Advice need about bankruptcy

Bakeybadoo

Won't affect anything with regards to her benefit, they'd only know if they looked into it but they aren't likely to for no reason.

Have yourself a nice weekend and let us know if we can be of any more help to your friend!

disco_3

Thanks Bakeybadoo.
Will keep you all posted on her situation.

fermi

disco wrote: »

Would the Benefits people know or would have to be told of this impending course of action. Could this affect any thing.

I don't know for certain the answer to this question, but I think common sense would say:

* BR could result in payment difficulties if bank accounts are shut by the banks etc. So perhaps alternative arrangements should be made with them until firm banking arrangements are made post BR. On top of all the stress, not getting payments due would be the last thing they would want.
* Obviously BR would radically effect the other persons financial position. If any benefits are mean tested then the effect of these changes should perhaps be enquired about, on the understanding that it is only after affairs have been looked at by the OR that finances will settle. I don't really think much would change, but better safer than sorry.

You and your friend are welcome

EDIT: Bakeybadoo as normal beats me to it. Teach me to get distracted for a bit half way through writing a post.:)

Bakeybadoo

fermi wrote: »

* Obviously BR would radically effect the other persons financial position.

Not necessarily.

If she's spending what she gets in benefits, on paying everything, including debts. Not paying debts will not increase her income will it? But her surplus, for want of a better word, would increase.

Did that make sense? It did to me when I typed it!

And your ETA, you are usually way quicker than me!

fermi

Bakeybadoo wrote: »

Not necessarily.

If she's spending what she gets in benefits, on paying everything, including debts. Not paying debts will not increase her income will it? But her surplus, for want of a better word, would increase.

Did that make sense? It did to me when I typed it!

And your ETA, you are usually way quicker than me!

Point taken. But the persons finances will change in a fundamental way, which may require a reassessment, despite the fact that entitlement may not change.
I assume the benefits agencies expect you to inform them of change of circumstances?
I was thinking more along the lines of avoiding them saying a little while down the line "Why did you not tell us about................?"

Any definite info from a more informed source than me is welcome

tigerfeet2006

Hi Disco,

Tell your friend not to worry about her HA house. We live in a HA place and when we asked about what would happen if we went BR they told us that they didn't really care as long as we were upto date with them, which we are. So no worries there.

Hope she is feeling a lot happier now than she did. It is all very scary when you first hear someone tell you that BR is the only way but the only way is up from here on in.

Have a good weekend both.

AlanD_3

Just to clarify Tigerfeet's point. We sent an anonyomous mail to the HA to ascertain the situation. The answer was that provided we were not in debt to them and that we kept up our rent payments they did not need to know that we were BR and it was none of their business.

I can't, honestly, see any other HA taking a different tack (and ours even said that if we did have debts to them that would be written off in BR we should contact them in advance and they would try to sort out some arrangement) BUT I would suggest that your friend or a friend of theirs makes an anonymous call to the HA in question to ask what the situation would be. The peace of mind we got after finding out was well worth it.

disco_3

Another question if some one can advise please.

My friend has cancelled all but one of her outgoings from the bank. She has done this online but, There is a standing order for a loan that refuses to be cancelled. How does she do this.

Thanks in advance

fermi

disco wrote: »

Another question if some one can advise please.

My friend has cancelled all but one of her outgoings from the bank. She has done this online but, There is a standing order for a loan that refuses to be cancelled. How does she do this.

Thanks in advance

Some banks will not allow you to cancel these. I don't think this is strictly complying with the banking code, but that only 'applies' to banks when it is convenient anyway.

Is this bank account is one that she will request to be left open after BR? Any overdraft, charges, etc if they try to take a payment under the SO will be included under BR. That then becomes the banks problem.

Any money she is saving for fees should be transferred/withdrawn so they are safe.

Richard_S

disco wrote: »

Another question if some one can advise please.

My friend has cancelled all but one of her outgoings from the bank. She has done this online but, There is a standing order for a loan that refuses to be cancelled. How does she do this.

Thanks in advance

Hi disco,

I'll bet that's a S.O for a loan to the same bank, other posters have had problems with that. Perhaps the best thing is to send a letter recorded delivery requesting the S.O is cancelled due to a change in his/her financial circumstances. The problem is they'll keep taking it and charging for insufficient funds and unauthorised overdraft etc etc. If he/she has opened a new bank account though it won't matter because however many charges they apply will be wiped out with the bankruptcy.

Richard