debt advice needed

RAS

Netty, there are a number of threads of inforation in your post which are somewhat tangled and not entirely accurate.

netty07 wrote: »

hi, this is my first time, there is no need to go through debt managment companies, what they can do you can do also.

We do not recommend that anyone use the debt managment companies other than Payplan, which is free to the debtor. Please read this post http://www.moneysavingexpert.com/loans/debt-help-plan#help for Martin's advice as to how to contact the debt charities that help you for free.

Some people here are managing teir own DMPs but you really need to know your stuff.

[quote=netty07;15855447_get_in_contact_with_all_your_creditors_and_tell_them_about_your_current_circumstances,_if_they_do_not_listend_to_you_or_help_you_they_are_breaking_the_law.[/quote]

Sadly, DCAs are not obiliged to listen or help you; they are paid to extract as much money as possible from you as quickly as possible and a number of those who feature here have scant regard for the law, let alone the OFT Guidelines. Complaints sometimes work and the OFT has some teeth but in the credit crunch, DCAs are getting more difficult.

netty07 wrote: »

debt management companies do not do this for nothing they charge you a fee for there services out of what you pay them in your monthly fee, so what they are taking from that could go to another creditor. .

Correct regarding debt companies but debt charities operate free DMPs

netty07 wrote: »

another way out is to make an appointment with citizens advice[cab] they do exactly the same only for free or they have a form that says apply for bankcruptcy, this is not for everybody but works for some, some being people who are not bothered about losing thier house,not everybody does. people in rented accomadation, private or council and in debt should think about bankcruptcy. the quickest fix to a debt free future. some people might say that this is bad information but it did benifit people we know. they were on benifits after been made redundant and found they could no longer afford thier debt,so filed for bankcruptcy, did not pay the fee due to been on benefits and dont pay nothing towards any debts and was discharged within 6 months.

You need to have a minimum amount of debt to qualify for bankruptcy and even people on benefits have to pay the larger BK fee, so it costs them £345. Discharge is automatic after 12 months; these people got early discharge, which means the OR thought their situation was reasonable.

netty07 wrote: »

they are now alot happier and staying away from debt and pay as they go. the court got in touch with all the companies so they had nothing to sort out. they got to keep the car because of where they live, they lost nothing just the debt. it was all over and done within a week.

I think a lot of people on the BK forum would agree that life after BK is a lot more comfortable as they are not dodging debt collectors. They will however tell you that it is not a pice of cake and if you are on a low income, it can be very hard.

Your friends have no option but to keep away from debt and pay as they go; there is not a cat in hell's chance of them getting consumer credit (credit card, catalogue, loan) in the foreseeable future and they will struggle to get a mobile phone contract.

And far from being over and done in a week, they will have to report that they were bankrupt for the rest of their lives.

Now, I regularly suggest people post on the bankruptcy board as I think this is an option that they should consider and fully support those who make that decision, but I do not think it is quite as easy and care-free an option as you suggest.

netty07

hi, sorry if this affended anyone but i did not reply straight away as i wanted to make sure i got things correct. firstly they did go on income based jobseekers and they only paid an amount each to the court. also, they did get discharged within 6 months, this as not affected there credit as much as they expected.they have a telephone on contract with 02, they also have a catalogue but dont want nothing else. they were advised to do this to repair the credit rating soon as possible, they dont have massive limits but works well for them. you also dont have to have massive debt to go bankcrupt as they were good enough to show me all the paper work and they it stated it had to be a min of 2,000 pounds approx. they have no trouble with banks showed me their bank account[current account] and bank card. they do direct debits from the account also and really has everything they need to carry on. they are been extra carefull and now does a budget book and watches the pennys and only gets what they know they can afford. they still have the same car[paid for] and her husband is now self employed and let the tax office know this due to the bankcruptcy and they said they have noted this and are happy for him to go self employed. he as drawn up a direct debit to the tax office for tax payments each month, and if an over payment will get it back in april. from what i have learnt seeing all this and the proof of paper work is that each case is individual in circumstances. they went through the channels and let the right people know what was going on and retained proof in writing from different sources. i do feel i just wanted to let anyone know who as been reading about this families bankcruptsy that for them was the right thing but not for all.
thanks for taking the time to read this. me myself dont believe in debt always worked for what i have, have the usual bank accounts but wont have a overdraft or loans or anything. yes i got a car but i saved and paid cash. old fashioned but thats just the way i am.the family are better off and making a good stable future for themselves.

netty07

also just while i remember, they are listed as discharged bankcruptcy and will be for 6 years. but however they took the letter[stated discharged] from the courts to the bank and they open a current account for them striaight away.also they checked with the credit reference agencys and it is also noted as discharged. just thought i had better explaine this as you can get credit almost straight away when discharged however i am trying help them so this does not happen.