BR preparation

missblue1480

I'm planning on going BR within the next week or two.

What should I do to prepare?

I already bank with Barclays basic accounts but if these are going to be frozen, how long will I need to go without access for? Should I take all my cash out? Or is this taking assets? Do I need to be figuring out what is a reasonable amount to tide me over and leaving whatever extra I deem a (very small) asset?

Also is it unreasonable to spend to tie up loose ends prior to BR? I need to pay a portion of a deposit back to a housemate who has moved out and also need to have transport for when I graduate as I will seriously limit my employment options if I don't. Would forking out for these expenses prior to going BR be viewed unfavourably? They are essential costs which aren't necessary right now but if I don't pay for them before BR I won't be able to at all.

I feel I know all the ins and outs of the big thing itself but not really the small practicalities of how to smooth the transition out and what is acceptable prep and what is not.

Any advice on practical preparation in the days leading up to the big plunge?

egrescrimp

The Barclays account is unlikely to be frozen unless it's got money in excess of what you'd need to live on, if it's benefits or wages it will probably be fine but doesn't hurt to take out a few pounds just incase

Paying the housemate back wouldn't go down well with the OR, but if you can demonstrate a need for a cheap car (under £1,000) they should be fine with that.

My main piece of advice is not to worry, easier said than done but it's really not that bad I've been discharged for around 3 months, I've got an IPA but my life is pretty much perfect these days and I have very few worries

missblue1480

It isn't a debt I'd be paying off with the housemate, it's buying out her portion of the deposit as the rest of us are staying here and she's leaving. She legally needs her deposit returned and we legally need to have the full deposit covered so we the remaining tenants need to buy out her portion.

TheGardener

With deposit - if its an essential expense and you have an audit trail/evidence of it it should be fine.

As previous poster has said, a car worth less and £1000 is ok but don't take out any kind of lease to buy contract, the car company would cancel it if BR.

General living expenses in Basic account as fine, just make sure you have enough to tidy you over for a couple of days - it usually take a couple of days before the OR tells the banks anyhoo

Remember car insurance by instalments may be difficult to get and you may be expected to pay a lump sum upfront for the year. However, if you are already paying an existing policy by instalments they are unlikely to stop it.
Will you be ok with mobiles - do you need to switch to a PAYG sim ? Existing contracts usually honoured but can sometimes be tricky to get a new contract until after AD.

missblue1480

Thank you for the advice and support. It's a weird time and I do feel as though I'm at a cliff's edge taking those last few steadying breaths. It's good to know that as long as I can provide evidence and justify that my spending is essential and not frivolous this will not be viewed unfavourably.

I hadn't thought about my phone contract or the inability to pay for car insurance monthly. I have a very cheap contract at the moment, not one with a flashy phone included - just minutes and whatnot so I'm hoping that will be fine. As for car insurance, the car will be very cheap and declared offroad until I need it but I hadn't considered needing to fork out a full year's worth of insurance once I do. As this will be further along in my bankruptcy, would I be able to ask a relative to pay it upfront and pay them monthly? Or is this sort of arrangement not allowed? What happens with debts you accrue during the bankruptcy itself?

TheGardener

Once you are BR then after that you can spend your money on what you like - its up to you to budget effectively. If a relative loans you the car insurance it is of no interest to the OR if it happens after BR.
The difficulty is getting the OR to accept motoring costs on your SOA if you don't actually have them at the time of your BR. Is there any possibility of getting the car (and insurance) before BR?
Your phone contract is unlikely to be terminated unless you are in arrears - just keep paying that. It's just it can be hard to get a new contract with another provider as they will credit check you.
As for debts accrued during BR - nothing happens - if you get some form of credit (which would be very difficult indeed) then you have to pay it - debts accrued after BR are not included in your BR - you would be liable for them.

tigerfeet2006

Most likely if your car is off road when you become BR then the OR will take it and get the money for it to go into your BR estate.

If you want to keep the car then I would suggest that you get the car on the road now and prove a need for it.

missblue1480

Thanks for the replies.

Basically I am a final year student now working towards a profession-specific degree but when I graduate (which will be towards the end of my bankruptcy) I will need transport in order to find the work that I will be qualified to do. So I don't have the need for a car currently, but I will not be able to find work later in my bankruptcy if I do not have transport. I am unsure whether to buy a very cheap car (£400-£500 is the cheapest I can find) now and declare it offroad and deal with finding money to insure it once I have a job lined up, or to forgoe buying car but then I have no idea how I will ever be able to afford to buy one once I am BR.

So transport will be necessary at a later date in my BR but isn't currently. If I buy v. cheap car with OR let me keep it for this purpose or is there no point?

tigerfeet2006

No the OR won't let you keep the car. You will have to prove a need for it now to keep it.

When you are BR you could put aside things like your Hair cut, clothes and holiday allowance to one side and use it to buy something when you need it.

TheGardener

It sounds like you would be better just forgetting the car until you are AD - its not going to work unless you need it now.

Your timing of BR might be crucial in that if you get a job before you are AD. Although as a student you are unlikely to get an IPA (assuming your income is currently low/student loans) if you get a job before AD and your income goes up - you may have to start paying an IPA and that would last for 3 years...

missblue1480

Thanks all. I won't bother with the car now then. Well that saves some time and hassle at the moment anyway.

Could the OR really slap me with an IPA if I'm on very low student loan income for (almost) the whole of my BR and got a job in the last couple of weeks? Timing would definitely be critical then.