Back from cab.

jessie-jane

Been on DEBT FREE WANNABE stie but after haveing CAB meeting today were bankruptcy was recommended we are now HERE.

Please be kind as im sure we will have lots of questions.

We have already opened a new bank account and CAB are sending token payment letters to all creditors until we can afford the fees.

We have already done an SOA BUT forgot half the things so looked like we were well off, will redo and post asap.

OH is trying to sell car privately at the min and then repay the loan but i feel that we should just hold fire, just paid this months installment. We wont actually own a car but will have the full use of one which we will have to pay for the upkeep,ie,mot,tyres,tax,
is this going to be ok?

look forward to words of wisdom.

Sunnylooloo

Hi JJ

I think def a good idea to re-post your SOA as it is quite different from saving money.

Not sure about the car? someone will help. Also I am not sure but it maybe better to hold fire on selling the car that you own as paying off the loan as that will be seen as favouring one creditor (someone will confirm this for me)

Good about the token letters - My CAB offered to do that for me at the time I went to see them. Just be warned you will get a lot of phone calls and letters... need to grow a thick skin!!

Good luck

LL

jessie-jane

Thank you LL, luckily already got a thickening layer of skin,cant wiat for the phone calls to start.

immoral_angeluk

If you're intending on going BR don't pay one creditor off in favour of others, this is known as preferencing and could land you with a bankruptcy restrictions order.

jessie-jane

So would you just stop paying the car loan? then wait to see what happens next,as its going to rather a while before we can afford to go bankrupt!

immoral_angeluk

jessie-jane wrote: »

So would you just stop paying the car loan? then wait to see what happens next,as its going to rather a while before we can afford to go bankrupt!

Is it hire purchase or a personal loan? Are they being sent a token payment? If you're saving up for BR fees it's better to stop paying no priority creditors and use the money for that to go towards the fees.

jessie-jane

It is a personal loan and token payments would only be about 1-10 each, thought it mat just keep them happy for a while.

jessie-jane

If we decided not to send token payments how long till creditors turn nasty? We explained to CAB about the sale of the car and she never said not to do it this way.

immoral_angeluk

jessie-jane wrote: »

It is a personal loan and token payments would only be about 1-10 each, thought it mat just keep them happy for a while.

Then leave it at that and let CAB deal with it. How much is the car worth? Don't take whatever you get from the sale of the car and pay off one creditor over the others. Did your CAB advisor explain about BROs?

RAS

jessie-jane wrote: »

If we decided not to send token payments how long till creditors turn nasty? We explained to CAB about the sale of the car and she never said not to do it this way.

You cannot pay one creditor and not the others.

if you sell the car, you have to send the money to all the creditors, pro rata, not just the company you owe for the car loan.

Otherwise, you end up with the restriction order and the creditor will be asked to pay the money back to him.

Darnit_2

Jessie-Jane, dont just accept what the CAB tell you, always check important things out here as well. They sometimes don't get enough training and the finer details can sometimes be missed. Definitely don't favour that creditor.

WElcome, they are a friendly bunch here