Finally phoned up step change

notsurewherenext

Yesterday I asked for advice regarding getting my debts down and today went through my SOA with the debt advisor who advised me to go either IVA or Bankruptcy and I've gone with the latter. Debts 36k.

Anyway I listened as best I could but I can't remember what she said regarding paying my minimum payments which comes out this week, tomorrow £256 and the next ones end of the week and so fourth.

Do I pay these minimums or not as I'm sort of sure she said make a token payment but worried about doing this.

Thank you

cam6278

For myself i had a court days within a few weeks so i sent a letter to each creditor stating i have taken advice and will pay a Token amount. Used the money that would have been used to pay the £705 court fees.

I would highly recommend reading the threads at the top. There are links to all sorts of info which has been invaluable .

TheGardener

Hi and welcome. Firstly - read everything on the welcome posts and if you haven't done it already - get your new 'basic' bank account opened at the co-op or Barclays (but don't tell them its because you are going BR) before you do anything else.
If you are absolutely certain you are going to travel the BR path, you don't actually need to pay any creditor anything, there isn't much point - experience suggests it takes at least 3 months before creditors start to get really twitchy and chase you with more than a letter. However, do carry on paying your rent/mortgage unless you intend these to be included in BR (and would probably mean you are moving house?) I would also carry on paying utility/phone bills if these are up to date and you intend to keep the accounts?
Rather than pay creditors - keep the money and save it for your BR court fees.
Its probably best not to tell your creditors that you have opted for BR just yet or they will pull out all the stops to try and get money out of you before you do.

owlet

As the others have said, you don't need to pay if you are going bankrupt soon.
If you are looking at 6 months before BR (as I did) then make a £1 token payment to each & phone each creditor to let them know you are working towards a solution with Step Change.

Use the money to pay your fees. If you need any essential purchases, you can do that too but keep receipts as the OR may want to see them.

Do follow the Gardener's advice about bank accounts. Do your homework first, it will save you no end of grief.

notsurewherenext

Thanks are you saying not paying anything not even a token payment? Also how long does it take for the court date, is it just a question of me taking the forms to court ASAP etc

cam6278

I phoned my local court and was offered the next available date which was around 3 weeks wait.

You will need to either download or collect the forms and have rhem filled in before the court date.

Look in the sticky threads you can find out the whole process and the forms which also has an example of how to fill it in

Also reccomend looking at other peoples threads as lots of stories and queries to help you through the process

notsurewherenext

Apologies for being a pain just to make sure do I phone BC up today and mention BR or just explain to them I cannot afford to pay them the minimums this month, also do I have to make an appointment to take my paperwork to the court, I really ain't got a clue what I'm doing as the worry is playing havoc in my head at the moment and can't take nothing in.

Thank you

TheGardener

I wouldn't tell any creditor you are going BR and if you intend to do it quickly, then don't pay anyone and don't tell anyone. BUT - get your new basic bank account open FIRST and get any wages/benefits organised to be paid into it - do not go BR before you do this or you may end up with no bank account and no access to your income. Take the time to read everything a few times before you dive in - as owlet says - it will save you no end of bother.

Once you have all your ducks in a row - phone your nearest court and check they do BR hearings, then you make an appointment. You take your paperwork and fees with you to the courts on the date of the appointment and in most cases, the judge will make you BR there an then. PLEASE do read the main welcome posts if you "haven't got a clue" BR is not to be taken lightly and you need to know what's coming.

notsurewherenext

Thanks Gardner, as for banks I'm already got a account plus with coop and Barclays and lloyds and tsb all contact less cards, so I guess these will be frozen but my question is my debts are with all these people so what's the best bank account post BR please. Shall I right now open a basic account up online if so what one thanks you

notsurewherenext

Oh and would the OR look at me badly if I decided not to pay my minimum payments and save the money instead for the BR fees

owlet

No, the OR won't look badly at you for doing this. It's what most of us have done.

If you are looking at going BR in the next couple of months, then you can ignore your creditors.

If you think it will take longer then ring each one, say you are experiencing financial difficulties at the moment but you are working with stepchange for a solution. Don't mention bankruptcy. Offer a token payment of £1 a month to each. They will ask for your stepchange reference number. If any don't accept this then just pay £1 a month anyway regardless.

You can't pay more to one creditor than another. All payments must be equal.

As TheGardener says, read the stickies, sort your bank account, cancel direct debits to creditors, download & print your forms, phone your nearest court for an appointment.

We can help with your SOA & other questions but do have a good read first.

With reference to the bank account I'd apply for CO-OP Cashminder. I'm sure Barclays can take money from other accounts held with them to pay off debt but I'm not 100% sure on this. Someone will confirm or dispute this soon!

Take a deep breath, relax & read. It's an easy process IF you are prepared properly.