Full and final info

Whynot66

Hi, i plan on declaring bankrupt in January. Step change have recomended it, for more info see my thread in bakrupsy and living with it here. i cant post links

If i didn't declare bankrupt in January by may i think i could get together around £6500.
My debts are all defaulted, i stopped paying them over a year ago. I had planned to declare bankrupt by now but some time of sick meant i couldnt afford it.

If i attemted Full and final settlements based on a pro rata calculation with all my creditors it would amount to about 25%.

Is this a realsitic goal or should i declare bankrupt in jauary

sourcrates

Hi,
Lots of variables involved to be honest, depends on many different things, how old the debts are, if there with collection agency's or original creditors, do your creditors all have correct paperwork ? Etc etc.

Without knowing all that, it's impossible to say what they may take in settlement.

fatbelly

The two strategies (full & final and bankruptcy) do not work well together.

If one creditor accepts your offer and you pay them off, then the others don't, and you decide to go for bankruptcy anyway, you have treated that one creditor preferentially, which could cause a problem.

Just read how you intend to raise £6200

In may we both receive student finance totaling around £4800. We normally owe a good amount of this out, but my partners financial situation is going to improve over the coming months so its possible that we could have £2000 available. We also have a car each, mine isn't worth much but hers would maybe fetch £2500, all though we work in opposite directions from home it wouldn't be impossible to manage with one car. Plus in may we would be paying of a £1k loan to a family member, she would happily lend it again. Finally id have the £700 bankruptcy fee

so we could raise £6200

Don't do it

atomic7431

Sour crates when you said correct paperwork on your above post can you please tell me what you mean please ☺

sourcrates

atomic7431 wrote: »

Sour crates when you said correct paperwork on your above post can you please tell me what you mean please ☺

When you initially took out your credit card, or loan, you will of signed an agreement, more recently you would do it all online, but older accounts, especially those dating from before April 2007, would have paper agreements.

There is a process you can go through, called a CCA request, you may of seen it mentioned on this forum, it's a process allowed under the consumer credit act, to request a copy of your original agreement, in a nutshell, if the creditor is unable to provide it, the account may become unenforcable in court.

The law changed after the above date, it removed the requirement for the creditor to provide a true copy of the original, after that date a reconstituted version would suffice.

If you are concidering Bankrupcy, and your debts are loans, cards, catalogue accounts etc, and maybe date from before 2007, then it's a worthwhile process, if your accounts are newer than this, it may still be worth doing, but the creditor may not have too much trouble complying.

Google "CCA Request" for more info.

atomic7431

Thankyou for your speedy reply ☺