Do I legally have to tell my creditors about my new job?

musejay1 · 20 January 2018 at 10:01AM

So this is a 'fun' one I need some advice on.

Last January I lost my job, my employer did not renew my contract (which I believe to be due to me being disabled, but that is a totally different kettle of fish) so I was unable to keep up with my credit card payments, and I also lost my flat as I couldn't keep up with the payments and had to move in with my fianc!e's parents.

Over the time period I have been in contact with the credit card companies, but all of them have now closed my accounts and issues default notices against me, but I still owe them the money of course.

I have only just started a new job after almost a year of searching, and I have been in contact with the charity "Pay Plan" who said my options are ether a debt management plan or to file for bankrupy.

I have thought of another option, but I don't know if it is legal or not. Basically, do I have to by law tell the credit card companies about my new income (my job) or can I not say anything, save up for a few months and then pay them off in one hit?
I am presuming I cannot do this, but I loose nothing by asking.

Thank you for taking the time to read this, and I hope you can help me.
Many thanks.

theroamingnomad · 20 January 2018 at 10:34AM

There's nothing that says you have to tell them, but why not just reach an agreement now and start paying it back? Creditors tend to be pretty understanding when you're upfront and honest with them.

[Deleted User] · 20 January 2018 at 10:36AM

There's at least one of the sub prime lenders who have the requirement to tell them about a change in circumstances, but I doubt anyone does.

sourcrates · 20 January 2018 at 1:14PM

musejay1 wrote: »

I have thought of another option, but I don't know if it is legal or not. Basically, do I have to by law tell the credit card companies about my new income (my job) or can I not say anything, save up for a few months and then pay them off in one hit?
I am presuming I cannot do this, but I loose nothing by asking.

Hi,

Your under no obligation to share your information with anyone, except if your under contract to specifically do so, such as being in any form of insolvency, or unless it involves the police, courts or a government agency.

Credit providers do not usually, fall within this category, and actually what you propose is a recognized method of repaying your debts.

It the end, it dosent matter how debts get repaid, as long as they are paid, saving up whilst making either token, or no payments at all, is a sensible way to deal with your debts, it allows you to save a pot of money, then offer full and final settlements to your creditors.

A lot of posters on the DFW forum use this tried and tested method to repay what they owe, everyone's circumstances are different, and we all have our own way of doing things, it may not be the method advocated by the debt charities, but if it suits your particular circumstances, then go with it, why you would think it wasn't legal though, frankly baffles me, but still, i can assure you legalities don't come into the equation.

chattychappy · 20 January 2018 at 1:42PM

sourcrates wrote: »

why you would think it wasn't legal though, frankly baffles me, but still, i can assure you legalities don't come into the equation.

It doesn't baffle me. It's because many people "feel" it is wrong not to repay debts. Perhaps defaulting was unavoidable through inability to pay, but they feel it dishonest when they now have the money and don't pass it over. And of course, in many cases dishonesty is indeed unlawful - whether it's mispresentation in contract law (civil) or fraud (criminal).

But I agree with your analysis. Unless the OP has entered into some arrangement which requires the updating of income details or has lied to obtain (for example) an interest freeze, then the OP is doing nothing unlawful and many would say nothing "wrong" either.

musejay1 · 19 February 2018 at 3:48PM

Thank you for the advice, saving it up and paying it off in one hit will work out best for me.
Once again, many thanks!

Do I legally have to tell my creditors about my new job?

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