming and going in and out my account??? THen set up a cash account then declare?
Will they class tax credits/child benefit as an income as it is jointy in mine and my partners name but now paid to him?
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 03 April 2009 : 00:32:41
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The OR will likely want to see bank statements from any accounts you have had in the last 12 months.
Benefits alone are not classed as an income as such and cannot be used solely to calculate an IPA
Direct debits for things that you don't want to be without may satisfy the individual companies but some could still cancel contracts etc most of the time there is small print that allows them to.
This is only if they find out though and not all companies are bothered anyway.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.
Life's too short!!! |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 03 April 2009 : 09:15:00
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Just so that you know I am with T-Mobile, I didn't let them know about my bankruptcy, either did my OR. Whether that was because I never owed them anything and I have always been on time with my payments.
I have had no problems in keeping my t-mobile account, in fact I received an upgrade on Monday with no problems.
Maizie |
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What will happen to me?
