Threatened with Bankruptcy - Help!!

ditchy76

Hi everyone
This is my first post on here and i have been told its the best place to come and get help. I currently owe a company just over £3,500 which to be honest i did not know about. They have contacted me by letter to explain that they are going to force me into bankruptcy as i am a home owner if i do not pay the balance.
At present i owe out alot of money to a few companies and i am at my wits end with worry about what is going to happen. i have explained to this company that there is no equity at all in the property and that repayments is all they can do to get the money back. I have a young daughter and a baby due in june and i am sick about lying awake in bed every night worrying about my debts including this one. I have numerous CCJ's and just cant see a way out. Can someone please help me.
Paul

Mum_of_3_3

Hi Paul!

From what I have read it's probably only a scare tatic so try not to freak out too much, but I'm sure that someone with tonnes more DFW knowledge than me will be along in a minute.

Good luck

M_o_3

Bestthingsinlifearefree

Hi Paul,

Welcome to MSE. :beer:

How about starting of by posting a SOA (Statement of affairs i.e all incoming and out goings)?

You are going to be busy with the 2 little uns. So stay positive and look after yourself (eat well, sleep / rest well, exercise well,enjoy your family, try to relax when you can and hey though you are in debt you are still allowed to laugh and smile;) etc).

There is always a way forward.

Best,

RAS

Ditchy

We need you to print up exactly what it says in the letter. The reason is that most of the time the letters say "may include BK" and are empty threats but very occasionally it is for real.

However, I have only heard of one or two (literally) people on here who have been made BK by a creditor. The reasons are

1. It will cost the creditor £1500 in fees
2. If you have no equity in the house then there will be no money to repay their fees or the money that you "owe".

Can you tell us more about the debt as well and I would recommend that you talk to the national debt line for more advice http://www.moneysavingexpert.com/loans/debt-help-plan#help

fermi

I second the very good advice from RAS.

They have nothing to gain and a lot to lose by making you bankrupt, so it is almost certainly an empty threat.

Can you explain what you meant by "I currently owe a company just over £3,500 which to be honest i did not know about."?

Why didn't you know about it?

What sort of debt is it?

If it is yours, how long is it since you last paid towards it or acknowledged the debt by writing yourself?

GeorgeUK

Just to add to this - as you were not aware of the debt, are you sure you actually owe it?

Could the debt be statute barred (no payments towards it for 6 years)?
I would get confirmation from them by asking for a copy of the CCA. If they can't provide it then you shouldn't need to pay it.

What are they saying the debt was for?

ditchy76

Hi
The reason i said i did not know about it was because i thought it had been paid. I returned a car to the HP company a few years ago when i was due to go and work overseas. I was contacted by them again with very threatening letters stating that they would try and take my house. They gave me a settlement figure of £4000. I paid £2000 including a payment of £1500 which was left to me when my grandad died and then my daughter took ill which meant i had to lower my payments. The company did not respond to my letter and with all that was going on with my daughter it was forgotten about. Now they are saying i still owe just over £3500 which i find strange. I have been worrying about this for days now and also about my other debts because i just cant find a way to pay everything. I am petrified that when the baby comes along i am not going to be able to provide things and that i am just constantly sinking.
I am at work at the moment but will post what the letter says when i get home tonight about 8pm.
Paul

Bestthingsinlifearefree

I will keep an eye out for your posts Paul.

There are some good brains on this site, which have seen most financial situations and between us we might all be able to suggest a few positive ideas.

Best,

kyh

Paul

you have come to the right place for help, people here will help but first you do need to post your SOA and also what is written in this letter.
With your SOA people may be able to suggest ways you can decrease your outgoings or increase your income. Once we can clearly see the facts we will look at what to do. there is also a lot of advise on here about the national debt helpline and I am sure someone more experienced than I will come along with the details shortly!

Keep you chin up it will get better!

KYH

RAS

Ditchy

Thanks for that

Do you have any documentation regarding the HP agreement? A lot of them are not actually HP agreements and it may affect your options. There are ways of getting more information if needed.

It would also be useful if you could do a Statement of Affairs, see here http://www.moneysavingexpert.com/loans/debt-help-plan#help

I will not be on-line tonight but will look in in the morning.

fermi

ditchy76 wrote: »

I am at work at the moment but will post what the letter says when i get home tonight about 8pm.
Paul

Good. I will keep an eye out as well.

As others have said, if you can post more about your financial position (See link: Help for First Time Posters ) then people can also try to help on a more general level. It sounds as if you are really struggling with or without this recent problem, but there is plenty of experience here to help with most circumstances.