Bankruptcy questions

sourcrates

Breathing space was originally going to be a six month hiatus for debtors to take time out from collection activity, to give them time to formulate a plan of action without a constant stream of lenders badgering you for money, and in that format, it would have actually been worthwhile.

However, it got excessively watered down by Government and committee's, and has ended up being 60 days, which is about the turn around time for debt collection letters to reach you, and they still expect you to pay something, so although it gets top billing from Stepchange (as they supported this from the start) it amounts to being as much use in the real world as a chocolate fireguard.

If you intend to go bankrupt, then it matters not a jot how many letters/calls/texts you get, as non of it is meaningful.

You can inform them of your circumstances, but again, if your going bankrupt, why bother?

I understand you want an easier ride here, but honestly they can do and say whatever they like, ultimately bankruptcy trumps anything they can say or do.

Sam2022

So I've taken a week out, had my hosp procedure done, eaten more steroids than I ever have before but my autoimmune disease is st least responding.  I need to try a nd not let stress get to me now, which is easier said than done!!  Unfortunately I am inclined to be a bit of a stress head   
I want to try and sum up roughly where I am on this journey towards bankruptcy.  Also get some idea of what may happen going forward.  If I've asked before, please be patient with me, I am trying to get the plan clear in my head.

1.  I have 3 CCJs registered against me, 2 from March one from May.  I totally ignored all paperwork relating to these. 2 are credit card debts, one is catalogue.  There is a further catalogue account held by this debt sgency that they appear to just be sitting on.
What can happen next relating to these?

2.  I have a debt agency chasing me for 2 cards and 1 loan (all owed to the same company)  All 3 debts are defaulted and being chased for the last 15/16 months.

3.  Another debt agency chasing me for 4 cards that defaulted 15/16 months ago.  This company sent Resolve Call out to my home but then gave me 60 days grace period to get debt advice.  This expires towards the end of June.

4.  I have 3 cards and 1 overdraft that defaulted 15/16 months ago, these for whatever reason are not currently being pursued by the lender to the best of my knowledge.  There are no debt collection involved.

5.  I have an account with Currys 2 months in arrears.  They gave me 60 days to get advice, this runs out at the end of June.

6.  There are 6 other credit cards that I stopped paying in May.  1 of them has given me a month's grace to get advice which runs to 07 July.  The others are just emailing me at present about missed payments.

7.  Finally I have an Argos Card that I stopped paying in May.  Only email contact so far.

The total of all these is just over £75k.  I understand that once I go bankrupt it is all irrelevant and will be written off, allowing me to start again.  However in order to benefit from the value of my car (10 to 12k) and not lose everything its going to be another 12 months to get through before my actual bankruptcy will happen.  That will enable me to fill the "biscuit tin" and renew the things I need at home to make things easier with my health problems.

So what sorts of further action am I likely to have to face in the next 12 months?  Will I get inundated with bailiffs calling, can they take my things etc etc.  The thought of bailiffs really terrifies me now, years ago before my health collapsed I was much stronger and would have just ridden things out but that was then.  

If I have an idea what to expect it will help me be more prepared and hopefully less stressful.

I am trying to put a letter together to send to all my creditors, advising them that I am a vulnerable person and telling them to remove my phone number from their records and cease calling me.  I was going to add brief details of my circumstances and health issues, asking them to consider writing off the debt.  I cant work and I'm never going to be able to repay £75k on benefit income!!

I did the above with Klarna for £800 and they wrote off the debt.  Around half of my card debt relates to £500 - £2000 on each so I thought it could be worth a try??

Sorry if I've repeated myself here, or already asked some of this.  I'm just wanting to get all the info together and with your help and knowledge, I can keep to the plan with as little stress as possible.

Thanks everyone

RAS

OK, have the creditors with CCJs taken any further action to enforce the debt? Have you been sent court paperwork requiring an income and expenditure form?

stu12345_2

as RAS has asked, how far along are the ccjs and why 12 months to go bankrupt, sell your car to car wow in 5 days, but another  cheap car,start buying food in bulk, start buying things you need for house, bed, mattress, cooker, 
what assets do you have at home, or is it just your car
 and if you want to ask creditors to write off your debt, here is the letter you send them

https://nationaldebtline.org/get-information/sample-letters/write-off-debt/

it takes you 5 mins per letter to write, ( take photos of each letter on your phone or print it off,)
then go post office, send them signed for delivery, £3.05 first class each and await for replies, you can track letters to see when they arrived and signed for on post office website

sourcrates

Some creditors can be quick to take legal action and obtain a CCJ, most of the time it ends there, they take no further steps to enforce the judgement.

Sometimes they may apply to deduct payments from your income, but if your income is benefits, that can`t happen.

Bailiffs are never used for the collection of consumer credit debts, well very rarely, its councils chasing unpaid council tax, private parking companies etc that mainly use bailiffs, or private individuals chasing money owed to them.

Commercial debt companies won`t go to the expense of engaging bailiffs as they will be unsure of ever getting that money back. 

The programs you see on TV are carefully edited, and not one case shown on any of those shows has ever been a CCA debt to the best of my knowledge.

Very little is likely to happen going forward.

Sam2022

At the time the court action began I couldn't cope with the endless calls and letters, so just binned everything.  I know that was stupid but it made sense at the time as it went away.
I've started to open post again and the only court papers I've had were the judgements arrive, saying I had to pay in full.  All I've had since is emails from the debt collector that brought the court action saying I need to get in touch and arrange a payment plan.

The reason for 12 months is that's what I was advised on here.  I thought I could sell my car, buy what I needed and just draw cash out, say £300 a week.  Then go bankrupt.
I was told if I do that the OR will want to know where the money went for the car?  I will have receipts for what I bought but not the rest.  So I was told buy what I needed to get the money under the 6k I can have (UC rules) and filter the rest out a bit at a time until its gone.

I dont have any other assets than my car, it was paid for by my late Mam.  I looked after her in her final years and took her wherever she needed.  When my car went bang, she said  look you need a decent car so she bought me a new one!!  

RAS

Thanks. How are the debt collectors communicating? Might be worth while advising those with CCJs in the same medium that you've been in hospital and are on benefits only. Very unlikely to pursue further but if you do get court papers asking for an I&E, come back here.

They are very unlikely to chase a debtor on benefits, but answering a court request is wise.

The other creditors, just ignore, although dealing with any letters from Northampton could delay further action.

Sam2022

The debt collectors are texting, emailing, sending letters, sometimes 6 or 7 a day arrive.  The other method most used is phone, it can be endless every 15 mins for up to 2 or 3 hours.  
I've blocked numbers as they call but it still let's them leave a message.  Or they use another number from the same office.
I accept I got myself into all this debt but the way they hound you is awful.

RAS

Thanks. You need to start by sending letters to your creditors, maybe one a week if money and energy are tight.

Tell them to remove your phone numbers and email address from their records. That leaves letters, which have to be used anyway by law to send warnings about defaults and court action. Whilst you are about it tell them you've been in hospital and are on benefits (edit to fit your case).

Their comms are driven by algorithms so even if they get your letter next week it may take a little time to see the impact but any creditor sending phone, text or email after 7 weeks justifies a formal complaint. If they've got half a wit they will sort it promptly and maybe offer a small sum in compensation.

Sam2022

Thank you all for the help and encouragement you have given me.  I feel more at ease knowing its highly unlikely bailiffs will come for me.
I'm starting to open post again, so I should be aware of any court papers that do turn up.
As I said previously I have a number of serious health problems, they include heart issues, where they are struggling to get my enlarged heart to settle into a regular rythmn, it gives me horrific palpatations and a heart rate that never drops below 100 but will go up and down to as high as 340 beats a minute.  That causes a lot of other problems, as well as leaving me very very breathless and washed out all the time. 
On top of that I suffer from severe Ulcerative Colitis which is just NASTY!!!  I have to spend months at a time taking steroids to try and keep my bowel.  I get every side effect going and I hate it every day and that's without the toilet trips which can be every 30 minutes.  I end up totally drained by mid morning.  To treat the Ulcerative Colitis, I take a lot of immunosuppressants, which helps stop my body essentially attacking itself.  The trade off is I have next to no immune system, a simple infection can make me seriously ill.  If all that wasn't enough I'm also Asthmatic, have high blood pressure, water work and kidney disease.

All these things can be made worse by stress, hence my wanting this whole thing done as soon as possible.  Hopefully it gives you an insight into what I have to deal with each day!