Is this approach to BR OK?

Bald_Runner

Morning all, (it's 5.42 am....)

It is looking like we will be going BR within the next month or so. My plan is initially to send a letter requesting all creditors to 'Hold Action' for 28 days and send then all a token payment. I will in addition to this Hold Action letter, cancel their respective direct debits. Meanwhile that gives me time to arrange for my pay to go into another account and collect the court fees together. After the 28 days, I will send a further letter to all creditors advising that we (Mr & Mrs) are petitioning for personal bankruptcy. Does that sound OK?

Thanks again

Bald Runner

Walter_J

Sounds fine to me, but I wouldn't wait the 28 days before petitioning for bankruptcy. Rather than wasting money on 'token payments' I'd use it for the fees. Send the token payments if you want to buy a little time but let the cheques bounce!

fiveyearplan

In my experience they ignore the letter for token payments. Out of my 15 or so creditors only 2 responded positively and the rest phoned and phoned and when I took the phone calls, all they wanted was a debit card payment. When I told them I had written with my SOA, then they finally 'found' the letter. So really they knew before they phoned that I couldn't pay but still asked for payment. I wouldn't bother to tell them you are going BR because until you actually do they won't take it seriously.

maxmycardagain

i sent out 8 offers of reduced payments (bewteen £15 and £65 per month) and two refused point blank, in effect leaving me no option to go BR.

debt_doctor

Essentially, if your are to be BR in a month it doesnt matter what you do, your creditors have no time to take any action against you. Your most important task is to have your income paid in to a new basic bank account. Barclays, co op apparently nationwide all offer bank accounts to bankrupts. Make sure you draw your money from your current account this month as soon as it goes in.

After your BR you might want to provide your BR number to your creditors as proof, but the OR does that anyway.

Best

DD

Broken_hearted

fiveyearplan wrote: »

In my experience they ignore the letter for token payments. Out of my 15 or so creditors only 2 responded positively and the rest phoned and phoned and when I took the phone calls, all they wanted was a debit card payment. When I told them I had written with my SOA, then they finally 'found' the letter. So really they knew before they phoned that I couldn't pay but still asked for payment. I wouldn't bother to tell them you are going BR because until you actually do they won't take it seriously.

I found the opposite when the phoned they got told take the payments or make DH br either way get off my phone line.They are all sitting happily with their payment plans, well ok not happily but at least they are quiet.

fiveyearplan

I suppose it works for some, I didn't find that myself. I've also noticed people saying some creditors are more difficult to deal with than others. I've found it really depends who you get on the phone. For instance, we (OH and I) found Barclaycard easy to negotiate with but MBNA nearly impossible. I've heard some people say Barclaycard were worse etc. I don't think there's any science to it.

fiveyearplan

debt_doctor wrote: »

Barclays, co op apparently nationwide all offer bank accounts to bankrupts.
DD

I don't think Nationwide offer that account to BRs anymore.

debt_doctor

fiveyearplan wrote: »

I don't think Nationwide offer that account to BRs anymore.

Yes, I keep hearing that, but when I rang their head office three months ago they said their policy had not changed, although they dont guarentee an account to anyone.

I have had accounts opened by BR clients at Nationwide in the last 3 months, the latest basic bank accounts booklet still has them listed as a "BR friendly " bank.

That said, I still hear on here that folks have been refused so ........

DD

fermi

I don't think Nationwide know what their policy is . If they do they haven't told their staff properly. I've read of more refusals than acceptances, so it is no-longer almost "guaranteed" as it once was.

The FSA basic bank account booklet (website) is now 6 months out of date, where it says it should be updated quarterly.

This one: http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

debt_doctor

Yes, its confusing isnt it. We received the latest revision of the basic bank accounts booklet about 6 weeks ago. Nationwide are still in there as Br friendly, but it seems to be a local branch lottery at the mo.

DD