Are my creditors likely to make me bankrupt?

rentawitch

Apart from secured debts which I am generally managing to pay, I have approximately £26k of unsecured debt. The largest amount is just over £6,500.

An Insolvency practitioner wrote to all my unsecured creditors and offered them 10p in the £. Only two replied - both to say no and now I am being bombarded with letters and phone calls again. The number they seem to have is work. Everyone is telling them - including me that I am not allowed to take private calls at work and to write to me.

I have all sorts of letters threatening potential court cases.

The IP is saying they probably won't make me bankrupt as it costs too much for them to do so. What is anyone's experience of this here please? After a reasonable budget, checked with the IP I have £8 per month to pay creditors.

I cannot afford to make myself bankrupt. Both the properties I have are in negative equity and the let property has a very short lease so worth hardly anything.

Should I write to the creditors that contact me and tell them I can only afford £1 per month, or wait for them to take me to Court on the basis they may not do so?

Help! Not sure what to do for the best. Thank you in advance for any replies.

antonic

Have a look at the stickies here :

https://forums.moneysavingexpert.com/discussion/1056083

There is a letter you can send to your creditors telling them you will only deal with them by post.

Is one of your creditors your mortgage lender ? - if they are you may find it easier to save up the £700 to make yourself bankrupt, as if your behind on your mortgage, you may have your only assets (your houses) repossessed.

IF

Hi rentawitch and Welcome to the Bankruptcy (BR) Board. First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind. Your BR could be refused if you have not sought advice.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly bank accounts sticky.

BR Abbreviations

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

There are a number of charities that may help with bankruptcy costs and fees depending on eligibility. You will usually need the assistance of a recognised Debt charity in completing applications and be patient can take a while to process too.

• Severn Trent Trust Fund and other water trusts
• EDF Energy Trust
• Royal British Legion
• Some Trade Unions
  • Trades Union Congress
  • Union Finder from Worksmart
• Turn2Us enables you to search for charities
• ssafa (ex forces)
• payplan

Kimbles76, Thread is useful to know too - Click here

And if you think you qualify, form EX160 - Fee Remission Form (it saves you the £175 court fees)

Court fee remission and forms.

• HMCS - Court fees do you have to pay them? (The form and guidance on completing the fee remission form included). (pdf)
• Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)
• Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)
• Possible assistance with Bankruptcy costs / fees (Thanks to NE Derbyshire CAB)

There are 3 different types of fees remission, based on benefits, gross annual income and disposable income.

Best wishes
If...x

shedhead55

If you randomly browse the online public insolvency register looking for creditors bankruptcy petitions (as opposed to debtors petitions) you will see that it is generally only HMRC (who don't appear to work to normal business principals) who actually make debtors bankrupt. Without valuable assets to realise (such as equity in property) it would make little commercial sense for a creditor to start bankruptcy proceedings, if you ignore things then a CCJ is a more likely prospect but it's anyone's guess if or when they will take such action.

rentawitch

The creditors I refer to are all unsecured. I was with CCCS but then was referred to IP by my boss. I am really looking for a second opinion from people who have been through this. I have two properties in negative equity and I am presuming that my unsecured creditors would have to stand behind the building societies. I am paying the mortgages and my utilities. I 'earn' quite a lot but my expenses are very high too. Even with a really reasonable budget.
I am on porridge and mince! (not together). Thank you very much for suggestions. Shedhead - What will a County Court Judgement do? I don't have a credit rating any more and they can't make me pay what I don't have I believe?

If they took my car away, I would not be able to work and therefore there would be even less money. Also I can retire as early as next March at which point my annual income would be £12,000 BEFORE tax.
Kris

shedhead55

I don't want to scare you but if a creditor gets a CCJ against you it enables them to take enforcement action to collect the debt, and also prevents the debt from becoming statute barred which means they can take enforcement action at any time in the future, even the distant future.

There are costs to the creditor in bringing a CCJ which they will normally add to the balance of the debt, so their decision to take court action will depend on whether they consider they have a chance of recovering enough of the debt and costs to make it worthwhile.

PippaGirl_2

renta, do put up your SOA here and people will be able to offer advice and opinions.

If you chose BR, your car would be assessed to see whether it would be exempt. If the OR decides you need a car if the car is worth more than £1000 then would sell it and allow you £1000 of its sale value to purchase a different car. But as I say, your SOA up here would be a start.

fermi

Have any threatened bankruptcy? If so, who?

As said, very unlikely a creditor will do it for you. (With a few limited exceptions).

kation

Creditors will only usually BR you if:
1. The debt is insured (& they only collect after you are BR).
2. The think it is a good decision (you may have assets/equity).
3. They are vindictive (does happen!).

debtinfo

kation wrote: »

3. They are vindictive (does happen!).

That depends on who the creditor is, but the large international banks are less likely

rentawitch

Income
Salary after tax 2522
rent 700 but last month £29 and this month £208, next month £80 because of repairs, fees, etc.
3222
rent London 650
mortgage home 769
mortgage rental 620
Electric 62
Water 30
Insurance 52
tv 12
BT 30
mobile 20
council tax 88
food/house 300
cat food 50 (3)
food at work 80
service chge 85

petrol 225
road tax 3
insurance 28
breakdown 8
service 25
parking permit 10

hair 5 (trim once a quarter)
specs 17
emergencies 10
clothes 10 (charity shops)
birthday xmas gifts 5
entertainment 10

unsecured creditors £26,000 not paying at all at the moment
Personal debt owed to friend £1500
Roaming fees to Orange arrears £160
CT arrears on council property 52

I am nearly 61 and could retire when my state pension comes in next March and a very small private pension. I will have £12,000 before tax. Both properties are in negative equity and the rental property has a very short lease and I cannot afford to extend.

I think that is everything. I work in London, cannot get a job in Somerset. Live in Somerset thursday through Sunday nights. hence petrol there and back once a week. train/bus does not run at appropriate times and would be more expensive. I only run a Smart car which does 55 to the gallon and only has £30 per year road tax.

I think that is it. I may have forgotten something but I don't think so.

If I have left anything out, please let me know.