Advice Please - Collection Service Threatening Bankruptcy

Virgo_Girl

I'm awful when it come to things like debt letters, I just ignore them and hope they go away.. I'll start by letting you know that I am a single mother in receipt of benefits, looking after my child who has mental heath problems.

I have a quite few debts, and a year ago I went to the the CAB and they said my outgoings were more than my incomings!! They kept mentioning that maybe I should declare myself bankrupt but when they went through all the bad bits I decided against it.

Like I said I have quite a few debts but this post is about this one: I owe Capital One £1,514 - the original debt was around £750 but they added on loads of interest when I overspent made it impossible for me to keep up at the time, and now the collection services/baliffs etc.. have added even more on so the amount has doubled now.

Anyway my problem is this.. I had a letter from a Debt Collection Service a few days ago and it said that the time limit set by the court for responding to the statutory demand has now expired and it went on to say that it's my final opportunity to prevent a bankruptcy petition being presented, then it says that if i'm made bankrupt it could result in my property and goods being taken away.

My question is, can they do all what it says in the above paragraph? I'm in council rented accomodation so i suppose they won't be able to take that away but what about the other stuff? Can they force me to be 'bankrupt'? and can they take my stuff?

It's 1am New Years Day and instead of celebrating i'm stay here worrying about everything and being totally depressed, i'm also agoraphobic, and a bit allergic to people too, so it's difficult for me to sort anything out! and I never answer my front door or phone ever.

Thanks in advance

fermi

Virgo_Girl wrote: »

I have a quite few debts, and a year ago I went to the the CAB and they said my outgoings were more than my incomings!! They kept mentioning that maybe I should declare myself bankrupt but when they went through all the bad bits I decided against it.

I must admit, it does sound as if it might be appropriate for you.

But it is a personal decision, and not right for everyone.

Virgo_Girl wrote: »

My question is, can they do all what it says in the above paragraph? I'm in council rented accomodation so i suppose they won't be able to take that away but what about the other stuff? Can they force me to be 'bankrupt'? and can they take my stuff?

They could make you bankrupt, but it would cost them upwards of £590 in fees/deposit which if your circumstances are correct they would never get back.

In other words, in 99% of cases the threat is empty.

The official receiver also don't take domestic goods (unless you have something very valuable).

Virgo_Girl wrote: »

It's 1am New Years Day and instead of celebrating i'm stay here worrying about everything and being totally depressed, i'm also agoraphobic, and a bit allergic to people too, so it's difficult for me to sort anything out! and I never answer my front door or phone ever.

I know it is difficult, but can you talk to one of the organisations in my signature again? They can advise you on what the creditor can and can't do and can help you sort the problems?

Dime_Bar

Virgo_Girl I do not have the experience to help you with this and I am sure there will be alot of good suggestions as Fermi says give thoose numbers a call.

There is one thing I have learnt from reading though this forum, that if you face it it can and will get better.

Happy new year and Good luck

HannahandMark

Good luck and, hopefully, a happy new year.

With luck some more good advice will be along soon.

tealady

Hi. There is a bankruptcy forum that you can ask for advice as to how bankruptcy will affect you. They are very friendly over there (but not as wonderful as us).
Alternatively you could put up a SOA for us to try and help.
Whatever you decide its YOUR life and YOUR decision so good luck.

rog2

tealady wrote: »

Hi. There is a bankruptcy forum that you can ask for advice as to how bankruptcy will affect you. They are very friendly over there (but not as wonderful as us).

Now that depends, tealady. :rotfl: :rotfl: :rotfl:

Virgo_Girl - Don't get yourself all worked up - it's only money and, as far as I'm aware, Debt is not a crime.

Have you looked at claiming back any penalty charges from Capital One?

That said, CAB are usually very good with their advice and would not have reccomended Bankruptcy lightly. As fermi says, if you have no assetts, and no way of clearing your debts, then perhaps bankruptcy may well be the best solution for you.

Why not have a look at the 'Bankruptcy and Living With It' Sub-forum of this board. You will find people from all walks of life who have chosen, or are considering, bankruptcy. You will be able to see how we have 'dealt with the situation' and will receive support whatever you decide.

And as 'tealady' says - whilst we may not be as wonderful as the 'DFW' bunch (only joking, tealady :rotfl: :rotfl: ) we are still a pretty friendly 'rabble'.

tealady

Hi rog. I am sure the lot over the other side of the wall are pretty nice. I have only peeped over there once or twice when I saw an interesting thread.

rog2

tealady wrote: »

Hi rog. I am sure the lot over the other side of the wall are pretty nice. I have only peeped over there once or twice when I saw an interesting thread.

You would be 'more than welcome' to 'peep' over there more often, tealady. After all 'Bankruptcy' is only another way of 'dealing with debt'.

tealady

I might take you up on that rog, I am lucky as at present the only debt I have is a mortgage but I lurk around to stop me sliding back into debt with overdrafts and credit cards (I was in debt many years ago - my own fault)

Sorry virgo girl I appear to be hijacking your thread, dont mean to.

Virgo_Girl

Hi Everyone,

Thank you for all your replies.. and thanks for letting me know about the Bankruptcy forum!

rog2.. Can I actually claim back any charges from Capital One?? (I know it'll get soaked straight back up obviously but that's OK!) I thought you could only do it with Bank Accounts.. the thing is they've passed on the debt on to about a million different debt collection agencies who all try phoning and writing letters but I never answer my phone and I always chuck the letters away hoping they'll leave me alone eventually.. (I know it's a stupid thing to do!) So i'm not really sure who I should write to about it.. Capital One who say it's nothing to do with them anymore, or the collection agency?

I'm not very good with getting things done, but I did try and sort things out with them when they charged loads of interest, I offered to pay back at a certain amount a week but they refused saying they wanted LOADS more and it was way out of my means, so I just ignored them after that.

I can't remember what the CAB woman told me that Bankruptcy would entail but I remember thinking at the time it's just not what I want.. ever! I may not have an option soon though and it's my own fault I guess.

I owe about the same amount to Barclaycard too and I owe Littlewoods about £400 but it's more now because of interest added.. they haven't written to me in about a year now though.

Another problem I have is that, over a year ago the DSS accused me of earning £45,000 a year, thye called me in for an interview and they showed me my bank account statements from the last 6 years, but there was nothing remotely like that amount there, however there was a few thousand extra that had gone through my account over the years because someone else who didn't have a bank account had been using it as well with my permission.. I tried telling them this but they wouldn't listen, I even told them to check the payment dates and amounts of the other persons against when extra money was going into my account, but none of this made a difference to them.

A few weeks later I received a letter telling me I had to pay back every penny they'd ever paid me at £20 a week, then I got a letter from the Housing Benefit saying the same thing, then the Council Tax.. so, i'm paying so much money out and I just don't know what to do, I swear I didn't do anything wrong, I didn't receive any extra money for myself like they said I did, yet i'm having to pay over £40,000 to the DSS, I've been paying it for over a year now.

Apart from the £40,000 mentioned above, I owe just over £3,000 in total and heading for Bankruptcy.. It'll be pointless them coming around for anything though, I only have a crappy old Ford Escort, a standard boring old TV, a broken DVD player and a PC that's almost 10 years old now! I have absolutley nothing flash, or anything that's worth anything, everything is just standard and old! I have no assets, money, or savings either.

I'm not too familiar with what Bankruptcy, does it actually wipe your debt? and would the £40,000 DSS money be part of that or will I still have to pay that?


Thanks everyone!!

nottoolate

Virgo_Girl wrote: »

Another problem I have is that, over a year ago the DSS accused me of earning £45,000 a year, thye called me in for an interview and they showed me my bank account statements from the last 6 years, but there was nothing remotely like that amount there, however there was a few thousand extra that had gone through my account over the years because someone else who didn't have a bank account had been using it as well with my permission.. I tried telling them this but they wouldn't listen, I even told them to check the payment dates and amounts of the other persons against when extra money was going into my account, but none of this made a difference to them.

A few weeks later I received a letter telling me I had to pay back every penny they'd ever paid me at £20 a week, then I got a letter from the Housing Benefit saying the same thing, then the Council Tax.. so, i'm paying so much money out and I just don't know what to do, I swear I didn't do anything wrong, I didn't receive any extra money for myself like they said I did, yet i'm having to pay over £40,000 to the DSS, I've been paying it for over a year now.

omg :eek: that is awful

no idea what you do about that but BUMP! for people today.