Is it too soon to petition for BR? (need fast advice!)

GetBackUpAgain

[FONT=Verdana, Arial, Helvetica]Hello,

I've prepared to petition for bankruptcy this week (and booked a court slot) *but* I'm really not sure whether to hold off for a month (or more?).

I've last used credit card for some basic things (£30) until about 10 days ago, plus drawing tax credits from already overdrawn account, and am totally insolvent. Also now effectively unemployed after resigning directorship.

Is it too soon to declare BR? Would the OR take a dim view of going straight from using credit resources to declaring BR? There's been *zero* intention before now of *ever* defaulting on payments or going down the BR route (I always had belief in being able to pay things off). But I know how sometimes in life things can look differently on paper, despite the very best of intentions.

Note: am well over 30k in debt, cc's and overdraft from years of low-salaried day-to-day living while trying to grow a ltd company.

Any fast advice much appreciated!
Ajay[/FONT]

debt_doctor

Hi,
If you cannot pay your debts then you are insolvent. Have you used credit to pay the repayments or to pay off other credit? I have assisted a fair few people through BR that had kept up with payments in the manner I've just described.
Often it is a case that all forms of available credit has stopped - refused increase on limit or called in overdraft.

DD

GetBackUpAgain

Yes DD, some payments have been made over the last several months in the manner you stated: balance transferring one card onto another in order to make minimum payments.

"Often it is a case that all forms of available credit has stopped - refused increase on limit or called in overdraft."
That is also true: though I have some credit available, I don't wish to use it now that I understand more about being insolvent.

What would you suggest, based on your experience, DD?

Thanks for your help.
Ajay

vindicated

As Debt Doctor has said, from what we can gather you are insolvent; using one card to pay another hints towards insolvency.

No need to worry, we can help as much as we can on here and others can give some more concrete information but I would say pre-booking your court date was a wise move!

Try not to worry too much (easier said than done), you've got to do what is right for you, you cant live life constantly looking over your shoulder worrying about what that knock at the door is!

Keep your chin up

debt_doctor

I see no reason why you couldn't go BR as I believe, and i'm sure a judge would accept, that you are insolvent.

Whether BR is your best option, i don't know because I don't know nearly enough about your circumstances re assets, employment possibilities, other financial behaviours and much more. You should get advice re your unique circumstance from a debt charity such as CAB or national debtline.

DD

GetBackUpAgain

Hello,

Thanks for your help, vindicated. But as said in the original post, I:

"am totally insolvent."

That's not the question I'm actually asking about...
The question is whether there is a benefit/negative to petitioning for bankruptcy straight away in my situation?

GetBackUpAgain

Ok - I'll try to emphasize the important question I'm trying to find an answer to:

[FONT=Verdana, Arial, Helvetica]"Is it too soon to declare BR? Would the OR take a dim view of going straight from using credit resources to declaring BR?[/FONT]"

(Yes, I have already contacted CAB and CCCS. Bankruptcy is best option (no assets beyond a car. Sorry if I didn't make clear the main part of the question).
Thanks again to anyone who has taken time to read and answer.

System

It's going to depend on why you've used the credit. If it's to fund day to day living or similar then I can't see there would bee much of a problem. If you used it for frivolous or luxurious things (bear in mind the OR will be seeing your statements) then there may be more investigation. It's not the OR's job to take a "dim view", but to investigate the causes of bankruptcy. The important thing is to clearly explain what/why/where/how and to not hide anything that is relevant.

debt_doctor

GetBackUpAgain wrote: »

Ok - I'll try to emphasize the important question I'm trying to find an answer to:

[FONT=Verdana, Arial, Helvetica]"Is it too soon to declare BR? Would the OR take a dim view of going straight from using credit resources to declaring BR?[/FONT]"

(Yes, I have already contacted CAB and CCCS. Bankruptcy is best option (no assets beyond a car. Sorry if I didn't make clear the main part of the question).
Thanks again to anyone who has taken time to read and answer.

Ah right, didn't think you had taken full advice.

So to your specific question;
No it is not too soon to declare BR. You are insolvent (and therefore pass the test) and why should you delay the action if it is inevitable anyway. It would appeat that nothing is on the horizon that will dramatically affect your position.
What would be the point of putting yourself through the debt collection and enforcement process by waiting and postponing what needs to happen.
As i've said, I have seen a fair few people go in to BR who were up to date with installments but could not continue to do so next month.
There is no 'punishment' for realising your best option quickly.

DD

alastairq

Hi, as DD says!

Without knowing other details, the sooner BR is petitioned, the sooner one can get back on one's feet.

However, it is also important to 'get one's ducks in a row' prior to petitioning BR.

Bearing in mind, much that relies upon credit checks can alter once the Petition is granted.

Regarding the car?

Will you have the required evidence to argue for its exemption as an asset?

Have you [moved] and established a basic bank account with one of the BR-tolerant banks [usually Co-op or Barclays]..?


What about residential arrangements? [Do you currently rent? Will you need to start looking for rented accommodation? Do you currently have/can you afford existing mortgage, etc?]

Much of this is easier to achieve prior to the BR petition..although not impossible afterwards...


Getting the Petition itself out of the way first, can be a bit unhelpful to the BR individual...

GetBackUpAgain

Thank you all for the informative answers. I will take all that on board. Especially the 'ducks in a row' factor (thanks Alistair).