Can a creditor make me bankrupt?

DottyPiece1956

Hi all

I'm new to this forum so please excuse me if this has been asked before.

I have debts (all in my name) going back years and years, all are unsecured debts... credit cards and bank loans (£45K in total) up until 2 years ago I was on a debt management plan which I stopped paying and approached the companies direct to accept payments which they did and I wasn't lining the pockets of the DM company which worked for a while.

I then found myself out of work and no income whatsoever - my husband fully supports me.

I stopped paying the debts and then we moved house and its taken over a year for the creditors to find me again, the letters have started to arrive so the stress levels are now rising again.

If I ignore the letters - will they go away? I'm not on the electoral roll - or should my husband return them as tho I wasn't here, I just don't know what to do...

My husband is a company director so is worried about his business..........

We live in a rented house and his car is on finance

I just don't know what to do... I've only had 2 letters (not been opened) but I recognise the return address on the back and when I put it into google it comes up as a debt collector

How long will it take before people are knocking on my door - bailiffs etc



Any thoughts would be appreciated.

Buzby

Bailiffs will only come after you ignore court requests so are different to DCA's. Your husband's business should not be adversely affected unless he is simply self employed (than a director or partner). This is because anyone checking HIS credit file may find a link to you.

The good news is after 6 years the debt becomes statute barred (meaning you cannot be taken to court, BUT they can still hound you). Similarly, after this period the bad stuff on your credit file become inaccessible to a check will not reveal anything untoward.

Time is a great healer!

lonestarfan

Is it that you can't pay or won't pay your debts?
If you can't pay your debts then the impression I get from these boards is that if you demonstrate you can't pay then its sorted into a payment plan of some sort and has a finite end date. If you move in the hope it won't follow you then that's seems to cause you more stress than finalising a plan and won't stop them sending letters even after the statute bar and so it goes on and on.

PippaGirl_2

Hi Dotty,

I wouldn't recommend running from debt, it's rare anyone can outrun them. Far better to deal with it. The CAB will help you start up a new DMP offering token payments with the creditors if you need to decide what to do longer term. You need to work out if you have any assets or beneficial interest that you could lose if you choose to go BR, if you don't, then given your lack of income then BR may well be an option for you. Then, once made BR all creditors have to deal with your OR rather than you and then once discharged all hassle is over. I'd go to see the CAB with details of what you owe and who you owe and details of your personal income, and discuss whether BR would be a good plan.

tigerfeet2006

Have a look at the Look Here First sticky for details on the debt charities. Get some free, professional advice first.

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

debt_doctor

Hi,
Anyone you owe more than £750 can petition for your bankruptcy, however this is very rare, even with those who have assets, so long as you cooperate with the lender. The exeption might be goverment bodies and trade suppliers.
Seems like you have no assets, either your own or joint with your partner, so BR would have little affect on your belongings.
Has there never been a clear 6 year period whereby you have never wrote to the creditors about the debt, not made a payment (however small) and no court action in that time?
DD

DEBTMONKEY1A

Debt Doctor-you have a PM!

Dotty-easy to say but don't stress, in this country debt is a civil (not criminal) matter.

Your partners business/car is in HIS name-won't be affected by you at all. If you are not working-why not think about bankruptcy? Its too in depth to talk about in detail here but in a nutshell-if you have NO additional income (ie if you are not working & on benefits) then the Official receiver (the guy who looks at your income once you are bankrupt) CAN'T order you to pay a thing-as long as you remain out of work/on benefits.

Yes-will cost a few hundred quid-but nett result-fresh start. In a maximum of 1 year (may be sooner if you are discharged early-a good chance of this if no spare income). No debts/nada-like a line in the sand-no-one can come after you once Bankrupt. I'm sure Debt Doctor/others will advise. Why not call Step Change/or National Debtline-both FREE charities to advise.

By the way-ulness its council tax/income tax-for normal consumer debts (credit cards, etc)-Bailiffs are only instructed if there is a court judgement against you that you either refused to pay or did not pay-so ulness you've defaulted on a court judgement-no bailiffs. Even if they were instructed you don't have to let them in!

Why not consider Bankruptcy? The only disadvantage (in your current unemployed state) is a knackered credit file for 6 years-but even with this you can start to rebuild your credit rating on discharge with carefull use of 'credit rebuild' cards etc.

Hope this helps!