The dreaded 1st thread!

KrazyKeeper

Good morning everyone,

Hopefully someone can give me some advice, basically I have 3 unsecured debts that have gone to DCAs (Apex, 1st Credit & Westcot) totalling just under £3500, I have been paying money to these companies somewhat sporadically and making payment plans then making a couple of payments then breaking them (Not good i know)

The problem im having is that 1st Credit and Apex are threatening me with court action to make me bankrupt because I have failed to make payments Apex just sent me a letter from their solicitors and 1st Credit rang earlier and they wouldn't set-up new payment plan because I've broken to many in the past so she would refer my account to their solicitors. Westcot are happy for the moment im paying them £30 a month but go a payment on the 15th and my bank balance is £1!! I do have a £10 overdraft so need £20 by then and one less to worry about at least.

I've done a SOA and don't know what to do next. Ideally I would like to set-up a new payment plans but 1st Credit said no. :mad:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 260
Other income............................ 0
Total monthly income.................... 260

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 80
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 0
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 130


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Apex...........................777.......0.........0
1st Credit.....................1480......0.........0
Westcot........................1215......0.........0
Total unsecured debts..........3472......0.........-


Monthly Budget Summary
Total monthly income.................... 260
Expenses (including HP & secured debts). 130
Available for debt repayments........... 130
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 130

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,472
Net Assets.............................. -3,472

Marisco

Hi KK, welcome to the boards. Do you live at home with your parents? And is the £80pm board? Are you on JSA? What you should do is write (never phone and don't give them your phone number!) to them enclosing a SOA (statement of affairs) and explaining that you can only afford to pay £1pm. Also say that when you get work you will review the situation, with a view to paying more. Be prepared for a deluge of letters threatening all sorts, but even if they go to court for a CCJ, it's highly unlikely that a court will award them any more when you are on JSA. However, you MUST keep up your payments, so it might be an idea to set up a SO (standing order, not DD as you are in control of how much is paid) on the day your JSA goes into your account. Your credit rating will be shot, but at least they will see you are making the effort! Good luck.

KrazyKeeper

Hi Marisco, thanks for the reply, I'm living with my mum again now so 80 is for board. I'm on income-based JSA, not really bothered about my credit rating at the min probably won't get credit again anyway!! Is there a template letter to send to the DCAs? what happens if they don't accept £1 per month?
Thanks

podperson

Hi Krazykeeper,

I would perhaps suggest keeping a spending diary to see where your money is going. According to your soa you should have half your income free at the end of the month but since you are struggling to keep up with payments to the debts I'm guessing this is not the case. You haven't added anything for food and your entertainment is quite low so maybe in these areas?
As Marisco said if you write to them and say you are on jsa they will generally have to accept £1 a month as this is all a court will make them pay (some of them may not like it but don't get into debate with them). Although since you should have money spare it might be worth offering more so you are at least making a dent in the debts, if you do decide to do that make sure it is an amount you are sure you can afford and therefore will be able to stick to.

Marisco

They will accept - eventually!!! You'll have to jump through hoops though:mad: What will probably happen is that you will get millions of letters threatening the Plagues of Egypt on you;) But just reply and reiterate that as you are on JSA, you cannot afford any more. If they do take you to court, the court will not make you pay what you cannot afford. In my experience, courts tend to be more sensible and will only award what you can afford. Write as soon as possible, so if it does go to court they will see that you have made an effort to get to grips with the situation.
I don't know if there is a template letter on the boards, if there is someone will be along to point you in the right direction, but something along the lines of:

Your address

Date
Ref No xxxxxxxxxx


Dear Sir
I am writing with reference to the above account. I am at present unable to pay the required amount, as I am in receipt of JSA, which is £xxpw paid every fortnight.
Please find enclose Statement of Affairs and payment of £1 which constitutes payment for the first month. I should be grateful if you could send me you bank/payment account details, so that I can set up a payment schedule with my bank.
I am currently seeking employment, should I be successful, I will then be in a position to increase my payments.

Yours faithfully

Your signature (but sign it with a different font, don't sign with your usual sig, it's not unknown for these people to add a sig to documents you've never seen:eek:)

Something along those lines should do it, and when they start huffin' and puffin' - which they will:mad: - just keep repeating that you cannot afford any more! And send all letters by recorded delivery or registered post. Keep all letters so you have a record. Most important, keep up the payments, it gives them less ammunition if it goes to court if they can see you have been making the effort. And even more important - don't worry, I know its easier said than done, but they can't have what you haven't got!!:)

KrazyKeeper

Thanks for that Marisco, I'm just going to send these off today and see what they say!!

Thanks for the advice podperson, i am going to start a spending diary, I quit smoking on Monday so have been wasting quite a bit of money on that, but got some patches off the GP so hopefully stay quit!! (I did have a big monthly expense on something else as well but this no longer an issue and don't really want to discuss it here!).

I'm going to offer them all £10 a month though so hopefully they will accept that, I will let you know what happens!

KrazyKeeper

just an update, 2 out of 3 of my creditors have accepted my monthly payment apart from wescot who haven't bothered to reply! so just paid it through their website.
Now to get a job and pay more meaningful amounts and get theses debts cleared!!

on a side note, 1stcredit send me every letter 2 or 3 times! (including a default notice 3 days before payment plan was due to start) at least i get a free envelope in every letter they send