What do I tell the lenders when they call?

Poorcouple

Hi all,
My partner has debt amounting to just over £20k.
It is all in her name and we rent a property.
We have been living off of credit cards for day to day essentials as our outgoing payments are around £750 a month, just on loan payments.
We went through a SoA with our bank, who confirmed that our outgoings are more than income at the moment...

My partner and I have just found out she is pregnant which is brilliant news for us. Unfortunately, when she has the baby, her income will drop to SMP for 12 months.

We have already looked at consolidation loans (refused) and without the baby and drop of income itll create, we will still be paying out more than we get in.

We've decided to go the bankruptcy route, as the debt is all in her name she can apply solely.

However, we had to cancel our DD's to our creditors today, as we had arrears in rent payments, which has resulted in a phone call asking what is happening. I said they'll need to speak to the person whose name the debt is in and will get her to call them back.

What do we tell them? Do we come clean and tell them what we're doing or just ignore them?

It'll be at least 4 weeks until we have the money for court fees, and we're worried they'll keep calling us at home and work.

Advice welcome!

alastairq

hello...and welcome.

Unfortunately, the phone calls and letters will only increase.

Ignore them if you wish...with no assets there is little a creditor can do, other than, eventually, default the account, and.. eventually. apply for a CCJ.

I am glad to see you were refused loan consolidation..this is not the way to go...merely making matters worse, in the end.

It appears you are both currently insolvent.

You need to firstly, contact and speak to one of the debt charities such as CAB, Stepchange or others listed in the stickies above.

This is essential..to prove your partner has a genuine understanding of what option there are...and what bankruptcy means, and the responsibilities attached.

In Court, your partner will be asked if she has sought advice..and is aware, etc.

There is nothing to 'come clean' about with creditors...don't mention BR to them, as they will only become more agitated.

Ensure all essential bills are met, first and foremost..rent, CT, TV, phone, leccy, etc...not forgetting any insurance [aside from life insurance, on your partner's part].

Also food, etc.


As far as creditors are concerned, simply pay each one a token payment,each month..usually one pound.

[this is to prove to a Court....should the need arise, that you have the intention to pay]

Do not try to pay one creditor more than any other, as this is forbidden under BR rules.

If phone calls [especially to work] are a nuisance, simply write to each creditor, stating you will only communicate by letter in future.

Change your mobile numbers if need be.


In preparation for what might be inevitable [BR?}....open a basic account or two with either Co-op [Cashminder] or Barclays.

These two are BR-tolerant.

Others are not.

Co-op will not open a Cashminder after a BR, if undischarged, so get it done before BR.

This will have the effect of moving all your income away from creditors.

ABove all, cease payment of all non-essential debts.

Focus your current income on essential bills, and day-to-day living expenses.


ANd keep coming back on here for advice and support?

tigerfeet2006

Also make sure you have no joint accounts as her BR will then affect you.

If you go for a Cashminder account don't tell them you are going BR.

Ring the debt charities in the Look Here First sticky and get proper advice.

OutofDebt-NOT-OutofDanger

You will get phone calls from creditors.

I found the way to handle them was to say that you are seeking advice from a debt charity/CAB and request that they hold all contact for 30 days (generally 30 days is the most they will hold contact for). Most companies will do this and by the time they do get round to calling you again you could already be BR or possibly stall them again until you are BR.

Do not tell them that you are going BR as they will only increase the number of phone calls as they will be desperate to get any money at all from you.

KaiserBill

I would say that you need advice - but in a broader sense.

I think you should speak to the CAB,or one of the other organisations. I did when I was in your situation and they were a big help to me in many ways.


Good luck.

Poorcouple

Thanks for the advice.
She has moved her pay details to my account, so as to not let them take it from her without her consent.
Is this ok? It's not technically a joint account...

tigerfeet2006

Yes that will be fine. This is the post I usually pop up for newbies but couldn't earlier as I was on my phone.

Hi 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)
StepChange (formerly CCCS) - Website: StepChange 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 take your time and weigh up your options and read everything you can.

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.

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

BR friendly home insurance thread.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Beth's Guide Reasons for your BR

Charities who help with BR Fees

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

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.

All the best TFx

ETA: safafafarafamumble the hyper links aren't working on my iPad. Bear with me while a find something useful.

tigerfeet2006

Right have a look at IfWishes post on this thread https://forums.moneysavingexpert.com/discussion/4528539

Same post but with working hyper links.

Poorcouple

Thanks all, one more question I can immediately think of....
With the SoA, do we include ONLY her outgoings and ONLY her income?
Or do we include mine as well?
I.e, Im taking ownership of her car (and the debt that goes with it) as we have 3 children, and one on the way, plus my partner works 7 miles from home on a busy carriageway without a bus route.
We need the car, so by transferring it into my name should help us keep it.
(Unless we need to declare that too? I also have £3k on credit cards, but am paying those off, and after BR will be able to make steady and consistent payments without having to use the cards)

debt_doctor

All transferring the log book will do is bring suspicion. Also the registered keeper is not neccessarily the legal owner.
If bankrupt owns a car then they will lose it unless they can prove it is an exempt asset. If proven exempt, then if the vehicle is worth more than £1000 it could be sold and £1000 given back to the bankrupt to purchase another vehicle.

DD

Poorcouple

debt_doctor wrote: »

All transferring the log book will do is bring suspicion. Also the registered keeper is not neccessarily the legal owner.
If bankrupt owns a car then they will lose it unless they can prove it is an exempt asset. If proven exempt, then if the vehicle is worth more than £1000 it could be sold and £1000 given back to the bankrupt to purchase another vehicle.

DD

Thanks, but we have only just bought the car and no payments have yet been made. The car is worth less than £1000.

I was thinking, that selling the car would mean the money would go back to the creditor. (My mother)
But if she transfers ownership to myself, and I make payments, then the car belongs to me.

I'm paying for it.
???