Is it possible or even moral?

MummyMoo

Hi there. Just wondering about something that Im struggling with alone so thought I'd ask anon opinions. You see, I've been to see the CAB last week about my debts and the lady there said my best option is bankrupcy. I immeadiatly said no, but since, I've researched it and now agree that although its a crappy option, it IS the one that makes most sense.

But see the thing is, for the last 12 months I've been living off my overdrafts (apart from three months work) cos I've been too stupidly proud to claim the benefits Im entitled to. I have now applied and waiting for a decision back. But for this whole time I've been living so strictly that I moved house and the only room I could afford to carpet was my daughters room. The rest of the house is full of scraps or nothing at all. I've not bought myself any clothes despite not wanting but NEEDING them (changing sizes for example). Now I've made the decision to go down the bankrupcy route, Im wondering if I should use my credit card to buy a carpet for the living room and maybe put a little money aside for basic living costs from the credit card.

Im not talking about a spending spree, or anything totally selfish and unneccersary. I dont want an expensive looking house and fancy clothes, Im talking about BASICS and still cheap. Im a single mummy and dont get any help from dad. Am I just thinking ahead on how to feed my child when my credit cards/current accounts are seized? I feel like "well Im making the ultimate finacial decision so I might as well go out with a bang and make the most of it".

As you can tell, Im very confused. And know nothing about the process Im about to embark on. All I know is that I've scrimped and saved and cut back so much, and yet Im still left with nothing and no better off.

kew63

Sorry to hear about your situation. No idea (but sure someone on here will do) about spending on credit prior to BR , but really wanted to check that BR is definately for you and not a DRO.

Debt relief orders

A debt relief order (DRO) is a new way of dealing with your debts. A DRO may be able to help you if you do not own your home, have assets worth less than £300 in total, and have less than £50 a month spare income to pay your creditors. Your total debts must be under £15,000. If your DRO application is successful then none of your creditors can take action to recover your debts for 12 months. The debts are then written off after the 12 months are up.

Checkout the National Debtline website for more info, and ring them for advice - they're great

Good luck & stay on this forum, you'll get all the help you need
:-)

philnicandamy

1st thing you need to do is contact one of the free debt helplines & they can give you some advice on where to go next..then come back & post here we'll help you anyway we can

spending such ammounts on credit cards before bankruptcy can get you in a whole deal of trouble

have you looked on freecycle for the odd bit?

miss_spooky

Hi Mummymoo,

I can completely understand where you are coming from as many of us here have been in the same position.

First & foremost if you follow this link and post up your SOA (Statement of Affairs, then we can give you the best options on what money you have available and how you can live after you've gone br (or whatever option you take). http://www.makesenseofcards.com/soacalc.html

YOu can list your debts initially but these won't be taken into consideration as they will be non existant after BR/DRO.

With the credit card & overdraft it's quite a tricky one. To go BR you will need at minimum the £345.00 court cost, you may qualify for exemption for the court fees of £150.00. THen you will have to ensure that you have money to live on, which is where the SOA come in.

Some people have used there credit cards / overdrafts to pay for basic living expences to see them through the first couple of week and have used their cards etc for the BR fees. The OR's sometimes tend to turn a blind eye but you do have to be careful. I would say that buying carpets could be deemed as a luxury & not necessity. I moved into my property 3 mths ago and haven't got carpets either. It's something that I'll have to try and save for.

Once your benefits have been confirmed you could go back to the CAB and see what they can do. My friend received financial help from a charity who paid for her carpets.

philnicandamy

Remember as well though....most utility companies have a trust fund that could help you pay for some or not even all of the costs of BR

Court fee remission and forms.

• HMCS - Court fees do you have to pay them? (And guidance on completing the fee remission form). (pdf)
• HMCS - Form EX160 - Application for a fee remission (pdf)
• Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)
• Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)
• Possible assistance with Bankruptcy costs / fees (Thanks to NE Derbyshire CAB)

pleasegivekarenadvice

MummyMoo wrote: »

Hi there. Just wondering about something that Im struggling with alone so thought I'd ask anon opinions. You see, I've been to see the CAB last week about my debts and the lady there said my best option is bankrupcy. I immeadiatly said no, but since, I've researched it and now agree that although its a crappy option, it IS the one that makes most sense.

But see the thing is, for the last 12 months I've been living off my overdrafts (apart from three months work) cos I've been too stupidly proud to claim the benefits Im entitled to. I have now applied and waiting for a decision back. But for this whole time I've been living so strictly that I moved house and the only room I could afford to carpet was my daughters room. The rest of the house is full of scraps or nothing at all. I've not bought myself any clothes despite not wanting but NEEDING them (changing sizes for example). Now I've made the decision to go down the bankrupcy route, Im wondering if I should use my credit card to buy a carpet for the living room and maybe put a little money aside for basic living costs from the credit card.

Im not talking about a spending spree, or anything totally selfish and unneccersary. I dont want an expensive looking house and fancy clothes, Im talking about BASICS and still cheap. Im a single mummy and dont get any help from dad. Am I just thinking ahead on how to feed my child when my credit cards/current accounts are seized? I feel like "well Im making the ultimate finacial decision so I might as well go out with a bang and make the most of it".

As you can tell, Im very confused. And know nothing about the process Im about to embark on. All I know is that I've scrimped and saved and cut back so much, and yet Im still left with nothing and no better off.

There are alot of charities out there that will help you aquire such thngs as carpets.If you have ever worked there are benevolent funds available.Have a good look on the internet for assistance rather than using a credit card.Dont be too proud to ask.There are also funds for hardship available from DWP, check their website.Best of luck xkx

SouthCoast

Help for people on a low income - the Social Fund

http://www.adviceguide.org.uk/index/life/benefits/help_for_people_on_a_low_income_-_the_social_fund.htm

MummyMoo

Thanks for your replies. I went to the Job Centre today and had a meeting with a lone parent advisor. Got an assigned case worker and another appointment next week which Im going to use to ask her if she knows about any of the help available. Today was just about overcoming the first hurdle really! lol! damn my pride. I also have a an appointment this week with my CAB case worker too and Im going to ask about the DRO, as this sounds like a good option.

See, I have Bipolar disorder and one of my things used to be to spend money like it was going out of fashion purely on my credit cards, so its something I've reallys struggled with but managed to get a grip of it. But now it just feels like I've done all that hard work and scrimping, saving and cutting back for nothing.

I managed to splash out on a massive £8 on two t-shirts for myself! lol! even then it felt so wrong. So I AM retrained in my money saving and didnt get even half as much pleasure buying as I do from finding a great bargain or getting my food shopping bill under £20 for the week! lol! I feel like if I just had a nice blowout then I'd have some things to make my life a little better (like the carpet in my front room instead of three bits that dont match and only cover the main section of the floor) but then all the learning that I've done to turn myself around will be lost. Its kind of like "If Im going out, Im going out with a bang" but then where's the moral justice and learning in that? Im so conflicted. I want my daughter to have what she deserves but at the same time dont want to mess up anymore than I have already! grr!