Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By catface1
#2918 Hello ,
thanks for the help so far, I have sat down with my boyfriend and worked things out for the first time - obviously there was some shouting, crying etc but the main thing is we have agreed to help each other through this- phew. He has asked me to start paying rent and council tax as he has been offered a supervisory role at work and will loose his benefit . This is something he wants to do career wise so I can't say no - he has been trying to tell me since the first day back this year , but it puts me in even worse financial situation, he wont get enough to cover everything so I will have to pay my way in full. Still everything seems to be out in the open now.
I have a current bank account which is in overdraft but this is where my wages go ,I also have a credit card and loan with same bank - how do I offer them a nominal payment as suggested previously in line with the other creditors, Should I open another account with different bank to have my wages paid in and for the utility monthly DD and rent to go out of ? , then offer old bank and everyone else the same payment with whats left ? Will I be able to keep this up unil I cal petition for bankruptcy in June after I graduate?

The other query I have is I read on this site that 200.00 is the amount for living / household expences does this include utility bills, ?
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By Nicky
#2919 You will need to open a new account in order to offer your current bank a reduced payment, otherwise, they can freeze your account and keep whatever money you have in the account to put towards what you owe them. You dont have to wait to open an account before you contact your other creditors as long as none of the other lenders have any connections with your current bank.

As soon as you have opened a new account, know that you income is going into your new account and everything is set up, you can then inform your bank of your situation and make them an offer of repayment.

Where did u read that you were only allowed £200 is the amount for living/allowance expenses? It depends on your household, i.e. how many you have to provide for/feed/clothe/ e.t.c. Utility bills are separate.

£240 would probably be sufficient for 1 adult and 1 child, 2 adults probably £280, for food only this is. However, there are no set guidelines to go by.

If you were talking £200 for one adult for food, then that would probably be too much.
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By JaneClack
#2921 Depends on where you are living too.

But I have seen £200 regarded as reasonable for one adult's housekeeping expenses and being accepted. If that is what you spend that is what you should put down. I have seen higher when people have dietary problems and £300 for two adults is now accepted as reasonable for housekeeping i.e. food and cleaning stuffs
By catface1
#2929 Thanks I will open a flexaccount at Nationwide in the interim as I already have an empy pass account with them .
Is it considered wrong to do this though ? Also I need the money to go Bankrupt, could I add the 450.00 to my overdraft and then put it into the flex account to use for the BR day- do you think the OR will understand this? This seems so difficult I don't know if I can get it all together properly!, still its inspiring to read other stories of people who have made it through.
I have 2 credit cards on direct debit into the bank account as well as the two loans, do I just leave these to keep on coming out or shoud I attempt to cancel them before I stop using this account?
By chivasgirl
#2938 Ludicrous isn't it really, £200 may be regarded as too much for one person for a month's housekeeping. I think part of what made my in-laws decide to help us with the beneficial interest was because I told them what the allowances were, ie around £70 per week per couple (housekeeping) and she was appalled. They used to give my husband £50 a week for food when he was at university, about 10 years ago......

Wouldn't be so bad if we didn't have to figure 5 cats into the equation!! 6 tins of catfood a day at £2.50 per 6 - around £60-70 a month with litter for the old girl as well (I can't feed 2 of them dried food so the others can't have it either, try stopping a 16lb cat pushing an 8lb cat out of the way to get to his beloved Iams fishy shapes!!!). Amazing what we do for our pets, or to be able to keep them.
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By JaneClack
#2948 I would cancel the direct debits to the credit cards and make token payments. If you have decided to go bankrupt it would supersede any action the creditors could take anyway and why throw good money after bad, as it were!

If you do open a bank account with the Nationwide you do run the risk it will be frozen although several people have told me they have been able to continue to use one with Nationwide. Remember it is not a flex account but a flex account cashcard we recommend as they are different. I would suggest paying your money into someone else's account and then open a new one the day after the bankruptcy!

I cannot comment on the ethics of extending overdraft for bankruptcy fee of £460 now but you might have needed some money to live on.....