Advice needed on possible bankruptcy?

Starbucks_Junkie_2

Could somebody please give me some advice.

I own my house with a mortgage which I can cover comfortably with my salary, however I have over 20k of debt on credit cards that I cannot meet, if I start to default on my credit cards, and they declare me bankrupt, would I lose my house despite that fact that i have never defaulted on my mortgage and can cover the cost of it easily with my salary?

fermi

Credit card companies and the Debt Collection Agencies that chase/buy defaulted accounts very very rarely petition for your bankruptcy (despite scary letters sometimes).

Normally the greatest sanction they may take is trying to get a County Court Judgement (CCJ) on the debt (sometimes trying secure the debt against the equity in your property with a Charging Order).

Is there any particular reason that you think the bankruptcy route may be used? If not then you might find additional help on your situation by posting on the DFW board as well as here:

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Plus please consider contacting the free debt advice charities in my signature who can give you free and unbiased expert advice

Starbucks_Junkie_2

fermi wrote: »

Credit card companies and the Debt Collection Agencies that chase/buy defaulted accounts very very rarely petition for your bankruptcy (despite scary letters sometimes).

Normally the greatest sanction they may take is trying to get a County Court Judgement (CCJ) on the debt (sometimes trying secure the debt against the equity in your property with a Charging Order).

Is there any particular reason that you think the bankruptcy route may be used? If not then you might find additional help on your situation by posting on the DFW board as well as here:

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Plus please consider contacting the free debt advice charities in my signature who can give you free and unbiased expert advice

I just thought that is what would happen, that they would declare me bankrupt.

fermi

Starbucks_Junkie wrote: »

I just thought that is what would happen, that they would declare me bankrupt.

Not normally. It costs them far far too much in court costs and legal fees. Plus the 'Official Receiver' would take their fees (not small) out of what was recovered before your creditors would get anything.

If you want to post your situation on the DFW board it would be worth reading the sticky for 'first time posters' here before you do.

http://forums.moneysavingexpert.com/showthread.html?t=107280

Plus as said, I would get some professional advice on how to deal with the credit cards from one of:

• [SIZE=-1]The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111
  [/SIZE]
• [SIZE=-1] Your local CAB Office and ask to speak to a 'money advisor'.[/SIZE]
• [SIZE=-1]National Debtline - Tel: 0808 808 4000 [/SIZE]
• [SIZE=-1]Payplan - Tel: 0800 917 7823.[/SIZE]

The websites of these organisations have fantastic advice for dealing with problem debts on them.

In6ftofSh**only5ftTall

If it helps to reassure you i had Debt collection agencies and Banks Chasing me for over 2 years before i eventually plucked up courage 2 make myself bankrupt. I all that time despite all the sword rattling, threats in writing, on phone, etc, only 1 company went for a CCJ all the rest were more keen on getting some sort of payment agreement out of me.

have you explained situation 2 Credit card companies? they may be willing to stop your cards then reduce your payments, for them sometimes something is better than nothing

Starbucks_Junkie_2

In6ftofSh**only5ftTall wrote: »

If it helps to reassure you i had Debt collection agencies and Banks Chasing me for over 2 years before i eventually plucked up courage 2 make myself bankrupt. I all that time despite all the sword rattling, threats in writing, on phone, etc, only 1 company went for a CCJ all the rest were more keen on getting some sort of payment agreement out of me.

have you explained situation 2 Credit card companies? they may be willing to stop your cards then reduce your payments, for them sometimes something is better than nothing

No I have not done that yet, I have moved house 3 times in the past 5 years, and on each move I have used equity to pay of debt, but starting to run out of places to move to!

Dragonlady_2

I wouls send a CCA request under Section 77-79 of Consumer Credit Account enclose £1.00, address this to the Data Controller of the relevant Credit card company and request a copy of your ALLEGED Agreement as the first move.

My second move at the same time would be to write to the Data Controller and ask for ALL the data ,including electronic and telephone logs as well all statements and included a true copy of the executed Agreement. This is the Sunject Access Request under the Data Protection Act. they have 40 +2 days to reply to this request. Yo enclose £10.00 for this request. They will stall you and say they will need proof of ywho are. This is a stalling tactic. You write back with a letter Headed ACCOUNT IN DUISPUTE, reminding them that have x number of days left to reply.

I am betting your alleged agreement is not executed and they will send of copy of your application.

Once this has been established you then start proceeding to recover all of the charges and interest applied to account.

Oh an you can get more than six years worth of statements now. The will try tohe ols statute barred ploy. This is wrong You have six from the date of discovery of the unlawful penalty charges applied to your account to make your claim. The credit card companies hate this, but this is the law.

The minute you put your accounts into dispute you are covered by the CCA and this prevents the credit card companies doing anything until the dispute is resolved. they will try to apply defaults and everything else, but at each attempt and threat you write and remind them they are in breach of th Consumer Credit Act. iot gets interesting, but well worth gaining back control of your finances.

tigerfeet2006

Starbucks if you decide to go down the route Dragonlady is suggesting then I would go over to the Debt Free Wannabee board and post a thread on there and the clever chaps and chappesses on there will give you template letters to send, which will mean you get all the leaglese right.