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Matt1981
Starting Member
32 Posts |
 Posted - 25 September 2008 : 20:59:21
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Hi
I am currently in a debt management plan with pay plan and have been for the last year. My Debts are around 50k.
A year ago we moved to Lancashire and a job I was promised did not happen so I had to find a new job and the only one I could find was with a salary half of what I had moved for, which was the reason for starting a debt management plan.
10 Months later, me my wife & 2 children were not settled, we were missing family and friends and were sinking into depression, my wife was already there. We moved for a better life and instead we ended up a lot worse.
We decided to make the move back to London. I managed to pursuade family to lend me money on the promise that once we moved I would sell me car and pay them back (which I have done), but we still came up short of the money needed. I had 2 credit cards that had no balance on them, so I used these to fund the rest of the move.
I have now decided that the only end to my nightmare is to declare myself bankrupt once I have lived in my current area long enough (one month to go).
But I am worried about what the OR will say about the use of the credit cards?
I have spoken to my debt management company who says I can add them on to my current plan if I have made 3 payments which I have not done. And I would rather not add these on as I just want to find an end to my problems.
So should I make token payments to these credit card companies? I will be stopping payment to pay plan so I can fund BR. What do you think the OR's view will be on the use of these credit cards?
Sorry to rattle on. This is my main concern with going br.
Cheers
Matt |
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BankruptC
Senior Member
1030 Posts |
Posted - 25 September 2008 : 22:36:32
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Hi Matt,
I'm sorry I'm not 100% on that one, although I know people are told they really should try to make the 3 months payments since any new credit was taken out.
Hang in there and someone with more knowledge than me will be along soon enough to help yuou more.
Take care and keep posting.
C. x |
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John
New Member
United Kingdom
73 Posts |
Posted - 25 September 2008 : 23:15:36
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Hi
first of all BankruptC is right, if you have taken out new cards, or used existing cards with previous zero balances you should make a minimum 3 payments. I'm not sure of the reasons why you should when in a DMP but I guess it's probably for the same reason as bankruptcy. If you do not make a minimum 3 payments it will be considered that you had no means or intention to pay, that is fraud.
If you sold the car within the last 12 months the OR will find out through the DVLA (you are also asked this question on the Court documentation which if you falsify is perjury). You will then be asked how much you sold it for and where the money went. The OR then has the power to reclaim the money back from the family members as this was preferential treatment.
If I were you I would make the minimum 3 payments to the cards and keep the DMP going. From that point add the cards to the DMP and keep going for as long as you can. The sale of the car needs to be more than 12 months before you declare bankruptcy.
So whilst bankruptcy is an option for the future, now is not a good time in your case.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Going BR and using credit cards
