I Fell off the Carousel of life... how to get back on?

openreach

So, it was going well up to 2005. Then the down turn.
Long story short....
Lost job... lived on credit cards thinking "something" would come up.
2008 hit - ironically, bank offered me a large loan just before the financial crash.
Was renting - eventually exhausted credit. And then loan. Moved out.
Lived with friends for a year after - still looking for a job.
Tried a starting a few small businesses that kept hope alive - and just about paid for food for a couple of years, but barely.
Then the "wheels of life" fell off - moved around. Lived in denial.
C/card debt, circa £40,000. Loan debt c. £20,000. O/d c. £2000
Income last 5 years: NIL.
Im approaching 50, no assets, no savings, no property, no car, not even a wristwatch....
Its affecting my outlook on life, as even full time employment as a casual laborer wouldnt make a dent in these debts, let alone service the fantasy of a mortgage. Skills out dated and im living "off grid". I cant see how to get back-on the merry-go-round. Anyone else been here and got back?

A4445

With £62k of debts and no assets you could concider bankruptcy, it would take a very long time to pay that if ever. Getting advice of a debt charity would be the best starting point.

I declared bankrupt my self with about the same owing as you. It's not to be done lightly, but for me it was the only option.

You might want to check out the bankruptcy/IVA forum lots of helpful people there.

openreach

A4445, Thanks for that quick reply. I had a look over the bankruptcy forum. Puts limitations on running businesses - and therefore leaves the less attractive option of "gainful" employment. Meanwhile, I would struggle to find to 500quid for the fees! What were the downsides for yourself, if any? (IVA seems unlikely as i said, been a downward spiral and had no income at all for the last few years) - but, i guess the pro's con's need to be weighed for bankruptcy. Cheers!

A4445

For me it was the best option, low income and there was no realistic way to pay the money back but it's not for everyone.

You may have to contribute to an IPA for up to 3 years if you have any income over what they allow you to live on. You credit will be trashed for at least 6 years for me this was a good thing, living without credit has make me excellent at managing my finances.

It could be an idea to speak to someone professional they can help you weigh up the options.

You could post your SOA to find out what you can afford or find ways of saving money.

sourcrates

Paying back that kind of money, in what, realistically is the next 16 years of your working life, is indeed a tall order.

Has any action been taken with any of these debts ?

I would second Bankrupcy as been the only possible solution here for you, forget the ramifications of it, you can now pay the new, reduced fee, in instalments, In six years, your file will be clear again, and, as your not working, it's likely the Bankrupcy would only last 12 months, with no payments from your income.

In England and Wales the fees are £655 (£525 Official Receiver's fee and £130 application fee).

It's the only solution available to be honest, your creditors won't make you bankrupt,as you have no assets, it's going to be up to you.

openreach

A4445, funnily enough, ive found living without credit reasonably ok. Before, i was a high earner, but frugal. Had a fantastic credit rating. My mistake was waiting too long for "something" to happen work-wise. I ended up spending all the money on rent and the bills. So, getting credit isnt a bother particularly. No dependents! (Ironically, i was in banking and saw what a crock of S**T it was!) SOA is easy: at the moment, NIL in, "NIL" out. (Not even benefits or anything like that)

Sourcrates, thanks for that! I dont know if any action has been taken. I "threw in the keys" when the roof-fell-in as it were. Bummed around friends houses, lived a boat for a short while, bounced around. At the time, i didnt know what to do, kept thinking "things" would turn around. Besides, no assets, no savings, negotiating with any DCA/s creditors seemed pointless. There just was/is no money. You know how it goes... weeks turn into months, and then almost 10 years go by... only now feeling "strong" enough to come out of denial... but, that is a question- what to do about those issues. I dont want to bring bailiffs or any credit damage to the people whom i stay with. They've helped out a lot...and been patient. Kinda catch22 - but, i would like to run a business in preference to being an employee. Do you know if restrictions on being a Co Director are just for a year - or longer? I suppose the first thing to do is establish the situation of the creditors, but again, would not like to involve the addy of friends. Ah...i dunno... lost and confused.

sourcrates

Ok, if 10 years have gone by, and no legal action has been taken, as long as no payments have been made during that time, then your accounts will be statute barred by now.

And under the limitations act 1980, you won't have to pay them.

openreach

Ah... yeah, i understand the statutory limits. However, if im honest, as i say, i just gave notice on my rent, paid that in full! Then just left... no forwarding addy. So I dont know what the creditors have done. They may or may not have tried to contact. And within the limit of the law, contacting last known address for providing notice is valid. So, its not that "hiding" and evading for 6 years that makes it, its whether the creditors have been active within the statutory period - as I understand it. I simply dont know. I assume they will have pursued the debts.(I had exhausted funds so much, i couldnt even find the money for a mail-forwarder - besides at the time, i didnt know where to "forward" to - !) - i just dont know. Im assuming my credit history is trash too. I haven't looked to find out, id have to beg someone for the fee to do a CCJ search or credit report. I threw away all my cards and "abandoned" my bank account. Like i say, bad case of denial.

sourcrates

No that's not correct at all.

If an account remains unpaid for any period of 6 years, then it will be statute barred, you can look up CCJ's at trust online.

Nothing else matters but payments, or written acknowledgement by you, in that 6 year period, unless a CCJ. has been registered.

openreach

Ah, well, i'll look into that - i haven't made contact with anyone! But as i say, "they" may, or may not have tried. So, i guess the next sensible question is, should i poke sleeping bears?

chesky

So, do you actually want to get back on the carousel?
At the moment it seems that you are staying with friends who are presumably feeding and watering you. But you haven't claimed any benefit, even though you could pass it straight onto them as a thank you.
We've established that your previous debts are probably statute-barred.

In fact you're still building up problems for the future which you could easily avoid. For instance you're not paying NI contributions but if you claimed job seekers allowance, these would automatically be credited to you and would count towards your state pension. Also, you might even, possibly find some work (not likely I know).

You could open a basic bank account and operate it - nothing to stop you.

The only question is, do you really want to.