Repayment or bankrupt?

CG1

I have recently recieved a 'statutory demand' from connaught collections and a letter saying they are going to petition for bankruptcy. I have spoken to cccs about this who think I could pay £5 per month (which would take 17 years to pay the debt) or consider bankruptcy. I am at a complete loss as to what to do! Does anyone have any good advice for me? I am currently off work ill so I am unable to pay any more. I also have another debt held by Cabot financial (who would also receive £5 per month) and the bankruptcy option would help with this too. I am very worried about the future implications of bankruptcy.

rog2

Hi CG - and welcome to DFW.

First of all, I think I should point out that Connaught Collections are well known for sending out what appear to be genuine 'Statutory Demands', when in effect they are little more than 'scare tactics' trying to bully you into making payments that you can not afford.
The threat of an impending bankruptcy petition is a very frightening prospect to somebody who has a debt problem, and can not see any easy way out of it.
Looking at your post, the 'debt' to which Connaught refer, would appear to be fractionally more than £1000. Whilst any creditor has the right to initiate bankruptcy proceedings against any debtor whose debt is more than £750, they seldom do, due to the costs involved - Connaught would have to pay the up-front court charges, which, in the case of a 'creditor's petition, could be in excess of £1000. Although these costs would be added to the debtors bankruptcy estate, Connaught would get NO priority over any of your other creditors, and could not only lose the costs, but, also, not get any of the original debt ack.
I would be inclined to take any such letter, from a DCA, with a pinch of salt.
You have done the right thing, by talking with CCCS and I, personally, would be tempted to take their advice.
However, bankruptcy would clear this, and your other debts, but there would be long term implications on your personal situation, and you NEED to discuss the implications of Bankruptcy, in detail, with one of the Debt Counselling organisations BEFORE you decide to go down that route.
You are most welcome to browse through the 'Bankruptcy and Living with it' sub forum, of this board, where you will be able to see how people, including myself, have come to terms with bankruptcy, and how it has affected our lives. Then you can make your decision.

shell_girl

Connaught have been very very busy recently! It seems they're sending out these to everyone. I've had the letter from them that they send before the statutory demand, so I've answered with a request for the original CCA. They're sending so many out at the moment perhaps it would be worth us starting a thread called Connaught Statutory Demands or something so we can all get together and fight the gits? Sorry not proper advice- just wanted to let you know you're not alone. Welcome to the board btw!

CG1

Thanks for the replies. I have been doing a little bit of research and it appears connaught are quite naughty so I'm not as scared of them anymore! I wouldn't be surprised if trading standards aren't already onto them.

I have had a long chat with the counsellor from cccs and he feels that its a very 50/50 situation and that I need to think hard about which option to take. Is it true that a debt management plan appears on your credit record for six years? How long does a bankruptcy stay on your credit record for?

RAS

hi

The same time.

The big differences are

1. You may be paying the debts for a long time if you are on a DMP and you do not go back to work.

2. if you do go back to work or get some money unexpectedly, you might clear it up sooner.

3. Whenever you apply for credit, you will be asked if you have ever been BK or on an IVA and you have to answer yes, for all time.

4. If you go BK, you will be debt free, so less hassle from the DCAs.

You might want to have a word on the DMP supporters thread and go over to the Bk sub-board and have a chat with them too.