A few questions pre bankruptcy

fiveyearplan

desperatetobedebtfree wrote: »

The above is my SOA when finishing work....I really dont know whether to go BR before or after I cease work....

I would go BR before I quit work for a better chance of keeping the car.

salamjanab

Merry_Gentry wrote: »

Hi Salamjanab

You really need to start a new thread in order to get answers to your question.

For information, please read the stickies at the front of the forum - this will give you plenty of information regarding the consequences of bankruptcy.

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Thanks. I am new to this forum. Please advise how to start new thread.

desperatetobedebtfree

Salamjanb...you can start a new thread but clicking the " New Thread" icon at the top of the bankruptcy main board. Then someone will be able to help you with your questions. Have a look at the first few posts as they are know as "stickies" which give you a lot of info.

desperatetobedebtfree

786 wrote: »

Why on earth would you consider going bankrupt for £10K?

If you must go down this route, why not get a DRO (debt relief order) - debts up to £15k written off.

Alternatively, if you never want to get into debt again, don't pay and do not admit owing the debt for 6 years and it will be barred by the Statute of Limitations.

If you have no money or assets, there is nothing they can do - except threaten you with not allowing you take on yet more usurous debt.

I dont want to hide for 6 years. I have been struggling for that amount of time already and getting further in debt and my health and relationships have suffered. I dont qualify for a DRO as I have a pension. I want to move forward in my life and no spent every day worrying about where the next meal is coming from or if I will have enough to buy my son a new pair of shoes. I have always paid my debts but now I have a child then he comes first and not my creditors.

desperatetobedebtfree

peachyprice wrote: »

I think if your need the car to get to college the OR usually allows it, I'm sure we've had someone before in your situation, with a child to get to care and then on to college, and they were allowed to keep the car.

So i'd leave it on your SoA and see what happens, as you say you have someone who could buy it off the OR if necessary, which wouldn't be the whole £675.

Any one else got a view point on this. If my son went to childcare at my mums who lives quite a distance away then the viability due to time and connecting buses would make it impossible to go and still arrive at college for 9am.A taxi would be extremely expensive. However if he went into childcare that the college MAY be funding then I may be able to get a bus...Just the timings of buses would be wrong.

Think I will plead my case? If he disallows it though wont I been seen as having too much income and make me have LPO? I will do on I.S though.

Merry_Gentry

Prepare a letter to plead your case but be prepared to have to make an offer for your car. Obviously if he says no, you will have to amend your SOA to include all the travel costs.

desperatetobedebtfree

Thanks Merry Gentry....will write a letter.

So what shall I do between now and October/November (date i think this will happen?)

Shall I cancel payment of Loan with the bank (have no accounts with them so they cant offset) and just pay minimum of cards as I am using them to live? If I pays Julys and then start missing from august?

Am worried the OR may get funny as I am about to order a bed for my son as he is moving out of cot on my credit card. We also need a couple of household items...nothing flash just basic things that are falling apart/broken...If I order it now (reckon about £400) and then dont pay loan in next couple of days hes going to think I am being irresponsible isnt he? I know some people have maxed all cards but dont want to be seen as devious or taking the mickey. I am quite an honest person.

I need the loan money to put aside for fees and car buy back ( if needed)

786

fiveyearplan wrote: »

The OP isn't eligible for DRO. Some people would rather file bankruptcy and draw a line under their debt issues than live with the stress of 'hiding' from creditors for 6 years.

I just don't get this. Just be polite but firm on the phone - every thing must be in writing - you don't discuss finances over the phone. They WILL give up.

If you get money in the future, offer a percentage as settlement and clear the debt.

desperatetobedebtfree

786 wrote: »

I just don't get this. Just be polite but firm on the phone - every thing must be in writing - you don't discuss finances over the phone. They WILL give up.

If you get money in the future, offer a percentage as settlement and clear the debt.

I dont want the stress of the phone calls, letters through my door and baliffs at my house. I will never money to pay them off.

Merry_Gentry

Shall I cancel payment of Loan with the bank (have no accounts with them so they cant offset) and just pay minimum of cards as I am using them to live? If I pays Julys and then start missing from august?

You stop payments to ALL creditors at the same time otherwise you are favouring one over the other.

Am worried the OR may get funny as I am about to order a bed for my son as he is moving out of cot on my credit card. We also need a couple of household items...nothing flash just basic things that are falling apart/broken...If I order it now (reckon about £400) and then dont pay loan in next couple of days hes going to think I am being irresponsible isnt he? I know some people have maxed all cards but dont want to be seen as devious or taking the mickey. I am quite an honest person.

It depends what you need to get. Obviously your son needs a bed, but what other things are you thinking of getting? You may be asked by the OR to explain what you spent the money on.

I need the loan money to put aside for fees and car buy back ( if needed)

I don't think you'll be allowed to hang onto money like this - I think you have to declare any cash you have. With regard to buying the car back, if you buy it yourself he may well ask where you got the money from - better if a friend or relative can buy it for you.