Time to admit defeat

Feral_Moon

Hi, I've previously posted here a year or so ago requesting help with my credit card debts etc as I was worried I might be facing bankruptcy. Since then I've been keeping afloat, meeting payments (albeit minimum amount in many cases) but have maintained no defaults on any account but with debts in excess of £30k (I haven't added them all up yet) I'm looking at paying them off for another 30+ years (I'm already in my fifties).

However, I don't currently work and claim disability benefits but I've now had the rug pulled from under me as I've gone from receiving the highest amount of DLA to being entitled to nothing on PIP, so my income has effectively halved. I don't even have enough to cover household bills and living expenses, let alone debt repayments, so I don't I've got any choice than to file for BR.

My initial question, which is something my son suggested, I've got around £3000 credit still available, in the form of an OD and CC balance...would it be frowned upon to withdraw this to keep as back-up emergency funds and to pay the BR fee? To me it appears deceitful and calculated and I fear the OR will think the same and either reclaim it or charge me with fraud.

Any help or advice most gratefully received.

Years_of_debt

Yeh you cannot withdraw 3k lol!
You can pay your BR fees and take out emergency money. But defo not all 3k as you don’t need it, you’re just taking it because it’s “there”
File for BR pay the £680 and take out what you normally spend in a month in cash - that’s all fine.
If you take all 3k they will 100% be asking questions as what reasonable request do you need 3k for?
Alternatively, use the 3k to cover your debts this month and continue on living taking money out over the month and buying things in bulk for your house. Next month you have spent the 3k inclusive of the BR fee - won’t be looked at.
But draining 3k out of your accounts last minute before BR will not go down well.

Years_of_debt

If you’re just on about paying the fee and taking like £600 out in cash for an emergency - then that’s fine & completely Normal. Loads of people pay there BR fee on credit, payday loans etc, as it’s getting wrote off anyway & if you’re physically struggling to even pay the £680 then what other choice have you got?
So don’t worry.
Just don’t draw out all 3k

Feral_Moon

Thank you, I didn't think it would look good doing that. So, effectively I could do my monthly shop, stock up a couple of months dog food etc?

I usually have deep massage therapy with a private physio twice a month for pain relief @£40 a time. Could I book advanced sessions to cover me whilst the BR goes through?

How long does it all take?

Should I keep paying minimum payments or cancel all next month's DDs?

Sorry for all the questions, I just need to get it straight in my head before starting the ball rolling as there'll be no going back then. I'll spend some time reading other people's journeys too.

Thank you so much for the advice.

broaps

Hi Feral Moon

We had used our CCs to live on in the last few months before applying for BR. We ended up drawing cash on one card to pay the bill on another until we had almost no credit left anywhere. We were lucky that my husband managed to get some work to raise the cash to pay for both our fees when we realised we had nowhere else to go. We had read that you should not add to your debts once you have decided to apply for bankruptcy and so we opened new bank accounts - Nationwide were incredibly helpful - and arranged for our pensions to be paid into those and for the important bills such as council tax, phone etc to be paid out of the new accounts. We stopped paying all CC bills and sent them all a "holding" letter which theoretically should give you a breathing space of 30 days, although some CCs still hassled us with multiple phone calls. When you apply for BR you have to list all your debts and complete a statement of affairs showing all your incomings and outgoings so they can decide if you can afford to make a regular payment towards the debts. You will then have an interview over the phone with an examiner from the Insolvency Service where they go through everything on the form and ask questions about what you have said. One of the things we were asked was when we had last used each of the credit cards so you may have to justify any spending after you have decided to apply for bankruptcy. We didn't have any problem as we had stopped using the cards about 6 weeks before applying. You are also asked to sign a form saying if you paid the bankruptcy fee from your own resources.

If you open a new basic account, stop paying your card bills for a couple of months and keep that cash for living, will you be able to put some aside for the fee (£680)? If you read these pages you will see that many people have to save for the fee this way even if it takes a few months. Good luck.

Feral_Moon

That's very helpful broaps, thank you so much xx

Feral_Moon

Can I just get some advice about a vehicle I own please?

The car is 10yrs old and would be worth approx £1500-£2000, if it was in working order. However, it's broken down and been sat unused for 6mths, as I can't afford to get it fixed at the moment. It's something to do with the engine management system and I've been quoted approx £1000 by a garage to repair it.

How would the OR view this? Would they force me to sell anyway, regardless that it can't be driven so is worth far less than book price? Or could I keep it with a view of getting it fixed at some point after the BRO!

sourcrates

Feral_Moon wrote: »

Can I just get some advice about a vehicle I own please?

The car is 10yrs old and would be worth approx £1500-£2000, if it was in working order. However, it's broken down and been sat unused for 6mths, as I can't afford to get it fixed at the moment. It's something to do with the engine management system and I've been quoted approx £1000 by a garage to repair it.

How would the OR view this? Would they force me to sell anyway, regardless that it can't be driven so is worth far less than book price? Or could I keep it with a view of getting it fixed at some point after the BRO!

If its not roadworthy, then get it SWORN, that makes it worth only scrap value.
You are normally allowed a vehicle worth sub £1000 mark.

Feral_Moon

sourcrates wrote: »

If its not roadworthy, then get it SWORN, that makes it worth only scrap value.
You are normally allowed a vehicle worth sub £1000 mark.

I've had a relative offer to buy it from me at a reduced price so he can get it fixed and running again. He'll then allow me to use it whenever I need to.

Would this cause any problems when I go bankrupt? How should I approach this if I decide to go ahead with it please?

Rainbowgirl84

sourcrates wrote: »

If its not roadworthy, then get it SWORN, that makes it worth only scrap value.
You are normally allowed a vehicle worth sub £1000 mark.

What is SWORN?

ToxtethO'Grady

'Statutory Off Road Notification' ( SORN ).


https://www.gov.uk/make-a-sorn