Land of Confusion

alastairq wrote: »

Providing your wife has no debt with Co-op bank, then she should be able to [I suggest doing it anyway] open a Cashminder basic bank account or two.

The Co-op will not close Cashminder accounts just because of a subsequent BAnkruptcy...[unless they are creditors]....

They retain full internet access too.

BArclays are the same, unless they are creditors. However, Barclays are the only bank to allow the opening of their basic bank account whilst Undischarged BR.

BArclays also do not allow internet access whilst Undischarged.

I suggest you yourself could apply for a Barclays basic bank account now...it is unlikely you will be refused....apply in branch is best.

[Computer systems doing credit checks will often throw out any application with a BR present......but they can be overridden by bank staff.]

I did try to open a Barclay's account online but was refused I guess for the reasons you have stated, will that affect trying again in branch.

My wife is already with the co-op (smile to be exact) so if she did go the bankruptcy route would the cashminder be closed if her existing bank account with the same company was, or is smile a separate entity?

As for Barclay's she has an outstanding debt with them also so if she went bankrupt would the issue I've raised above about the co-op apply here too?

All a bit of a mess really.

National_Debtline wrote: »

Hi there,

YOu can find out more about DROs here:
https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20%28DROs%29/Default.aspx

Best wishes,

David @ National Debtline.

Thanks for the advice. The total debts are over £15k so a DRO is not applicable. Just to complicate matters she has about £2k of debt that accrued after the IVA terminated. Its basically a catalogue debt and a debt to SCS for some new furniture that we desperately needed.

If Marlin did go the CCJ route and a judge was looking at finances where would these new debts stand as they are not in arrears as we make the regular monthly payment to them. The reason that the payment towards the IVA debt stopped is because when it was terminated we never heard from anyone regarding it. Those I owed money to contacted us but I filed for bankruptcy and that was the end of that.

National_Debtline wrote: »

Hello again,

The general approach is to treat all creditors (no matter how old or new!) in the same way. This is usually by pro-rata payments. The judge is likely to consider the new creditors. Going forward you may need to consider making pro-rata offers to these newer debts too.

You mentioned that you've called us, did you get an information pack from us?

David.

I've been communicating with yourselves via email. I prefer to communicate online as it enables me to get all my facts together and I find it easier to understand what I'm being told.

So if Marlin chasing this one debt were to go with CCJ then are you saying that this would adversely affect the creditors that my wife had that she ius up to date with the payments on? If this is the case then surely her best option is to file for bankruptcy which would have all debts new and old brought together and dealt with in one go.

Am I right in saying that say for instance my wife's payments to her creditors (the new ones that we're never in the IVA) totalled £120 per month which is obviously part of her monthly expenditure. With a CCJ the judge could rule that she has to pay say £40 a month to Marlin which would then mean that she would underpay on those new debts that she is currently up to date on? Wouldn't this then default in someway on those new debts and technically increase her problems as it would be in breach of those agreements and would drag out the period over which it would take her to pay those debts off?

Also in regards to opening a bank account if filing for bankruptcy. As stated she has a smile account which is part of co-op group. The account is overdrawn which is a debt which would be included in a bankruptcy. This would make Smile/Co-Op part of the creditors section of the bankruptcy and of course that account would be closed. If she were to open a 'safe' account before filing for bankruptcy would she still be able to keep it for wages etc? Alternately if she filed for bankruptcy including the Smile account would she be able to open the 'safe' account with the Co-Op after the fact of bankruptcy?

Sorry for all the questions but I find that you guys are very informative and helpful and this whole thing gets very confusing.

So trying to bring everything together the facts and my understanding are as follows -

Wife had two debts, one with Barclay's and one with Northern Rock, both of which were bank loans. These two debts totalled approximately £18k

These debts went into a DMP in 2006 until they went into an IVA in 2008.

The IVA defaulted in October 2009 and was terminated in January 2010.

We mistakenly thought they had been written off after not hearing anything about them and finding that neither charge was on her credit report any longer.

Between the termination date and today my wife took out a catalogue and bought some furniture accruing about £2500k in debt.

Since taking out the catalogue and buying furniture we have kept up the correct monthly payments on both meaning neither is in arrears.

We have now been contacted by Marlin Financial who have bought the Northern Rock debt (£13,500) and who are now requesting payment of that sum.

My wife has just signed up to a three year university course to get a degree in order that she can progress from Teaching Assistant to Teacher. This means that she is now going part time at work.

I have been unemployed whilst being a stay at home dad looking after our children. (Not claiming any job seekers or unemployment benefit)

We have also discovered that we are due our third child in April 2015 which is going to stretch finances further.

One of the threats from Marlin is a CCJ which I believe would have an adverse affect on the catalogue and furniture debts which would then put them into arrears and of course adversely affect her credit report.

Her current bank account is with Smile which is part of the Co-op group and her account has an overdraft which she is in.

With the issues that a CCJ would bring it is my belief that her only real option is to file for bankruptcy. Before she does this however she needs to open a 'safe' bank account with Barclay's for her wages etc.

Alternately she can request a copy of the CCA from Marlin and if they cannot produce this within a certain time period (not sure what this period is) then they will be unable to enforce the debt in court.

Is all of the above correct? Sorry to repeat myself but the help I get here is absolutely invaluable.