Getting myself all worked up about BR

sammie28

As some of you will of read, myself and hubby are saving up to file for BR. As i have been searching for further info etc, i have read a few things that are causing me to panic.

Part of my unsecured debt is catalogues. On the run up to xmas i bought the majority of xmas presents on buy now pay later. My intention was to do as i did last year and pay each payment as it became due, which avoids interest and everything paid before the next xmas.
I also took out 2 new credit cards, 1 for balance transfer which used most of limit and 2nd one has approx £240 balance with a £500 limit and a store card which i have only used £300 out of £1200 limit.

I am now worried sick that the judge will think i intended to go BR when i took them out, which i didn't. Add that to me leaving my job this month (signed off with depression since end of december and issues at work, i just couldn't face / deal with work and all the pressure of finances)

We were hoping to file sometime around 21st Jan. But now thinking I should wait a while cause it looks really bad.

Does anyone have any opinion on this? Any help would be appreciated. Getting myself really worked up about it all.
I know i'm probably not seeing everything clearly with my current state of mind but can't stop worrying about it.

Thanks for reading

rossireps

cant really help as i didnt use credit near my br but as far as im aware examiner may ask you about this but as long as you are totally honest thayts what matters. i dont think br would be refused but im not sure if a bro could be issued. hopefully someone who knows will be along but just wanted to show some support

mattannar

Without looking at the rest of your posts, I would like to ask you a few questions. Apologies if the answers are in previous posts.

When did you first think about going br?
You are on treatment for depression, how long do you think you will be off, and do you get sick pay?
Where you managing yur money okay before you went off sick?
When you took out all the extra credit prior to xmas could you manage all the extra or were you already struggling?

These are the questions you need to think about.

If your outgoings are more than your income then you should have no problem going br
Depending on the answers of those questions could mean that you get a BRO/BRU.

Just to say I was using my credit cards upto br and used money off one of them to help pay my fees nad I didn't get a BRO. Your case is slightly different in that you are going br , basically a month or so after taking on extra credit.

Hopefully you will be okay and your OR will understand your reasoning.

alastairq

Hi...if the short time -lag between [consciously] using or applying for credit, and the date you plan to petition for your BR feel a little too close together....then why not postpone your petition until a later date?

Unless some of your creditors can apply for a Charging Order [against property]...changing unsecured debt into secured debt.....then it really doesn't matter how far you postpone your intended petition date.

Whatever action they take will eventually be trumped by the BR.


Most importantly..have you ceased payment to all creditors..? [or, simply pay a token amount to each per month?]

The longer the period where you have ceased to use any credit, the better.

Much will also depend on what you obtained using the credit you mentioned?

If you can demonstrate you used credit simply to meet normal living expenses, then I suspect the OR will have seen this many times with insolvent individuals [it is part of the downward credit spiral]...

Are you meeting the minimum payments on these accounts?

The important thing that differentiates fraud from anything else is the intention at the time.

sammie28

Well my husband decided to go BR about a month ago, we booked an appointment with CAB on 7th Jan. It was the night before that i realised it was really my only option. I have fought hard for 5 years to always make monthly payments on time.
I was managing payments in the sense that i paid stuff on credit card and then paid it off and did the same again. I wasn't behind on anything until now as i have already cancelled my direct debits.
The extra credit was a balance transfer from a high interest card to a much lower card, which did reduce payments from 80-100 a month to £20. The catalogue purchases were all buy now pay later which is how i have always used them. Always paid off before bnpl ended, avoiding interest. Intended to do the same with the stuff i have put on from oct-dec 12.
The work issue is, i handed my notice in so i am now unemployed from this week. Again doesn't look good. Long story short. Reasons for leaving are current emotional state, issues with manager being awkward and just not being able to cope with going back there. Reasons for taking credit cards was balance transfer to reduce payments, other as a back up if we needed it.
Will the judge want to see me about all this? Or is it just the OR that will question me?

sammie28

Was worried about putting it off as hubby has a notice of seizure from an old debt of his. I have ceased all payments to my debts this month, so some won't have missed a payment yet as they are not due till later in the month.
Really don't know what to do now. There was absolutely no intent of going BR when i took out the other credit, I was just doing what i always have for years and muddling along.
purchases were xmas presents, hoover, kettle, bedding.
Credit cards were a BT and fuel and food on other.

alastairq

Will the judge want to see me about all this? Or is it just the OR that will question me?

hi, no, the Judge is not concerned with the nitty-gritty.....that is the OR's job.

The Judge's concern is, has the petitioner [if personal] received proper advice before proceeding...and is the petitioner aware of the duties and responsibilities of Bankruptcy?

And, of course, are they insolvent at the time of application?


From what you say....and given you can present evidence to the OR, I don't think you'll have a problem.

However, it occurs to me that you could consider petitioning BR later on in the year?
[Your OH has a separate petition, no need to both go BR on the same day]

That way, you can establish defaults, and get yourself prepared [in a practical manner]....also, you will see what goes on by observing your husband's BR?

sammie28

Thanks for your reply. Do you need to have very late payments and defaults to go BR? Would the OR be likely to think that my debts were not behind enough to warrant going BR.

MikeJO

sammie28 wrote: »

Thanks for your reply. Do you need to have very late payments and defaults to go BR? Would the OR be likely to think that my debts were not behind enough to warrant going BR.

No.

I didn't miss a single payment pre bankruptcy....doesn't matter at all.

sammie28

Thanks MikeJO, that's one less thing to worry about.

mattannar

No you do not have to have defaults, but I think Alastair was implying that it might look better if you had a few defaults between the credit you recently obtained and going br.