Posted on behalf of helpme80 - bankrupt or lose my savings, please help

helpme80

Dear all,

My situation is that I am 55k in debt with 5 creditators, 2 big ones at 23k each and three small ones making up the rest. I currently live on a pension, I live with my partner but i do not own the house and i live thier and pay rent. I have 25k of savings and dont want to lose them. I have a debt mangement company and i am paying around £100 a month of, the companys have said this cannot continue and that they will make me bankrubt in the next two years. If this happens i will lose all of my savings, is thier anyway i can sign some of my money over to a sibling of mine? What would peopel advise I do. A second options is that i pay 550 a month for the next 7 years but i have no idea how i can afford this on my pension.

Many thanks Happyhelp.

Ps how do i post a new topic??

Pooky23

The logical thing to do would be to reduce your debt using your savings.

chelseabun_3

If you're 55k in debt, then in reality you don't have any savings. Reduce your debt by paying off 25k using the savings, and then negotiate to pay the rest, or go BR to have the rest cancelled. There really isn't a way around this - the OR won't allow transfer of assets - he'll just take them back from whoever you transfer them to. He'll have access to your bank account history, so will know what you have had in the bank. Sorry to be blunt, but that's how it is.

DON79

Logical yes but there may be a better option, unfortunately I can't see any other way than sacrificing your savings. My first thought is to prepare a stmt of affairs to your creditors plus a letter stating your situation and offer them a full and final settlement of each debt as a percentage of your savings. maybe offer 60% of their balance to each of the larger creditors and the rest to be split between the smaller creditors.

that way at least the debts would be gone and you could start saving again.

If you go Bankrupt or enter an IVA you would lose the savings, so I think this may be worth a try, they can only say no. But if you make it clear that this is a one time offer available to them and that there are no more funds available other than you have offered, they may accept. You mentioned about your pension so I guess you are of pension age. point out to the companies that there is little likelihood of the debts getting cleared in full if you go onto a dmp for xx amount of years.

have you had advice from the cccs or national debtline?

please do so if you haven't already, the numbers are in the sticky's at the top of this forum.

helpme80

Thanks for everyones advice, I just asked as people have mentoined to me before about a loophole and ive heard of people signing over thier houses to thier parents and cars etc. I actually have a car and 6k caravan as assests to.

But as i say thankyou very much for your advice, I have a debt mangement envolved helping me, Im not retiremnet age but im medicaly retired as i am extremly ill, and dont think ill make the end of the debt years erras anyway.

So has anybody got any other advice or is that it in a nutshell?

deedee_3

A lot of those sort of tales are urban legends or people don't actually know the full details.

Can I ask who your DMP is with?

DON79

if you sign over assets and then go BR, the OR will take a vey dim view of it so it is not to be recommended am afraid. The OR can ask for the assets to be returned and can impose longer BR restrictions on you (which are not too much to worry about really).

But if you are medically retired due to ill health, then it gives the companies you owe money too even more of a reason to accept any f&f settlement.

Or have you even tried asking them to consider just writing off the debts completely because of your ill health and financial situation?

Other than that, not sure what else to suggest just now but some others may have some ideas for you.

helpme80

What would you then don, as i said im really worried as i have no house and that was the only money i would ever have.

helpme80

Dee Dee my mangement is with no consultant debt manegment company

Merry_Gentry

You need to get some advice from one of the free agencies such as CCCS or National Debtline. We can only give you our opinions, they will be better able to advise you.

deedee_3

I am assuming you are paying fees with them. Why don't you get in touch with CCCS or Payplan a ring and get them to set up a DMP for you. They do not charge fees so more of your money goes towards your debt.