Backdated benefits just before bankruptcy

Avocadotoast

Hi, I am sure of what to do here so any advice would be good.

I'm expecting to declare bankruptcy in May. Since last July I have been making £1 token payments to my creditors. Unfortunately things got worse rather than better and bankruptcy is now my only way forward.

The concern I have is that I just received a few months of backdated benefit payments. As I have been homeless and recently was given my permanent accommodation ,which is a shell, I am being advised to use the money for home essentials and essential new clothing - jeans and shoes are wearing very thin.

I'm worried about spending the money and my two questions are:

a) Should I essentially backdate some money to each of my creditors?

b) Will it look bad spending this money before bankruptcy even if it for essential items?

Benefit is ESA.

Thank you,
Avo

theronstar

a) Creditors will always look at your means to pay a debt.

Do you have the means to backdate your creditor?

b) Essential items are essential. It would look bad if you splashed out the money on luxuries.

Avocadotoast

Thanks Theron Star. Perhaps if I outline what I would hope to spend the money on then maybe someone could advise whether or not this is acceptable?

- much needed new mdf for bathroom floor (it's rotten due to old leaks)
- new vinyl floor covering for bathroom
- clothing i.e. a couple of pairs of jeans, two pairs of inexpensive casual shoes, a few t-shirts, desperately needed underwear, jammies, a sweater
-window blinds for living room and kitchen (previous tenant left bedroom curtains - phew)
-a few cans of paint as the while walls are absolutely filthy
-a couple of chairs for something to sit on in the lounge
-a vacuum (not an expensive one)

If the above was ok then I could deduct the cost of all of that from my benefit backdate and divide the rest up for all of my creditors?

Thanks for help.

Avo

TheGardener

If your intention is to go BR and this money is benefits then I can't imagine any OR pulling a face about you spending it on basic essentials. Buy what you need - don't worry about creditors at this point just keep paying them then agreed amount.

debt_doctor

TheGardener wrote: »

If your intention is to go BR and this money is benefits then I can't imagine any OR pulling a face about you spending it on basic essentials. Buy what you need - don't worry about creditors at this point just keep paying them then agreed amount.

I agree. DD

sourcrates

Essentially you have not yet gone bankrupt so no one has any say over your spending, if its an essential spend, then its essential, i doubt much will be said about it come the bankruptcy, to be honest.

Avocadotoast

Thank you all very much. This is good news! Very chuffed I can start making my little flat feel more like home. Happy Sunday everyone. :j