Bankruptcy Fee + rules around credit BEFORE BR

blueopal5577

Couple of Q's:

1. Did anyone use credit or a loan to go bankrupt?

2. Did anyone spend unneccessarily in the couple of months prior to BR?

3. Did the OR deem it "fraud" / did you get a delayed discharge because of it?

I've read bits about if you get a loan that you know you cannot repay before going bankrupt, that they can delay your discharge. Did anyone do this to fund BR and had an OR who was understanding?

Also, this sounds awful but believe me Ive hit rock bottom for a year before looking at it so matter of factly...

I was kinda hoping that I could use the loan to buy a new... very BASIC divan bed. I'm currently sleeping on my (cheap) sofa because despite working, because i pay my bills alone I cant afford to buy a bed. Its ruining my sofa. My previous argos cheapy divan base broke and I had to throw it away. Because ive tried propping it up in one thousand different ways, the cheapo mattress got wrecked.

I want to approach the OR as honestly as I can. With my anxiety problem, I'd find it hard to lie! That said, could I smudge the truth saying I got the loan because I needed to buy a bed, realised the interest was extautionate and decided to follow through with BR?

At the moment Im not paying creditors and I'm living like a nun (and have done for sooo long - years!) and I'm still just making it to the end of the month juggling council tax one month with power the next, and living very frugally. Low wage / living alone so responsible for all bills. I do as much overtime as i can. If I didnt have the debt I could manage like this but when you're not even meeting whats required as i know everyone can understand, its exhausting and just so stressful. Anyway, my point is... its not like I could save money for a bed or BR. It'd be at a rate of like £10 a month, by which point I'll be singing "summer holiday" nude in the rain having gone out of my mind. (j/k)

I'm so glad I came here before filing. Ive researched it to death before but there are somethings you can only learn from talking to people. Housing Associations - rules regarding paying off family or rent debt before going bankrupt (i was going to use the loan to pay for my BR and to pay off my rent) But now know the problems this will involve.

Any advice much appreciated. This forum is now my homepage!!!





Just found an old archieve thread via google and someone asked similar, and got a lot of abuse for asking! I dont want to delete the message but I hope people can see I'm not trying to abuse the BR process at all. Its not to buy handbags or clothes, its because I sleep between the sofa and rug on the floor and have done for 8 months, I really want BR to be a new start and as im returning to study, it doesnt look I'll be able to afford one for a long time. I have only 1 member of family, my mother who cannot afford to help me and because of personal reasons, doesnt know the extent of my financial problems. Anyway, hope you guys understand.

shadowdragon

I really dont think the OR would look kindly on you taking out a loan to pay BC fees, My suggestion would be to post your Income and Expenditure so we can see where your monies are going and people might be able to suggest where to cut back.

For the Bed - Have you tried using FreeCycle its like ebay but its Free!!!

Theres also the Moneysaving Old Style board on this forum, and I use it and get some really good ideas where to cut back/Save the pennies. In fact Ive really got into the money saving stuff for example we make our own bread costs 20p a loaf and no waste, opposed to the cheapie loafs in Aldi which cost 40 odd pence. Slow cooker for cheap cuts of meat ect.

I think (and can only speak for myself here), the easiest place to save spending is on groceries, and getting out of the branded hype.

Also look at your utilites, if you are metered for water, shove a brick in the toilet cistern, and reuse the water from washing up etc, to water your plants.

Save Electricity by turning unused items off at the switch/unplug them. Stuff like that.

k2nga

Yeah i have heard of people withdrawing money from there credit card to pay there BR fees but i don think you would get away with it with a loan as you would be taking it knowing that you had no intention of paying back which would be seen as fraud.

Like SD says freecycle is a good place to start as you can always request on there as well as see offers.

Like you say once you have gone BR you may have a bit moremoney to play with but make sure you get some advice from the Charities as Judges do like to make sure that you have had advice and know that BR is for you.

blueopal5577

Electricity is only £3.5 a week, £1 of which is a meter fee (I know many hate meters but i like it), I've got my water hippo and havent seen a branded good in yonks lol.

I really appreciate your reply. I'm not being dismissive. Just feels never ending. Really really want to file soon because I start university again (left my 1st course bc of money) in september and I'm desperate for a new start. Feel like ive got an anchor round my neck so the idea of saving... whilst being unable to work as much as i am now because i'll be studying, just feels so depressing. Cant get my head round it but I know legally you're right.

Thanks for talking sense Dont be suprised if I post and say I've got a loan and done it! Its not because I dont value ur opinion, I just have to balance the legalities with sorting my life out whilst I'm on a roll with the courage to do it. Worried if my MH deteriorates again the situation could get so much worse. The bailiffs are already now on my case. I have my leave my house so often to do shifts that I have panic attacks arriving home. Going BR will be the best medicine to allow me to get well and get my life back. But its not that i dont value / believe ur guys opinions. Having read the archived post I get that its a no no no no NO! to do. Just got to balance it with what I need and what I'm able to manage. (this applies to the BR not the bed)


Update: Forgot to say I've been in contact with CAB and National Debtline in the long term so I'm happy I can explain I've viewed all options etc.

shadowdragon

blueopal5577 wrote: »

Electricity is only £3.5 a week, £1 of which is a meter fee (I know many hate meters but i like it), I've got my water hippo and havent seen a branded good in yonks lol. When we first moved into this property 18mnth ago there were key/token meters already installed we left them in, and I wouldnt be without them now. One less bill to worry about, and you can stock up on credit during the summer and use it thorugh the winter.

I really appreciate your reply. I'm not being dismissive. Just feels never ending. Really really want to file soon because I start university again (left my 1st course bc of money) in september and I'm desperate for a new start. Feel like ive got an anchor round my neck so the idea of saving... whilst being unable to work as much as i am now because i'll be studying, just feels so depressing. Cant get my head round it but I know legally you're right. At the end of the day the decision and the repersussions are yours. People can only advise you. You are the one who has to make the decision that is in your best interest.

Thanks for talking sense Dont be suprised if I post and say I've got a loan and done it! Its not because I dont value ur opinion, I just have to balance the legalities with sorting my life out whilst I'm on a roll with the courage to do it. Worried if my MH deteriorates again the situation could get so much worse. The bailiffs are already now on my case. I have my leave my house so often to do shifts that I have panic attacks arriving home. Going BR will be the best medicine to allow me to get well and get my life back. But its not that i dont value / believe ur guys opinions. Having read the archived post I get that its a no no no no NO! to do. Just got to balance it with what I need and what I'm able to manage. (this applies to the BR not the bed)

Just added a few words. I would check out your University too, as if your planning on getting a loan from the SLC for fees/living, you may have to wait until your discharged from BC before your eligable, I would ask the question to the SLC if thats the case. Just to be forewarned.

Chin up

Shadowdragon.

peachyprice

Blueopal, sometimes in life you just have to do what's necessary, and accept the consquences after. If this forum didn't exist what would you have done?

tigerfeet2006

Blueopal do you have any thing left on your credit cards at all? The OR usually turns a blind eye to you taking money off them to pay for your BR.

Would you be eligable for the remission of court fees?

http://www.hmcourts-service.gov.uk/courtfinder/forms/ex160a_e.pdf

Application form

http://www.hmcourts-service.gov.uk/courtfinder/forms/ex160.pdf

Check with your CAB and see if there is a local charity who might be able to help with the fees. Are you a church member? Lots of churches give the Minister a discretionary fund that can be used to help out parishoners in distress.

Definatly get yourself on Freecycle. It's a lifesaver.

https://www.freecycle.org . Click on BROWSE GROUPS to find your local one.

dalip

Blue if you take out a loan just before bc you will almost certainly be liable for a bro/bru. Whilst they are not as bad as they seem it all depends on the person as to whether they actually want to go so far as to get one deliberately. I used my credit card to draw some cash for my bc fees and nothing was said.
Have you nothing left on your cc like tiger says or could you up your o/d limit on your bank account to incorperate it?. D

blueopal5577

#Hiya, credits are all defaulted and maxed out ages ago... Overdraft account isnt even used bc its over the OD. No chance of getting credit cards etc with my credit rating... all avenues persued.

But I am avid freecyler Shouldnt have given away so many books on there i regret it now but waste not want not

blueopal5577

so many typo's i apologise

dalip

Dont worry about typo's we get your drift. I have that much dust under my keys it take me 10 mins to do a sentance,and another 5 to correct errors:o