Direct Debits when going BR

Maybeelady

Hi,

I'm going to court on the 28th Aug, and wondering when I should cancel all my direct debits? Am still waiting for my co-op cashminder account to be processed so can't move any of my essential direct debits over yet (rent, council tax etc) - but wondering if I should cancel those to my creditors now? Or would that be seen as favouring some creditors over others?

Any advice is much appreciated!

Feelingfoolish_3

Def cancel all debt repayments but keep priority payments going until you can move them. The quickest way (imo) to move them is to ring up each company and give them your new account details and then cancel them with your old bank, just so you stay in control

Maybeelady

Silly question - do you only need to cancel them with your bank or do you need to call/write to the companies as well?

Feelingfoolish_3

If you cancel them with the bank they will automatically write to the companies to let them know, so just let them do all the work! It just means you are in control of what is happening

Maybeelady

As some of my direct debits to creditors have already come out of my account this month, won't the OR see it as favouring some creditors over others if I cancel the rest?

MicheH

Hi, we cancelled all of our DD's through online banking about a week before BR. We knew that all dd's were paid for the month so knew it wasnt a problem. The bank must have then contacted each company who wrote to me with their number and my account number. Bonus, no need to hunt out each policy! I had a pile of companies to contact over the phone, my coop cashminder details came through on sat and I phoned each company to set up a new dd this morning. Easy peasy

Maybeelady

So it's best to do them all at once to avoid appearing to favour one creditor over another?

Feelingfoolish_3

Paying a few pounds shouldnt be seen as preferencing (I hope). I would cancel whatever you have left except your important ones unless you can pay them with a diff method

Maybeelady

I would rather that money went towards paying bills than creditors, but am worried about getting into trouble with the OR!

If I cancel my direct debits to creditors now, are they likely to harass me between now and BR (2-3 weeks away)?

Feelingfoolish_3

I stopped paying my creditors in July, luckily my home phone is broke and can stay that way for a wee while longer but yeah some were on the phone a week after I had missed a payment, I just rejected the call (on my moby). Majority of my creditors havent been in contact but the couple that have, I have had great delight in updating them on my new status!

Your OR would rather your money went on bills too x

Maybeelady

Congrats Feelingfoolish! Did you just avoid their calls until you filed?