Can I keep one credit card

Kawa1

Im due another baby in december and ive just taken out a vanquis credit card. I have a limit of £500 and im due to recieve it next week.

This would be paid off in little bits by me and in larger chunks by my babies dad (we arent together, but card is just in my name, mutual agreement we have come to to help us get the baby bits needed)
Ive spoken recently with stepchange and based on my current situation they have recommended applying for bankruptcy. Would I be allowed to keep this one card? I wouldnt want to raise the limit on it at all, just get the last things i need for this baby like the car seat, pram, cot, etc (looking to get 2nd hand so i stay well within the 500). Or would the card be frozen / id have to get rid of it?

Thank you in advance

cymruchris

In bankruptcy all credit accounts are frozen, your assets sold and proceeds shared amongst the creditors in simple terms. On going bankrupt you'll be unlikely to get another credit card until some time after you've been discharged. So - no you won't be allowed to keep this credit card open. As they've advised bankruptcy - that indicates your debts are significant?

Kawa1

Ah okay i see, thats a pain.

I dont have any assets that they would take and sell on, i rent from a housing associtation and my only income is universal credit. I dont have a car or anything worth money(i.e. jewellry, etc) and have no savings. I have 17 debtors and it comes to just over 15k

cymruchris

So by going through bankruptcy you'll have to manage without credit for over a year (that's a good thing to get used to) and however you got the debt - think about how you can not end up in a similar situation in future. We all get into debt for different reasons, and you can never say never - but whatever got you into the current situation - you have to be firm not to let it happen again - and maybe being without a credit card for a year will help you really focus on costs as much as possible. Good luck if you decide to go ahead.

Oliver2809006

Therefore max out the card before you go bankrupt!

Willing2Learn

If the OP is that strapped for cash then they may need the card to pay for the bankruptcy costs...

MovingForwards

Is it a DRO you are going for due to £15k of debt or an actual bankruptcy?

Fees are cheaper with a DRO.

(Either way you can't have a credit card)

TheGardener

cymruchris wrote: »

In bankruptcy all credit accounts are frozen, your assets sold and proceeds shared amongst the creditors in simple terms. On going bankrupt you'll be unlikely to get another credit card until some time after you've been discharged. So - no you won't be allowed to keep this credit card open. As they've advised bankruptcy - that indicates your debts are significant?

cymruchris Your description is a bit Victorian? Not quite the case - only assets like houses with large chunks of equity, valuable antiques/jewellery, stocks and shares, vehicles worth more than £1000 etc. The OR is not interested in domestic goods and possessions. BR is not like the 'debt collectors'. Most BR's have long since sold these sorts of assets before they arrive at the OR's door.
I doubt the OP is in a position to have these sorts of assets based on her description of needing £500.

OP - in short, it is highly unlikely you will be allowed to keep that card. Credit will not be easily available to you for around 6 years so you need to plan on making sure you manage the income you do have so that you have sufficient to cover your expenditure. Gifts from your child father for the child need not be declared (unless he's buying valuable assets like those mentioned above) Once you are discharged (1 years from date of BR) you can apply for one of the poor credit history CCs but unless you are in a position to pay the whole amount back each month I would not recommend you have one. They should only be used to build/improve your credit history - not to cover costs.

cymruchris

TheGardener wrote: »

cymruchris Your description is a bit Victorian? Not quite the case - only assets like houses with large chunks of equity, valuable antiques/jewellery, stocks and shares, vehicles worth more than £1000 etc. The OR is not interested in domestic goods and possessions. BR is not like the 'debt collectors'. Most BR's have long since sold these sorts of assets before they arrive at the OR's door.
I doubt the OP is in a position to have these sorts of assets based on her description of needing £500.

I did state 'in simple terms' without going into detail - and not really Victorian - but emphasising as you have that the card account will be closed, and that there's no easy credit available until after discharge - and then it's not actually easy.

Kawa1

Oliver, surely id get in trouble for doing that, or could i be refused a bankruptcy, or are you being sarcastic lol.

Movingforward, it was a bankruptcy that step change recommended, they didnt mention a DRO. Is it unusual to declare bank rupt for 15k? I understand you can pay a monthly amount for the fees for BR is this correct? Im in England if that makes a difference

MovingForwards

Debt relief order is a lot cheaper to do than bankruptcy.

Your debts must be under £20k. Which yours are.

You can't pay bankruptcy or DRO fees by monthly installments, you have to save the money tonraise the fee by not paying debts.

I think bankruptcy is £690.

I think DRO is £90.

Someone will be along to offer advice