Holiday payments and bankruptcy

Sharp_claws

Hi all, I am currently looking at applying for bankruptcy. I was discussing my options with Stepchange this morning and I mentioned to them during conversation that I have paid for a holiday via pre arranged card payments which my dad has now taken over to pay the balance. Stepchange advised the holiday could be cancelled via the bankruptcy if there is an outstanding balance. They also suggested that because I have paid it off monthly via an arrangement it could be scrutinised as preferential payment to a creditor, but they did say they are unsure about that as it is not a credit agreement. Could anybody give me any advise or previous experience of this situation. I don't want to apply for the bankruptcy and it get rejected.

la531983

If your dad is now making the payments, and you have no more financial outlay, I wouldnt have even mentioned it.  You cant just "cancel a holiday and get all the money back" anyway, there could be deposits lost etc, so they are frankly talking rubbish there.  They are also talking rubbish about preferential payments to a creditor if you dad is paying instead and expecting no money out of you.

My only question would be how are you planning to fund yourself whilst on this holiday if an income payment arrangement (IPA) takes all of your spare cash off you?

Sharp_claws

My only question would be how are you planning to fund yourself whilst on this holiday if an income payment arrangement (IPA) takes all of your spare cash off you?

My dad is giving me euros to spend for my birthday. My ex partner and father of our children is giving them money to spend.

la531983

OK, well when making the bankrupcy petition dont mention it, its not an ongoing commitment.

fatbelly

Agreed. Stepchange advice not very realistic here

sourcrates

Is there an urgent need to declare bankruptcy?

Bailiffs notice of attendance, CCJ enforcement action, something else urgent?

If not, when`s the holiday?

Just go, then don`t mention it again, and go bankrupt on your return.

la531983

I wouldnt even do that, as already stated its not an ongoing commitment and doesnt need mentioning whatsoever.

Sharp_claws

Is there an urgent need to declare bankruptcy?

I have £26,000 of debt which is from one loan and various credit cards. I've been on a DMP for 3 years and with the amount I can afford to pay now I'm a single parent of 3, it will take 36 years to pay off.
In the first instance from my review stepchange recommended a DRO. Afterwards I realised I'd understated my child care by a fair amount as I'd not included holiday club during the school holidays when I'm at work. This then took me into a deficit. I called them back and because of the deficit they said to bring down other areas of spending like food, church contribution, clothing, hairdressing and smoking. The advisor said I needed to make up that deficit back to the amount I was paying under the DMP. The advice was to carry on with a DMP.
Afterwards I felt like this wasn't a true reflection of my costs. Yes I can still cut out the church contribution but it still leaves me with £45 left with a lower food budget. Other areas like my car servicing I have put on the lower side than what it probably should be.
So I called them back and discussed this in mind of going down DRO route. The advice was bankruptcy because I may have fluctuations in my income and expenditure which could take me out of a DRO which would be detrimental.

My holiday is in October, taking kids out of school to get the price down so got a cheap deal for self catering in Spain for 1 week. It's less than £1k for all 4 of us.

sourcrates

So no real urgency to declare bankruptcy then, just muddle through, enjoy your holiday, look at your situation when you return.