How long should I wait?

Bassplayer

Hi All

Firstly, thanks for all the helpful feedback and comments in response to previous email...much appreciated!

Secondly, maybe my question should be 'how long have I got?'

Having had long discussions with National Debtline and The Bankruptcy Advisory Service (v.good but needs £25 annual subscription!) it seems BR is best route for me.

I'm not going to make monthly payment for mortgage or secured loan this month and wonder how long it might be before they take action? Two/three months seems to be the best guess. I'd like to leave here and move into rented at a time that's best for me, not them. So if that means going early, fine!

Plus I've got some sorting to do - sell a few things, stash some emergency funds etc etc and the longer I can remain here (essentially rent free) the easier it might be getting settled the other side of BR.

Also will be owing HMRC a £3K tax payment - which was due at end of July - and wonder how long they will wait to take action. Having said that, in the past I've had money outstanding with those guys for a couple of months, rec'd reminder and paid it with little more than added interest as the penalty!

Finally, is it ok to open an account with, say, Coop and leave it dormant until after BR? I'd tell the OR but should I also tell Coop and when...during opening or only after BR? If I can open up new account sooner rather than later, I could tee up the transfer of key DDs (ie mobile, broadband, phone etc which are all vital to me making a living).

That's for now folks, any advice would be gratefully rec'd!

Take care all

BP

skylight

Bankruptcy advisory service - steer clear. If you need further advice, go to Payplan or CCCS. They are free debt charities and have your interests rather than financial ones.

Mortgage - you will be inundated with letters about missed payments for some time. Some people on here have discovered it has been almost a year since default to repossession and others its been a few months. The secured loans though are unlikely to let it go a year, but I would agree that you should have 3 months or more until they start to get really serious. Its only a guestimate as each company is different and with this credit climate they too are tightening up. If you are not paying them, then ensure you do not pay ANY creditor - it will be seen as preferential treatment towards a creditor and is wrong. The OR will be pee'd.

"Stashing" emergency funds is not something we would normally recommend but you do need living expenses. Place a small living expenses amount in an account with a trusted friend/family who knows whats going on.

Leave HMRC alone. They can complain too, but even *if* a CCJ or order is made against you in the meantime, these are all trumped by BR anyway.

When opening a new account now, there is no problem in using it now. You have made a clean break with everything and you need an account. Specifically ask for a basic cashminder account - they will try an up-sell and anything over a basic account will definately be closed at BR. Don't tell them you are planning on BR when opening the account. You can only confirm actual real things. BR has not happened yet.