using existing credit towards BR fees???

missyp123

We have been saving for a while and are due to move into our rented house next month, Br booked and court date set for house repo.

We have treid to work out money... and with the fees being raised and having to cover moving costs we are short about £300.
Are you allowed to use existing credit cards (zero balance) to get cash towards fees??? we will be on such a tight budget once paying rent again and saving what seems like a small amount to others will take forever:eek:

BLT_2

missyp123 wrote: »

We have been saving for a while and are due to move into our rented house next month, Br booked and court date set for house repo.

We have treid to work out money... and with the fees being raised and having to cover moving costs we are short about £300.
Are you allowed to use existing credit cards (zero balance) to get cash towards fees??? we will be on such a tight budget once paying rent again and saving what seems like a small amount to others will take forever:eek:

You can with many credit cards get out cash, however the charge will be around 22,9% (unless you are with vanquis or one of the other sub prime cards) and it will cost you 9 pounds to withdraw the money. You have to question whether you will be able to afford the repayments if cash is that tight.

Monthly interest on 300 pounds at 22.9% PA = around 6 pounds per month. However you need to budget for whatever the minimum payment of the credit card is. eg 2.5% minimum payment = 7.50, 5% minimum payment = 15 pounds

callywally

If going bancrupt you would not be paying it back surely??

fermi

missyp123 wrote: »

Are you allowed to use existing credit cards (zero balance) to get cash towards fees???

Officially that would be frowned upon.

However, if you need to go BR and that is the only way of raising the fee, then the OR will normally turn a blind eye to just that.

Doucam

The OR asked us if we had used credit to pay for the BR fees when we spoke to them on the BR day.

I think quite a lot of people here have done so in the past.

missyp123

thankyou for replies
no we would not be paying it back as we need the fees for bankruptcy, thats why we wanted to see if they allow it.
i have seen on this site that people have used available overdraft facilities but needed to know that if we are struggling this would be an option.

i might give national debtline a call on monday for advice.

missyp123

Doucam wrote: »

The OR asked us if we had used credit to pay for the BR fees when we spoke to them on the BR day.

I think quite a lot of people here have done so in the past.

did you use credit??? if so were they ok with that?

immoral_angeluk

fermi wrote: »

Officially that would be frowned upon.

However, if you need to go BR and that is the only way of raising the fee, then the OR will normally turn a blind eye to just that.

Agreed, it will vary from OR to OR (As with most things.) as technically, borrowing money with no intention of paying it back is fraud... and if you had a particularly strict OR you may find yourself with a BRO...

fermi

immoral_angeluk wrote: »

as technically, borrowing money with no intention of paying it back is fraud

It's not actually fraud. That is a common misconception

- Lying on a credit application may be fraud. (Fraud by false representation)
- Failing to disclose information that you are legally obliged to, and therefore gaining a financial advantage may be fraud. (Fraud by failing to disclose information)

Using an existing line of credit without any of the above is not fraud.

As said, it may however be considered a contributory factor when looking at a BRO/U.

Doucam

missy no we didn't, we were able to stump up the money !!

But she did ask had we used credit to pay, don't know what she would have said if we had said yes obviously, it probably isn't the best way to go about it though.

ThreeYearsAndCounting

I took out cash on an Amex charge card to cover the fees, no problem with OR.