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Threat of Bankrupty Proceedings

redgirl_3
redgirl_3 Posts: 27 Forumite
in Bankruptcy & living with it
Had a letter received today, dated 24th August, from Marlin Financial Services regarding a debt outstanding to Arrow Global LLC with the original creditor as MBNA, where they're "in the process of advising the above client to commence Bankruptcy Proceedings against me" as I have failed to settle the outstanding debt.

Can a DCA do this? Surely they would need to go for a CCJ first, which, if they have done, I've not been informed of it.

Thanks for any info.
«1

Comments

  • RAS
    RAS Posts: 36,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Redgirl

    Almost certainly scare tactics designed to frighten you into coughing up.

    You might want to request your credit checks from the credit reference agencies to make sure what is happening.
    If you've have not made a mistake, you've made nothing
  • redgirl_3
    redgirl_3 Posts: 27 Forumite
    Thanks RAS, I don't deny I owe the money (goodness knows who to these days, as checking back through my files I note that at one point Frederickson International were acting on behalf of Arrow but now it's Marlin).

    What sort of 'amuses' me is that I have received two identical letters as I have two (original) debts to MBNA (back from the days when they'd willingly give a Visa AND a Mastercard) so I do suspect you're right in scare tactics and these are 'standard or automated' letters as one is addressed to my Firstname Lastname at my address but begin Dear Sir/Madam!, the other addressed to my first initial lastname my address but again Dear Sir/Madam!

    Not sure what a copy of my credit checks would serve me unless it can show who really owns my debt now or if some org really will instigate BR.

    Thanks.
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    Hi redgirl,

    RAS is probably correct, these sorts of letters are scare tactics 95% of the time.

    However, a creditor does not necessarily need a CCJ in order to start the process of making you bankrupt.

    The process a creditor has to go through to make you bankrupt can cost them up to £1700, and you must owe a minimum of £750. So it is very very rare for a creditor/DCA to go through with these threats.

    DCA's are also very fond of sending out a 'Statutory Demand' (which is the legal document that is the first step in them making you bankrupt), without any intention of following through with it. These make a very good scare tactic because this first bit of the procedure doesn't cost them anything and doesn't have to go through the court, but scares the life out of the debtor. In case you should receive one of these, you can read about them in the link below:

    http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.htm

    Plus if you should receive one of these it would be advisable to check with a legal advisor (either at CAB or elsewhere) to confirm or refute its validity.

    Hope that helps a bit. :)
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • fiveyearplan
    fiveyearplan Posts: 10,145 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Does it cost a creditor £1,700 each if they want to BR a husband and wife? So no one in their right mind would petition a debtor for br for a debt of £750 if it would cost them £1,700???

    :j :j


  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    It's up to £1700. There is a sliding scale somewhere I'm told.

    Must try to find out sometime.

    The IS website says:
    Court fees depend on the amount of the claim, and range from £30 to £1,700 - the court can tell you the precise court fee payable for a particular claim.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • fiveyearplan
    fiveyearplan Posts: 10,145 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    If you ever find the sliding scale I'd be interested to see it. Thanks Fermi.

    :j :j


  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    fiveyearplan wrote: »
    Does it cost a creditor £1,700 each if they want to BR a husband and wife? So no one in their right mind would petition a debtor for br for a debt of £750 if it would cost them £1,700???

    There are things like 'service' costs, 'attendance' costs and others that can be claimed - I know that, in my case, the 'cost' to HMRC was £1700. I think that the MINIMUM cost for a Creditor Petition is £520.00. These costs need to be paid to the court but are added on to the 'claim in bankruptcy' but there is no guarantee that the creditor will get them back.
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
  • fiveyearplan
    fiveyearplan Posts: 10,145 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Of course their costs would be £1,700 wouldn't they!

    :j :j


  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    £520 minimum? That's interesting. Can you remember where you heard that rog?
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    fermi wrote: »
    £520 minimum? That's interesting. Can you remember where you heard that rog?

    Sorry, fermi, should have said £590 - £400 deposit (which, providing there are sufficient funds in bankruptcy estate, creditor can claim back) £190 Court Fees.
    Plus any associated Solicitor Fees.

    http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/howtomakesomeone.pdf
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
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