It Has Begun (posted for AllNancy)

blind-as-a-bat_2

After a long struggle and a couple of cries for help on here, I finally decided to go bankrupt. My savings finally ran out and now having an overdraft of £500 finally did it and I realised at last that I was pushing water uphill.

I contacted the CCCs and spoke to a very nice lady who took down all the details and said that it would take me thirty years to repay and that the wisest thing to do was to go bankrupt.

A couple of months ago I would have been in a blind panic but I've swallowed my pride and decided it is the only path.


Her advice was to open a new bank account so that my bank couldn't touch any money going in but I've looked at a couple of websites where they offer to transfer everything over....the last thing I want!!!!

Any recommendations please? I want to be able to list what I want transferred and for them to have no contact....or limited, with my bank.

This is a whole new experience and I'm not quite sure what I feel except maybe some anger that I am in this position....mostly with myself.

Any help would be gratefully received on banks and also future questions I'm sure I'll be asking.

Many thanks

AllNancy

Got2change

Hi -
I would DIY the new bank account if possible; cancel DDs on your old account and set up new ones on the new account for the things you intend to continue to pay post BR.
Timing is key for the opening of your new account if you are going BR as the Offical Receiver will want to know details of all accounts. But if your new day-to-day account is for salary/benefits to go in and regular bills etc to go out, then they will probably declare no interest. Best (and only?) option for your new Bank is Co-operative as they are BR friendly but you must advise them at the time of opening the account.
x

AllNancy

Great thanks for that info. I've already taken a look at the website.


I've another question. Part of the debts is goods bought from a catalogue. I would really like to keep those payments up as I've been with them for years.


Does going bankrupt mean I have to declare all debts or can I leave some out and continue paying.


Thanks

Nancy

wherediditallgo

I don't think you can do that with the catalogue or any other creditors, as you'd be treating them preferentially - paying them off while not paying others. When are you thinking of going BR & do you owe them a lot of money? If you're not going BR for a few months & only owe them a little bit, then you may be able to pay them off without any questions being asked, but by rights you shouldn't really do that.

I had to include my catalogue debt in my SOA though I really didn't want to - I only owed them about £80, but I just didn't have it on top of my fees unless I delayed going BR, which I didn't want to do as I wanted to get in just before the new tax year started. After I went BR, I contacted the company, & they said I could still shop with them as I'd been a good customer, but I'd have to pay a certain amount (it was either 25% or 50%) up front when placing an order if I wanted to keep the account, which I agreed to. When I was discharged, I told them & they asked for a copy of my discharge notice. I sent that to them, & now they've removed the upfront payment clause, but they won't let me have a balance of my account of over £250, which is fine by me. That could well be the case for you if you speak to the company direct after you've gone BR.

fiveyearplan

I agaree with GottoChange, set up new direct debits with your new account yourself. All you have to do is ring the companies and change your bank details. I have a Coop account and it was really easy to open and it was up and running within days.

AllNancy

Thanks for your replies. It's a minefield isn't it?. Hopefully trying to minimise the damage but it doesn't work that way.

Oh well...I will take your advice. Re the bank account...I'm going to do that today .


Thanks again



Nancy

AllNancy

Now I've another question having been doing some reading on the boards.

When I open a Coop account....I will have my pensions paid into it and any money that I earn.

From what I have read OR won't freeze this and are not interested in it or the money in it.

This I don't understand. I assumed that any 'spare.' cash and the courts would be after it.


I can keep what is in it?


Nancy

dodecanese

Hi Nancy
If you have a "spare"couple of thousand in the account, yes the OR will probably be interested. If its just your salary and normal incomings/outgoings, then no. When you have your interview with the OR,after you go bankrupt, they go through your income and expenditure.
If you have a surplus of £99 or over, they will look to set an Income Payment Agreement (IPA) for the next 3 years, and will take about half of your surplus.