Whats the worst that can happen from not paying unsecured loan

jamesdrew

foxwales wrote: »

Depending on your situation and the amount borrowed or even the type of creditor you owe money too, they could force you into bankruptcy which would have a severe affect on any future credit.

You can simply not pay the debt, but they can carry on collecting against you until the day you die or you are declared bankrupt.

So those are your only options out of this.

Also, if you knowingly borrowed a sum of money under a credit agreement with no intention of repaying it, then you could potentialy be done for fraud, which would be a criminal and not a civil matter, so if proved, you could end up with a criminal record or prison sentence.

NONSENSE . . .

If you have made at least one payment on the loan you can't be done for fraud. If you have no assets, then there should be no fear of bankruptcy and it is very unlikely that one creditor would go down this avenue. However, should they wish to do so in the future, you would receive a statutory demand for payment giving you 21 days to pay but I very much doubt this would happen in your case. So, it's simple, if you don't want to pay, don't pay it but be prepared for the hassle of phone calls and debt agency letters. (simple, unplug the phone and shred the letters)

danrogers

i havent had a good letter in years anyway and i dont mind ignoring the phone either...makes it look like i have so many friends i can afford to not talk to some.. that sounds like what il have to go for then. Spoke with CAB and they basically said because i cant physically prove that the training is rubbish (unlike i could prove a car came with no wheels) then theres a good chance the bank and the training providers arent going play ball and just let me off so this is gonna be the route to choose i think

theartfullodger

Whats the worst that can happen from not paying

a) You get sued, small claims...
b) Various large men come visiting: If they do, call the Police..and don't let them in...

MrsTinks

Actually worst that can happen in this case is probably that they go to court, get a CCJ against you, you refuse to pay it, they send bailiffs, you still refuse to pay, it goes back to court and your loan company gets an attachment of earnings... That means so long as you have a job they will get a set sum of your salary every month directly from your employer before the money you earn gets passed to you... you will have NO control over it any more.

If you want to go down the route of the loan provider being jointly liable then that's fine - but stopping payment in the mean time will NOT endear you to them, any judge or anyone else... I'd suggest you carry on paying until you have taken PROPER LEGAL advice...

danrogers

hmm im self employed anyway. bit confusing everyone seems to think different stuff

deadthings

The last few replies have given you some good information, as against the first lot who were running around like headless chickens that you dared not to pay. Ignore the first lot because they are mindless drones, as you may have noticed.

If you are self employed and pay taxes, there is a strong chance they could go to court and get at your earnings that way. It depends on your income though.

If as you say you own very little then there's little baillifs can do, and as has been said, don't let them in.

Personally I would have simply written to the loan company telling them I do not have the means to pay the sum any more and that in future until my finances improve then they will be getting £5 per month.

Either way your credit file is screwed, but don't go bankrupt for a single loan. Though it only stay on your credit file for six years, mortgage companies will be able to see you were once bankrupt for a great deal longer, and you will regret that.

As for someone saying they could get a bankrupty order against you, well I had to laugh, for what is probably by now less than 8K.

You don't sound worried. So I wouldn't worry.

D.

theartfullodger

the first lot who were running around like headless chickens that you dared not to pay. Ignore the first lot because they are mindless drones, as you may have noticed.

Someone's confident of their superiority:

cooltt

After lasts weeks absurd decision by currupt judges (who obviously look after their fat greedy friends) on bank charges, i think we should all just throw in the towel and refuse to pay anything.

It's a classic example of the rich feeding off the poor and it's been around for hundreds of years.

iolanthe07

After lasts weeks absurd decision by currupt judges

This is a very serious charge, even though you cannot spell the word 'corrupt'. Do you have any evidence to back up your opinion that the judges are in some way corrupt? The decision was perfectly reasonable, given that the overdrafts were unauthorised. Just because you don't like the decision doesn't mean it was a corrupt one.

danrogers

ohhhh come on... not corrupt? you say it like your still under the impression the banks or anyone in a position of power really cares about anybody or anything but money. thanks to our lovely government, now our childrens children are already slaves before their born and will probably have to work all their lives to pay for the greed of the banks. why would anybody stick up for these people. you know theres more debt in the world than there is physical money, therefore impossible to pay off. do you think these people work 12 hours a day 6 days a week just to keep a roof over their head and food on their plates? i dont. Personally i think this whole 'recession' was engineered, call me paranoid but dont you think its odd the only people to have benefited from it are the rich and powerfull