Help n suggestions plz

Angel143

Dear All,

Six months back I have lost my full time job. Been unemployed for 6 months I have used all my creditcards n loans as source of living.

Recently got a job but I have about 50k debt and its becoming impossible to pay the bills.

So I just stopped paying everything .. Took a basic new account n moved house n changed phone numbers.

I Donno what to do???
Is there any thing I could do ??
After all my expenses I'm having just £100 pounds every month which am happy to pay my creditors(about 14 of them) but I'm sure none of them coz minimum payment on all accounts comes to around £500 a month.

Any suggestions plz?
Also I have no assets on me.. No house.. No car .. Noting just a tv n some clothes...

What happens if I don't pay??will they trace me?? If so what happens ??
Will they come n threathen at my work??

adpod

Angel143 wrote: »

Dear All,

Six months back I have lost my full time job. Been unemployed for 6 months I have used all my creditcards n loans as source of living.

Recently got a job but I have about 50k debt and its becoming impossible to pay the bills.

So I just stopped paying everything .. Took a basic new account n moved house n changed phone numbers.

I Donno what to do???
Is there any thing I could do ??
After all my expenses I'm having just £100 pounds every month which am happy to pay my creditors(about 14 of them) but I'm sure none of them coz minimum payment on all accounts comes to around £500 a month.

Any suggestions plz?
Also I have no assets on me.. No house.. No car .. Noting just a tv n some clothes...

What happens if I don't pay??will they trace me?? If so what happens ??
Will they come n threathen at my work??

I would contact your creditors and tell then your situation they may offer you a repayment plan , there is no point hiding because they will always find you.

Also look into an IVA it may be a good solution too.

caffsean

hiya, speak to stepchange (formerly the cccs) they are fantastic, non judgemental and will try to help you as much as they possibley can. It was the best thing i did speaking to them when we needed help.

tigerfeet2006

Hi and Welcome to the Bankruptcy (BR) Board.

The 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 you are not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two 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.

Please don’t do anything rash make sure you take your time and weigh up your options and read everything you can.

For ‘essential’ BR info this is Fermi’s sticky.

BR friendly home insurance thread.

BR Friendly bank accounts sticky.

BR Abbreviations.

We often ask you to post your SOA so we can see if you have included what you need to:-
MSE SOA Calculator - Click here Select the MSE format at the end. Copy and paste onto your thread.


If you are new/old to this board and receive/see a comment that is not helpful or insensitive please don’t let it put you off posting, often these comments are made by people who don’t normally contribute to this board and don’t speak for us.

What to do if you get an insensitive or hurtful comment.


And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes TFx

Ms_Survivor

Angel143 wrote: »

Dear All,

Six months back I have lost my full time job. Been unemployed for 6 months I have used all my creditcards n loans as source of living.

Recently got a job but I have about 50k debt and its becoming impossible to pay the bills.

So I just stopped paying everything .. Took a basic new account n moved house n changed phone numbers.

I Donno what to do???
Is there any thing I could do ??
After all my expenses I'm having just £100 pounds every month which am happy to pay my creditors(about 14 of them) but I'm sure none of them coz minimum payment on all accounts comes to around £500 a month.

Any suggestions plz?
Also I have no assets on me.. No house.. No car .. Noting just a tv n some clothes...

What happens if I don't pay??will they trace me?? If so what happens ??
Will they come n threathen at my work??

Hey

Sounds familiar! I remember having a load of minimum payments at one stage totalling about £700 per month. I spoke to a Debt Advisor at Citizen's Advice & they negotiated for me & got me paying back about £250, which I could afford at that time.

After more changes in circumstances, I took advice from Christians Against Poverty. They were great. I had no disposable income at all, & almost all my creditors accepted £1 per month & any letters etc I got I just had to send straight to CAP in a freepost envelope without even opening them. It took a lot that worry & uncertainty away.

There are links to both organisations in tigerfeet's earlier post.

I'm now in the bankruptcy process, which was the best advice in my particular case. But I know not everyone has to go down that road. And I mightn't have been able to myself if it hadn't been for the good advice & support that I was almost too afraid to ask for. And you really might have more options than you think if you get good professional advice. Equally, there's lots of self-help toolkits with template letters etc available if you are up for doing it all that way.

All the very best.

Ms S

capeverde

The nuts and bolts of the issue are that realistically you arent going to make any headway into paying down an amount of that size. Unless you win the lottery or have a history of landing jobs paying well over the average, you are simply delaying the inevitable by paying minimal amounts. Once your debts become of a certain size and assuming many of them are credit cards with high interest rates, its best to take the bull by the horns. Don't hide away, deal with things professionally and contact your creditors. Ultimately your credit history will be shot anyway, so is there any point in trying to pay back a couple of quid here and there? Do as the others say and listen to what people advise, but I feel given the situation you are in, bankruptcy would be the best option.

alastairq

With BR, I think most on here would admit they wish they'd done it sooner?



However, another 'advantage' of bankruptcy is that the individual can...in effect, chose to petition, in their own time.


The important part of the process is the initial decision that BR is the course of action that will be taken.

Even token payments become pointless.

[token payments are done so that, if a creditor goes to Court to seek a CCJ, the debtor can present argument in Court as to how much, and at what interval, the Court makes the re-payment Order. Token payments show a willingness on the part of the debtor to re-pay the debt. Unless, of course, the debt itself is being challenged or acknowledged?]


Once a decision about petitioning BR is made, one can devote one's entire income to simply paying essential bills and outgoings.


The day of the decision is the point at which one's life is turned around.


A bit like marriage and divorce?

The divorce process is simply that! Part of the process!

The real point of freedom occurs on the day we decide that the marriage is now over.

Until that day is arrived at, the whole thing is a very messy,traumatic experience.



****[ Returning to the BR petition..I would suggest that......if domestic property is owned/involved....then a BR petition done sooner, rather than later, is better.
Firstly because...if the petition is delayed, it may allow a creditor time to go to Court to place a Charge on the property. IN other words turning an unsecured debt into a secured debt.

Mr Mouse will correct me happily if I've over-simplified things?

Secondly, the property market is at a low in terms of house values....[but may be rising?]....so it could be time to take advantage of negative equity?