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amyc
Junior Member
113 Posts |
 Posted - 27 October 2009 : 18:17:23
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| i was just wondering if anyone has used credit to pay for thier bankruptcy feens and if so what wil the judge say? if someone is struggling and living off credit how can they pluck £510 out of thin air, i know its our faults for getting into this situation but just a thought |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 27 October 2009 : 18:34:45
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A few people have used credit cards to pay for their BR and it is generally frowned upon by the OR so not advisable. Most people stop paying their creditors a few months before BR and use this money to pay for the fees.
Having said that if it is the only way that you can save for the BR fees then there is not a lot you can do but be prepared to show the OR that there was no other way to save for the BR fees.
I also seem to remember someone saying that if the creditor realises that the money is being used to pay the BR fess then this is a valid objection for an Early Discharge as the individual has used this credit knowing they would not be paying it back. |
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amyc
Junior Member
113 Posts |
Posted - 27 October 2009 : 18:37:42
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i think we wil only need about £200 of overdraft. natwest gave us a £2000 overdraft, silly sily. we have already started cutting back but cant save too much or we wont be able to eat  |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 27 October 2009 : 21:15:57
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Personally I would try and save the fees over several months as you could (and I'm not saying you will) get a BRU for incurring credit that you know you cannot repay.
Until your IVA is actually failed you won't be chased by your creditors, so that should buy you some time.
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/
27 IPA payments made, 9 to go - in single figures! |
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RHB
Senior Member
1159 Posts |
Posted - 28 October 2009 : 07:21:33
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| If you are currently in an IVA you shouldn't be using credit so i think you would be more likely to get a BRU in tose circumstances tbh. As has been said, stop paying your iva PAYMENTS & use that money. You can't use credit when you are bankrupt so you do need to start budgeting. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 October 2009 : 08:47:11
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I'm Amy is quite aware that she should be budgeting, but her IVA payments are so tight that she cannot afford to live on them.
Amy, I can understand why you're thinking of using credit, but it would be better to spread saving the fees over several months than to use credit and risk a BRU.
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/
27 IPA payments made, 9 to go - in single figures! |
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Jane.l
Average Member
511 Posts |
Posted - 28 October 2009 : 09:21:18
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we used our £1000 overdraft to pay the 2 fees, the OR never said anything about it, but compared to our overall debt, it was a tiny % of it 
I know its not ideal but we could not get the fees together, we waited 7 months and we still could not save enough, I was getting more stressed and upset and would rather get a "ticking off" from the OR than deal with the creditors any longer, but it was not mentioned and we both got early discharge |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 October 2009 : 09:28:32
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I agree with Skippy - Amy's IVA payments were set way too high in the first place and she cannot manage to live during the month and pay her day to day expenses.
If you can manage to save the fees without resorting to credit Amy then try and do so. Have you actually stopped your IVA payments yet? If not, then I would do it from now.
RHB - Amy has been doing her best to budget but on her payments it's not possible. She needs help rather than critisism at the moment.
The glimmer gets brighter all the time
Jan
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amyc
Junior Member
113 Posts |
Posted - 28 October 2009 : 14:21:57
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| Thank you all for your kind words. Obviuosly only some of you know the circumstances me and my partner are in and i appreciate honest advice. Its easy for some people to just say 'budget better' but unless you are in circumstances where you cant even get by month to month then its hard to understand. we are thinking of plans on what we can pull back to save up without using credit. Cancelling standing order for iva today and thankfully our IVA company are still helping us despite failing the iva. THANK YOU KALLIS AND SKIPPY XX |
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RHB
Senior Member
1159 Posts |
Posted - 28 October 2009 : 19:42:46
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| That wasn't meant as criticism, but as I was pointing out in an IVA you are NOT meant to be using credit therefore I am only pointing out that a judge may be more severe in those circumstances. Maybe you said it better, but I would stop paYING THE iva & save for the fees. And when you are bankrupt the money you have coming in is all you can spend. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 October 2009 : 21:40:36
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Your post did come across as critical RHB.
Amy had no other option other than to use credit as her IVA allowances were so unrealistic and there is no room to lower the payments.
I'm sure once she is BR Amy will have more realistic allowances and will be able to live on the money coming in.
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/
28 IPA payments made, 8 to go - in single figures! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 October 2009 : 22:34:47
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It did sound critical. As I know Amy's circumstances, I can say that she had no option but to resort to credit, it was either that or starve.
She has tried her hardest to make the IVA work but with the payments she had it has just not been possible. I'm sure her IP company will help her sort out the BR and that a judge will be sympathetic when he sees what she has gone through.
Amy, I hope it works out for you and if you need to speak to me about anything, you know where I am.
The glimmer gets brighter all the time
Jan
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 29 October 2009 : 07:17:29
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It sounds like Skippy and Kallis have more knowledge about Amy's situation than has been posted on this board so I am guessing that they have been helping her on the IVA forum.
Based on the information that Amy has posted here I don't think RHB's post was overly critical and, I am afraid to say, that he is probably correct in thinking that you 'may' end up with a BRU if you use the OD for your BR fees.
When in an IVA you pay 100% of your DI so if you take any credit then you have no possible way of paying it back and this is one of the criteria of a BRU.
Another user posted on this board a while back who was in a DMP. They had taken credit while in the DMP and ended up with a BRU as they knew they had no way of paying it back.
It sounds like Amy has been through a lot over the last few months with an unrealistic IVA so the last thing she needs is to end up with more stress when she declares BR.
My advice is:
- Call NatWest and have them remove the OD immediately. This way you will not be tempted to use the OD.
- Save the BR fess out of the IVA you would normally pay. To be considered for an IVA you normally need £200 DI and if this is the case with Amy then she could save the BR fee in 3 months. |
Edited by - gettingoutofdebt on 29 October 2009 07:17:50 |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 29 October 2009 : 09:01:46
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It's not what was said, but the manner in which it was said. If Amy (or anyone else) is using credit whilst in an IVA then there is a reason for that.
You're right that Kallis and I do know more about Amy's situation, but no questions were asked as to why she was having to use an overdraft.
Unfortunately it's not so simple for Amy to save the BR fees - it will take her longer than 3 months as she needs a lot of her IVA payment to live, hence the reason she is using credit.
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/
28 IPA payments made, 8 to go - in single figures! |
Edited by - Skippy on 29 October 2009 09:06:29 |
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amyc
Junior Member
113 Posts |
Posted - 29 October 2009 : 17:00:13
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| hi all. firstly i would like to thank everyone for their advice, good and bad. there is a few things i wanted to clarify, might give people a bit more info on our circumstances. we never used our overdraft whie in the iva and i did ask natwest to remove it from the account but as of yet they have not. we have to save £1,020 by end of january. The reason our iva is failing is because we couldnt keep up high payments and get by from month to month. Our payments were £290 a month, so as you can probably see saving for the bankruptcy wont be easy, we were not planning to use whole of overdraft to fund bankruptcy. after working out our budget after cutting back bils as much as possible we are still going to be overdraft by about £200. this is mainly because of food bills, which obviously is a must. We are going to try our very best not to use our overdraft but like i said if we cant afford payments now then chnaces are we are still going to struggle to save unitl bankruptcy is finaised. I realy do appreciate everyones advice but it does not take away the worry of using the od to survive. Thank you kallis, skippy and lesley for your help and trying to expain to others. also LESLEY thank you for your email and i did not mind what you said at all, in fact i appreciated it. xxx |
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RHB
Senior Member
1159 Posts |
Posted - 29 October 2009 : 17:19:26
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| Thanks getting out of debt! Is there a particular urgency in declaring BR because if not I really wouldn't use the overdraft even if it meant saving up for longer than you want to. |
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using credit for fees
