Should I stop paying debts in preparation?

Desperate4help

Afternoon everyone :-)

OK, next stage in my continued quest for information!!... As you know, I'm in a situation where one advice trust have said BR isn't the right option for me, but that's what I want to do and I do think I'm insolvant. However, is there anything I can/should do to 'help me along' a bit? I've read threads on here where people have deliberately and purposefully stopped paying their credit card co's etc., can or should I do that? I'm currently on arrangements with my three card companies, and I know that if I miss even one payment then they'll start to get heavy with me - but is that a bad thing?

The thing that's making me ask is how would I explain to the OR why I'd suddenly stopped paying them when I've been managing the past few months. As you know, it's only the fact that my ex has dumped our mortgage and secured loan (and unpaid fuel bills I've just discovered!) on me that I find myself in this situation. I have no intention of picking up those bills on his behalf - they'll have to go further in arrears and be swallowed up by his/my BR. But that doesn't change my 'business as usual situation' and I don't want to stop paying my current debts if it will raise eyebrows with the OR.

Anyone got any advice? :-)

Thanks
D4H

fiveyearplan

To be honest if you are planning BR then any money you pay from now on in is just dead money that could be spent on living expenses. I stopped paying my bills 11 months before my BR and no eyebrows were raised.

alastairq

in other words, now that you appear to have decided on your future course of action, there really is very little your creditors can do to you.....

Desperate4help

Thanks guys. It just feels wrong i guess! And i don't want to do anything that will pee off the OR make my IPA stricter or whatever. If i do this and they ask what i did with the money instead of paying bills what do i say? 'spent it on shoes'!? ;-)

crowman19

Desperate4help wrote: »

Thanks guys. It just feels wrong i guess! And i don't want to do anything that will pee off the OR make my IPA stricter or whatever. If i do this and they ask what i did with the money instead of paying bills what do i say? 'spent it on shoes'!? ;-)

As long as you only use it for essential living expenses and other household bills they shouldn't have a problem. If you spend it on luxury items when you know that you are insolvent then that may be a different matter.

If you let it build up in your bank then it will be used by the OR as an asset and distributed to your creditors after BR anyway (after OR has taken money for their fees).

I think you would be best off not just spending it willy nilly (not that shoes are classed as such).

Holes_in_my_pocket

wont get a pat on the back for paying anyone

Desperate4help

Ok so maybe use it wisely and get my (old and worthless) car serviced and in tip top condition in preparation? And save for my BR fees of course!

crowman19

Desperate4help wrote: »

Ok so maybe use it wisely and get my (old and worthless) car serviced and in tip top condition in preparation? And save for my BR fees of course!

OR wouldn't have a problem with those kind of expenditures.

Good luck and glad it looks like you are making the right decision.

fiveyearplan

Thats a good idea!!

alastairq

excellent idea.....put some aside as cash for that rainy day too...