stopping Direct Debits ..

jono_1uk

mm problem is that i am £ 400 o/d at the moment and have missed 1 car payment ..
so next thursday when i get paid the 400 will get taken leaving £1071
if i pay the car arreas ( now 195 coz the put a charge on) , and 168 for next months thats 363 ..
even if i stop the other DD.s i still need "living money AND BR fees....
so i think that i will stop all except the car and bring car upto date then take as much as i can takeout this month as cash which is about £500
then wait till i get paid next montg and take the lot ..
problem is, my wages go in to hsbc and i have a personal loan with them as well which is £303 pm
i can stop it online BUT i dont know if they can resurect again and take 2 payments out next month automaticly ??

empty_wallet_2

Walter_J wrote: »

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.

If only, i've been BR for just over 4 weeks, i only stoped paying my creditors 2 weeks before and i'm still getting phone calls and letters on a daily basis from RBS, Lloyds and Barclaycard, even though my OR has confirmed they have all been informed and in have told Barclaycard on numerous occasions my BR details.

empty_wallet_2

jono_1uk wrote: »

problem is, my wages go in to hsbc and i have a personal loan with them as well which is £303 pm
i can stop it online BUT i dont know if they can resurect again and take 2 payments out next month automaticly ??

I'm not sure maybe they can, i know when i looked at IVA's we were told to get a new bank account that was not connected to any of our creditors (not as easy as you may think as so many are connected in one way or another) as if we had wages paid into an account of one of our creditors they could take our money to pay off part of our debts. I know on the letters i get from Lloyds Tsb for the credit card i had, they state that they will take any money out of any other accounts i have with them to offset the money i have not paid, thats fine cause i dont have any other accounts with the idiots.:rolleyes:

dalip

Don't know how to do the quote thing,but i went bc in nov 07 and about 3 wks ago still had creditors wanting proof of my bc so,you WILL hear from creditors after bc.

empty_wallet_2

I know i cancelled all my direct debits apart from my Natwest Loan on my Natwest account so i didnt get asked any questions, i know when i cancelled them the woman asked if i was changing banks and asked if natwest had done anything to make me unhappy with them. I know Natwest took 1 more loan payment after i had stopped paying the rest but as far as i can see that wasn't a preferential payment as they were just taking their own money with me being overdrawn to pay the loan payment.

jono_1uk

right only option i think is to to pay the £363 to keep car upto date , cancel all dd except hsbc loan which then leaves me £334 left for the month as i am £400 o/d
THEN set my BR up for next month the day before the hsbc loan comes out , and draw out what ever is in there which shuld then cover the £530 needed for BR fees .

fiveyearplan

Jono - you need to open a basic account with either Coop or Barclays - they are the only 2 that allow BR. I chose Coop because I have a lot of debt with Barclays. Have your next salary paid into new account then you don't have to worry about your loan payment being taken out or your o/d fees. If you're worried about telling your employer just say you have closed that account and have opened another one. That will free up £400 + your loan payment to pay your BR fees and have some living expenses to hand. If you phone Coop you should get your account details fairly quickly - I got mine within 2 days.

jono_1uk

fiveyearplan wrote: »

Jono - you need to open a basic account with either Coop or Barclays - they are the only 2 that allow BR. I chose Coop because I have a lot of debt with Barclays. Have your next salary paid into new account then you don't have to worry about your loan payment being taken out or your o/d fees. If you're worried about telling your employer just say you have closed that account and have opened another one. That will free up £400 + your loan payment to pay your BR fees and have some living expenses to hand. If you phone Coop you should get your account details fairly quickly - I got mine within 2 days.

ideal BUT i have read loads of advice saying dont open account before BR or it will be frozen ????
besides it is far to late to arrange this thurs wages to be paid in to new account

fiveyearplan

Explain this to the OR and they can have it 'unfrozen' within a day or two.

Praxis99

I only canceled my creditor DD's a short while before going BR (in Sept 07). In retrospect I wish I had done this earlier since I was left with very little to fall back on financially after going BR and lived a very hand to mouth existence for a number of months as a result. I was able to pay my ongoing bills (gas, elec etc) which all still go out via DD but there was nothing in reserve for any unforeseen emergencies.

My advice is to put some money by now for both your BR fees, living costs and some money for a contingency fund. You will get creditor hassle by stopping DD's but by the time they seek to escalate it beyond the usual letters and phone calls you will like as not be BR anyway.