Bankruptcy questions

stu12345_2

if a bank does do the right to set off, they must leave you enough for priority bills and living costs, which means , food , gas, elec, rent, council tax, insurance,, so means that can't take much anyway if you are receiving only enough for living costs and priority bills.

Sam2022

I already started the account switch.
Why shouldn't I have used it?

RAS

If you use "switch", it automatically moves all the DDs belonging to your creditors. So you must stop that and move required DDs manually.

Sam2022

So I have 2 accounts with my bank one has my benefits paid in and DD for household bills, energy, TV license, b/Band etc.  No DD for any credit cards or things like that.  This is the account I have started the switch on.
My other account I have is for everything else.  I transfer over manually each month what money is to spend and live on.  I paid all my credit cards etc from that account manually each month.  That way I know that what is left is mine.  It might seem a faff on but it's always how I've done it.
So the current account transfer on the other account should be OK?

sourcrates

Yes that`s fine, as long as no creditor payments are transferred over, you might as well benefit from the switching service.

Markanthony5

Sam2022 said:

Hello Everyone
I am going to declare myself bankrupt following advice from Stepchange.  I am trying yo get all the info they require to get breathing space before my actual bankruptcy.
I am on UC and PIP living in housing association property.  I understand that this should be a straightforward bankruptcy and I just need the fee to pay.  My only asset is my car which I own outright valued at around £10000.
I have been going to sell my car anyway as I hate driving nowadays and only ever go to hosp/drs appointments and the supermarket.
If I did this prior to bankruptcy and used some of the money to replace some household items I desperately need and also pay the bankruptcy fee will I be penalised by anyone?
Thanks in advance.

It's great that you're seeking advice and planning. Generally, selling your car before declaring bankruptcy and using the funds for necessary household items and the bankruptcy fee should be acceptable. However, it's crucial to keep records of all transactions and expenditures to show that the money was used for essential purposes. Consulting with Stepchange or a legal advisor about this specific action can provide further clarity and ensure you comply with all requirements.

Best of luck with everything.

Sam2022

So I stopped making payments to the cards I still had this month.  For the first time in I don't know how long we have food in the cupboards and money for later in the month and that feels good.
I have today received an email from TM Legal saying that they notice the CCJ they obtained on 7th May has not been paid.  If I cannot afford payment in full, they may accept installments.  This may prevent enforcement of the CCJ and avoid further costs being added to my account.

This CCJ relates to a catalogue debt and ultimately will be part of my bankruptcy.  What happens if I ignore the email?

fatbelly

Probably nothing. They can't attach to earnings if you don't have any and can't secure against a house if you don't own one.

As it's a catalogue they would have to use the court bailiff which they won't want to do for reasons just explained in another thread

Sam2022

So part of the reason I wanted to try and get this bankruptcy over with ASAP, is the amount of stress.  The endless letters, calls, emails etc.  I suffer from a number of serious conditions including autoimmune disease.  My condition has flared up badly in the last couple of weeks and my Consultant has put me back on high dose steroids for 3 months.  I am also having a camera put inside me on Monday to take fresh biopsy from my bowel and check how active my disease is at present.  The steroids alone cause so many side effects that life is hard at the moment.  Add to that a bad skin condition that won't respond to treatment, a grumbling liver and dodgy ticker and I'm not exactly doing a jolly jig right now!  Although I do try to retain my sense of humour...

Anyway I have committed to the long game, of getting rid of my car this month and to replace knackered household items and slowly squirrel away cash to the biscuit tin.
I have stopped all payments to the remaining cards I have and got my safe bank account up and running.
So I now have 15 accounts that are at varying stages of debt collection, 3 of which have CCJ's on that as yet nothing else has happened.
On top of that there are the 8 accounts I've now stopped paying so action will be coming with those.
I know a number of you on here have said forget breathing space as it's a waste of everybody's time and I get that.  However I have been thinking that given my health at the moment it might be a way to ease the pressure that I am going to be under, just from creditors and debt collectors and everything that comes with that.  So is there any detriment to go for breathing space?

I've also been doing some reading about advising creditors and debt collectors if you are disabled and classed as a vulnerable person.  Clearly with my health problems I fall into that category.  I am on a ongoing PIP award and declared unfit for work by UC.  Is there any merit to following that path?  Some of the advice I've read say that it can prevent debt collector visits and that they have to return the case back to the original lender.
I realise ultimately it won't affect the overall decision to go bankrupt but if it makes the path easier to navigate for me, with less stress then is it worth doing?

RAS

Sam, start by writing to all the eight creditors telling them to remove your phone number and email addresses from your record. 

You need to deal with letters, as the law requires creditors to write to you at time, particularly pay attention to anything from Northampton, but they have no right to phone, text, message or email you.

Ideally once a week allow yourself to check the mail, but have you checked with someone like Christians Against Poverty in case they could support you with that? The only thing you need to respond to are letters before action and court papers.

Longer term. I think you should be going for write offs on ill health grounds. Again CAP might help with that.

It will take a few weeks for creditors to update their records but anyone still phoning or texting in a month needs a formal complaint.