renting after br???

AAW_2

Just a couple of things. I now intend to go bankrupt in March or April.

1. Should i get my rented accomodation before the bankruptcy or after? I will not have missed any mortgage payments if I do it in March as I have arranged Payment holidays for the next month to give me some time to decide which route I was going to take.

2. How does the OR check that what I am paying for rent is the true ammount? (I'm not trying to dodge anything)

Its just that I came up with an idea to cut down my spending on my SOA as it was a bit over my earnings. Basically I need to rent at least 3 bedrooms to accomodate myself and 2 children, for a 3 bedroom house in my area i'm looking at £550 - £600 which is what would have gone down on my SOA. After looking through available accomodation I found that I could rent a 4 beedroom for around £700 and have a friend who would pay £300pm to have one of the rooms (result) so I could then put £400 - £450 down as my rent which I'm sure the OR would be happier with. My friend is a student so the council tax would still be single persons and I know that he is good for the money and would stay long term.

3.Will the OR accept that I will have had to use a bit of my wages over the next couple of months to buy a washing machine and fridge etc.. as the ones currently in my house are intergrated so I can't take tem with me?

4. I have opened a cashminder account already and intend to start having my wages paid into this account - will the OR wonder why I have been lifting so much money? Also I will recieve an annual bonus at the end of March which could range from £500 - £2,500. I am better do go bankrupt before this or after?

Many thanks in advance.

peachyprice

AAW wrote: »

Just a couple of things. I now intend to go bankrupt in March or April.

1. Should i get my rented accomodation before the bankruptcy or after? I will not have missed any mortgage payments if I do it in March as I have arranged Payment holidays for the next month to give me some time to decide which route I was going to take. It might be easier, you might still pass the credit checks, so won't have to find a huge deposit/guarantor

2. How does the OR check that what I am paying for rent is the true ammount? (I'm not trying to dodge anything)
They ask to see your tenanct agreement

Its just that I came up with an idea to cut down my spending on my SOA as it was a bit over my earnings. Basically I need to rent at least 3 bedrooms to accomodate myself and 2 children, for a 3 bedroom house in my area i'm looking at £550 - £600 which is what would have gone down on my SOA. After looking through available accomodation I found that I could rent a 4 beedroom for around £700 and have a friend who would pay £300pm to have one of the rooms (result) so I could then put £400 - £450 down as my rent which I'm sure the OR would be happier with. My friend is a student so the council tax would still be single persons and I know that he is good for the money and would stay long term. You can have a lodger, but you'll have to put the whole rent down so it ties in with your tenancy agreement, then the lodgers rent as income

3.Will the OR accept that I will have had to use a bit of my wages over the next couple of months to buy a washing machine and fridge etc.. as the ones currently in my house are intergrated so I can't take tem with me? You're not BR yet, you can spend your money as you wish, he's be a bit miffed if you were using credit, but spending your wages to set up your new home is fine.

4. I have opened a cashminder account already and intend to start having my wages paid into this account - will the OR wonder why I have been lifting so much money? Also I will recieve an annual bonus at the end of March which could range from £500 - £2,500. I am better do go bankrupt before this or after? Sorry, I don't know what you mean by 'lifting so much money' Do you mean you'll be paying in your wages then taking out the cash?
If you go BR the day after March payday you'll have time to get your bonus out, and you won't get a nil tax code
Although, if your bonus is £2500 the OR might ask what you've done with it, if it's £500 you can say you've used it for BR fees.

Many thanks in advance.

Hope that helps some.

AAW_2

Yes I mean taking the money out. I need to pay family and friends back some money I have been borrowing to get by for the last few months.

What do you mean by nil tax codes?

And with the bonus I'll have to use that to pay back my sister who will be paying for my deposit on the rented accomodation.

Although the bigger house with a tennant will be better. Will the OR wonder why I am renting such a big house or is this the kind of thing I can explain during the interview? Do you think the OR will accept me having a lodger even though I am positive they will not walk out on me, but then nothing is ever 100% certain.

AAW_2

Anyone????????

Merry_Gentry

Yes I mean taking the money out. I need to pay family and friends back some money I have been borrowing to get by for the last few months.
If you do this before going BR, it is deemed as preferential treatment and (a) the OR may well chase your family and friends to get the money back, and (b) you may get a BRO.

What do you mean by nil tax codes?
They apply a nil tax code so you get all your tax in your salary. Don't get excited - you then have to pay it to Moon Beever as a contribution towards your bankruptcy.

And with the bonus I'll have to use that to pay back my sister who will be paying for my deposit on the rented accomodation.
That should be ok as it's explanable (I think)

Although the bigger house with a tennant will be better. Will the OR wonder why I am renting such a big house or is this the kind of thing I can explain during the interview? Do you think the OR will accept me having a lodger even though I am positive they will not walk out on me, but then nothing is ever 100% certain.
Dunno!

AAW_2

The National Debtline told me to stop paying all my creditors with immediate effect. I'm now confused as to what to do with all the leftover wages I will have after paying the essentials - Gas, Electric, Water, Council Tax, Car insurance, if I can't use it to pay back family as this preferential treatment what do I do with it???

I have already opened a co-op cashminder account and will be having 2 months worth of wages paid into this account before I go BR. The reason for this is I owe Nationwide money for my overdraft and I'm certain they will swallow my wages up if I still get them paid in there.

Does it sound like I'm taking the right steps?

I really don't want to do anything that might upset the OR as it sounds like you only get one chance with them to make the right decisions.

I'm so scared.

Merry_Gentry

The National Debtline told me to stop paying all my creditors with immediate effect. I'm now confused as to what to do with all the leftover wages I will have after paying the essentials - Gas, Electric, Water, Council Tax, Car insurance, if I can't use it to pay back family as this preferential treatment what do I do with it???
If you are moving into rented, you will need to pay deposit, moving costs, and setting up the house properly. Remember, you won't have access to credit once you go BR so all those bits and pieces that are on shaky legs - this is your last chance to get them sorted!!! But no, you can't use the money to pay off relatives because it would be treating a creditor in a preferential manner. You can pay them back out of your surplus once you have gone BR.

I have already opened a co-op cashminder account and will be having 2 months worth of wages paid into this account before I go BR. The reason for this is I owe Nationwide money for my overdraft and I'm certain they will swallow my wages up if I still get them paid in there.
Might be an idea to take this money out when you go BR so the OR doesn't take it.

Does it sound like I'm taking the right steps?
Yes it does.

I really don't want to do anything that might upset the OR as it sounds like you only get one chance with them to make the right decisions.
I don't think that's necessarily the case, but you don't want to do things that could get you off to a bad start. Have you done a SOA yet?

I'm so scared.
I know, but you're doing great - you're being proactive, finding out the things you need to know, and sorting yourself out. :grouphug:

AAW_2

Yes I have done my SOA and its actually coming out that I'm still not quite earning enough to pay everything to live. this is why I thought of renting a 4 bedroom instead of a 3 and having a lodger which would straighten my SOA out. I'm just thinking that it might look bad if I'm renting a big house.

Thanks very much for the information and help.

I guess i'm maybe reading too many things about how bad the OR could be instead of being positive and that i might actually get a nice one.

Do I need to stop paying for my Virgin TV, Broadband and Phone over the next couple of months also? My 12 month contract only has 2 months left.

AAW_2

Also will I have to give the details of who my lodger is or anything like that to the OR as I don't really want anyone to know my situation and why I have moved home?

Merry_Gentry

Never known anyone have a lodger so not sure how it works. I would imagine if you explained to them your reasoning they would be ok with it, but you need to be rock solid sure they're not going to let you down - especially if the house you want to rent is out of your means unless you have a lodger (IYKWIM).

Re: Virgin, etc unless you are in arrears I don't think they need to go into your bankruptcy unless you want them to?

AAW_2

I'm not in arrears with them just did'nt know whether to pay them over next 2 months.