stopping Direct Debits ..

jono_1uk

as it is looking more likely that i shall be going bankrupt (subject to a more detailed chat with CAB ) I was considering stopping my next payments and D/D's as i need the money do pay the B.R fees and for petrol \ living money.
is this a good idea ?
also as my visits to CAB have been "drop in " visits is there somthing they can give me to verify i have been to thrm for advice ?
i understand they quite keen at court that this has happened ?

thanks ..

lookingforhelp_2

Hi Jono,
We stopped all cc/loan payments (you need to keep up with household bills water gas ect....) When the court asked us if we had ,had proffessional advice we said yes,they didn't want proof.
Hope things work out for you
Sarah

dalip

Most people on here reccomend you stop all payments to creditors as soon as you know you are going bc. You will get letters and phone calls but that is par to the course. The courts and the OR do not normally ask for proof that you have taken legal advice but if they did cab should have records of your visits,even if they are "drop in". If as you say you are going for a detailed chat,then again this should be on their records.Good luck in whatever you decide.Dalip

empty_wallet_2

I think it is normal advice to say stop paying your creditors when you know you definitely going down the BR route, obviously if you stop paying them and you decide not to go BR you could end up in the sticky smelly stuff with your creditors. If you do stop, then you should not pay any of them, otherwise you fall into the preferential payment problems which the OR does not like.

I think most members on here going BR stop paying their creditors so they can save for the fee's and living expenses.

When i went to court i was not asked if i had sought proffesional advice but i know some people have been asked. You could go on the CCCS website and complete the debt remedy report which gets you to list all your income, expenditure and debts,it then gives you a downloadable report and advises what path you should take and gives you a reference number so you can phone an advisor to discuss your situation, this is all i did and had a copy of the report available with my paperwork had i been asked.

jono_1uk

cheers guys ...
as u may of seen on another post by me , i really need to keep my car for traveling to work and also helping my mother so i was considering keeping paying thst to show the OR how importent it is to me to keep but i take it that isn't advisable ?
also ... does the OR verify your outgoings ?
i pay my mother board but i would rather her not know about this snd wouldnt want her contacted.

dalip

Dont know about the car but my OR never asked for any proof of anything except he requested my rent agreement but not sure why.

philnicandamy

Most of the time the OR takes what you say as trust, they can usually tell if your trying it on with excessive outgoings etc they do afterall have copied of all your statements credit cards bank etc, I didnt have any of my outgoings questioned its pretty rare an OR will do..although sometimes possible...as far as the car goes you need to present a case to the OR as to why you need to keep the car explain everything you can & you might be lucky...
Check your cars value on either wisebuyers or parkers websites and print off a copy of the valuations to include with your paperwork to the OR, as unless you can show a valuation the OR will value it and it could be worth more than you realise or be incorrectly valued as happened to 'Teabreak's car, where his OR valued it over double what its worth.

empty_wallet_2

I think its going to be difficult for your Mother not to know or wonder what is happening as when you stop paying your creditors, whether before or after BR then you will get plenty of chasing letters and phone calls (if they have your number), (i'm still getting them 4 weeks after my court day) so she may ask what all the letters are and the phone calls. Any correspondence from the OR seems to come with my OR's details plastered over the front with his return address on (insolvency service, blah blah blah), so i think our postie either thinks i have a new job with the insolvency service or knows i'm BR.

Also she may need to sign something to show you are actually paying the rent you say you are and other household expenditure that you list, unless the bills are in your name to provide. I dont think anyone has had the OR verify their outgoings unless they seem particularly high, mine just said my outgoings seemed quite reasonable and fair so he was happy with that. The OR will of course have copies of your bank statements so will have a pretty good guide as to whether your expenditure is as you say.

As for the car i cant remember what you said about it or the value in the other posting but i would say you will have to get your mother involved on that case if one of your only real cases for keeping it is to take her out and about shopping and doctors and hospital appointments, as the OR would need some proof of it especially if the finance payments are a big chunk of your surplus income after household expenditure.

empty_wallet_2

philnicandamy wrote: »

Check your cars value on either wisebuyers or parkers websites and print off a copy of the valuations to include with your paperwork to the OR, as unless you can show a valuation the OR will value it and it could be worth more than you realise or be incorrectly valued as happened to 'Teabreak's car, where his OR valued it over double what its worth.

I'm sure i recognise that from somewhere

philnicandamy

funny that :rolleyes:

just expanding on your words of wisdom

Walter_J

I would stop all payments to creditors immediately but keep the car HP payment going.

I would then plan on filing for bankruptcy as soon as possible. By the time your creditors react to your direct debits having been cancelled you will already be bankrupt and will never hear from them again.

As I pointed out in my reply to other thread, the HP company is not a creditor - you are renting the car off them until the final payment. Then you own it.

I can't see any reason why the OR should not allow you to keep the HP agreement going. I was in the same position and kept the car, with the monthly payments of £253.00 being allowed as legitimate expenditure. Consequently, I was not subject to an IPA.