Will I get away with this??

makingendsmeet_2

As some of you already know. I have despratly been trying to raise the £500 bankruptcy fees. I did consider avoiding the council tax for awhile but thought better of it. I know some of you have used credit cards etc to withdraw the cash for the fees. Now I have been on a DMP for over a year now, so have no active credit card accounts. However i applied for a capital one card the other day and guess what??? Yep the accepted me. Now when I get the card if I use it just to withdraw the cash to pay for my bankruptcy. How with the OR look at this. Will he or she now question it as the money is going to them and nothing else???/ Has anyone else done this????

Richard_S

Hi makingendsmeet,

We did withdraw cash and spend money on cards just before we were declared bankrupt and it never caused a problem; it wasn't specifically for the bankruptcy fees though.

Couldn't you do some grocery shopping on the card and save the cash that you'd normally have used towards your bankruptcy fees? That would mean you'd only used the card for essential expenditure.

Regards

Richard

makingendsmeet_2

Richard_S wrote: »

Hi makingendsmeet,

We did withdraw cash and spend money on cards just before we were declared bankrupt and it never caused a problem; it wasn't specifically for the bankruptcy fees though.

Couldn't you do some grocery shopping on the card and save the cash that you'd normally have used towards your bankruptcy fees? That would mean you'd only used the card for essential expenditure.

Regards

Richard

Thanks richard... Its was just the fact of it being a brand new credit account that was concerning me.

backontheup

makingendsmeet wrote: »

Thanks richard... Its was just the fact of it being a brand new credit account that was concerning me.

Yes, this is the concerning thing, and the way the OR will see it - that you are close to BR but knowingly apply for a new credit card.

Tricky one this. if your back is genuinely against the wall, do it. However, the OR will ask questions and a BRU\BRO would be a real possibility

makingendsmeet_2

Well I have sent the extra info Capital One needed! Just proof or ID. So fingers crossed I will get the card. I have been looking through the reasons for BRO/BRU on the insolvency website. They do all seem to have been issused rather serious reasons. They are also for reasonable sums of money. I can't see the OR giving me one and writing "MR X took out a further credit card in January 2008 with no reasonable way of paying back the money, he used that card to withdraw £500 cash and then paid it to the insolvency service!" Won't make them look good will it? No doubt its the same as everyone else, so long as they get there money they don't care where it comes from. It must be worth the risk. And from the experience my ex wife and a close friend have with the insolvency serice in 2007, they do seem firm but fair.

mclachlan4321

I withdrew the £ 500 from my bank account the day before my BR. The OR muttered BRU but nothing (as yet) has come of it.

I think however that obtaining credit JUST before BR is a bit of a no no. You will have obtained credit whilst knowingly being insolvent, and so close to BR will be looked very dimly upon.

As one other poster has said, if you really have no other choice, do it, but maybe stop paying your creditors right now, and use that money to fund the BR?

NekoZombie

Have to agree - I think obtaining *new* credit is the issue.

gratton20

This sounds very "iffy" to me too. To take on new credit right now when you know you cannot, or will not, be paying it back could be viewed as tantamount to theft or fraudulent- I am sorry if that sounds blunt but it is the honest truth as I see it.

It is a NEW credit agreement and regardless of what you are going to use it for you are "borrowing money when you know or should know you are insolvent" and that is a sure reason for a BRO/BRU at best, the moral issues are another matter and we all know how hard it can be to get together the fees for BR BUT the OR and the creditor will not be so tolerant I feel.

Its one thing to draw cash from an existing card or stop paying debts to save the fees, - maybe called "reckless" at worst but taking on NEW credit - nooooo dont do it.

Just my opinion and I dont mean to sound harsh or judgemental, I understand your reasons but thats the way it is

fermi

I must admit if I was the OR and saw that someone had taken out the "fee/deposit" on a card that the BR had possessed for quite a while, I would be inclined to turn a blind eye if it looked like they had no other way.

However, under the same circumstances if it was a brand new card which appeared to have been taken out for this purpose, and that close to the BR, I would be far from impressed. I would assume that the creditor would also be pushing for some sort of action to be taken as well.

CCCS_Matthew

I second the advice given here. I would strongly advise against taking the card out. I would be inclined to speak to Capital One ASAP and try and cancel the card.

I can sympathise that finding the bankruptcy fee can be hard to come by, but this really isn't the best way of doing it and could cause a restriction on your bankruptcy.

At the end of the day it's down to the discretion of the OR on the day, but taking this big risk would certainly be against our advice. Is there a possibility you could get help getting the money together from friends or family, or maybe pick up a 2nd job via an agency for a month or so to get it together?

Regards,
CCCS

WoodruffsDad

I got my BR fee by stopping payments to all creditors except for utilities and council tax.