I’m really confused now …. Need advice again ….

Sinderella

When BR you have to notify creditors of your status if you want to borrow £250 or is it £500?

The CAB told me it was £500 but the insolvency website said £250. Which is it?

Also, if I used redundancy money on going abroad and other bills instead of putting towards my debt when I felt I was quite capable of paying my debts then why would I likely be served with BRU/BRO? I just looked up BRU/BRO on the net to see what it meant. My spending would show on my statements and the redundancy was comparatively small to my large debt. I didn’t do anything dishonest so I don’t get it.

Also, what is the shortest time anyone has become discharged on having around £30,000 debt?

Thanks

philnicandamy

Sinderella wrote: »

When BR you have to notify creditors of your status if you want to borrow £250 or is it £500? its £500 and over and no need to inform creditors...just the person loaning the £500 and up (although finding someone who'll give credit to a undischarged bankrupt will prove alomst impossible)

The CAB told me it was £500 but the insolvency website said £250. Which is it? £500 and over

Also, if I used redundancy money on going abroad and other bills instead of putting towards my debt when I felt I was quite capable of paying my debts then why would I likely be served with BRU/BRO? I just looked up BRU/BRO on the net to see what it meant. My spending would show on my statements and the redundancy was comparatively small to my large debt. I didn’t do anything dishonest so I don’t get it. the OR could see it as preferring to pay one creditor instead of paying all your debt

Also, what is the shortest time anyone has become discharged on having around £30,000 debt? you "could" be lucky and receive an early discharge as soon as 6mnths...BUT ED is neither a right or a guarantee so you could be in for 12mnths..its not really down to how much you owe or how simple your case is

Thanks

Just a few thoughts

debtinfo

hi sinderalla, which website have you been looking at as not all are factually acurate

sieve

Sinderella, it is £500 as others have said. But do you seriously want to borrow anything more? I know I don't and I think all other bankrupts on here would agree! Please don't go getting yourself in a pickle after going BR - it's for a new start and if old habits continue, you will end up there again a few more years down the line.

My debt was £85k-ish (including a mortgage shortfall which has not been claimed yet - £55k-ish without) and I was discharged in just under 6 months, but I was very lucky. Most go the full year, so that is what you must expect.

If the OR feels that you should have known you were insolvent when you spent your redundancy money on going abroad, you MAY get a BRO/BRU. However if you can demonstrate you spent it when you were still solvent, you should be alright. How long ago are we talking?

Sinderella

Thanks for your replies. I did mean the loan lender and not creditors. I looked on the insolvency helpline website. One page says £250 and another when referring to BROs stated £500.

I don't want to borrow anymore money, I just wondered which was correct. I will not be doing that for a while even if I could.

I don't understand this 'preferring to pay a creditor instead of debt' business. What is all that about? What is wrong with paying one or two of them when there are several and it wasn't a preference I had. If a creditor is bugging me isn't it natural to pay something extra to them, plus the fact I haven't even gone through with the application yet.

My redundancy was a few months ago and I have been paying all my debts & bills up to date even with the small token payments to some. No one was left out. I've only just recieved a letter for a old outstanding bill I forgot about since they have not been chasing me.

Since I've paid nothing on that would that fall under the BRO then? If so, what should I do?

Thanks again for your advice.

skylight

Sin,

The OR does think its wrong to pay one or two creditors over others. Obviously there is common sense here. If you are paying X and Y nominal amounts because you have come to an arrangement with them, but you are not paying Z because you have not come to an agreement, then this is AOK with the OR. If you were to use your redundancy to pay Y lots and lots whilst leaving X and Z out of the loop, this is the preferential treatment that gets discussed. You are NOT going to get a BRO for forgetting about a debt.

BROs are reserved for the very naughty and those not co-operating with the OR. You had debts. You have been servicing those debts. When you were made redundant you could still service those debts and were not expecting to go BR. However its reached a point that you have accepted that you have to go BR. You are not going to get a BRO for these circumstances.

Don't worry over it.

Sinderella

Skylight - Thanks so much for that. I've just got myself into a state and decided not to bother with the bankrupt. But if I will not be penalised for using my redundancy how I did, when I still paid my debts on time and I definitely will not get a BRO/BRU for any debts I forgot about since not receiving any recent correspondence from any other creditor I may continue with it. I was starting to believe I'm screwed for good and was residing myself to the fact that I need to get 2 or 3 jobs and work my butt off for 10+ years.

I have today requested my credit reference files just incase they are more than I am not aware of. If there are, do I start paying token payments to those just in case this BRO comes up? Or can they be included on the forms even though no payments would have been arranged?

Thanks again Skylight or anyone. Cheers!

skylight

Even *if* you did get a BRU, its still not the worst thing that could happen. It simply extends your BR restrictions so you cannot be a MP, work in a FSA regulated role, be a school governer and you have to inform creditors of your status if you want to borrow more than £500. It doesn't affect the majority of us and only one or two here have ever had a BRU; one tried to hide assets I believe.

Include every debt you know of on the forms. Even if you have forgotten some in the future you are still not liable as they are all included in your BR by default. This is one of the reasons we are listed in the Gazette and on the insolvency site as its actually the responsibility of the creditor to check if their customers have gone BR and not for us to notify them. Do not make arrangements to pay any if you come across them; if they don't want money then thats not your problem. Why waste your money??

tigerfeet2006

If I were you I would save time and money and not worry about checking the files. If you forget any then don't worry, they are still included in your BR. So if anything comes out of the woodwork later just give 'em the good news

Sinderella

Tigerfeet2006 & Skylight -

Thanks so much! How can debt I've forgotten about be included in the bankruptcy if I haven't been paying anything towards them? There is one that came to my attention recently, I understand pay nothing towards them, but still include it on my forms - right? On the SOA where it asks how much I pay monthly, I would inset 'nil'. Is this correct?

If there are anymore on my files, when I receive them form Experian/etc (sent of for them already), include those too on the forms but pay nothing towards them also - right?

If I send in the bankruptcy forms without the debt I forgot about, correct me if I'm wrong, but they would not be included in the bankruptcy would they? Would creditors be able to chase me for them at a later date after I become bankcrupt?

Thanks again guys, hoping I will not be bothering you again. I don't know how you can repeat all the information time and time again to people like me. I'd get frustrated!

Cheers!

debtinfo

All the debts would be included even if you did not put them on your forms, but you have a duty to provide as much info as you can (otherwise the OR will get crankey). If after doing the best you can one is missed by accident and turns up later it will be included in the bankruptcy.