What to do before BR date?

radarjay

Please accept my apologies for all the questions I'm asking at the moment - all this is such a big step.

I will need some time to save up the BR fees and estimate that I will have the money in early January as the business should trade well again over Christmas allowing me to draw my first earnings and I know I will getting some cash as Christmas presents so between the two the fees will be there.

There is no way that between now and January I can pay my current creditors (credit cards, catalogue and loan) I've already had the usual hassling phone calls and letters from the catalogue company. I paid all my creditors in August and any that were due this month that went out by DD/SO before today have also been paid. I have cancelled the rest that are due in this month because I just won't have the funds.

Should I write and explain I have no income or do nothing until I can apply for a BR date in January? Are they likely to issue County Court Proceedings before then?

gratton20

You need to get advice, CCCS or CAB or National Debtline. If you decide then that BR is the only option then probably the best thing is to tell the creditors you cannot at present pay and ask them to suspend payments due and freeze interest. Most probably will not, but at least you asked. Then pay nothing, save the cash for the BR fees and field the phone calls and letters.

Most important thing ... Get advice at once .. its free - its non judgemental and you MUST have it to consider going BR or maybe some other solution may be more appropriate. The "brains" of the group will soon be here!

Good Luck, dont be afraid to ask questions - we have all been through it. It WILL get sorted and you WILL have light at the end of the tunnel - it just takes time!

rog2

Hi radar - whatever you do, do NOT inform your creditors that you are 'hoping to declare bankruptcy' - this will be like an open invitation to them to make your life a 'living hell'.
I echo Gratton's advice in that you should seek professional advice from one of the debt counselling charities.
Another thing that you can do is to look on the National Debtline Website, where they have some very good 'template letters' that you could send to your creditors - these can be found on the following link:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

There are two particular letters that may be useful in your circumstances - the first is the letter asking creditors to 'hold action on your account' but, in my personal experience, they simply tend to ignore this.
The other is the letter which asks creditors to 'accept a token payment or no payment on your debts' - you need to add a reason, for example business problems, and include an SOA, but this asks for a 'six month' review and should 'buy you' sufficient time, whilst you look at longer term solutions to your debt problems (don't tell them that you are looking at bankruptcy as a solution).

debt_doctor

Yes the moratorium ( no payments) letter that rog2 suggests is a good idea. I f creditors dont know your circumstances they are more likely to go to the county court. If they know you have no income then they wont waste £ 65 going to court. If you do get court forms reply within 14 days, making an offer of £1 per month, and send to the creditor by recorded delivery. Creditors lie and say they did nt get the forms and then get judgement for the full amount so dont give them that chance !