Scared

[Deleted User]

Hi, if you don't mind me saying, I think that £60 on travel and £100 on entertainment = £160 = half your monthly income - on what exactly?

You don't need travel for work, so why do you need this? Please see if you can get a bus pass instead of wasting your money. Also your entertainment should be limited as you are in postition to spend a third of your income on luxuries. Check out your entitlements, limit your expenditure and seek some help - everyone will be lovely and try to help you so don't worry. x

Burv_2

Okay, things have changed a little bit since I last came online. I hadn't had any letters from anybody until this morning when I received three. The name of the company has changed (the new one is Apex Credit Management Ltd), but not much else. Here's the text of all three:

"We have received instructions from our above named clients to initiate formal debt collection proceedings for the unpaid debt as above.

Please contact this office immediately in order that we can discuss a satisfactory settlement to this matter.

Unless you make arrangements to settle the account within 72 hours our agent may be intructed to attent your premises to establish your residency and reason for non-payment.

You must take this opportunity to settle the matter amicably in order to avoid possible legal action being instigated.

Please do not underestimate the seriousness of this matter and attend to this notice immedately as this will be your final opportunity.

If you are experiencing financial difficulties, or you wish to make a proposal please call us today."

One letter is asking for £2 421.77
the second wants £12 389.67
and, bizarrely, the third says my outstanding debt is "£-0.02"

Should I phone them? What do I say?

Burv_2

New letter today:

FORMAL NOTICE OF DEFAULTING ACCOUNT

We are contacting our clients with regard to seeking their approval to the issue of a county court claim against you.

Judgement against you may result in -

1) Additional legal costs and interest thereon.

2) Entry of your name in the County Court Judgement register which may make it difficult for you to obtain further credit.

Failure to make a payment after judgement may result in -

1) An attachment of earnings order.

2) The removal and sale of the judgement debtor's household goods by the court baliffs.

3) If the judgement debtor is a homeowner, and the amount of the debt warrants, an order securing payment of the judgement on the judgement debtor's house. Such an order may be enforced by a court order for sale of the property.

This matter therefore requires your immediate attention, please call this office upon receipt of this notice.

I'm terrified. Anyone got any ideas?

lauzjp

Personally, I would let them take you to court. Then the judge can see that you are incapable of paying these debts off - the judge may arrange that you pay off a small amount each week from what benefits you get; but this will most likely only be a few pounds at a time. Basically this is an attachment to earnings, they will strictly regulate how much money you get and what you can spend it on.

They will also likely tell you to talk to the Citizen's Advice again (who may be at the court), and make sure you are getting all the benefits that you (and your wife - mention DLA and carer's allowance) are entitled to.

GeorgeUK

I would definately contact Citizens advice or CCCS. They should hopefully be able to advise you on what your options are. As you do not own the property, they will not be able to attach the debt to the house, but if bailiffs call, you will need to prove that goods are not yours so that they are not removed. You may want to ask CCCS how you prove this if you no longer have receipts. Not sure if it being on the insurance is enough.

RAS

Hi

You need to get this case transferred to your local court and to attend the court with your Income and expenditure form (you will be asked to do that before the court case.

You will probably be expected to make a nominal payment to them. Then then have to halt charging interest.

With refernce to your SOA, please note that spending money on entertainment when you are not paying debts will go down like a lead balloon.

Jesthar

RAS wrote: »

With refernce to your SOA, please note that spending money on entertainment when you are not paying debts will go down like a lead balloon.

Agreed - your entertainment budget needs to be put towards your debts, or no court is going to think you are serious about paying them off, sorry. And unless your travel budget is 'essential' travel (doctors appointments or something, as opposed to 'going to the pub'), that may not go down to well, either. I know that is a hard thing to hear, but it's better to hear it now on here than in a court from a judge.

Having had a look at your SoA, as you live at home you need to seriously consider everything other than your rent and phone as 'pay off my debts' money for a while! Whilst there's not much you can do about the disputed debts for now (token payments, perhaps?) you should at least be able to cover at least the minumum payments on your other debts, which will be a Good Thing if/when a court case arises. Any spare money should be paid off your Aqua credit card, which not only has a crippling intrest rate, but is also pretty small, so you could possibly have that cleared in a few months if you stuck at it.

One other question - do your parents know about this? As if there is a court case, they are likely to find out at some point...

Keep smiling, it might look bad but this can be sorted

~Jes

Burv_2

This is my most up to date balance sheet, off the top of my head. I used a Balance Transfer to clear my Aqau, RBS and M&S cards onto my MBNA. I have an interest free period on that until March. I still have to pay interest on purchases, which is why then minimum payment is £25.00.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 409
Other income............................ 0
Total monthly income.................... 409

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 130
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 20
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 170

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly...APR
NatWest Loan...................12500.....0.........0
NatWest Overdraft..............2500......0.........0
NatWest Credit Card............1500......37........0
MBNA Credit Card...............1800......25........0
Total unsecured debts..........18300.....62........-

Monthly Budget Summary
Total monthly income.................... 409
Expenses (including secured debts)....... 170
Available for debt repayments........... 239
Monthly UNsecured debt repayments....... 62
Surplus(deficit if negative)............ 177

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -18,300
Net Assets.............................. -18,300

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

RAS

OK

So you need to pay the two CCs in the short term and make payments of 16.50 towards your OD and £83 towards your loan in the short term

I am astounded that CCCS will not help you. if nothing esle wthey would give you an assessment and advice as to whether to consider a DNMP or going bankrupt. A lot depends on your long -term employment options.

I would advise you to have a look here http://www.moneysavingexpert.com/loans/debt-help-plan#help

and then read http://www.moneysavingexpert.com/protect/make-money

and join www.freecycle.org - like e-bay but free.

Burv_2

I'll have a look.

I'm not sure if I spoke to CCCS or not, but I phone one debt company who sent me a load of paperwork and one of those balance sheets to be sent to my creditor.