What will the OR say to spending credit on education pre-BR?

bankrubber

I am due to go bankrupt when my remaining credit runs out, I have about £3000 left on a credit card.

My only concern is what will the OR say if there is a cheque for £2000 paid out shortly before my BR application that paid for a training course?

I read something about a BRO if you gamble/waste/take out a loan right before going BR. To be honest a BRO does not sound too harsh. My real worry is that I will be forced to cancel the training course (1 year course), get a partial refund and have to pay that back...

How likely is that to happen?

sizzler

What is the training course for?

Trade course or part of education or job?

WLITC

Find out the terms of the payment for the course. Its possible the T&C may say you have to pay a % of the course or all of it even if you cancel. If you are indeed liable regardless of if you cancel, I think that would be quite strong evidence that you had to pay it.

In terms of the OR forcing you to cancel it, once its been paid they won't really be able to do anything about it, except as you suggest, possibly giving your a BRO for reckless spending. When do you plan to go BR? If its not for a few months and the payment isn;t due until near that date then can't you pay for the course early/now so it doesn't look like maxing out your credit at the last minute.

BTW if they question it, you could say you did the course in the hopes of turning things around financially (assuming its a course that could enhance your career) but that things were worse than you'd realised and thats why you have now gone BR.

bankrubber

The course will enable me to change career, but no real prospect of earning more than I do now unfortunately. I cannot say the the course is essential for me to proceed in my current job.

The course can be paid for in 1 lump sum or 2 payments. Either £2k in July or £1.1k in Sept and 1K in March - So my plan was to hang on until July, pay the whole fee (and get the £100 discount) and then apply for BR when it was paid. I am not sure I can write a cheque and ask them to cash it immediately, but it is worth a shot.

sizzler

If the course is not essential and is for a change of carear I think the OR would not look to well upon this,

Can you not fo the course at college over a period of time,

During my BR I was doing a course and OR would not entertain fees as it was just to change carear

Hope this helps sorry sizz:)

WLITC

bankrubber wrote: »

The course will enable me to change career, but no real prospect of earning more than I do now unfortunately. I cannot say the the course is essential for me to proceed in my current job.

The course can be paid for in 1 lump sum or 2 payments. Either £2k in July or £1.1k in Sept and 1K in March - So my plan was to hang on until July, pay the whole fee (and get the £100 discount) and then apply for BR when it was paid. I am not sure I can write a cheque and ask them to cash it immediately, but it is worth a shot.

Sounds like you really want to do this. Could you pay it in July and hold off going BR for another 2-3 months? Then you could possibly argue that you'd paid for the course in the hopes that you could retrain for a more financially rewarding career (unless its obvious, they won't know its not perhaps a financially better career choice), but shortly after deciding to do the course you've realised that your finances are even worse than your first though and having worked everything out, you've realised that you are now insolvent, hence why you are now filing for bankruptcy.

debtinfo

but of course the OP, knows that they are insolvent now, and should not use any more credit full stop.

JCS1

Would there be a refund/partial refund if the course was cancelled? I have known of holidays to be cancelled by the OR and the refund taken into the BR.

debtinfo

JCS1 wrote: »

Would there be a refund/partial refund if the course was cancelled? I have known of holidays to be cancelled by the OR and the refund taken into the BR.

Just thinking that jcs1

bankrubber

JCS1 wrote: »

Would there be a refund/partial refund if the course was cancelled? I have known of holidays to be cancelled by the OR and the refund taken into the BR.

Yes, I think there would be a pro rata refund. This is what I want to avoid. I am just not sure how far the OR will go to get that refund...

debtinfo

it would not be difficult, they could just write to them, tell them to cancel it, and to send the refund to them