No idea what to do! - 50k debt

FC2014

Hey,

Basically I've been ignoring debt collectors etc for nearly a year now, many accounts gave up to 3 months before they started adding it on as late payments to my credit files, then up to 6 before they officially got terminated.

The main debts are (roughly, I've got exams this week so will update if more info is needed):
Natwest: £18k
RBS, Barclaycard, Nationwide CC, Nationwide O/D (All approx £3k each)
Co-Op C/Card £700. Co-Op O/D - £2300.
Halifax CCard: 2k. Halifax O/D: 1k. Skrill & Paypal: £750/500 (Santander fraud blocked payments for some obscure reason, I'd spent the money before they asked for it )
Carcraft extended warrenty: £4000 (car's been written off so don't know how much of that is/isn't liable anymore, they defaulted on me on 4k).
Aqua: £500
Edit: & Capital One: £900(?). Very: £1k. Vanquis & Next a few hundred.


Un-named credit company: £2500 (They've got me in court next month for a CCJ so not sure how much I'm allowed to say)

GMAC Car Finance - was about 10k with the secured car, being settled soon by gap insurers.

I think that's everything. My credit file showed 46k when I added it up (not including GMAC).

I have accounts with Santander & TSB (don't use the TSB one now I know about Halifax's offset rights). Also Norwich & Peterborough (£250 overdraft, it's in credit by a few quid, cut the card up so that's my emergency if I can't pay rent etc now I have no c/cards left).

Until this month my income has been £500 p/m. Rent = £350, Insurances £65, Car Hire Purch payments = £191 (plus £60 on top I stopped paying to All in one finance). Obviously more on top, but gives an overview. No idea how I even managed to get into this situation. Partly gambling.

I have a temporary job, paying approx £1600 before tax (haven't been paid yet but know Tax/NI are gonna kill that figure). My contract won't be extended.

I thought ignoring them was the best way forward (the ones I did speak to rejected £0 & £1 a month). But I'll be in court every other week at this rate.

I thought of following options:
Bankruptcy (Can't afford it.... hoping Natwest/RBS group club together to push me into it)
IVA - Can't guarantee I can stick to any payments, job is not secure.
DMP - Again, income/job security if repayments are high & I can't meet, I'll just be prolonging a year before bankruptcy/more CCJs.
DRO - Believe it's a 15k limit so I owe too much?

Is there any way I can give Natwest a nudge to make me bankrupt? All my accounts with them show as 2 months in arrears (they've been hounding me since August).

I run a limited company - one reason I didn't want to go bankrupt before - this will change to sole trader when I get paperwork sorted. Replacement car is valued at a few hundred quid, used mostly for business purposes so I believe shouldn't be taken?

Thanks for any help. Sorry for the crazy nature of it, it's late and this is basically my thoughts!

dancingfairy

I would suggest talking to Business Debtline re the business and then either National Debtline or Stepchange to see what they suggest.
From what you've posted I'd either go for a low dmp or try and save the money to go bankrupt. I can't see Natwest making you go bankrupt, especially if there is no money in it for them.
df

FC2014

Thank you, I filled out stepchange form online a while back and it said bankruptcy, but I'll talk to them.

For a DMP I've read the minimum payment is £100 a month? Is that correct? That would be ok now, but just worried about when my contract ends if it's at that level.

longtermplanner

It does sound like bankruptcy is the obvious answer. The fees are daftly high, but stop making ANY payments to your creditors and you will soon save them up.

blisteringblue

Trouble is there is little point going on a DMP if you think you will struggle to find £100 a month to pay towards it. Even if your creditors agree and freeze interest it will take over 40 years to pay it off.

Your temporary contract sounds like it pays enough to save up enough for the court fees. I really would stop paying all creditors now and save up to go bankrupt then make a fresh start. So even after your contract you don't have the weight of the debt around your neck.

fatbelly

dancingfairy wrote: »

I would suggest talking to Business Debtline re the business and then either National Debtline or Stepchange to see what they suggest.
From what you've posted I'd either go for a low dmp or try and save the money to go bankrupt. I can't see Natwest making you go bankrupt, especially if there is no money in it for them.
df

This is pretty much exactly what I was going to say, having read your post.

I think you're heading for bankruptcy and may as well get on with it. I'm sure you can come up with a plan to get the £705 together.

FC2014

Thank you everyone, that was my thoughts but trying to avoid it, but looks like it won't be possible.

Regarding bankruptcy, does it automatically terminate all credit agreements? Or only ones in arrears etc? I have car & home insurance and broadband on credit, finding the money to pay the car insurance upfront too will take a while.

blisteringblue

FC2014 wrote: »

Regarding bankruptcy, does it automatically terminate all credit agreements? Or only ones in arrears etc? I have car & home insurance and broadband on credit, finding the money to pay the car insurance upfront too will take a while.

When you say "on credit" do you mean paying them monthly or did you pay for them on your credit card for a full year?

If the former then they won't be included in the bankruptcy because if you stop paying them the insurance or the broadband just cease. They form part of your living expenses during the bankruptcy procedures.

If you paid upfront on the credit card for them then the credit card will form part of the bankruptcy so you will have to find another way to pay for them as and when they run out.

FC2014

Thank you, no some of that debt is previous years insurances on credit. They are monthly in advance with security over my policy.

So it won't be legally cancelled because it's a credit product and I signed a CCA or anything like that? If I want to still pay it after bankruptcy (obviously I do) then I will be able to?

Spoken to stepchange - they said obviously it's better if Natwest push me into bankruptcy because then I don't pay the fees, and that it's an option once I send my I&E to them and they realise they won't get money either way.

Got to check my contract at work first about bankruptcy - been told if there's a bankruptcy clause in it I could lose my job. If I kept quiet and went bankrupt anyway, would my employer find out? Obviously they can search, but assuming they wouldn't - would the official reciever/courts etc tell them?

blisteringblue

I would ask these sorts of questions on the bankruptcy board. They will have all the answers you need.

fatbelly

FC2014 wrote: »

Spoken to stepchange - they said obviously it's better if Natwest push me into bankruptcy because then I don't pay the fees, and that it's an option once I send my I&E to them and they realise they won't get money either way.?

They won't make you bankrupt. You're just going to waste time if you wait for that to happen.

FC2014 wrote: »

Got to check my contract at work first about bankruptcy - been told if there's a bankruptcy clause in it I could lose my job. If I kept quiet and went bankrupt anyway, would my employer find out? Obviously they can search, but assuming they wouldn't - would the official reciever/courts etc tell them?

You have to declare your employer details on the statement of affairs, and the OR will send them a new tax code. So yes they will know you are bankrupt.