Payday loans - another problem!

Rach2007_2

Hi Guys

Me and DH have been advised to go br, and will cancel our dd to our dmp this month in order to start saving for the fees. We think it will take us 5-6 months to save up.
Thing is, since we started our dmp a year ago, we found the budget so unbelievably tight that we started using payday loan companies to cash cheques roughly about 8 months ago, but 'rolling them over' by paying a small fee every month, never actually paying them off. (I know, stupid, what a mess).
If we pay these loans off before br I know if the OR finds out that it will be seen as favoring a creditor. And in any case it will take us double the time to save up for bankruptcy fees.
I know I will need to explain all this to the OR but I was thinking of just letting all the cheques come out of my bank account (which will take it massively overdrawn) and then starting afresh with our new cashminder account which we've just been approved for, and which I understand is safe to use after BR. I understand that that overdraft from our old account would then be included in our bankruptcy.
What do you think? The payday cheques wern't used for anything lavish, just living because our dmp was so tight with two kids to support.
This is exactly why we need to go br, so we can both start afresh and never get into silly situations like this again.
Any advice would be most appreciated.

xx

dane-katie

I did the same as you with these cheques, i actually cancelled them all with the bank and i was lucky they didnt charge me for this either, i had lost my cheque book too so this might be why they didnt charge - they just cancelled them all as if i had lost them all.

Betime the companies had realised i was actually going bankrupt that week, so didnt really get any hassle from them.

Perhaps cancelling the cheques or letting them go out? at least if you contact the bank the OR cant say anything bad as you have tried to cancel them if they do want to charge you.

someone more experienced will come along soon thought i would tell you what i did though

Rach2007_2

just thinking about this a bit more and if I do just let the cheques come out and include the overdraft in my br then this could be seen as taking out debt I had no chance of being able to repay, thus leading to a possible BRO.
But if I pay them off I'm favouring a creditor, and it will take ages to get BR fees together.

Think I'm shafted either way. Panicking a bit.

Rach
xx

dane-katie

Perhaps call the bank and see if you can cancel these cheques?

If they will do it free like we did should be ok, i told the OR and they had no problem with it.

If they want to charge explain this to the OR and just let them bounce, if this is going to be a problem im sure someone will be along soon to correct me:)

fiveyearplan

Sorry I don't really have any experience of payday loans but I would have thought you took them out in good faith (you aren't getting any more are you?) and you just can't afford to pay them back. Don't see how this could be construed as misconception. Anyway, people don't generally take out those kind of loans if they don't need them for general living expenses do they?

Rach2007_2

Thanks danekatie and five year plan.

They were taken out as I couldn't keep up with my dmp payments and hadn't thought that br was an option to me at the time. Will speak to the bank about cancelling the cheques yes, and see what they say.

Thanks again

Rach