Naughty with Credit Card debt but it had to be done

moneysaver599

Don't want to be mean or smug but didn't want anyone else to get any silly ideas! Just wanted to add -

I've worked in debt recovery, if I came across this case you'd be given 12-18 months to sort out your financies and make sensible repayments i.e debt paid off in 2-5 years. As a home owner, the next step would be an Inhibition (attachment in England) to stop you selling the house until the debt is settled. We would then look at bank arrestment - usually very effective with self employed person as the balance in the account can be high at times even though it is not a fixed income. As for saving £6k, anything over around £400.00 will be attached and you will have to sign a mandate to release it. As self-employed, you are not exempt from earnings arrestment (attachment of earnings orders) either - these can be served on contractors you are working for regardless of whether you are employed by them or work on a self-employed basis. And it doesn't matter what the type of work is (we've done it from self-employed plumbers to taxi drivers). If all this fails, Sequestration(bankruptcy) would be the normal way forward.

I hope you manage to sort something out with the Credit Card companies before any of this happens. Perhaps posting a Statement of Affairs in the debt free wannabee section would be a start?

DGJsaver

bankruptcy ? on 7.5k...?

NPowerUser

moneysaver599 wrote: »

Don't want to be mean or smug but didn't want anyone else to get any silly ideas! Just wanted to add -

I've worked in debt recovery, if I came across this case you'd be given 12-18 months to sort out your financies and make sensible repayments i.e debt paid off in 2-5 years. As a home owner, the next step would be an Inhibition (attachment in England) to stop you selling the house until the debt is settled. We would then look at bank arrestment - usually very effective with self employed person as the balance in the account can be high at times even though it is not a fixed income. As for saving £6k, anything over around £400.00 will be attached and you will have to sign a mandate to release it. As self-employed, you are not exempt from earnings arrestment (attachment of earnings orders) either - these can be served on contractors you are working for regardless of whether you are employed by them or work on a self-employed basis. And it doesn't matter what the type of work is (we've done it from self-employed plumbers to taxi drivers). If all this fails, Sequestration(bankruptcy) would be the normal way forward.

I hope you manage to sort something out with the Credit Card companies before any of this happens. Perhaps posting a Statement of Affairs in the debt free wannabee section would be a start?

I would never keep 6K in a bank account, too easy to trace. Cash is king.

I might be able to blag it for 2 years, seeing as the repayment agreement has only just come into force this month, I have been living here 3 months already and in theory I could aim to put the house on the market July/August 2011 with a view to trying to secure a sale and move December 2011/January 2012.

Progressive offers to increase monthly payments every 6 months should work, we will have to wait and see. Sounds like just keeping enough in my bank account to pay the bills is the way forward.

I didn't realise that if I had debt less than 5K in my name, ditto for my OH, that I could be made bankrupt, blimey? :eek:

DGJsaver

It cost the creditor about £1500 to bankrupt you , thats why `im dubious on the other posters comments

NPowerUser

DGJsaver wrote: »

It cost the creditor about £1500 to bankrupt you , thats why `im dubious on the other posters comments

Sorry I meant to say "unsecured debt" of less than 5K each in our own names.

They seemed very quick to accept my repayment offer without seeing any proof of income etc.

NPowerUser

I know my actions have tarnished our credit files for many years to come.

As I had notified the bank and cc company of my change of address and all cc statements were addressed to my new address, will they stick some sort of black mark against my old address?

CannyJock

NPowerUser wrote: »

I know my actions have tarnished our credit files for many years to come.

As I had notified the bank and cc company of my change of address and all cc statements were addressed to my new address, will they stick some sort of black mark against my old address?

Why would you care if you don't live there any more?

NPowerUser

CannyJock wrote: »

Why would you care if you don't live there any more?

Because I have an American Express Platinum Card and a Capital One Credit Card with a combined limit of £5,500 with nothing owing still registered at my old address.

There for the odd emergency but I really don't want to use them but AE charge me if I don't use the card at least once a year.

My plan was to continue the post office mail forwarding, extend the mail forwarding when the first 6 months are up.

CannyJock

Any reason not to call them and update your address?

And didn't you already say that you know how the system works?

NPowerUser

CannyJock wrote: »

Any reason not to call them and update your address?

And didn't you already say that you know how the system works?

It terms of repayment, in terms of not paying them any interest.

I thought mail forwarding for as long as possible then a quick change of address to my mothers address so I have 2 credit cards to fall back on over the next 10 years whilst I wait for my credit to repair itself?