ignoring debt

EllieB_2

I owe £50k of credit debt. I have been ignoring my creditors for two years now, and they haven't done anything. I live in rented and have no assets. i'm not working. Am i doing the right thing or should I try and pay them something?

dancingfairy

Hi Ellie - ignoring debt is not normally the best way to go about things. Given the amount you owe and the fact you have no assets and no income I think I would be looking inot going bankrupt and giving yourself a fresh start from all these debts rather than having to continue to hide.
The main problem is going to be getting the fees together to go bankrupt.
I suggest having a chat with National Debtline, CCCS or your local CAB about things and consider bankruptcy.
Also post on the bankruptcy board on here as they can explain the process and tell you which part of the fess you will be exempt from (as on benefits) and also point you in the direction of some organisations which may help with the remainder of the fees.
Best of Luck
df

timbstoke

That depends on your view of 'right thing'. At 2 years, you have at least 4 years left for them to do something, and for £50K they're going to start getting pushy before long.

Practically speaking, the effects of ignoring it are this:

- You won't be able to get credit for 6-12 years - the debt will stay on your credit file for 6 years, and if they get a CCJ (which for 50K they almost certainly will) that stays on for another 6 years.
- you'll be on edge every time the door goes,
- you won't be able to buy a house (no credit, remember?),
- if you buy a car, you'll be constantly nervous about them seizing it.
- If you get another account, or a joint account with a partner that happens to be with the same institution, or one owned by the same group, you risk it being emptied under the setting off rules.
- If the joint account has an overdraft, they can take it to its limit, use the setting off rules to take the money from your partners account to pay off the joint account, and repeat.
- The CCJ can be enforced indefinitely, although after 6 years they have to explain to the court why it's taken them so long - easy if you're just ignoring them.
- Even after they stop chasing you, you'll probably still be on their radar, and if it ever flags up that you've bought a house, either on your own or with your partner, you can expect them to go to court for a charging order like a shot.

As a general rule of thumb, burying your head in the sand is a bad idea unless the debt is VERY close to the time limit. As dancingfairy said, bankruptcy is probably a far better route to look into.

CH27

Contact the CCCS for advice.