Few questions before going bankrupt

Trying_to_get_sorted

Hi, I finally called stepchange today and was advised that br is the best option for me (which I already knew).

After going through everything I have a couple of things Id like to check as what stepchange told me is different to what has been said on this (and other) forums. Also got told to start making token payments & acknowledge some of my debts that are nearly statute barred

Firstly - been told that my co-op account (8yrs old) will definitely be shut and that co-op arent br friendly anymore.

Next - I have an excess income of approx £150pm and that all of this will be taken as an IPA even though my only source of income is benefits.

Lastly - I currently have a budget loan that is nearly paid off. I was going to apply for another to help with essential things and also towards bankruptcy fees if I cant get help from elsewhere as read on here that this may be allowable (I know it wouldnt be included in my br and I would have to repay it out of my benefits). Stepchange have said that Im not allowed a budget loan whilst bankrupt and that I would end up with a BRO if I take one out now.


If anyone can help clarify these things it would be appreciated, thanks

fermi

Firstly - been told that my co-op account (8yrs old) will definitely be shut and that co-op arent br friendly anymore.

Unless it is a Cashminder it may be closed. Mostly the BR unfriendliness of Co-op is on new accounts opened once bankrupt, and maybe full accounts with credit facilities on pre-existing ones.

Next - I have an excess income of approx £150pm and that all of this will be taken as an IPA even though my only source of income is benefits.

If your only source of income is benefits, then that is untrue.

Lastly - I currently have a budget loan that is nearly paid off. I was going to apply for another to help with essential things and also towards bankruptcy fees if I cant get help from elsewhere as read on here that this may be allowable. Stepchange have said that Im not allowed a budget loan whilst bankrupt and that I would end up with a BRO if I take one out now.

No reason why you cannot take one out. The only restriction on taking about credit while undischarged is that if it is more than £500 you must inform the potential creditor of the bankruptcy.

Taking one out now would not lead to a BRO as these loans are not written off in bankruptcy since the law changed in 2012. So it could not be misconduct to take one out prior to BR.

fermi

Perhaps talk to https://www.nationaldebtline.org

You may get more sensible advice there.

Trying_to_get_sorted

Thank you for the reply, youve confirmed what I thought I knew from reading these forums.

Was planning on calling National debt line in the next few days anyway as unfortunately stepchange do seem to be inaccurate in some of the things they said today

It is a co-op cashminder account, I chose this account when marriage broke down, house repossessed etc as it was debt & br friendly.

Def no other income other than esa, pip, child benefit & child tax credit so thats okay.

Thats what I thought & had read about budgeting loans and was only going to apply for £500 (or less) just in case - it would be nice to not need one but Im not very good with putting money away and the budget loans help when I have a lot to pay out for at once (in this case school uniform as eldest going to secondary school & also car repairs).


Thanks again