Selling car ahead of BR and using those funds

Wasabi74

I'll be declaring myself BR in the next few weeks and I have just sold my car for £4,200 in order to be able to afford the court fees.

I believe that I'm able to use some of the remaining funds to cover living expenses but there are some things I would like to spend some of the money on prior to BR, and would like to know whether I would be getting into trouble for doing so.

- One would be a bicycle for myself and a (second hand, from ebay) trailer to take my youngest kids to their nursery, and for me to move around as I won't have a car to do so. It will help keep my travel monthly expenses down too as a result.

- Clothes for the kids (four of them so likely to be a couple of hundreds, including shoes, uniform etc)

- A new clothes rack drier as old one just broke (I live in a flat and space is limited, I need washing to dry quickly esp in winter)

- Flights to visit close family at Christmas (I'm guessing this one is a no, but I have no family here and my parents are too frail to travel otherwise)

I wouldn't want to jeopardise my BR but it would be really helpful if I could have some of the expenses above covered ahead of BR...Thank you.

alastairq

As long as your retain the evidence for what has been purchased, an OR ought not to have complaints.....however, I suggest the purchases should be the sort that replace or acquire essential items for house and home...... a bike maybe ok, but if spending thousands, the OR may well quibble [demanding to know why Halfords suddenly isn't good enough, for example?]....Personally, I had a similar situation, using the capital to purchase essential furniture, white goods, etc, as I had either nothing, or it was on the verge of breaking down. Subsequently, having produced receipts for proof of purchase, the OR was satisfied.

I would suggest the airline tickets may well be viewed differently.

Whilst family contact is acceptable, flying to & fro maybe seen as extravagant....certainly for a year or so?

Why not postpone your BR petition until next year, anyway?

[Once one has decided that BR is the route to go, that is half the battle. Realising one's existing assets for the purposes mentioned above is also acceptable [and expected] behaviour. The fact one hasn't simply poured the money into creditors' bottomless pockets immediately is irrelevant....in cases of insolvency [which most people actually are, at the moment...think about it?]....one must put oneself and one's family first. Simply paying one's creditors [it must be done correctly too......equitably, and in proportion].....at this stage is simply throwing money down the drain....as far as the debts, and oneself, is concerned.]

This will give you enough time to organise your banking arrangements [for afterwards].....time enough to open a Co-op CAshminder or two, [to retain internet access]...for example.

Most people I read about on here seem to be in an incredible hurry to seek the Petition....often leaving themselves unprepared for the life that follows. [There are , in reality, few instances where seeking the BR petition sooner, rather than later, is important...for example, if it is known a creditor may be seeking a Charge on one's house? IE, seeking to convert unsecured debt, into secured debt?]

If visiting family at Xmas is important enough to you, then hold off the BR until afterwards..then the deed is done..[the OR can compel the ticket cost to be redeemed, if they so wish, if Undischarged].....

owlet

As Alistairq says, if you can produce receipts for essential items then the OR should be fine.

If you delay your BR until after Christmas you can pay your creditors a token payment of £1 a month while you get sorted.

Have you been in touch with Stepchange or National Debtline? They are free charities who can assist & the judge will want to see that you have been advised.

I used Stepchange & they guided me though. I was given a reference number, which I gave to creditors & made £1 token payments for 6 months while I saved the fees and sorted my bank accounts etc without creditors on my back.

There's no rush. Get everything sorted and give yourself some breathing space.

Wasabi74

Thank you both for your advice. I did speak to both Stepchange and Payplan; an IVA was the initial option but then my landord increased rent by £100 last month and it made it unviable, hence going for BR instead now. Apart from the stress of the situation and wanting it sorted ASAP for a calmer life, I'm planning on going back to work in just over a year when my youngest starts school; I'll have a surplus on income them for sure and I wouldn't want to start a whole three years with payments towards the BR (at the moment after doing the calculations I believe I would have just enough to live on with no need for monthly payments as part of a BR).

I have my Co-op cashminder account sorted and internet access set up etc; all my payments have been moved from my Barclays account (I didn't want them offsetting my debt with any available funds).

I just want to get on with my life and start afresh. If that means not being able to see my family for Christmas... well, I'll survive and will see them the year after (hopefully) :-)

owlet

Ok that's good that you have thought it through & if you are ready, then go for it. Ask the OR about the flights, he/she can only say no! It's worth an ask. Some are more reasonable than others, especially if you stress that your parents are frail. You never know, you might strike lucky.

Have you been through your SOA with a fine tooth comb? Allowed yourself enough?