Why you can't sometimes go BR

lizandalfiecat

Hi folks

I wasn't aware of this, although its logical. Maybe its in all the things to read and I just didn't take it in.

If you have more outgoings than incomming, you can't go BR, until your finances are stable again.

CAB told me I had to go BR as was only option I had, so I've been proceeding on this basis - even got half way through the forms and was paniking about where to get the court fees from.

CCCS today said that because more goes out than comes in, I can't go BR at the moment. Plan is to use the pack they emailed over (very fast!) to offer token £1 payments to all creditors and review when my situation changes, i.e. I get more work/income. I know 2 of them will go for CCJ, so at the mo, thats the worst that will happen.

So a mixed day!

Sometimes the obvius just isn't when you're in the thick of it :rolleyes:

Tinytim

Hi Lizandalfiecat,

It is easy to fall into the trap of thinking your outgoings are more than your income, and believing you can't proceed on that basis. However, it is your outgoings after BR which are important not those before.

For instance, if your expenditure is going to exceed your income after all unsecured credit has been removed, it must be exceeding it by a great deal more than that at the moment. Therefore, there must be things which you still wont be able to pay, even if all your unsecured creditors accept £1 token payments; what are these?

For instance, if you have a large mortgage which you still wouldn't be able to pay, even after bankruptcy, then it might be better to consider the alternatives rather than struggling to keep the house now. Perhaps post your SOA up, and we can have a look and make suggestions.

Feelingfoolish_3

Hi there

It isnt recommended to go BR if you have a negative disposable income. The first question is why are you in a negative position and how to address this.
You need to post your SOA so the good folk on here can take a look and give some advice. Also if you have a negative disposable then how can you offer a token payment to your creditors??? Where would this come from?

Feelingfoolish_3

snap Tim :-)

lizandalfiecat

Feelingfoolish wrote: »

Hi there

It isnt recommended to go BR if you have a negative disposable income. The first question is why are you in a negative position and how to address this. All been dealt with on here and CAB/CCCS - business gone under as I was the last in the line of dominoes that toppled...
You need to post your SOA so the good folk on here can take a look and give some advice. Already done several weeks back, and folks here are FANTASTIC

Also if you have a negative disposable then how can you offer a token payment to your creditors??? Where would this come from?

My thoughts exactly...let you know on that one when the magic want from ebay arrives lol

I just wanted to raise the point as maybe not everyone had realised this. Many thanks for your input :T

fiveyearplan

I was in negative surplus and had no problem going BR.

peachyprice

But you have a non-BR partner to fall back on in if necessary. For a single person it's not an option.

lizandalfiecat

peachyprice wrote: »

But you have a non-BR partner to fall back on in if necessary. For a single person it's not an option.

Yup! single so jiggered lol

Confusing, isn't it?
L xx

nev32

so answer me this, sorry if it sounds stupid. i thought the idea of going br is that you dont have enought surplus money to cover all bills & make ends meet so how can they advise people thay cant go br if u are negative income?? doesnt make sense to me.

peachyprice

nev32 wrote: »

so answer me this, sorry if it sounds stupid. i thought the idea of going br is that you dont have enought surplus money to cover all bills & make ends meet so how can they advise people thay cant go br if u are negative income?? doesnt make sense to me.

The income and expenditure you fill in on your BR forms is how your finances will be AFTER BR, if you cannot cope with your outgoings once your debts have gone BR will not help you.

nev32

ah got you. cool we are ok. our outgoings will be fine with a surplus of £100 each left after br. so i gues thats ok.