Can this be true?

jpc2345

My partner has nine creditors and has been with a Debt management company for three years. They charge £ 30 per month and don't seem very proactive.

She has had enough sleepless nights and the worry has become too much. She is considering bancruptcy as the debts will take another 24 years to pay off.

Somebody from a help line said she could write to each creditor and offer £50 each as full and final settlement or the alternative would be bancruptcy which means they would get nothing.

Oh I should have said that the £50 is the £460 (9 x 45) she would pay the court if proceeding with bancruptcy

Is this true?

Anyone heard of this? Seems unlikely to me.....

jpc2345

Oh I should have said that the £50 is the £460 (9 x 45) she would pay the court if proceeding with bancruptcy

file_wizzard

It is unlikely!,, depends entirely on what assets ( if any ) she has and how much the OR would “raise” from her estate.

Also tipping the lenders off about potential B would make them become even more intent on recovering their losses in the shortest time possible and lead to even more pressure in the short term, although her DMP provider should field this.

I think the best idea is to post a list of creditors / amounts owed ect. On here and let some of our resident “B” experts offer advice on whether this is really the best course of action.

jpc2345

Thanks, I will do that, as frankly the whole thing is so confusing and you never know what is the best advice to follow.

Quasar

I have never been deep in debt, so have no experience of debt management companies and maybe I'm just being cynical, but the reason yours is not proactive is because it is not in its interests. The longer you need them the longer they have £30 per month.

jpc2345

Most of the debts have been passed on to other agencies.

This is the current position naming the original creditors:

First Credit £1263
Loan £15530
MBNA £5347
Visa Card (1) £4299
Visa Card (2) £4606
M and S Loan £12967
Mastercard £4345
M and S Store cards £5,200

Total £53,557

Income is £900 per month net

Payment to DMC is £230 per month

Remainder monthly exp. is living expenses, share of bills, rent, fuel, daughter at uni etc.....

Car is used for work and worth £1,000 approx

No house - in rented

No other assets worth mentioning.

She is frightened of "B", but surly this is better than paying for 20+ years

Any "B" experts advise?

What are the consequences? Is it a fresh start with restrictions or is it just another living nightmare?

She is also thinking of CCC DMP as all money goes to pay off the debt (debt will be paid earlier - not much!) and supposedly they will provide statements monthly.

Any advice or experience gratefully received

livilou

my husband declared himself bankrupt in february a decision he did not take lightly
I would suggest having a look at the insolvency service website where you can get some good info on bankruptcy, it's implications etc. You need to consider factors like do you have a joint mortgage?? if you do you would then have to buy your partners share of the equity . They will look at all assets to see if there is any way of recouping money to pay creditors, i..e cars in her name, insurance policies.

gather some information - national debtline have some good info and factsheets on bankrupcy as well. have a read and see what implications it will have for you, there are many but vary depending on your circumstances.



another option - don;t use the debt management company - get the help pack from national debtline which includes all the letters you need to write to creditors asking them to accept lower payments.

good luck and I hope it all works out for you.

xx

crazygirl

Try going to http://www.debthelpuk.co.uk/cgi-bin/yabb/YaBB.cgi
Lots of people who have been through it post on there.