Would it be best to go Bankrupt

muffin42

Hi
I have a total unsecured debt of £25000 from about 5 years ago.Some of these debts have since been sold on to debt collection firms.Has i have no assets as such would it be better to declare myself bankrupt?

GeorgeUK

Are you in Scotland or England?

If you have made no payment towards a debt for 6 years (5 in Scotland) and not acknowledged the debt in writing, it may be statute barred. If the debt was secured against a property, it is a different timescale, but if it is a creditcard, loan or HP debt - do you know when the last payments made towards each debt is?

muffin42

Hi
I last made payments in june 2003 or slightly later cant remember the exact date.
Roberston and Way have just taken a CCJ against me how would this be affectted if i was to go bankrupt.

GeorgeUK

Have you actually received the court papers yet or just the letter from RW?

I would seek advice from one of the free debt charities before doing bankruptcy. Citizens advice, payplan or CCCS should be able to tell you more about it - or have a look at the bankruptcy board.

If the letter is not from the court, then i would suggest requesting a copy of the customer credit agreement (unless it was for an overdraft - then i would ask then to prove the debt was yours).

There are some templates available on the board for this. It looks like if you can hold out for another 9 months then these debts will become statute barred.

muffin42

I had the court papers a while back fron Northhampton CC. I sent them back and got the case heard in my local court.
I have had no judgement order so far only two letters off Horwich Farrelly solicitors.One that if i pay the full amount within one month the registration entry will be cancelled.Then another one claiming that i am £120 in arrears and they will be taking a warrant out against me if i dont pay within 10 days.

GeorgeUK

The case has already gone to court?

Have you checked your credit file to see if it lists the CCJ?
You can check your credit file free at experian (if you cancel within 30 days)

What was the debt for? credit card, overdraft...

muffin42

Hi the debt was for a capital one credit card.
According to them the case as been heard and judgement as been taken against me. To date i have had no copy of the judgement from the court. I only know by the letter Robinson and way sent me.

I will check my credit file later.

Thanks

**Amy**

Hi

It sounds like you already have the CCJ against your name, as if you pay the amount within a month of the CCJ being on your file, it gets taken off (you have had this letter) and you are now in arrears, which is very bad as the court has ordered you to pay a set amount a month, and if you arent meeting that you are going against the court order.

I would contact one of the debt charities www.cccs.co.uk or www.nationaldebtline.co.uk are really good.

One the CCCS website you can fill in all of your details about your debt etc. and it will give you a rough idea of the options that you could go down.

It might also be worthwile posting an SOA on here (statement of affairs). It could be that you could pay off your debts, rather than go bankrupt, it just might take some time.

http://www.makesenseofcards.com/soacalc.html

x

muffin42

All my debt is unsecured and i am not a homeowner.Most of the debts are over five years old would it not be best to go bankrupt.

**Amy**

muffin42 wrote: »

All my debt is unsecured and i am not a homeowner.Most of the debts are over five years old would it not be best to go bankrupt.

Muffin, i dont think we can say yes or no. you need to speak to a debt charity or fill out the SOA.

Or you could always post on the bankruptcy board?

x

GeorgeUK

I would check on the bankruptcy board, but if you don't pay and 6 years have passed since last payment, the debts will not be on your credit file and will not be enforcable so you will not need to pay them.