How does OR decide if debts my fault?

Lizzibuff

I was reading earlier about BR and read that the OR looks into all your finances and decides whther you are to blame or have purposely increased your debts.

This has begun to really worry me. How do they decide this and what do they take into account.

I was reading the post by scaredwitless and was in a similar situation that my children needed new school stuff etc for this coming year. I havent got any money saved and so it's been further purchases on my credit card.

Also we went on hol to Blackpool and i've taken the kids ice skating in the summer hols - would that be classed as irresponsible.

My biggest worry is that i have bought presents for my daughter for her birthday next month - again on the credit card as my worry was that if i did do the BR now i wouldnt have enough time to save up - would that be classed as irresponsible?

scaredwitless32

Lizzibuff, I know just how you feel! but cant answer your question Im afraid....in the same boat myself as couple of months ago we brought my son a cheap laptop for his 18th birthday/ and media studies course. I thought If we get ours taken away then at least he will have his own to do his studies/work on. I wish I had read this site first , then I probably wouldnt of purchased it! So I share your worries!

scaredwitless32

Just a thought, could you not get any help re uniforms from the LEA?

Lizzibuff

scaredwitless32 wrote: »

Just a thought, could you not get any help re uniforms from the LEA?

Apparently you can only get help once - and i did that when my daughter first started school couple of years ago. Thanks for the tip tho.

Richard_S

Lizzi & scaredwitless,

Purchases of that sort are classed as essential or "normal" expendiure and won't cause you any problems at all. We'd paid for a holiday just before we were declared bankrupt and it was queried but didn't cause any problems for us.

Clearing out credit cards for cash, taking out loans and heavy gambling just before declaring bankruptcy are the actions that will normally be penalised.

Regards

Richard

CCCS_Matthew

Hi there,

I would strongly advise using any form of credit once you've decided that you are going to go bankrupt. Problems with the OR and going bankrupt could arise if you have shown that you have used credit that you knew you weren't going to have to pay back, due to the fact you were going to bankrupt.

Richard_S

CCCS_Matthew wrote: »

Hi there,

I would strongly advise (against ???)using any form of credit once you've decided that you are going to go bankrupt. Problems with the OR and going bankrupt could arise if you have shown that you have used credit that you knew you weren't going to have to pay back, due to the fact you were going to bankrupt.

Matthew,

I think that is going to unnecessarily alarm the O.P and may well be the strict letter of the law.

However, in practice, that sort of everyday spending won't attract any undue attention. Don't forget that as priceless as CCCS's advice is, you never get to see what happens to people after they've consulted with you and declared bankruptcy.

Unfortunately, I've experienced it at first hand and I think you'll find most bankrupts on here would agree with my observations; withdrawing cash from a credit card to pay for the bankruptcy fees is far from uncommon.

Richard

CCCS_Matthew

Firstly apologies for the typing error. I did, of course meant to say "I would strongly advise against" as Richard suggested!

My post wasn't intended to scare or alarm the original poster. It was simply to point out that if an individual continued to use credit to support themselves once they have made the decision to go bankrupt, is when the OR may feel that some credit has been used on the basis of them knowing they weren't going to pay it back.

I wasn't suggesting the OP had carried out anything that would be considered as irresponsible, but if they were to continue using credit up until the day they went bankrupt, that maybe considered as a problem with the OR.

Regards
CCCS

Liberty9515

I wish I had known about this earlier! :sad:

Over the last week or so, I have out 2 credit card cheques into my current acc, to ensure that I could pay my bills feed the kids,and live for the next month or so!

Looks like I will have some explaining to do to the OR! I will have to learn to not panic and think before I do anything!

On a positive note after talking to the CCCS today I have now cut up all my cards!

So the sleepless nights begin! Ho hum!

rog2

Unless I have misunderstood, I think that you may be worrying for nothing. The OR knows that you must live, and that buying school clothes is essential.
Providing that you are not using credit/debit cards AFTER you have filed your petition, then it really should not matter (unless of course you book a £3,000 cruise).