Cant pay debt for next 6 months - will bailiffs come?

wasntgoodenough

Hi there sorry about this stupid question,

I have around £25K debt due to stupid extravagance, but have begun to sort things out and been working regularly for 4 months.

The irony is that now that when things seem better than ever, financially I am an inch away from bankruptcy. It seems I have to move to a squat to keep making monthly repayments or declare bankruptcy. But - I think I will be able to pay the monthly £400 a month to HSBC after 6 months payment holiday if they grant me one. I am thinking of writing a letter to HSBC requesting one, but would the bailiffs come instead?

I am trying to get work as a portrait artist and have been getting commissions, and stand to earn good money, if I can only get through the next 6 months.

I have no assets but am terrified of losing my computer - is this paranoia? I dont have a car or a house but for the first time I feel things are ok, have been happy with my paintings and a lot of personal stuff. Only in terms of finances...I am in quicksand and just want to know, can I not pay for 6 months and not have to go on the run, and not have to declare bankruptcy, since I think I can get over this problem if only i could buy some time.

Thank you.

tigerfeet2006

The only way a bailiff can come to your door is if the HSBC have been to court for a CCJ.. You would get a letter to say they are going to court and you can attend and explain your situation. You may be better off making 'token' payments rather than no payments.

Why don't you give one of the debt charities like National Debtline or CCCS a ring and get some advice of them.

There will be someone along with more experiance of this along in a minute I am sure.

debt_doctor

Hi, quick post. Yes you can not pay for 6 months if you inform the creditors of your situation. Bailiffs CANNOT turn up until you have been to the county court and you have failed to pay what the court has said ie £ 1 per month. Got to go back on tonight

DD

wherediditallgo

Hi wasntgoodenough & welcome to the forum,

First things first, I think you should contact any of the organisations in my signature for debt advice. They're not going to judge you, & will give you free impartial advice on what to do for the best. If you think yours is an issue of needing a few months leeway to get yourself straight, they'll be able to help you with the letters, sorting out some sort of payment plan, etc.

This part of the board is mainly for those considering bankrutcy, going through it or dealing with the aftermath of doing it. However, people on the Debt-Free Wannabe part will also be able to help you with ideas for making cutbacks on your expenditure. You'll also pick up great tips from the Moneysaving Old Style forum here.

The main thing is, dont panic. There is a solution to every debt problem, it's just a matter of whether we're prepared to accept the solution put forward. Have a look through the different boards to see what's there, & if you decide after taking professional advice that bankruptcy is the only option for you, let us know & we'll help you with any questions you've got, the paperwork etc.

wasntgoodenough

Thank you so much! I will consider the "token payments" route and contact HSBC. I thought maybe I should go there and talk to someone, see if they can offer anything. If they prove inflexible then I will contact one of the hotlines you mentioned.

I'm not sure which forum to post in because basically I earn £850 per month (receptionist job) and my rent is £450 and my repayments are a bit over £400. So you see there is nothing left for daily expenses. I have £500 savings that will take care of expenses for 2 months I guess. So I thought the Moneysaving thread couldn't help me since I don't buy anything except food and travelcard. I am hoping to get out of this trap once I get paid for paintings currently in progress, but it will be a while before income from painting will be enough.

I saw a show on TV where a teenager went for debt advice and the advice she got was to go for bankruptcy. I wonder now why she wasnt adviced to consider making token payments for instance while she tried to figure things out. It seems to me now that show was a bit unfair and unforgiving.

wherediditallgo

wasntgoodenough wrote: »

I saw a show on TV where a teenager went for debt advice and the advice she got was to go for bankruptcy. I wonder now why she wasnt adviced to consider making token payments for instance while she tried to figure things out. It seems to me now that show was a bit unfair and unforgiving.

I didn't see the show, but I wouldn't be surprised if other factors were also taken into consideration. When debts become unmanageable, the debt is never just about finding the repayments, but also about the toll the stress takes on the person & those around them. Many people with debts could find the money given more time by the creditors, but creditors aren't always willing to give the amount of time needed or reduce the interest for long enough. When people are pushed into a corner, the pressure of debt is sometimes worse than the debt itself. Add to that factors like illness & job insecurity, & I can understand why organisations suggest going BR for sums of money that to others might seem relatively low & payable.

The main thing though is that the person has taken professional advice about their debts (preferably from an organisation that isn't going to charge them for the advice), & is doing what's best for them in their situation.

wasntgoodenough

thank you all you cannot imagine how much better I feel now compared to last night. I am curious about one thing, though, debt doctor, you mentioned coming back to post and I wonder what you think of trying to pay token amounts for a few months first - I mean to turn up at the bank first thing on Friday and try to get a meeting with a manager.

Thank you so much for all the advice - what a stroke of luck it has been to find this website!!!