How to default quickest way?

tomsanderson617

Cut a long story short I have large credit card balances which I know I will not be able to pay.

I have stopped even making the minimum payments and have contacted them saying with the cuts the government are bringing in I am sorry but there is no chance I will be able to pay, I will have to default.

I do not want to go bankrupt its only several thousand what other options are available to me?

FireWyrm

You're approaching this the wrong way around. By issuing an ultimatum without any discussion or negotiation just annoys people and you really need them on your side right now.

First thing, post an SOA. Chances are, we can make some suggestions. Secondly, you need to write to your creditors enclosing an amended SOA and stating what you CAN pay and why. This is likely to trigger their collections process and will be put into the hands of a department empowered to negotiate and help you resolve this amicably. Otherwise, they will simply pass it to a commercial DCA who will be less inclined to follow the law and will most likely simply harass you into paying, all the while adding additional charges to the debt. The outcome of that will be an overall harder time of clearing this up.

Mara69

tomsanderson617 wrote: »

I do not want to go bankrupt its only several thousand what other options are available to me?

IVA, DRO, leave the country.....

[Deleted User]

A payment arrangement could be a good start. You will pay what you can afford in theory (if it's enough)

I doubt you can do the above if it's in the low 100's

But with the way you have posted, I'd suggest you need some support from a debt charity. Some kind folk here will be allong soon to tell you who to call

Good Luck, you will get it sorted

chanz4

tomsanderson617 wrote: »

Cut a long story short I have large credit card balances which I know I will not be able to pay.

I have stopped even making the minimum payments and have contacted them saying with the cuts the government are bringing in I am sorry but there is no chance I will be able to pay, I will have to default.

I do not want to go bankrupt its only several thousand what other options are available to me?

if a dca buys it, over 750 they can force you bankrupt

tomsanderson617

FireWyrm wrote: »

they will simply pass it to a commercial DCA who will be less inclined to follow the law and will most likely simply harass you into paying, all the while adding additional charges to the debt. The outcome of that will be an overall harder time of clearing this up.

If they are less inclined to follow the law then that is in my favour, any harassment or any contact with friends or family and will threaten them with a lawsuit.

I want to speed things up, if the next step is to trigger their collections process, then when they send someone round baliffs or whatever they will soon see we are living only just above the poverty line.

The law says they are not allowed to take necessaties and thats all we have.

What comes next after they find there is nothing they can take?

tomsanderson617

chanz4 wrote: »

if a dca buys it, over 750 they can force you bankrupt

No way could someone declare bankruptcy for a debt of 750?

Mine is 10x that, so maybe it is my best option.

How long does it take these days to get discharged?

downnotout

As above, I dont think it's a good idea to contact the cc company and telling the your not going to pay because of the government cuts. It would be more productive in explaining to them that you are struggling to make the minimum payments. They may freeze interest and offer lower monthly payment amounts. If your debt is more than £750 then they can force you in to bankruptcy, however this is very unlikely. The cc will only be interested in getting there money back, and they will either be helpful if you play ball with them or they will pass it on to a dca. Either way the will default you, and when they do this will be likely to be at their discresion.

withabix

tomsanderson617 wrote: »

have contacted them saying with the cuts the government are bringing in I am sorry but there is no chance I will be able to pay, I will have to default.

What have the 'government cuts' got to do with your credit card debt?

The first cuts that are necessary are the scissors on your cards.

fatbelly

You need proper advice. You could post a statement of affairs here and we could have a look at it.

Or contact National Debtline, CCCS, Payplan, CAB...

All these are regarded as 'Competent Authorities' for Debt Relief Orders so if that is the most suitable option they can do one for a fixed fee of £90.

Alternatively they can advise on other strategies and do not charge a fee if you end up with a debt management plan.

Max_Maxwell

tomsanderson617 wrote: »

I have stopped even making the minimum payments and have contacted them saying with the cuts the government are bringing in I am sorry but there is no chance I will be able to pay, I will have to default.

Listen to FireWyrm, you're not in a position to offer ultimatums. Your reaction to the position you find yourself in is normal; we've all been there. But it's a 'knee-jerk' reaction to something you feel powerless to resolve.

I don't doubt you are unable to meet your minimum payments but you must show a willingness to try to resolve the situation. Be honest with your creditors and demonstrate that although you cannot repay the expected amount, you can pay something and pay it... every month.

This won't fix your debt position and it's likely you will have to default at some point but you're more likely to find a way through by being pro-active with your creditors. Even if it's just to buy you some time to get your 'ducks in a row'.

Your lenders have a code of practice to assist lenders in financial difficulty. Use it, but only by playing fair.