Possible bankruptcy...

TheStruggleIsReal_2

fatbelly wrote: »

OK, a DRO is out. Because in December you will become the proud owner of a 3k car. I don't think defaulting on payments makes sense at this point and I'm sure parents would help with the final payments if necessary.

That is classic HP. If it's PCP there is a final 'balloon payment' at the end.

Regarding your worry about bailiffs, this is the standard route for your sort of debts.

1. to start wiith you are reminded about your missed payments and sent an arrears notice.

2. After 3-6 months of missed paymets you receive a formal default notice and a default is registered with the credit agencies.

3. At some point (and this can be 1 month to literally anything) the debt is sold to a debt buyer. The main ones are Lowell, PRA, Hoist, Arrow and Cabot.

4. The buyer will run through their standard letters and then will take a decision on court action.

5. About 1 in 10 debts get to the stage of a court claim. There is a pre-action letter giving you 30 days to respond.

6. After this there is a court claim form to which you must respond within 14/28 days.

7. If you do not respond, you get a ccj in default.

8. The creditor now has to decide if it's worth tyring to enforce this.

9. The main enforcement methods are (in decreasing order) bailiffs, attachment to earnings, charging order on your house, statutory demand, third party debt order.

I've highlighted the bit you're worried about so you can see how unlikely it is that you will ever get there.

P.S. Token offers are OK for the short term in that they do not do much damage. You'll probably get a job and do a debt management plan within a few months anyway.

Realistically, I am at step 3 already, the main concern RE: Bailiffs, isn't necessarily that they'll take my stuff (cant get blood out of a stone) but due to my living with parents its unnecessary aggro, and although id guess they cant take my parents stuff its still not an ideal situation.

fatbelly

TheStruggleIsReal wrote: »

Realistically, I am at step 3 already, the main concern RE: Bailiffs, isn't necessarily that they'll take my stuff (cant get blood out of a stone) but due to my living with parents its unnecessary aggro, and although id guess they cant take my parents stuff its still not an ideal situation.

We can advise you if it gets to point 5, 6 or 7