Not sure when is best to "do the deed"

whoopsydaisy

I have spoken to 2 debt charities who have advised Bankruptcy as the most suitable option for me, but i'm not sure when to do it.

I get paid on the 24th of this month. The problem is that my pay won't cover my overdraft (with my main creditor). I am over my overdraft limit at the moment and expect my bank account to be frozen any minute.

Currently all office staff where I work are on holiday (it's a school) I have phoned the Local Education Authority but they have said that my school uses a private company for payroll and they do not have contact details which is very frustrating.

This means that I have no option but to let my pay go into my current bank account.

I am very worried/scared about not having any money to live on next month (and in fact from now as i've run out- aside from the fee for bankruptcy)

If I went for Bankruptcy in the next few days, would the OR allow my pay to be released? or would it be treated as the banks money as it would never take me out of my authorised overdraft and most would be unautharised overdraft.

Please could somebody advise, i've hardly slept i'm so worried!

Thanks

CCCS_Matthew

Hi there,

You may want to consider what is known as "The First Right Of Appropration"

Basically, it is a legal right that you have to ensure your bank releases money you have coming into the account to be used for more important costs than the bank using it to pay debts. More information can be found on this thread:

http://forums.moneysavingexpert.com/showthread.html?p=5925091

It applies to any money coming into your account whether it's wages or benefits, and it ensures you're not going be short for living costs such as rent/mortgage, food, or other important bills.

Hope this helps, and feel free to answer any questions

CCCS

whoopsydaisy

Thank-you for that. I have my CCCS interview thingy on Monday 20th- Just to triple check BR is my best option (earliest that I could get an appointment, system reboot or something similar??) It's very helpful that you are on here or I probably wouldn't have slept well tonight either!

One worry I have is although it is MY wages, won't it technically be THE BANKS money as it's still in overdraft, particularly the £200 or so that is currently beyond the arranged limit?

(Sorry if being dense) Thank-you again.

Richard_S

whoopsydaisy wrote: »

Thank-you for that. I have my CCCS interview thingy on Monday 20th- Just to triple check BR is my best option (earliest that I could get an appointment, system reboot or something similar??) It's very helpful that you are on here or I probably wouldn't have slept well tonight either!

One worry I have is although it is MY wages, won't it technically be THE BANKS money as it's still in overdraft, particularly the £200 or so that is currently beyond the arranged limit?

(Sorry if being dense) Thank-you again.

Hi whoopsy,

The legalities are that your right to the money is greater than the bank's right to use it for clearing your debts, therefore they legally can't keep it. I have to say I'd feel happier if I was certain it wasn't going in at all. Isn't there anyway you can ask them to pay you by cheque?

I had the same problem and I explained in no uncertain terms that if they paid the money into my current account I would not have access to it because I was involved in a dispute with the bank. I copied several tiers of management in on the email and asked for confirmation that it wouldn't be paid.They couldn't pay me by cheque but they did agree to pay it into our daughter's bank account even though it was way past the dead line.

Regards

Richard

whoopsydaisy

Hi Richard,

(I don't know how to do the quote thing in a little section, so can we pretend that i'm quoting?)

I have tried really hard to find out who pays me but as my workplace office is closed for the holidays no one seems to know, how crazy is that?? From now on i'm going to make sure I have a direct dial number to my payroll department!

I'm glad that I have more legal right to my money, but i'm sure that withdrawing money from an overdrawn account is going to raise a few eyebrows at the bank. I have a feeling that i'm going to have to toughen up a bit over the next few months!

wherediditallgo

whoopsydaisy wrote: »

I'm glad that I have more legal right to my money, but i'm sure that withdrawing money from an overdrawn account is going to raise a few eyebrows at the bank. I have a feeling that i'm going to have to toughen up a bit over the next few months!

Look at it this way - if your pay goes in the account, you'll be withdrawing money you've earned. The bank haven't earned it, so it's yours until they can show the OR it's theirs.

As for toughening up, I don't think I've met one BR who hasn't had to assert themselves after going BR with creditors, the bank or whoever. It will come, believe me - you'll have a day when you won't be prepared to take sh*t from anyone, & after you've given them what for you'll feel loads better. When I had a day like that, it was a memorable moment for me - I've linked to it here (post #168).

whoopsydaisy

Hi WDIAG,

Thank-you! I go through moments of "sod it i don't care what people think", and then moments where it's all "the shame, the shame" and I get all embarrassed and tearful (i'm sure it will be the later when I go into the bank). I read peoples stories (like you) on here and it makes me feel like there is a light at the end of the tunnel. I'm surprised they don't offer actual counselling as standard to bankrupts/people in unmanagable debt! Thank God for Bankruptcy and living with it! :A

wherediditallgo

Maybe I'm unusual, but I've never felt a second of shame about going BR or being BR. I've felt annoyed with myself for things ending up that way, & I've felt worry about going through the BR process, but no shame at all. After all, I tried every way I could to resolve my debts before finally going BR, so I don't think I've done anything to be ashamed of in taking the only option left open to me.

Counselling for those going through the BR process before & after court would a great idea. The legalities of the paperwork is all very well, but without boards like this one a lot of people (myself included) would have felt very alone at a very stressful time in their life.

Richard_S

whoopsydaisy wrote: »

Hi Richard,

(I don't know how to do the quote thing in a little section, so can we pretend that i'm quoting?)

I have tried really hard to find out who pays me but as my workplace office is closed for the holidays no one seems to know, how crazy is that?? From now on i'm going to make sure I have a direct dial number to my payroll department!

I'm glad that I have more legal right to my money, but i'm sure that withdrawing money from an overdrawn account is going to raise a few eyebrows at the bank. I have a feeling that i'm going to have to toughen up a bit over the next few months!

Hi whoopsy,

The quote thing is easy, you just click the "quote" button in the bottom right side of the post you want to quote.

As for your salary payments you did say that it was done by a third party in your original post and I forgot; apologies for that, it's been a hard weekend.:eek:

I believe schools are funded through Local Authorities, or they used to be, or they're going to be, or if they're not funded then there's close links between them. You could try phoning the local L.A and ask them who handles the payroll for school xyz. I'd be amazed if they didn't know; ask to speak to their schools; children; early years; education department and you're almost bound to find somebody who knows.

Isn't the headmaster, or school secretary, or PTA chairperson listed on any stationery somewhere? It's their holiday I realise, but you do have a good reason for asking the question.

Ask anybody remotely associated with the school and for certain somebody will have the answer.

Regards

Richard

owetoomuch

Check the local authority website and go to education, it will then tell you who looks after the schools in the borough/authority and it should have contact numbers there for you to ring.

whoopsydaisy

Hi Richard & Owetoomuch,

I had done what you suggested and was told by the LEA that they have no contact information for the company as it's outsourced. When I got my scribbled telephone call notes out just now to check i'd phoned everyone I could think of I realised that I had scribbed a name of a company down and having just "googled" it on about the 3rd link I found a payroll company of the same name- Hurahh! I will phone them tomorrow and hope it's the right one!

Otherwise I will be writing my letter of Appropration!