Silly question time

yellowmonkey

Hi

I am at the moment mulling over several options regarding my Debt problem.If I was to go down the BR route I know that your bank account is closed etc.

My question is when you open your new account is the money in it yours or do you have to ask the OR for money for food etc. For example if my wages get paid into my new account can I take £10 pocket money out for me or does every penny have to be accounted for. Similarly if I decided to take the kids on a weekend break can I draw the money out or is the OR constantly monitering my account.

Sorry to barge in straight with a question but the CCCS debt remedy recommended Bankruptcy as an option. I am thinking of this as I rent my house and do not have an expensive car so need to give it serious thought

Thanks

ym

k2nga

Once you have been made BR you can go get a new back account say with Co-op and thats your account and nothing to do with the OR. You will have to do a statement of affairs for the BR and the OR will makes a decision based on this as to if they would like you to make regular payments into you BR estate but this is normally only if you have a surplus of more than £100 per month.

skylight

Its your account after BR and the OR is unlikely to ever monitor it. Unless, however, he thinks or discovers you are hiding funds etc. But thats not easy to do in BR anyway.

Scarlett.1974

Hi yellow monkey

There are no 'silly' questions over here, so don't worry about that

When you go BR the forms you fill in have a detailed 'income and expenditure' section. You list everything on there that you spend in an average month and *if* you have a surplus of £99 or more pcm the OR may impose an IPA, where you pay back a % of your surplus to your BR estate.

The OR has no interest in your new bank account that you open after BR and your money (after bills, IPA payment if necessary etc) is yours to do with as you please. Don't forget though - when you go BR you agree to tell your OR of any changes to your finances so say (for example) you got a massive pay rise or moved into a house several hundred ££££ a month cheaper, you are obliged to tell him/her of this. On a similar note though - say you lose your job and get a lesser paid one or your rent increases, you would also tell him/her of this and any IPA would be reduced accordingly.

Hope that all makes sense and please do shout up if you have any further questions

peachyprice

Hi Yellowmonkey,
Welcome to the forum.:D
Once you have your new post-bankruptcy bank account the OR has no interest in it and do not monitor activity (unless in an extreme case where they suspected fraud).

The only money you might have to pay the OR is a surplus of any income you have left once all your living expenses have been accounted for, and something called Nil Tax code IPA where you pay your tax for the year to the OR instead of the tax man. Payment of these is by monthly direct debit, all other money in your account is yours to do with as you wish.

peachyprice

Ooh we're just like buses :rotfl:

yellowmonkey

Cheers for that.Ideally I would like to go BR but my OH is not to keen. We have no joint debts however.
Another thing is that I have recently added a debt and , I am ashamed to say , it was to pay for a holiday to Florida and I know the OR will not be impressed with that.

Will it be better to wait until the Holiday has been out the way for a while and then apply for BR. Sorry another question there.

I am on a DMP but am struggling with payments and need to reduce what I pay. I know I have been stupid with the holiday but it was booked 2 years ago and the DD's were so looking forward to it I did not have the heart to let them down as they do not get a lot and paid off the balance recently (hence the added dedt) .It is all paid as is the spending money so it is done and I need to move on and sort out my life

PS. I have been lurking on this board for a long time believe you me and have only recently had the courage to post. The support on this board by the way is tremendous

Scarlett.1974

How much have you recently added to your debt for the holiday? Unless it's thousands I can't see the OR being too harsh about this - maybe a raised eyebrow and questions about it during your interview

Someone on here booked a holiday before their BR on their CC and then had to postpone their first interview date because they were going on said holiday, so you certainly wouldn't be the first!

yellowmonkey

Unfortunatly it is my O/Draft that has shot up to £3k :o:o:o:o. That was with other things but no excuse I know.

peachyprice

I wouldn't worry, the holiday was booked 2 yrs ago, you weren't to know at the time that you would be in the do-do. If you'd have cancelled it you couldn't have claimed in the insurance, so it would have been money down the drain, and you have to eat while you're there.

yellowmonkey

I think that I have decided really in my heart of hearts that BR is going to be the end option for me. I suppose what I was asking in the above was am I really better to wait until early next year to go BR and carry on with the DMP until then or do it now.

The stumbling blocks there are 1..the holiday and 2...My OH reluctence to see me bankrupt. She does not read this forum and has visions of baliffs coming to take away our TV.

None of my debts are sucured so it seems the answer but I would rather have her onboard with this.

Thanks for the answers so far