Bankruptcy questions

Sam2022

I feel dreadful today following my 2nd round of treatment yesterday.  They said it would really start to hit after it and they weren't kidding.

However through last night and today I have emailed 4 different creditors, bringing them up to date with my health.  I also reminded them I am classed as Vulnerable as well as disabled.

Having advised them that this treatment is ongoing for a minimum of 12 months, I have asked each one to liase with the original lender.  I have asked for a 12 month hold to be placed on the debts or consideration given to write off the debts on health and compassionate grounds.  I am not going to be able to work again, that much is clear.  My lifespan holds no guarantees thanks to the disease, so I thought I may as well ask.

Sam2022

So I still feel dreadful following my treatment on Tuesday but it is what it is.  I will just keep muddling through.  Hopefully better days ahead.
The intense fatigue is the worst thing, I cant seem to find energy for anything, even watching TV tires me out!!

Sam2022

However I need to try and use this time to get a plan in place where I can decide the best way forward to start again.  So in between naps and just sitting and watching TV I have been trying to do more research into my options.

My Car

It seems its a catch 22 where the car is concerned.  My mind was made up to get rid, if for no other reason than I despise driving now. It is owned outright and valued around £11300.00.
Obviously if I sell it my first issue is getting the capital to under £6k for DWP, or lose money every month.  So £5.3k to lose in a month!!  We need items replacing in the home;
Settee and one chair, preferably electric recliner, as I struggle with manual ones. £1500

New bed and mattress, now here's the thing.  I need a decent mattress due to my joints.  I've been thinking along the lines of something like the Simba range but at £1200, is that allowable by DWP without them screaming CAPITAL DEPRIVATION at me?  Add a new Ottoman storage bed and that's another £500, so £1700 in total.  That's £3200 spent altogether with new sofa and chair.

Now I've been paying £245 a month to my energy company since January, which has been very hard some months.  I owed them nearly £700 in arrears, that amount is almost repaid now.  I would like to put my account into credit by around £500 so I needn't worry over the coming winter about going back into debt.  Can I do that? Will DWP allow it?  The upshot would be I could drop my monthly payments back down to £145 a month, which would help there with day to day living.  Total spend £3700.

We both need new clothes, especially me.  Nothing fits anymore due to my treatment and steroid weight that goes on.  So I was thinking around the £500 mark.  Tot spend £4200.

A new more efficient tumble dryer, living in a flat we don't have much option!  £350  Tot spend £4550

I'm pretty sure I could get rid of the rest of the cash without too much difficulty, there are other bits and pieces we could do with.  I'm just not sure what is and what isn't counted as deprivation of capital by the DWP.

If I could do this it would leave us with £6k to then start and filter out of the bank and into cash in the biscuit tin.

The catch 22 situation with the car is obviously around declaring bankruptcy.  Clearly I sell my car and need to make sure all the money has gone.  If I had the £6k in the bank I assume that even though I am on benefits the OR would take that £6k from me for creditors???

Am I correct in this thinking?  Also if anyone knows about deprivation of capital rules in DWP can I do what I have listed snd be OK?

Thanks
Simon

Sam2022

Just a bump, hoping for some answers

sourcrates

@Sam2022

The answers to all of the above were given to you back in May, when you first posted, nothing has changed to alter that advice.

Any assets/cash would be taken to pay your creditors, yes.

Check how bankruptcy affects your money and bills - Citizens Advice

Sam2022

I have managed to contact a number of debt collection agencies with varied results.  One upon getting confirmation of my health situation wrote off the debt of £600, without further ado.  Another 2 have put holds on the accounts, 1 for six months, another for an initial 3 months.  I asked for at least 3 months as it will be at that point when I know whether my treatment is working or not.  I am waiting for 2 more to come back to me.

I have had only 1 difficult company.  They wanted proof of my illness I provided hospital document that supplied the proof and about the treatment I am having etc.  Once received they moved the goal posts.  They asked for, income and expenditure sheets, 3 months bank statements, details of every creditor I have, together with the amount owed to each.  Payment arrangements I have made (which sre none) and details of any write off requests made to creditors and proof of their response.

Given my state of health I cannot cope with doing all that right now.  I have no energy at all thanks to the severe fatigue both the disease and the treatment causes.  Not to mention the horrific side effects.  All that to get a hold put on the account!!

So I have replied today saying I believe this totally unreasonable.  They have the proof of what I am suffering from, together with the treatment and a lot of other stuff.  I have said ifvthry can't give me the time to fight the disease then I suggest they commence what ever action they want.  I said I have taken advice and I am aware of my rights as a vulnerable person, also how they must behave towards me.  Also that I am fully aware that their recovery options are limited.

I might be very ill but I am not going to be ridden over and cave in to a company trying to take advantage of my situation and push me around.

Bottom line is I am just trying to buy some time without all the hassle.  My car is going to be gone by December.  Money spent on Household items needed to bring my bank under the £6k allowed by UC.  Then I will filter out, fill the biscuit tin and apply for bankruptcy by next Spring/Summer.

I'm sorry if I keep asking stuff I've already asked, my memory is shot to pieces on all the drugs I'm on and I can't always remember!

Sam2022

Could someone help me with some things I am trying to get straight in my head, I don't think I have previously asked?

Our benefits are set up as follows;
UC - Joint Claim
PIP - My Claim
CA - Partners Claim

As far as debt is concerned and any repayment, I believe my PIP should not be taken into account as income.  If it is then an equal amount should be allowed as valid expenses.  Is this correct?

Also how would my partners CA be treated?  This is paid for the care provided for me, so should it be disregarded as income because my partner is not responsible for my debts?

I know that ultimately when bankruptcy happens these questions will be irrelevant but I am thinking about the time period between my car going and getting the money filtered out of the bank, so it doesn't look suspicious.  My thought process is, I might need to play for time with my creditors.  So going through the process of providing them with details around my income/expenditure might buy me a bit more time yo get the money out of the bank.

fatbelly

Of those 3 benefits, your only income is half of the UC

Sam2022

I've been given a conundrum around the sale of my car and could use some advice on how this would work regarding bankruptcy down the road.

If I sell the car and the money goes into my bank then DWP will be aware and I will need to lose excess money over 6k for UC purposes.  I can do that by replacing/renewing things we need in the home.  Once that's done I need to draw the remaining 6k over a period of time into the biscuit tin.  Again I cab do that.

My daughter who still lives at home and has a decent job is looking for a new car.  In theory I would be happy to sell my car to her and she would pay me monthly in cash at an agreed rate.  O1bviously I would not charge interest, so that makes it better for her as well.  Doing this gets rid of the car, no large sums of money going into my bank and a monthly cash payment until the car is paid for.

There would be no need for getting rid of capital for UC as they know nothing about it.  I'm not sure how a future bankruptcy would be affected?
If somebody could help me out as to whether this is practical and if there are any potential issues I would be grateful.
Thanks.

fatbelly

I can see that working from a benefit perspective.

The Insolvency Service will take a look at any vehicle that you have recently owned. What they will look at is whether you sold at a market price and what you did with the money. I think you can cover both of these.

See what other people think