Newbie - any help gratefully received

owdboot

Hi all,
Feel very nervous about posting, but having read lots of other posts, I am hopeful that some of you DFW ninjas will be able to give me some good advice.
Our situation is that we have the following loans:

1) 26k - AA personal finance/HBOS - passed to Robinson Way. In husband's name. Now RW say they have passed it back to HBOS, who deny this and say they would not have taken it back. Defaulted Jan 2010. Don't think any payments have been made since default, but can't be sure

2) 9.6k - Lloyds - now Cabot - default date Dec 2009. In husband's name. Been paying £1/mth.

3) 10.8k - Lloyds - now Cabot - In my name. Default date Feb 2009. Paid nothing.

4) 5.7k - Lloyds OD - now Wescot - in joint names - Default date Feb 13. Recently been paying £50/mth

5) 9.2k - First Direct - not defaulted, and been paying full amount every month, in order to keep our current account open.


The background is that my husband lost his job, and shortly afterwards my business collapsed, leaving me with business debts that were secured on my personally.

We have lost our house, and had no income at all for several months in 2012/13 as neither of us could get work.

Since then, my husband has managed to get freelance work, and I eventually managed to get a full-time job. Unfortunately, I have just been made redundant. I will get a lump sum of about £6k, which I would like to use to try to pay off some/all of the debts (other than the First Direct one). I am not sure when I will be able to get work again, and my husband's income is sporadic and insecure - he has no notice period at all. We have tried hard to avoid bankruptcy in the hope that one day my husband will be able to get a permanent job at the director level he was at previously, which generally asks that you disclose any previous bankruptcy.

I have contacted National Debtline, and on their advice have written to all the above companies (except FD) offering about 15%, making it clear that this is all I have currently, and that due to my redundancy, I can't guarantee to be able to make regular larger repayments in future.
So far, the responses I have had are:

1) Robinson Way - 26k - wrote advising they no longer have the account and we can't locate
2) Cabot - 9.6k will accept 35% partial settlement only
3) Cabot - 10.8k will accept 35% partial settlement only
4) Wescot - 5.7k - will accept 95% partial settlement only

Before we go back to any of them, what is your advice? I have just been reading some posts and see some about 'CCA-ing' the DCAs? Should I do this with Cabot? And the Robinson Way one?

I would appreciate any thoughts and advice on the best way to proceed.
If you are reading this and feel like moralising - please don't. I hate myself enough already.
Thanks.

moohound

I am sorry to read you story, it looks like you have had a rough time, but you will get lots of help here.

Please don't hate yourself.

What would you gain from paying them off with the redundancy money, have you got an emergency fund? I would hang on to it until your position becomes clearer.

Twiglet21

You're clearly having a hard time sorry to hear it. I cannot say I have ever been in a similar situation but from reading your post my initial fort is that you need to get a good financial advisor. I used to be critical of them but having used one recently I realised just how valuable one can be. I know it sounds obvious but have you tried the money advice service or citizens advice bureau?

[Deleted User]

Please don't hate yourself, you are not alone. I seriously think bankruptcy would be a best option for you and your husband(not before you've cashed the 6000 redundancy) I might be wrong but I think once a bankrupt is discharged, then there is no obstacle to obtaining a directorship. Barring a person from being a director only happens by order of the court if a director has behaved recklessly or irresponsibly. Hope this helps, take heart, and good luck.

owdboot

Thanks guys.
I know - maybe we should go through bankruptcy... but do we both do it at the same time? or try to go for full and final settlements with the debts in my name using the £6k and make my husband bankrupt over the debts with his name on?

I don't know. Am partially hoping that the large debt that we currently can't locate will run past the statute of limitations (due Jan 2016), but I guess that's too much to hope for.

I will look for an IFA, but am worried that we will just pay money to someone who really knows about investments rather than debt.
Any suggestions for debt expert IFAs most welcome.

thank you so much
:A

Tixy

Hi and welcome to the forum


You don't need a paid IFA, I would speak to one of the debt advice charities in this link - IMPORTANT - Where to seek professional impartial advice about your debts.

Talk through your options and the impact on bankruptcy.

At the level of debt you have then bankruptcy should definitely be a serious consideration for you both. If you are considering then in the meantime don't pay a lump sum to any of the creditors, as you do not want to be seen to have favoured one above others.

Puddylove

owdboot wrote: »

Hi all,
Feel very nervous about posting, but having read lots of other posts, I am hopeful that some of you DFW ninjas will be able to give me some good advice.
Our situation is that we have the following loans:

1) 26k - AA personal finance/HBOS - passed to Robinson Way. In husband's name. Now RW say they have passed it back to HBOS, who deny this and say they would not have taken it back. Defaulted Jan 2010. Don't think any payments have been made since default, but can't be sure

2) 9.6k - Lloyds - now Cabot - default date Dec 2009. In husband's name. Been paying £1/mth.

3) 10.8k - Lloyds - now Cabot - In my name. Default date Feb 2009. Paid nothing.

4) 5.7k - Lloyds OD - now Wescot - in joint names - Default date Feb 13. Recently been paying £50/mth

5) 9.2k - First Direct - not defaulted, and been paying full amount every month, in order to keep our current account open.


The background is that my husband lost his job, and shortly afterwards my business collapsed, leaving me with business debts that were secured on my personally.

We have lost our house, and had no income at all for several months in 2012/13 as neither of us could get work.

Since then, my husband has managed to get freelance work, and I eventually managed to get a full-time job. Unfortunately, I have just been made redundant. I will get a lump sum of about £6k, which I would like to use to try to pay off some/all of the debts (other than the First Direct one). I am not sure when I will be able to get work again, and my husband's income is sporadic and insecure - he has no notice period at all. We have tried hard to avoid bankruptcy in the hope that one day my husband will be able to get a permanent job at the director level he was at previously, which generally asks that you disclose any previous bankruptcy.

I have contacted National Debtline, and on their advice have written to all the above companies (except FD) offering about 15%, making it clear that this is all I have currently, and that due to my redundancy, I can't guarantee to be able to make regular larger repayments in future.
So far, the responses I have had are:

1) Robinson Way - 26k - wrote advising they no longer have the account and we can't locate
2) Cabot - 9.6k will accept 35% partial settlement only
3) Cabot - 10.8k will accept 35% partial settlement only
4) Wescot - 5.7k - will accept 95% partial settlement only

Before we go back to any of them, what is your advice? I have just been reading some posts and see some about 'CCA-ing' the DCAs? Should I do this with Cabot? And the Robinson Way one?

I would appreciate any thoughts and advice on the best way to proceed.
If you are reading this and feel like moralising - please don't. I hate myself enough already.
Thanks.

What a difficult situation - I hope it gets better for both you and your husband soon.

But - do you think you should be paying off anything with the £6k? I would have thought that, given you aren't sure about your income in the near future, you might be better putting it aside to live on until you are back on your feet?