creditors are going to bankrupt us.

T.J_5

We've made offers of payment before it went to these security people. They were all refused. What else am i supposed to do? If they'd helped us when my husband first had his accident things woldn't be like they are now. We never missed a payment, never went overdrawn and always had *some* money in our account. There is effectively about 3k of that debt that we shouldn't have to pay. It's for an insurance we never used. I'm so angry now. All this could have been avoided had they just helped.

madduck

Hi TJ

Just a message of support. You're going through a really tough time just now. Don't let them grind you down. It is easy enough for me to say I know, but I've been where you are with all sorts of threats being made to me by debt collectors.

I'm on a DMP with CCCS and even though I've been on the plan for a couple of years, I still get periods of time when they crawl out of the woodwork to rattle my cage. Big difference is that now I know of this site (wish I had 2 years ago when I was on the verge of a nervous breakdown).

You said in your last post that you had made offers of payment before - have you continued to make payments even though they were unhappy with the level of payment being offered. A few of my creditors weren't happy at first with the amounts being offered, but I continued to pay. After a while they eventually accepted the amounts and went away (for a while anyway).

T.J_5

The problem we have with the large loan is we have no way of making a payment to them. To be honest the way i'm feeling at the moment, they can go ahead and bankrupt us. What's the point in trying to fight it. We haven't got anything worth monetary value. We don't go on holidays, i don't own any designer clothes, neither does my hubby or the kids. My jewellry(2 necklaces and a bracelet) is all costume stuff except my wedding and engagement ring. We don't live an extravagant lifestyle. My husband and i haven't had a night out together in 2 years. We're simply trying to live. What are they realistically going to gain? We're just a family. They're a big company with expensive lawyers. We can't fight that.

Cumbrian_Male

Don't worry about it just ring them and give them your client reference number from the CCCS and forward the new creditor information to CCCS to amend payment details.

It costs the creditor money to file for your bankruptcy so without sufficient assets they won't bother. It's just bully boy tactics.

Now go read about reclaiming bank charges and cancelling PPI. Hit LLoyds with your own claims of illegal charges applied to your account and mis-selling of insurance.

PS I'm with CCCS and Nationwide are taking me to court, so will update you with what they say. Just filled in the paperwork offering the same payment as under my DMP, if they don't accept the the judge will decide how much they get.

rog2

Hi TJ - I've just seen this thread as I've been out all day. First of all, I would like to echo most of the good advice, already given - especially the advice to have a read through the Bankruptcy Club thread.
Secondly - let's look at the situation: You have been contacted by a company that say they intend to serve a 'statutory demand' if you do not pay within 7 days. To me that sounds more like the kind of 'bullying tactics' that Debt Collection Agencies use, in order to 'frighten' more money out of you. Yes a creditor CAN serve a statutory notice and CAN petition for your bankruptcy, but, in practice, this seldom happens if you are in a DMP managed by CCCS or PAYPLAN, which would be taken into account by the judge, and, in any case there would be significant costs, to the creditor, in petitioning for your bankruptcy, which he would have no guarantee of recouping. NEITHER would he get any preferential treatment over your other creditors.
If your debt situation is 'hopeless' then it may even work to your advantage to have a creditor petition for your bankruptcy, as you would not have to find the up-front fees yourself.
On a more positive side, you have few assetts, you do not own your own home (you would be extremely unlikely to be evicted from a council house) so br may well be a solution to your debt problem. Okay - you won't get credit for 6 years, but, by the sound of it, your credit rating is already shot for the next 6 years anyway.
As previously suggested - have a look on the bankruptcy club thread and see how others, myself included, have coped with bankruptcy and are still around to tell the tale - it is not the end of the world.
Good luck
Rog2

madduck

The only possible weakness I can see is that you don't seem to be making any payment on your large loan at all at the moment (if I've understood your response correctly). You say that there is no way for you to make a payment to them. Is that because your DMP is not yet finalised?

Once it is in place, CCCS will make the payments directly to the creditors for you. Prior to my DMP going into action I was advised to make token payments to creditors (even if it was just £1 per month).

As Rog2 says above, in many cases creditors will threaten you with allsorts. However, if you are on a DMP and can put forward your SOA the most likely outcome is that the judge will confirm levels of payment at the same level as the DMP.

I suppose the danger in not paying anything (although you may be tempted because of the behaviour of the creditor) is that it might put you in a weaker position if it comes to court. What do others think?

makingendsmeet_2

OP fill the forms in online at the insolvency website. Pay your £475. You will no doubt be discharged in 3-6 months 12 max. You say you don't go on holiday. Bankruptcy allow a budget for holidays where as DMP doesn't.

mumofflo

your post was a few days ago i hope you're feeling better by now! I went bankrupt voluntarily three years ago and it seems like in your situation, where you have no real assets, it would be the best thing to do. Your credit rating will be effected for some time, but it will be anyway by the arrangements you currently have.
The Insolvency Service are remarkably helpful people in my experience (also now work for CAB so have frequent contact!). They do allow you a reasonable standard of living plus around 50% of any excess income they feel you have. With regard to the car, i was told by them recently that they wouldn't look at seizing any vehicle with a value of less than around £2k. If they did then they would have to sell it and give you some of the money back, enough to buy you a reasonable replacement. As you have a disabled child then you obviously need something realiable and i really cannot see them taking the car from you. As far as i know, when it comes to electrical goods they take the same approach - i.e. selling a few portable TVs is not going to raise enough revenue to justify it. If you had a 32" flat screen or a state of the art hi-fi system then yes they would probably take that. they cannot take anything that you need for general household/day to day use - it's not like the old days when they would come and take the chairs from under you.
So if someone is good enough to cover the bankruptcy fees for you, and stop all these threatening letters (they're not quite so bullying with the IS) then you might just find you can finally breathe a sigh of relief, forget about these stupid creditors and start getting your life back on track.
Good Luck!

THE_LONE_RANGER_4

make you bankrupt yes of course? i think not... you have nothing you will go to court might ?a judge will not bankrupt? 95% he will not ... if it is possible for you to repay no matter how small you will be allowed to do so... you infact should decide should you go bust make a choice repay slowly or bust ?

piggeh

I would say, if you don't hae any assets (especially a house), then bankruptcy is a good option. Obviously it's best to speak to the CCCS and see what they say, but... you will have to pay an amount for 3 years, maybe (possibly less), your creditors will be off your back, and you will be able to see the light at the end of the tunnel (ie in 6 years times, when the bankruptcy falls off your credit file). In more practical terms, after a year you can get back to leading a fairly 'normal' life.

Your alternative is to set up a DMP with the CCCS or Payplan and gradually pay them off with what you can afford. No bankruptcy on your file, but it will take much more than 6 years to pay it off anyway, and your credit will be affected in the meantime regardless!

What is important to realise is that it is YOUR decision, and they are very unlikely to be able to do anytihng themselves as long as you give it the attention it deserves and come to a decision on how to deal with it.

Personally I had few assets when I went bankrupt, and it would have taken me about 10 years to pay back all the creditors. Why pay for 10 years when it can be over in 6, and with the creditors finally off your backs? It's a massive relief to have them stop harrassing you and to know where things stand.

Good luck.