Back from cab.

MikeJO

I think sending token payment letters may just draw your creditors attention to the problem quicker than they'd otherwise find out and may result in more phone calls/letters than if you simply stopped paying them completely.
I was advised not to send any by my CAB advisor and by the time they found out I'd saved enough for the fees/gone BR and was able to just give them the details when they started getting in touch. As a result I had very few calls to deal with and those that I did get were easily dealt with.

immoral_angeluk

MikeJO wrote: »

I think sending token payment letters may just draw your creditors attention to the problem quicker than they'd otherwise find out and may result in more phone calls/letters than if you simply stopped paying them completely.
I was advised not to send any by my CAB advisor and by the time they found out I'd saved enough for the fees/gone BR and was able to just give them the details when they started getting in touch. As a result I had very few calls to deal with and those that I did get were easily dealt with.

It really depends on how long you're talking. If you just ignore them and it's a month or two, fine.. if it's 3 months plus token payments are better as if agreed it'll stop them going to court for CCJs, chargings orders and wotnot depending on the circumstances. Also generally when token payments are accepted contact should stop. If CAB are doing it for you then it's just a case of ignoring the phone and passing details of any correpondance to your CAB caseworker who will them deal with it.

At least that's the way I work

JCS1

Also - which bank have you owned your new account with? If not Barclays or Co-Op it might get closed when you go BR.

fatbelly

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.

Token payments are £1

Personally I wouldn't bother with them - too much effort for a short-term thing.

The important thing is to treat all creditors the same. If you pay them all nothing, that solves that one!

jessie-jane

Thank you all the replies and welcomes, it will most likely take about 6-8 months to get money together for the fees!

I will TRY to get OH to look at this thread as he still thinks its a good idea to sell the car, which is worth about 6500, will ring CAB back tomrrow and ask again about it.

Tha new bank account is with the co-op, so hopefully no problems there, all up and running.

fatbelly

jessie-jane wrote: »

I will TRY to get OH to look at this thread as he still thinks its a good idea to sell the car, which is worth about 6500, will ring CAB back tomrrow and ask again about it..

The OR is most unlikely to let you retain a car worth £6500

See Fermi's links on this thread:

https://forums.moneysavingexpert.com/discussion/1056083

So that's where your fees can come from

jessie-jane

We wouldnt be keeping the 6500 car, thats why OH is trying to sell it now and repay the car loan of which we still owe about 6200. We will have the use of another car which is owned by a family member.
Didnt know we could use any money from car sale though to pay fees, just thought of paying it all back to loan and still trying to save for the fees. If we do manage to sell the car,what would we do with the rest of the money after taking out the fees?

Manoona

If I was you, i wouldnt bother selling the car just yet, and nor would I continue to make payments on it - I had a vehicle on HP so it may be a little different, but I literally stopped making payments, used that money for help towards the fees and they eventually repossessed the vehicle. The remaining balance that I still owed was included in my bankruptcy, and like you I have use of my mums car but I still included amounts for tax/MOTs etc, the OR was fine with this!

jessie-jane

Thank you Manoona, just hit me that if we do sell car now we have to pay loan up in full before new owner could have the car! I am all for not selling the car or making any more payments on it but OH is convinced its the best thing to do! Men and their Bl---y CARS!!!!!!!!!!

I will def ring CAB this morning and ask again especially about the preferencial paying off the car.

immoral_angeluk

jessie-jane wrote: »

If we do manage to sell the car,what would we do with the rest of the money after taking out the fees?

One of three things...

keep it aside and declare it as an asset and let the trustee deal with it.

Pay it off pro-rata to all creditors ensuring each one gets a fair payment.

Use a proportion of it to buy a lower value car (no more than 1.5-2k), and if anything else is needed for bills/living costs or getting the car up and running/MOTd/Insured etc etc then use it along with keeping some for bankruptcy fees. BUT the money can ONLY go on essential costs, otherwise it could be seen as depriving yourself of an asset pre-BR to avoid it being seized by the trustee.