Do I suck it up and opt for BR if my creditor won't budge?

Hogues

Long story very short, I've just been landed with a Stat Demand for £33k by a single creditor.  Not a financial institution/gambling/retail. just a legal bill I can't settle.  I've already tried to make appreciable payments towards it (was originally £45k) but they've failed due to irregularities in my self-employed income and the creditor has lost patience.  As a self employed person I'm now also being absolutely hammered in cancelled projects by Corona Virus and seriously worried about levels of income over the next few months.

I've a small handful of other fairly modest and 'normal' debts, owe nothing to banks or cards and in fact in recent times have been trying to do credit restoration after picking up some post-divorce CCJ's 4-5 years ago.  I private rent, don't have any assets likely to be of interest and have a supportive partner with a good full-time job with no financial links.

I'm aware the amount is over the limit for a DRO, and an IVA for that amount simply doesn't work out over 5yrs  - roughly £550 a month which is what I've failed to maintain.

So my question is basically do I continue to struggle to negotiate or do I suck it up for a rough year before discharge and include my small other debts as well??

mwarby

Sounds like bankruptcy is an option. It might be worth talking to them and seeing if you can come to an affordable arrangement, as in bankruptcy they wouldn't get that much (bankruptcy fees are high)

Galloglass

Before you decide anything, work out if the creditor is serious
https://www.nationaldebtline.org/EW/factsheets/Pages/bankruptcy/how-to-go-bankrupt.aspx

Statutory demands can be hand delivered or posted.  Some creditors use them as a bluff to try to get you to pay the debt quickly, for example by borrowing elsewhere, but the creditor may not actually apply to make you bankrupt. This is because it does not cost very much for a creditor to send you a statutory demand, but the creditor would have to pay large up-front fees to make you bankrupt.

Bluecar2

Seek advise from one of the debt charitys, I struggled with HMRC for about 3 years before they made me Bankrupt, I had credit cards etc but i was up to date with all them and honestly it has been no where near as bad as i feared, I had no assets apart from a car which the OR let me keep, I wish i had done it myself rather than be done by HMRC as it would have saved a lot of stress & anxiety but i kept holding on for other solutions, I am now 7 months in to it and only work part time at the moment so should be done and finished with no IPA in 5 months

Hogues

Galloglass said:

Before you decide anything, work out if the creditor is serious

Statutory demands can be hand delivered or posted.  Some creditors use them as a bluff to try to get you to pay the debt quickly, for example by borrowing elsewhere, but the creditor may not actually apply to make you bankrupt. This is because it does not cost very much for a creditor to send you a statutory demand, but the creditor would have to pay large up-front fees to make you bankrupt.

This is an interesting point - I really don't know.  The creditor is actually my own solicitors, having racked up a monstrous bill in a custody battle a couple of years ago where the time and fee estimates spiraled beyond initial estimates.  We 'won', but as you don't get awarded costs in family court the real culprit has got off Scott free (ask me how much THAT sticks in the throat.....)   So they know all the background as to how/why this has happened and they also know (because I've previously been very frank and honest with them when I realised we had an issue) that they're chasing an empty cupboard.   A teeny tiny part of me actually wonders if they may be doing this as a means of giving me a way out but of course that's a conversation that can't happen so I'll never know.  I threw them an email this morning suggesting we talk and it's gone unanswered so far.

Hogues

ALSO.....   an 'interesting' thing, maybe....  doing some homework on all this earlier and out of interest I put in my own surname into the Insolvency register and clicked on some of my namesakes and noticed something straight away - it seems that ALL those that are listed as bankrupt where the appointment was by a court, not the receiver, have various conditions and limitations on their discharge, so would I be right in thinking that self-declared is an easier ride than letting a creditor do it??

mwarby

I expect many of the cases involving court were bankrupted by HMRC(they bankrupt a lot of people each year), and if they didn't take much responsibility for filling in tax returns etc correctly, they would end up with a BRU or BRO. Also some bankrupted by the court maybe unwilling to cooperate, which will cause problems.

Bluecar2

From what I know of my own journey is that it would have been easier if i had done it myself, It just got dragged on with lots of postponements and the stress became unbearable, By the time i applied to do it myself they had already petioned so  was unable to do it, If you do it yourself it should just be a telephone interview but if it is petioned it will be a face to face interview, I have had no restriction applied yet and my discharge date is 12 months after the BR date, I am half expecting a BRU but will wait and see as they have until the discharge date to do it, but that can be applied in lots of cases if the OR believes you have been irresponsible with your money or debts

Bluecar2

Forgot to add that i believe they can only change the discharge date if you have been un-helpful or decietful with the OR not with how you came to be bankrupt

Bluecar2

Cheers glad everything in your life is straight forward, I tried to offer some genuine advice not to be trolled by an idiot with a big muouth who has absolutley no idea of my personal circumstances that led to Bankruptcy, If you have nothing to offer the OP dont say nothing

mwarby

I dunno when it gets to the point where you can either pay your staff or the VAT or the PAYE, and if you think things will improve and you can catch up again. Or for a one man band if it’s the tax bill or food etc. Not saying it’s right but I can see how it happens, especially if your not on top of the paperwork