Bankrupt or Court

hollyivy12

hello,

i recently got some advice about my depts thanks for the replys. i cant continue to make all my payments with the interest added by one of my creditors (tsb). i dont really want to go bankrupt unless i have to but can anyone tell me if i stop paying them and they take me to court if the interest will then be frozen and atleat i will have a total i can pay back at a reasonalble amount for a number of years? just want to go in the right direction before the situation get any worse.

beanielou

AFAIK if they take you to court then the interest should be frozen & you have to fill in a form to show the court how much you can afford to pay.
HTH.

RAS

Hollyivy

Just to make sure - are you getting advice from a debt charity?

hollyivy12

hello,

yes debitline gave me my options, i am afraid i have had a good job for 10 years so did not take out ppi's and thought i would manage ok like a lot of other people. i have been paying £600 through paypal for 2 years in may trying to do the right thing and pay off all my depts. i only just found out last month the bank would not freeze their interest on the loans etc and have added over £2000 to the total so far. i have really stretched myself and my partner has been helping me out and now i think whats the point when its only getting worse and i cant see and end to me getting straight. i am going to write to the bank and tell them i cant manage the payment and ask them to stop the interest and see what happens.

wanna-be-mortgage-free_2

Hi
Have you been in contact with a debt charity? They can act on your behalf. They will go through your budget and see what, if anything, you have surplus at the end of each month. They will then work out your total debts and do a pro rata calculation to establish how much you can realistically afford. They will present all this information to your creditors and will also ask for the interest to be frozen on the account. It is sometimes easier to have the debt charity do this as they use standard calculations that creditors will allow.

If it appears you have no assets, no surplus cash and you have tried to maximise your income then you may have to look at other options such as bankruptcy or an IVA but please seek advice from the debt charities who have experienced advisers to help you. Try CCCS or your local CAB.

Good luck.

hollyivy12

hello,

yes i have already been down that raod with payplan. they only just told me after i got threatening letters from the tsb that they would not freeze the interest on loans etc. i thought i was on the right load and would have it all payed off in just over another 2 years but they are adding a lot of interest all the time to the overdraft on my old bank account. anyway i am fed up trying to manage on about £40 a week paying too much each month so i am going to write to them and tell them i cant pay so much and see if they will freeze the interest also take off the extra they added before i went with payplan. i doubt they will so they can take me to court.

wanna-be-mortgage-free_2

If you have no money to pay them, they would be silly to take you to court. It would cost them in the long run. Send them an SOA with a covering letter saying you can't afford the payments each month and you will make token payments until your circumstances change. Reiterate that you would like them to freeze the interest.

Good luck.