I am having a difficult time keeping up with my payments during the pandemic after being furloughed since March. I have contacted StepChange and they have advised me that the best course of action for my situation was to fill up for bankruptcy. I'm supposed to come out of furlough next week but I am employed full time. I rent privately and don't own a car. They recommended that before I fill up for bankruptcy I open a basic current account as my current one will be frozen and it will get difficult to get one once I am bankrupt. I have done so and open another CC account. They also said that I should stop paying my creditors now (non-essential bills) and write to them explaining my situation and save as much as I can. It is worth mentioning that I am not in arrears on any of my bills at the moment but once I paid all my expenses I have nothing left and live off my credit card.

My questions are:

  1. What will happen to my wages when I go bankrupt? Should I tell HR to pay my salary to my new current account or should I wait for my appointment with the OR once my bankruptcy has been accepted?

  2. Is it legal stop paying my creditors now and save money (if there is any left) since I will fill up for bankruptcy soon?

Country: England (UK)

  • Unless your wages exactly met your expenses before furlough, I'm not sure I see the wisdom of declaring bankruptcy now, just before you return to work.
    – chepner
    Commented Oct 29, 2020 at 12:25
  • I am not in the UK, but I see two red flags in their advice: stop paying bills, open an account to put funds to "protect" it from being frozen. How much do you trust this organization? Commented Oct 29, 2020 at 12:31
  • @chepner my wages will go down when I start again, and the interest on my credits cards during the past 6 months will make it difficult to realistically keep up paying off my debts.
    – bbface
    Commented Oct 29, 2020 at 12:48
  • 3
    StepChange is a major debt charity in the UK so their advice is definitely legit.
    – Vicky
    Commented Oct 29, 2020 at 12:48
  • 1
    @mhoran_psprep StepChange is a very reputable Debt Charity authorised and regulated by the FCA.
    – bbface
    Commented Oct 29, 2020 at 12:50


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