a couple of things..

uk600

hi

just a little advice needed please. Husband and i have around 60k debts and know that BR is the only way to go now.

We are expecting a baby early next year and need to buy some big purchases like nursery furniture. pram , cot and stuff! Is it best to wait to go BR and save the money that we would otherwise use to pay creditors on the stuff we need?

Also

I am self employed and some of it is cash in hand ? Do I still declare this money after we have gone BR ?? I am morally thinking yes I do but would love other peoples thoughts?

CG77

uk600 wrote: »

hi

just a little advice needed please. Husband and i have around 60k debts and know that BR is the only way to go now.

We are expecting a baby early next year and need to buy some big purchases like nursery furniture. pram , cot and stuff! Is it best to wait to go BR and save the money that we would otherwise use to pay creditors on the stuff we need?

It's not advisable to spend money on credit close to BR unless for ABSOLUTE necessities as this would be frowned upon by the OR.

Also

I am self employed and some of it is cash in hand ? Do I still declare this money after we have gone BR ?? I am morally thinking yes I do but would love other peoples thoughts?

Yes you absolutely must declare any income. You must co-operate with the OR at all times, which includes being totally honest, or you will find yourself in hot water.

HTH

CG. x

miss_spooky

uk600 wrote: »

hi

just a little advice needed please. Husband and i have around 60k debts and know that BR is the only way to go now.

We are expecting a baby early next year and need to buy some big purchases like nursery furniture. pram , cot and stuff! Is it best to wait to go BR and save the money that we would otherwise use to pay creditors on the stuff we need? The money you would be paying your creditors will only be money down the drain if you are both going BR. I would save that money for you fees as you will need two lots, then put it and any more towards your pruchases before your br date. Don't forget that any "savings" you may have on your br date will have to be taken out of your bank on way to court or day before otherwise the OR will claim it.

I wouldn't buy the stuff on credit knowing that you are going BR as this will be frowned upon and you could get slapped with a fraud investigation.

Have a look at ebay for some of your stuff - you can get better deals on there than in shops, and also try your local freecycle website. You will find loads of buggies, prams etc. Some may only be a couple of yrs old. I got a really nice John Lewis cot bed from ours. Seen it second hand on ebay for £200.00 - so I could sell it after...

Also

I am self employed and some of it is cash in hand ? Do I still declare this money after we have gone BR ?? I am morally thinking yes I do but would love other peoples thoughts?

Just a few more things to consider.

Have you taken advice from one of the charities?

uk600

Thanks for your replies.

Wasn't going to put purchases on credit - was going to use the money that we have left over form wages after paying priority debts.

As for the self employed cash in hand - any more thoughts on this anyone - would like more than one persons opinion.

Miss spooky - you say to take savings out of accounts before going BR so where do you tell the OR they have gone ? Wont they look on your statements and see you recently withdrew money ???

CG77

uk600 wrote: »

As for the self employed cash in hand - any more thoughts on this anyone - would like more than one persons opinion. QUOTE]

It was more a warning than an opinion, about what will happen if you decide to be dishonest with the OR. I said if you are dishonest about your income, you are likely to end up in alot of trouble. I'd be surprised if you find anyone on here who will tell you anything different than that.

CG. x

Tinytim

Hi UK600,

In terms of the cash in hand issue, apart from a few odd years, I have been either self-employed or a director of a limited company since I left school too many years ago.

The tax system as it stands has its attractions as far as the self employed and directors are concerned, whether it's the ability of the former to offset a whole range of expenses against income, or the latter to pay themselves via dividends. I have always been of the opinion that if I legitimately use the rules to my advantage, then I have a corresponding responsibility to play the game and declare all of my income. From your use of the word "still", I suspect this is your view as well.

During my life I have been subject to one tax investigation, and the result was that they owed me just over £50 I have always been able to sleep knowing that I had been completely honest, and since I went BR I have dealt in the same way with the OR.

For most, BR really is a last resort, and the feeling of freedom and relief that is felt when the deed is done can only really be appreciated by those who have been there. Don't spoil this by doing something which will have you looking over your shoulder