What do we tell creditors?

Maxnana

Hi,

We need to start the process of cancelling direct debits/stopping payments to our mortgage and 2nd mortgage companies, IVA, creditors etc. so as we can save the money for a deposit and rent on a house and bankruptcy fees prior to handing back the keys to our home and then going bankrupt.

I'm wondering though what we tell the creditors when they conatct us to say they've not been paid? I don't suppose 'sorry, but we're saving up for a deposit, rent and bankruptcy, so can't pay you' will be appropriate?

And anyway, if we say this to the mortgage companies, won't they start repo proceedings quicker? It's just that we haven't found a rental property yet, and don't want to get evicted before we do! But obviously we need to start saving asap.

Any ideas on what we should say to them?

Thank you.

System

Tell 'em nothing.

Maxnana

messedupmoney wrote: »

Tell 'em nothing.

But they will phone and ask why we've not paid and ask us to pay, so we will have to say something surely?

System

Only if you answer the phone to them!

rossireps

personally nothing
i wouldnt talk to creditors on the phone only ever in writing. hopefully someone will have more of an idea what you can say in writing. as i paid token payments so am unsure.

mcfisco

Get yourself a new PAYG mobile, give only friends and family the number

Unplug the landline

Rmeek

We didn't go bankrupt but did a full and final settlement IVA. We unplugged the home phone and as we were on monthly contract mobile phones we added call blocker applications and so were able to block calls from numbers that we knew were creditors. You can ring them and inform them you are going bankrupt but they will still chase your for payment or part-payment until the order is in place. I would just ignore them to be honest, it won't be long before they find out what is going on. This is a good article on the subject Bankruptcy and Informing Creditors

Maizy

Maxnana

Just ignore the calls (not sure about IVA's though, or if you have any legal obligations to the creditors in this case). If not, just ignore all the calls as hard as it is. We didnt contact a single creditor and sent the key back to the mortgage company after BR by which point all the creditors had received their letters from the OR and stopped calling. We did speak to a couple of creditors who persistently called after BR but as soon as they had the info, not a single call has come through so as far as we are concerned its done and dusted with them.

Remember there are plenty of others who are going through the same thing, the companies are used to this so as hard as it is when the phone rings off the hook you are going to have to find ways to ignore them and the letters, such as unplugging the phone. I wouldnt mention BR to any of them either, just take steps to do the deed if that is what you have decided and put yourselves first to ensure its as smooth as possible. Good luck.

debt_doctor

All the above is spot on as far as I'm concerned.

You could send them a letter and financial statement showing you are struggling, but otherwise.................

You need to put a complete barrier to your creditors and get on with the task in hand. Put an answer machine on, change your sim card, do whatever it takes- dont play the creditors game, the situation is too late for 'negotiation'- keep your distance from your creditors and gain some relative peace.

DD

nuttyp

Make sure that you dont bank with an off your creditors, they are able to take the cash from your account even if you have directly paid them, eg i had santander credit card and loan, main bank account with them also - so got a very basic bank account and had wages payed in there at barcleys. I did inform the OR that i hada new bank account on the day of BR, but it didnt have any cash in - i drew it out the day before just in case.