Should I send letters?

Bald_Runner

Hi again

When I spoke to National Debtline, the adviser suggested I send letters to all of my creditors explaining that I am having problems and to offer a 'token payment' by way of a cheque. The letter it was suggested that I send was a 'Hold Action' (available on the ND website). If I send such a letter, do the creditors have to take any notice? The adviser also suggested that alternatively, I might write to creditors stating that my wife and I were petitioning for Personal BR and again, include a token payment. She said that might stop them harassing me? (BTW, I have had the phone number changed) What about the 'Right of first appropriation' I letter that I can send requesting that the bank only pay my priority debts? Is that legally binding? (my bank would be having two DD's payable to them cancelled....)

As always, I look forward to your valued responses

Thanks

BR

debt_doctor

No, they dont have to take any notice but at least you are making the effort to negotiate with your creditors. They will also want to see a financial statement.

I wouldnt bother with first right of appropriation as banks often do not comply with the request. You can complain but they will have already had your money ! You would be far better cancelling your dd and opening a new basic bank account with someone you dont owe money to. Then you can treat your present bank as a '£1.00 per month 'creditor.

wether they accept or not ( or ignore you ) just pay the £1 anyway. Debt collection agencies will try to hassle you in to paying more than you can afford. Put your phone on permanent answer phone and screen the calls if you can.

Best

DD

Bald_Runner

Thanks DD. What do you mean by a £1 per month creditor? Sureley if I am going BR i am not supposed to pay anybody? Or do i pay them all a similar token amount?
Thanks

BR

tigerfeet2006

It's entirely up to you really. Pay a token £1 each to all your creditors might keep them from reacting to quickly.

debt_doctor

Hi, sorry I didnt get from your post that you had made a decision to go BR. If you are going Br in the next month then you dont have to do anything as your creditors have no time to take any action against you.

If it is going to be longer than that I would consider a token offer to all to keep them from taking action.

DD

fiveyearplan

I haven't paid most of my creditors since August and am still hanging in there. I don't answer my phone before 9pm though. It does take quite some time for creditors to take any real action so if you are have made up your mind and are going BR soon, I wouldn't bother with the rest.