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StepChange_Allen

Holly_Jones4 wrote: »

Hi there

I am struggling to raise the BR fee and am considering using my credit card to pay it but am I right in thinking this would be considered fraud? I have a credit limit of 5K and have used 3K and this company would be obviously part of the BR application.

The only money I possess is 1280 in my current account and 1125 of that is my rent which is due next week. This amount won't cover both obviously plus I need to buy food, petrol etc. The other alternative would be that I use the credit card to get cash out to pay my rent and pay the BR fee with the rent money I have in my current account? Would that still be fraud? I obviously have to pay my rent, that is crucial.

I am so desperate to submit my application and the thought of paying monthly in small instalments fills me with dread because the debts will continue to mount up. I have nothing significant to sell either or anyone I could borrow from. I have looked into charities but it is a long process and often not available anyway.

I don't want to get into trouble and potentially my BR not being accepted or the credit card company suing me for using my card to pay either the fee or my rent knowing full well I couldn't pay it back.

If anyone could give me any advice that would be very helpful. I am keen to do this 'by the book' (as much as possible) and not get into any bother with the law!

Thanks in advance
Holly

Hi Holly

Thanks for posting.

I can't advise you what to do with this, but here's some information to help you decide what to do:

-The Insolvency Service (IS) state you shouldn't use your own card to pay the fees.

- In practice however, there are no measures in place which prevent you paying the fees with your own card.

- The IS has stated that it's not currently their policy to pursue a bankruptcy restriction undertaking (BRU) solely on the grounds of paying fees using credit. A BRU can result in being discharged from bankruptcy later than usual, among other things.

- However, there's a risk that a creditor could pursue the £680 fees after you're discharged because you've borrowed the money with no intention of paying it back. We don't know the chances of this happening I'm afraid.

I hope this is helpful.

Allen

StepChange_Allen

kateyleah wrote: »

Hi can anyone help advise?

My ex partner has applied for an IVA and has a creditors meeting on Wednesday. He has not paid me child maintenance for pretty much a year, apart from a few one off payments.

We do not have a formal arrangement in place with the Child Maintenance Service. I would like to enter into one as I am concerned that i've not been properly taken into account in his outgoings with the IVA, however, my ex partner is insistent I don't do a child maintenance arrangement, which I don't really understand as it will make little difference to him.

As I haven't been paid for months now, despite promises to the contrary I would like to make an arrangement with Child maintenance, however I don't want to risk my ex-partner's IVA being rejected by doing so. Can someone tell me if this is likely to happen?

Thanks

Kate

Hi Katey

Thanks for posting.

I'm afraid it's impossible to say whether this would have any impact on a potential IVA for him. However, we can probably both agree that child maintenance is a priority over unsecured debts, so if he's not paying maintenance, you're right to be looking into this.

He may or may not have included a payment to you on his budget done with the IVA company. If he has, he should pay that to you; if he hasn't, then perhaps he needs to readjust his spending priorities.

Perhaps make a final attempt to agree something informal, but failing that, or if he keeps breaking it then, explain you'll have to get the Child Maintenance Service involved.

I hope this helps.

Allen

monimon

Hi, I was made bankrupt by a creditor on Monday and I now have an appointment (face to face) with the OR this coming Tuesday. 

I’ve been reading all about bankruptcy and the rules and regs of assets you have to declare etc to the OR but my issue is this....I sold the only asset I personally owned which was a Tag watch to pay wages 18months ago. I paid 2700 plus interest on finance 4 years ago and sold it for £1500. 

I was desperate to get the cash as I felt it could of got nasty for me if payment wasn’t met. 

I continued to pay the finance until the watch was paid for but I have no proof of the sale as it was cash and the lad moved to Glasgow months ago. What do I do? 

Angelina51

I am supporting a friend who is in severe financial hardship.  Sole trader, council tenant, in receipt of Housing/Council Tax Benefit (has to pay £60.00 rent per week) and Child Tax Credits, single parent with 3 children one of whom is just over 18, low income this year due to mental health - unable to produce a usable budget as basic outgoings far outweigh income. Looking to go bankrupt but can't afford the basics to live let alone the £680.00 fees.
He is signed up to a government approved organisation for the self employed and was given info re obtaining a charitable grant but no luck there.  Stepchange and CAP said he would have to deal with them due to being self employed and once the business side of things, bankruptcy, had been dealt with they may refer him back to them.  We appear to have reached stalemate.  Advice would be appreciated.

StepChange_Allen

monimon said:

Hi, I was made bankrupt by a creditor on Monday and I now have an appointment (face to face) with the OR this coming Tuesday. 

I’ve been reading all about bankruptcy and the rules and regs of assets you have to declare etc to the OR but my issue is this....I sold the only asset I personally owned which was a Tag watch to pay wages 18months ago. I paid 2700 plus interest on finance 4 years ago and sold it for £1500. 

I was desperate to get the cash as I felt it could of got nasty for me if payment wasn’t met. 

I continued to pay the finance until the watch was paid for but I have no proof of the sale as it was cash and the lad moved to Glasgow months ago. What do I do? 

Hi Monimon

Welcome to the forum and thanks for posting. 

I'm not an expert on the bankruptcy process, but I think with this I'd simply be honest and transparent about it. You did it honestly, and you've been declared bankrupt by someone else, you didn't put it through yourself. I'd be surprised if there'd be an issue.

I hope it works out okay for you.

Allen

StepChange_Allen

Angelina51 said:

I am supporting a friend who is in severe financial hardship.  Sole trader, council tenant, in receipt of Housing/Council Tax Benefit (has to pay £60.00 rent per week) and Child Tax Credits, single parent with 3 children one of whom is just over 18, low income this year due to mental health - unable to produce a usable budget as basic outgoings far outweigh income. Looking to go bankrupt but can't afford the basics to live let alone the £680.00 fees.
He is signed up to a government approved organisation for the self employed and was given info re obtaining a charitable grant but no luck there.  Stepchange and CAP said he would have to deal with them due to being self employed and once the business side of things, bankruptcy, had been dealt with they may refer him back to them.  We appear to have reached stalemate.  Advice would be appreciated.

Hi Angelina

Thanks for posting.

I'm glad that your friend has you to support them. We're unable to assist clients that are self-employed so yes we would have referred to Business Debtline.

Whilst bankruptcy may be available to someone in a deficit budget (household bills and living costs more than income, even without debt repayments), it wouldn't be recommended. It's important to be able to make ends meet without the debts (and any household bill arrears) so that bankruptcy puts a full stop to the financial problems. If there's still not enough money to live on, more debt and arrears will build up again.

There may be various ways to try and at least make the budget balance, but without seeing a budget myself, I can't really advise on these. Perhaps Business Debtline can advise on this?

I hope he gets things sorted out one way or another.

Allen

stepha4

Hi.
Having spoken to Stepchange, myself and my husband have come to the decision that BR is our only option. 

I just have a couple of questions before we ring back and start the process.

1. we’ve filled out the income/expenditure form and our income will cover our essential bills, (food but less than the amount they state as reasonable) and that leaves us with zero. No budget left for medical, haircuts, clothes, car maintenance etc. My husband can sometimes pick up overtime if it’s offered, am I right in thinking that with how tight our budget is that we’d be able to keep that? 

2. We currently haven’t missed any payments on anything but as of next month I know we can’t cover our minimum payments, cards coming off 0% and we’ve been using our cc’s for food and petrol so our income is only covering some bills and the minimum payments as lots going on credit card. We have a car that is worth approx £4000. Is it worth selling that now and buying a car around 1k and keeping some cash and using the rest to keep paying some cards? We’ve got no savings at all except for £500 which we need to put towards the BR fees. It’s going to be so tight once we file, I wasn’t sure if we could put a little cash aside? Or would the OR just take it anyway? 

3. Or could I default on a couple of minimum payments to get the BR fees saved? 

Thankyou.

StepChange_Allen

stepha4 said:

Hi.
Having spoken to Stepchange, myself and my husband have come to the decision that BR is our only option. 

I just have a couple of questions before we ring back and start the process.

1. we’ve filled out the income/expenditure form and our income will cover our essential bills, (food but less than the amount they state as reasonable) and that leaves us with zero. No budget left for medical, haircuts, clothes, car maintenance etc. My husband can sometimes pick up overtime if it’s offered, am I right in thinking that with how tight our budget is that we’d be able to keep that? 

2. We currently haven’t missed any payments on anything but as of next month I know we can’t cover our minimum payments, cards coming off 0% and we’ve been using our cc’s for food and petrol so our income is only covering some bills and the minimum payments as lots going on credit card. We have a car that is worth approx £4000. Is it worth selling that now and buying a car around 1k and keeping some cash and using the rest to keep paying some cards? We’ve got no savings at all except for £500 which we need to put towards the BR fees. It’s going to be so tight once we file, I wasn’t sure if we could put a little cash aside? Or would the OR just take it anyway? 

3. Or could I default on a couple of minimum payments to get the BR fees saved? 

Thankyou.

Hi Steph

Thanks for posting.

I understand the questions you're asking, but whilst I could attempt to answer parts of them, it's difficult to be at all specific without knowing how your budget looks. The best thing to do would be to call back and speak to a debt advisor that can bring up your budget and give you tailored advice based on your situation.

We look forward to hearing from you.

Allen

jezza63

Im a self-employed painter&decorator.......Sole Trader.
I declared myself bankrupt 25/02/2019.
I completed and returned SOA as requested May 2019.
22/08/2019 i was informed OR would accept £50 per month IPA.
I questioned this immediately as OR figures did not match mine and was requested to send further proof which I did.
Yet again had no response.
10/02/2020 I received correspondence from OR informing myself that they had prepared an IPA using UK average figures involving my personal details and must be signed and returned within 14 days which by the way is 1 day before my 12 month discharge......Strange.
OR is now demanding £147.60 for 36 months and once  i sign and return this form the OR will sign it thus making it legally enforceable..

I totally agree with some figures they have used and also do not others.

As im self-employed and use my vehicle for work I have to go where work takes me.Could be a 30 mile round trip or the next day 180 mile round trip. 
My total annual millage is 11500 which includes driving elderly parents to shops and towns yet the OR has awarded me £30.00 fuel and parking weekly which does not cover my costs.

Dentist and Opticians £10 per month which I dont agree is realistic as i have 2 dental checks,scale and polish.1 eye test and new frames and lenses once a year.

Electricity (have no gas) £66 a month....... Yet my direct debit with supplier is £128 a month.

Vet bills and Insurance £100.00......... Yet no mention of £10 per week pet food.

Groceries £80.00 weekly.......A little low?
Should i add pet food to this expenditure?

There is no mention to how much the allowance is per month for hand tools and sundries i need to buy to carry out my daily duties at work so if OR has determined i have £147.60 remaining for creditors every month leaving me with no disposable income how can I purchase these tools i need on a daily basis?

Due to the seasonal weather I had very little work recently and have accrued rent/council tax arrears of nearly £1000 which I have set up a payment arrangement with housing association and local council office to pay back so should I mention these arrangement's to OR when I contact them?

Finally as hopefully my discharge date is 25/02/2020 what will happen if a IPA cant be set up and in place by then?

Thank you for your patience reading threw this and welcome any advice.
.

StepChange_Allen

jezza63 said:

Im a self-employed painter&decorator.......Sole Trader.
I declared myself bankrupt 25/02/2019.
I completed and returned SOA as requested May 2019.
22/08/2019 i was informed OR would accept £50 per month IPA.
I questioned this immediately as OR figures did not match mine and was requested to send further proof which I did.
Yet again had no response.
10/02/2020 I received correspondence from OR informing myself that they had prepared an IPA using UK average figures involving my personal details and must be signed and returned within 14 days which by the way is 1 day before my 12 month discharge......Strange.
OR is now demanding £147.60 for 36 months and once  i sign and return this form the OR will sign it thus making it legally enforceable..

I totally agree with some figures they have used and also do not others.

As im self-employed and use my vehicle for work I have to go where work takes me.Could be a 30 mile round trip or the next day 180 mile round trip. 
My total annual millage is 11500 which includes driving elderly parents to shops and towns yet the OR has awarded me £30.00 fuel and parking weekly which does not cover my costs.

Dentist and Opticians £10 per month which I dont agree is realistic as i have 2 dental checks,scale and polish.1 eye test and new frames and lenses once a year.

Electricity (have no gas) £66 a month....... Yet my direct debit with supplier is £128 a month.

Vet bills and Insurance £100.00......... Yet no mention of £10 per week pet food.

Groceries £80.00 weekly.......A little low?
Should i add pet food to this expenditure?

There is no mention to how much the allowance is per month for hand tools and sundries i need to buy to carry out my daily duties at work so if OR has determined i have £147.60 remaining for creditors every month leaving me with no disposable income how can I purchase these tools i need on a daily basis?

Due to the seasonal weather I had very little work recently and have accrued rent/council tax arrears of nearly £1000 which I have set up a payment arrangement with housing association and local council office to pay back so should I mention these arrangement's to OR when I contact them?

Finally as hopefully my discharge date is 25/02/2020 what will happen if a IPA cant be set up and in place by then?

Thank you for your patience reading threw this and welcome any advice.
.

Hi Jezza

Thanks for posting.

The OR can look to begin an IPA up to the day before discharge from bankruptcy. 

You can appeal the amount of the IPA if you're unhappy with it, so I'd recommend looking at that as your next step. There should be some information on how to go about this within the paperwork you've received?

It's hard for me to comment too much because I don't know your full situation, for example your budget and household situation.

One thing that affects the IPA can be other people in the house. For example, if there are other adults living there, the OR may be expecting them to contribute to the bills and living costs.

I hope this helps.

Allen