Need help with my debts

Mark80

Hi,

I have quite a lot of debs, cleared some of them thanks to Debtcamel and Financial Ombudsman but still in big debt, around £28-30k. The most money I owe to HSBC around 16k in total for personal loan, overdraft and credit card, all defaulted.
The rest are Barclaycard sold to Asset Link Financial, Avant Credit sold to Asset Collections each around 4k, and a lot o small payday loans around 10, complained for all at FOS.
I have no mortgage, no car, no assets, just an income. I had payment plan made by myself with all lenders except Link and Asset Collection but cancelled all when I starting to complain.

How should I deal with my situation?
1. Should I restart payment plan with HSBC, or to wait until they sell the debt? They gave that three debts to 3 different DCA but haven't spoke with them.
2. Link Financial and Asset Collection, should I request from them to prove I owe money to them or to start a payment plan? Should I be afraid if they go to court?

I have received a letter Asset Collection, but I don't know how to attach. Can someone explain how to do it?

I am in this situation for almost one year and any advice is more than welcome.

datlex

Well first you need to work out you strategy for paying these.

Post an SOA then it is easier to work out where you could start to save.

Mark80

Thank for reply Datlex.

What is SOA?

fatbelly

statement of affairs

http://www.stoozing.com/calculator/soa.php

We're thinking : maybe dmp, maybe bankruptcy, maybe get those debts down a bit more and do a dro.

It's difficult to know which is best without more detail.

As for the Asset letter, just give us the gist of what it says.

Mark80

Thanks for reply Fatbelly. Can I have my own dmp with lenders and use the soa calculator?

What is dro?

Regarding Asset letter:
1. Provision of the Agreement breached by you. Failure to comply the clauses and oblig....
2. Failed to pay the agreed contractual terms...
3. Action required. You must pay the total instalments in arrears until 5.12.2017...
if you don't take the action required the further action set out below may be taken against you.
4. Action we intend to take: enforce any security in respect of the Agreement; take court action, if necessary, in connection with the above.
If you can't pay the arrears in full by the date, you are strongly urged to contact us.

They didn't sent me anything that I own them money. I thing they bought the debt from Avant Credit. Anyway I have a complaint against Avant for irresponsible lending on FOS and I hope the will reduce the interest for the loan.

How should I deal with Asset in this case?

Sarastro

fatbelly wrote: »

We're thinking : maybe dmp, maybe bankruptcy, maybe get those debts down a bit more and do a dro.
.

You might be thinking that but you're getting ahead of yourself. Other options exist OP, depending on your circumstances.

sourcrates

I would say that with 30k of debt and no assets, bankrupcy would be a good option, your completed SOA will either confirm or suggest another strategy.

sourcrates

Sarastro wrote: »

You might be thinking that but you're getting ahead of yourself. Other options exist OP, depending on your circumstances.

One other option only, an IVA, but with no assets why bother, that’s why Fatbelly didn’t mention it.

Common sense would say go bankrupt.

fatbelly

Mark80 wrote: »

Thanks for reply Fatbelly. Can I have my own dmp with lenders and use the soa calculator?

What is dro?

Regarding Asset letter:
1. Provision of the Agreement breached by you. Failure to comply the clauses and oblig....
2. Failed to pay the agreed contractual terms...
3. Action required. You must pay the total instalments in arrears until 5.12.2017...
if you don't take the action required the further action set out below may be taken against you.
4. Action we intend to take: enforce any security in respect of the Agreement; take court action, if necessary, in connection with the above.
If you can't pay the arrears in full by the date, you are strongly urged to contact us.

They didn't sent me anything that I own them money. I thing they bought the debt from Avant Credit. Anyway I have a complaint against Avant for irresponsible lending on FOS and I hope the will reduce the interest for the loan.

How should I deal with Asset in this case?

Thanks, sourcrates - It's rare that I recommend an IVA. As you say, no assets to protect, so bankruptcy is going to be better than IVA. But we could do with seeing how much suplus income there is here and how much the debt total might be if the FOS complaints are upheld.

Mark - if you can fill in and post the soa here, formatting for mse, it'll be useful for you and us.

The Asset letter is a sort of arrears notice. If you get one of these:

https://debtcamel.co.uk/letter-before-claim-ccj/

there should be a reply form, and debt camel explains how to complete it. It sounds like they are not quite at that stage.

DROs are a cut-down version of bankruptcy for those with debts under 20k, surplus income less than 50 per month and a car (if you have one) worth less than £1000. They only cost £90

Mark80

fatbelly wrote: »

Mark - if you can fill in and post the soa here, formatting for mse, it'll be useful for you and us.

Thank you all for help.

I was also thinking to bankruptcy, but I am not sure if I can keep my job with this. So if no income for a period, no money for rent, food or other regular spending. How log does it take the bankruptcy? 1 or 3 years?

@Fatbelly, I completed the soa and I've got this: ,,Your Offer to Creditors is probably only suitable as a temporary measure. Because of the size of your debts (more than 20K) you need to consider more reliable ways of solving your debt situation. Press OK to create your Offer to Creditors or Cancel to change your SOA.''
What do you mean by formatting for mse? Should I attach the file or just copy and paste the result the gave it to me? Sorry beacause I am not familiar with the terms.

Regarding the Asset Collection, I replied earlier in the morning that I am disputing the account with Avant Credit. Should I do more than that? Should I be worried about if they decide at one point to go to court, or I should try to get a payment plan with them soon?

fatbelly

That's not the soa calculator I linked to earlier. Did you click on an advert?

You should check what the effect of bankruptcy would be with your job.

Bankruptcy lasts one year but if you have to make payments from your income, you pay for 3 years