Saving for Bankruptcy... Dealing with creditors

Wenalia

Hi all,

My first post here and I'm looking for a bit of advice..

Our journey to this point is a very long one so I'll try to keep it to the essential points..

I'm going bankrupt as soon as I've saved the fees and money for a deposit on a rented house. Until this month we were on a dmp with CCCS and they agreed that bankruptcy is our best course of action with our circumstances set to change in April 2012.

CCCS advised that we pay only £5 per month per creditor, stop the dmp and tell the creditors that we're saving for a deposit and the cost of moving in general as we have two young children. For obvious reasons they said we shouldn't tell the creditors we're also saving for bankruptcy!!

So, we have £400 expendanble income each month between now and April that we will need to save. It doesn't take a genious to work out that this isn't quite enough to cover everything we need so this may well stretch in to May\June.

I'm wondering how the creditors will take this? Will they not be annoyed that we're saving for something whilst owing them quite a bit of money?!?! Also, they know our income\expenditure from CCCS budgets so they will know that in May for instance we'll have saved around £2K - Will they not think that this is plenty and start sending debt collectors? Perhaps issuing us with a CCJ?

If they do, what happens then? I'm a little worried about what this next 4-6 months is going to be like

This has got me thinking... perhaps wrongly! What if I tell the creditors that the reason for our reduced payments is that I've lost my job? Is that illegal? And, would it likely come up when I go bankrupt? How would the OR perceive this given the circumstances?

Many thanks in advance for your help!

Ineedaname

Hi there and welcome to the forum.

I think CCCS have various sample letters and there should be one you can use to advise of token payments. It might be an idea to say in your letters that "following advice from CCCS..." you are now offering token payments whilst you save up to move into rented accomodation.

That's the difference between CCCS and the CAB though, the CAB would probably write the letters for you and the creditors would be more likely to accept the token payments then... hence suggesting you make the point that you are following advice from CCCS in your letters.

I certainly wouldn't start telling creditors untruths. What's likely to happen is that chasing letters will increase for the few months you are saving and you may have to start avoiding answering the telephone if any have your number. If you can keep your head down and cope with this then with luck you'll have the money to move and go BR within a few months. Even if the creditors take any further action, like applying for CCJs, you know you're going BR so try not to stress about it all.

Good luck with your savings.

webpaje

Hi
not much help to you but i am in a very similar situation - we had our house repossed a few months ago but fortunately had managed to get rented accommodation before then. I have a reasonably salaried job, but not enough to allow me to save.
It really puzzles me that people who are in our situation (for whatever reason) have no money , cant pay creditors yet are expected to find £750.00 !! - Crazy
Good luck anyway
Regards

Ineedaname

Just to clarify - the current fees to self petition BR are £175 Court fees + £525 OR costs = £700.

philnicandamy

Ineedaname wrote: »

Just to clarify - the current fees to self petition BR are £125 Court fees + £525 OR costs = £700.

ermm...WRONG the current fees are £525 OR costs and £175 court costs

Ineedaname

Typo amended, thanks for the heads up Phil. You delete yours and I'll delete this one.

philnicandamy

Ineedaname wrote: »

Typo amended, thanks for the heads up Phil. You delete yours and I'll delete this one.

nope....i'll leave it where it is thanks

skintandfat

Ineedaname wrote: »

Just to clarify - the current fees to self petition BR are £175 Court fees + £525 OR costs = £700.

Why is there such a discrepency between Scotland and the rest of the UK

It cost me £100 plus £50 for a certificate of sequestration, plus an additional £50 if I wanted them to fill out the forms with me

Sent in forms on a Wednesday and I was BR on the Friday. No court, no fuss.

The rest of the UK need to take a look at the Scottish system, which is fairer, and less costly (no court for personal BR- unless they decide you have been very naughty)