Basic Bank A/C's

up_the_creek_5

Hello

As you might know from prev threads i am carrying a massive un-secured debt. In addition a large portion of this debt is with my current bank (credit card & personal loan). At the moment all my payments are up-to-date & none have been missed. I will be contacting one of the advice charities soon. However, after reading the great advice on this site i was going to move my current a/c, i had decided to apply for a Co-op Cashminder a/c as this seemed to offer good facilities for a basic a/c & the Co-op is not linked to any of my other creditors.

However, i would appreciate clarification on a few points.

I do not want to go bankrupt & i can't go bankrupt because of my job (i am a Civil Servant in the MOD). I can never pay back the full amount owed (about 83K), however, i do want to pay back as much as i can. Also i have no real assets i do not own my own home (mother's house) & my car is twelve years old (i do need a car). Although i realise i still need to take advice, at the moment i think my best options are either an IVA or DMP.

Given these facts could any of my creditors force me into bankruptcy; surely they would rather get some money back via an IVA or DMP than as i understand it nothing with bankruptcy. Also if i did go bankrupt there is a good chance i could lose my job & my creditors will defintely get nothing if i am unemployed.

Consequently, as i understand it if was made to go bankrupt would my new basic a/c still be frozen while on the other hand if i stay with my current bank they could snatch all my money. I feel as if i am in a "catch 22" situation. Do i change a/c's now or not?

Any advice would be much appreciated.

sarah_skint

Hi Up The Creek, I May Have No Choice Of Going Bankrupt, I Was Told Yesterday That Their Are Clauses On Some Of My Unsecured Loans Which Say Even If I Go Bankrupt I Will Still Have To Pay(which Will Put Me Straight Back To The Start Of These Problems!) But I Have Been Told Also To Move My Bank As One Of The Loan Companies Is Tied With My Bank And That They Could Take The Money If I Default, I Have Just Cancelled All My Loan Direct Debits And Shall Await Default Letters Walts And All
Sarah

Zulu_Dawn

Hi Up the Creek


I am assuming you may be a gambler. If I am wrong then apologies.

I am a CG and I'm in a similar financial situation to you.

My advice

Contact CCCS or someone similar immediately. The longer you wait, the worse it will get. I am certain you will be able to get your interest frozen and substantially reduced payments. I had interest frozen and reduced payments for 12 months with MBNA with one phone call, a couple of days after speaking to CCCS.

I went to CCCS and was totally straight with them. They gave me excellent advice and I am working through it all currently.

If you are a Civil Servant and living at home with an old car, then I have no doubt that you will have a substantial amount of money going to meet your unsecured debts and the interest. If you can come up with a sensible plan, I have no doubt you will be able to tackle this debt.

If you are a gambler, visit the website or forum for Gordon House (look it up on Google). It is a great community and they will be able to help you with that part of your life. You must stop gambling if you want to sort your finances out.

There are only certain creditors that can put you into bankruptcy. If your debts are unsecured (which I suspect they are), there is really very little your creditors can do.

Finally don't worry. This site is great and there is loads of advice. You are not the only one to have gone "up the creek" and there is always a route back.

Good luck,

ZD

up_the_creek_5

Zulu_Dawn wrote:

Hi Up the Creek


I am assuming you may be a gambler. If I am wrong then apologies.

I am a CG and I'm in a similar financial situation to you.

My advice

Contact CCCS or someone similar immediately. The longer you wait, the worse it will get. I am certain you will be able to get your interest frozen and substantially reduced payments. I had interest frozen and reduced payments for 12 months with MBNA with one phone call, a couple of days after speaking to CCCS.

I went to CCCS and was totally straight with them. They gave me excellent advice and I am working through it all currently.

If you are a Civil Servant and living at home with an old car, then I have no doubt that you will have a substantial amount of money going to meet your unsecured debts and the interest. If you can come up with a sensible plan, I have no doubt you will be able to tackle this debt.

If you are a gambler, visit the website or forum for Gordon House (look it up on Google). It is a great community and they will be able to help you with that part of your life. You must stop gambling if you want to sort your finances out.

There are only certain creditors that can put you into bankruptcy. If your debts are unsecured (which I suspect they are), there is really very little your creditors can do.

Finally don't worry. This site is great and there is loads of advice. You are not the only one to have gone "up the creek" and there is always a route back.

Good luck,

Thanks for the advice.

I am not a gambler but i wish you all the best in getting it sorted out. One of my friends is a heavy gambler on the horses & i now the effect it has on him but he won't admit he has a problem. I now for a fact it has cost him two of his relationships.

Re:my situation, this has been brewing for years.I was basically using money from one creditor to make repayments to another & vice versa. I was transferring balances backwards & forwards, withdrawing cash on a credit card to make the repayment on the same card etc. The circle gets wider & interest rates are rising. I know this is my own fault but looking back i am amazed at how easy it was to do all this!

I also don't think i will be able to make that substantial an offer to my creditors. I do make quite a substantial contribution to the household buget my preliminary calculations indicate a surplus of only about £160pm.

I honestly have nothing to show for all this debt & am rapidly thinking that all my creditors can go to hell. However, i have to be realistic. I am going to contact my trade union debt helpline soon (they recommend Payplan), take the risk & open my basic a/c, i have applied for a cashplus Mastercard, & am changing my phone number( going X directory).

Thanks

up_the_creek_5

Sorry i think imessed up doing the quote.

Zulu_Dawn

Sorry mate.

I have to say that to have a job, live with your folks, get in such large debt and having nothing to show for it is incredibly impressive.

Anyway good luck with sorting it out and get that interest frozen asap. Even at 1% per month, it will be costing £10k per annum.

Cheers,

ZD