Debt advice

cookie334

Hi everyone

I'm looking for a bit of advice. I split up from my long term partner a few years ago. I left everything and took out a load of debt to make sure my kids had a roof over their heads, clothes, food etc. I've buried my head in the sand for years but I'm in a good place and want to tackle it. I just don't really know where to start or what is best.

I have just over £28k debt. I haven't paid or contacted any of the company's for 3 years. I have moved a couple of times and haven't received any communication from any of them at this address or my last one.

My original plan was to contact them all and try to make an arrangement to pay it back. Although I also considered going bankrupt as I'm struggling without paying anything but could probably manage £10 a week or something. Then I read about statute barred and wondered if it's worth dodging for another 3 years.

I've been worried sick about it catching up with me so I don't know if I could live like that for another 3 years but also scared to contact them and lead them right to me to then be really struggling to pay. I just don't know what to do for the best.

Any advice would be much appreciated.

[Deleted User]

Contact "step change" the debt charity

sourcrates

Cookie,

I would check your credit file, see if any of your creditors have taken action through the courts against you.

If you've moved around without updating your current address, it's more than possible.

fatbelly

cookie334 wrote: »

Hi everyone

I'm looking for a bit of advice. I split up from my long term partner a few years ago. I left everything and took out a load of debt to make sure my kids had a roof over their heads, clothes, food etc. I've buried my head in the sand for years but I'm in a good place and want to tackle it. I just don't really know where to start or what is best.

I have just over £28k debt. I haven't paid or contacted any of the company's for 3 years. I have moved a couple of times and haven't received any communication from any of them at this address or my last one.

My original plan was to contact them all and try to make an arrangement to pay it back. Although I also considered going bankrupt as I'm struggling without paying anything but could probably manage £10 a week or something. Then I read about statute barred and wondered if it's worth dodging for another 3 years.

I've been worried sick about it catching up with me so I don't know if I could live like that for another 3 years but also scared to contact them and lead them right to me to then be really struggling to pay. I just don't know what to do for the best.

Any advice would be much appreciated.

Let's look at your post and do some sums.

£28000 debt being paid at £10 per week takes 2800 weeks. That is nearly 54 years. I don't think that's a sensible strategy.

If you need a strategy now, then I would look at bankruptcy. However, any assets are at risk, and it will take you over a year to save the £680 fees.

By that time the debts will be 4 years in to the Limitation Period. I assume you're in England where time-barring is six years.

Also, Bankruptcy creates a fresh mark on your files, which lasts a further 6 years.

What's the downside to the following: leave the whole lot alone, don't do a credit check, but save your £10s in a jam jar. If anything escalates in the next 3 years you can fairly quickly knock it all on the head with bankruptcy.

If nothing happens, check your credit file in 2020.

EssexHebridean

I'm going to take a slightly opposing view to Fatbelly on this one - as logical and good as his advice is.

If the situation is causing you stress already, then you have to give consideration to how dodging it for longer is going to affect you in terms of both your physical and mental health. Some people are quite happy with the idea of dodging debt in this way, others know it will "haunt" them forever if they don't deal with it and bring things to a conclusion. It really comes down to which camp you fall into, to be honest, as to what is the "right" way forwards for you.

Have a proper look into/think about Bankruptcy as an option for you - it may be that it's the best path. In any event you'll need to put together a Statement of Affairs (SOA) so it may be worth doing that first - you can post that into this thread if you want to and we can take a look and see if there is anywhere that you might be able to make further savings, or anywhere that you're under-budgeting for the purposes of looking at Bankruptcy.

cookie334

Thanks for all the replies.

I have checked my credit file. There is no court action yet, 10 accounts are in default/with dca's and strangely one is showing as open and up to date.

I'm in Scotland fatbelly, not sure if that changes anything, I was under impression statute barred was also 6 years here. I like your way of thinking but as Essex mentioned I am one of the people that can't sleep at night while the thought of it catching up with me is still a possibility.

Thanks again for the replies. I think I'll contact step change and look into bankruptcy etc, see if that is best option

EssexHebridean

cookie334 wrote: »

Thanks for all the replies.

I have checked my credit file. There is no court action yet, 10 accounts are in default/with dca's and strangely one is showing as open and up to date.

I'm in Scotland fatbelly, not sure if that changes anything, I was under impression statute barred was also 6 years here. I like your way of thinking but as Essex mentioned I am one of the people that can't sleep at night while the thought of it catching up with me is still a possibility.

Thanks again for the replies. I think I'll contact step change and look into bankruptcy etc, see if that is best option

5 years in Scotland for Stature barred.

fatbelly

EssexHebridean wrote: »

5 years in Scotland for Stature barred.

Great!

Check your file in 2019 then.

Don't go to stepchange - they have a 'repayment ethos' and you'll be on a dmp till you are 100 if you're not careful.

Bankruptcy is a sledgehammer. Have one in your toolbox, by all means. But use it when/if you need to. If your debt problem will just melt away there's no need to hit it with a sledgehammer.

If you want impartial advice, try National Debtline.