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Ruthbridge And Bankruptcy???

Hi,

First of all sorry if this is the wrong section.

Will try and give some background, many years ago, around 1999 I went overdrawn with the bank, was about £3000 I think, anyway long story short the debt was bought by Cabot Finance and I was paying them £1 a month, yes I know it would take me longer than my life to pay, but I don't actually like being in debt much and the view was to increase the amount when I was working. Anyway I moved from my old home about 4 years ago and changed bank account and completely forgot about this until I started receiving letters at my new house a few months ago.

Initially I ignored them, I never reply to letters that say urgent call us. Looked like Cabot had passed the debt to Ruthbridge.

But this morning I had a letter(one of many) from Ruthbridge Limited this morning starting without Prejudice and saying "you are hereby given notice that we intend to advise our client to commence bankruptcy proceedings against you"

Then they go on to say that they can offer me 50% off the balance if I pay now.

To be honest I am beside myself, I am not currently working, am a single parent with 2 children, there is no way in the world I could pay £3200 or even the 50% offer of £1600.

Its not going to be statute barred as I was paying them still about 4 years ago, and I don't know what to do. I could go back to offering them a £1 a month but I doubt they would take it. I dont own my house its rented.

I am really worried that I will lose everything in the house if they bankrupt me.

Any advice would be gratefully received thank you.

Regards
Jon

Comments

  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    edited 24 June 2011 pm30 12:12PM
    Jonj1611 wrote: »
    I am really worried that I will lose everything in the house if they bankrupt me.

    You usually wouldn't lose anything in the house.

    Honestly, if you are not working, only have an income as benefits, don't own any property, then it's not a threat that should be bothering you.

    If they made you bankrupt, they would just be shooting themselves massively in the foot, and they would have to pay nearly the £1,600 in fees to do so.

    They would be stark raving bonkers to make you bankrupt.

    They may threaten it as a tactic to scare you, but I can't imagine they would actually do it.

    If they completely lose the plot and try, they will be the only ones to lose out.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Jonj1611
    Jonj1611 Posts: 232 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Many thanks for your input and sorry for not replying sooner, I never got an email saying someone had responded.

    I haven't actually replied to any of their letters, to be honest I am not sure what to do, is it worth me replying and offering £10 a month or something or just leaving it?

    And there scare tactic worked, I have been panicking all day, not something I normally do about debts to be honest, I dont mind paying money off the debt, I am not trying to get out of it, just when the words bankruptcy are written, panic sets in.

    Additionally you are correct, I am unemployed, single parent with 2 kids, I don't own any property or have anything valuable and my only income is benefits.

    Many Thanks & Regards
    Jon
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    That is the idea. It's designed to "scare" you.

    I would just keep paying their "client"/Cabot what you can afford and no more.

    If they are really dumb and go for bankruptcy, then that is up to them. It would remove the burden of the debt from you, so "hey", so what?
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Jonj1611
    Jonj1611 Posts: 232 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks for the advice Fermi, I will write to them and offer a payment, because they dont actually know I'm not working or anything else, so will make sure they know!

    The payments to Cabot stopped when I changed my bank account a couple of years ago, and only recently this other company has written to me, I guess I respond to Ruthbridge?

    Regards
    Jon
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    edited 24 June 2011 pm30 3:17PM
    Ah! I though you were still paying Cabot.

    Yes, make the offer of token payments to whoever is writing now.

    They can either accept it or go to court. Either way, they can't force you to pay what you don't have.

    When you right to them you can quote the relevant OFT guidelines.

    See this link: https://forums.moneysavingexpert.com/discussion/2992820

    In this case, the most relevant one is.
    Physical/psychological harassment

    2.5 Putting pressure on debtors or third parties is considered to be oppressive.

    2.6 Examples of unfair practices are as follows:

    f. pressurising debtors to pay in full, in unreasonably large instalments, or to increase payments when they are unable to do so
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Jonj1611
    Jonj1611 Posts: 232 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thank you so much Fermi for your help and understanding, will write to them tonight and send it registered post tomorrow.

    Thank you once again, its really appreciated.

    Regards
    Jon
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