urgent bankrupt question

THE_LONE_RANGER_4

A friend of mine who is in debt has asked me a question i cant help him with hopefully you can its a bit long winded but i will get the main bits over.
He rents, employed , got unsecured debts up to18k with different creditors.
paying all but two which are capquest and rms, he said he used to pay capquest but they refused to stop the interest and it was going up every time he paid a £10.
Any way today he had a 3 page letter it is called a stutury demand for bankruptcy. for the amount of£3757.09.
The front letter stetes the following,
Enclosed is a stat for demand for bankruptcy you will need to read and review.
Our recirds show you have previously made arrangements to settle this account but you failed in your commitment, this broken arrangement may be seen by the court as acknowledgment of the debt if required we will submit all paper work and recordings to the court in support of this demand.
All the relevent information and how to deal and respond is on the statury demand document which we ask you to read very carefully and action by the dates stipulated.
If you need help or clarification we would suggest that you seek the advice of a solictor or a reputable financial advisor.
Alternatively contact our insolvency dept on 0870 084 2565 qoute ref? where you can discuss the best options available to you and stop the process.
Alternativley if you have acces to the internet go to guv web site for bancruptcy.
we trust we can resolve this with out the need for bancruptcy.
yours sin
j o"keefe
litigation,
His position is he rents , he is married, he is a house husband, his wife works.
If they make him bankrupt would his wife be made bankrupt too?
if he is made bankrupt could he add all his other debts to it?
cca told him to go bankrupt but he couldnt afford the fee.
Is this just another threat?
I would appreciate some answers and i will print off and give to friend.
regards .

beanielou

Hi LR.
Hope all is well with you.
As to your friend~He would put all his debts in bankrupcy~its illegal not to put them all in & his wife would not need to go bankrupct.
He can save up fee by not paying his creditors.
HTH

RAS

Hi

Some DCas send out statuatory demands like confetti and they rarely action them. I can only think of one instance when 1st credit did this and I think the person concerned was a houseowner.

The aim is to panic the debtor into paying up to avoid bankruptcy. If one of the debt charities have advised him to go BK, then he should not hold out to many hopes of crapquest actually doing the deed.

All his unsecured debt in his name except a few things like student loans under the new system would be included. It would not include any joint debts as these would fall to his wife. There is unlikely to to be anything much to pay back the creditors and it will cost crapquest £1500 upwards to make him BK.

I would suggest that the couple ensure that they do not have joint accounts as it will affect his wife's credit. She would become liable for any joint debts if he is made BK. She only need to go BK herself if she really want to and she should take advice in her own right.

he might want to let crapquest know that he would be delighted if they made him BK. Alternatively as beanielou suggest stop paying the creditors and save up for BK fees.

THE_LONE_RANGER_4

from what he tells me he has a different bank account to his wife all the debts are in his name only , they rent they do not have anything of real value unless they take a dfs sofa 6 years old to be honest they have very little materialistic items , but his wife is selfemployed and has been for 12 months that worries him more as he doesnt want the courts to make her bankrupt for obvious reasons as she runs her own business. what do you suggest he do as letters etc i have told him not to ring or would you suggest ignore as he said if they make me bankrupt it would be a case of many thanks his biggest debt is 5 k.

fermi

As said, there is no way that she should have to go bankrupt.

Capquest are unlikely to go through with it.

Could send something like this. ;) (thanks to blind-as-a-bat)

Dear CRAPQuest,

Thank you ever so much for your recent letter including a statutory demand with a view to you petitioning for my bankruptcy.

You have no I idea what a relief that is as my finances have taken such a turn for the worse I have been struggling to find the £490 fees required to file for my own bankruptcy. So much so I have not been able to sleep at night worrying how I would achieve it.

I realise it will cost you £595 plus legal costs to do this, and considering I have no assets nor enough income to contribute anything to my bankruptcy estate in the form of an IPA means you will not recover any money for doing this, your act of generosity has left me lost for words.

But thank you for relieving me of the pressure I have been under, and allowing me to sleep sound at night knowing I no longer have to worry about finding the fee for myself

Yours very gratefully

RAS

Hi

The OR is interested in things that have substantial value - like cars, antiques and perhaps a top of the line plasma TV. Household stuff is not at risk.

I really think he should ring NDl to speak to them about his way forward. Personally, I would not suggest ringing crapquest but if they ring him, them just reply, please, you will save me the fees. I suspect that will be the last he hears from them.

boggie40

I scrimped and saved the fee for bankruptcy from stopping all payments to the credit cards for 2 months.
however i was told at the court that most people pay for their bankruptcy off a credit card, and it is practically the norm that the last time that one of their cards was used was to draw the money out off a card to pay the fee to the county court.

I have heard that some people have fallen foul from doing this and the OR states that the person using the card was doing so knowing they were going bankrupt so end up having to pay this money back.
most people dont have a problem paying it as they are of course not paying out for all their debts that have been listed during the bankruptcy........

so my advice to your friend would be to pay only the very minimum payment to their cards of say £5 and put the rest towards the fees.

THE_LONE_RANGER_4

I was quite surprised the letter did spook him but i think for the only reason he thought they would make his wife bankrupt as well ,as he said he has no assets etc and rents which is why the cca said perhaps you should go bancrupt i have phoned through to him the results from here, he has said he will just bin it as if they make him bankrupt then it does him a favour.As he said if he rings them and offers a £10 a month it has no affect on the debt due to them pileing on the interest, perhaps they may sell the debt on again??
he said he has been getting calls from RED, AND FIRE, ANY IDEA WHO THESE ARE? when i was in debt nevered heard of this lot, he refueses to speek to them and one other question they all speak with an australian accent ???

RAS

REd/Lowell

Well known on here. Good chance that the debt is statute barred or has not legal documentation.

By the way has your friend actaully demanded CCAs from the relevant DCAs?

THE_LONE_RANGER_4

he pays some via cj affordable etc some he pays a fiver too and some ie 2 he doesnt pay the debts i believe are credit cards and a few catalogues, he got in to rent arrears now sorted he got in to council tax arrears now sorted but still has issues with water rates but sorting that out ie as a priority, he was giving dca all his money hence rent arrears etc

RAS

Has he ever taken proper advice from a debt charity?

he needs to pay rent, CT and water, then utilities and food, CCJ as priority debts before he starts on other debt payments.