Paying the fees on credit card

custard_cream_3 · 12 January 2009 at 12:46PM

Having just had my telephone interview, I thought I should pass on their comments on paying for the fees using a credit card.

I took my fees out on a Barclaycard a few weeks before going to court. In the interview, I was asked if I'd used any credit card knowing I was going bankrupt, to which I replied no, other than for the fees. I explained that I had been advised by the Insolvency Service that if there was no other means of paying for the fees, this would be ok. However, she said that simply wasn't the case, and by using a credit card knowing I was going bankrupt, I was committing an offence. However, she did then say that they wouldn't take it any further because the amount was too small for them to bother with.

So, make of that what you will. Officially, you're not allowed to pay the fees using a CC, but if you do, you'll probably get away with it.

davetheman · 12 January 2009 at 12:49PM

I was planning on taking my Overdraft to the limit, with my court in march, guess should do sooner rather than later

ogglydoggly · 12 January 2009 at 12:56PM

My OH and I have both taken out the fees from cc. Not phoned for a date yet. I have also had to buy petrol and essential shopping. I had no other option so just hope or understands that

custard_cream_3 · 12 January 2009 at 1:01PM

I think the shopping and petrol will be fine - you;re not expected to save for those. The fees - probably a ticking off like I got!

davetheman · 12 January 2009 at 1:04PM

I am doing the same with shopping and petrol, any ideas at what point you should stop, ie a month before

ogglydoggly · 12 January 2009 at 1:09PM

I don't really know how they prove you knew you were going BR (if you have not set a date) but I suppose if you are not paying cc bills but still using them it will not be allowed.My OH gets paid in 2 weeks so much I can do until then.

Does anyone know at what point a restriction order would be placed?

custard_cream_3 · 12 January 2009 at 1:22PM

Well, my take is that shopping and petrol are essential living expenses, so are probably acceptable. However, when it comes to looking at your expenses after bankruptcy, they might ask how you can afford to live post-bankruptcy. What I mean is be careful you're not shooting yourself in the foot.

davetheman · 12 January 2009 at 1:26PM

this is my concerm, as I have stopped paying my cards and have some cash now, one card is working until end of this month when that payment is due

custard_cream_3 · 12 January 2009 at 1:29PM

I really would use it as a last resort. My intereviewer had looked back a few months to see when I last used mine. I could have probably got away without saying why I used the Barclaycard, but I'm a gob!!!!!.

ogglydoggly · 12 January 2009 at 2:05PM

As soon as OH gets paid we will not have to use cc as we will not be paying the bills and therefore can afford to live! I think if it is obvious you were living it up or storing money then they will not be happy but we have to live.

custard_cream_3 · 12 January 2009 at 2:11PM

I think you're right!

You can't pay that money back either as it would be seen as preferential to one creditor!

Paying the fees on credit card

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