voluntary BR or wait

baron_hardup_3

:question: Hi all,

My business collapsed in december, leaving me with pg's to the bank (HSBC) capped at £56k. The business owed them on closing £48k, I also owe them approx £16k on a loan - which fed the business - and about £1.5k on an overdraft + about £3-4k on my credit card., My wife & I bought our house 8 months ago with a 100% mortgage so there is little or no equity in it.
The liquidator has said my best option is to go BR but my main concern is do I spend another £480ish that I can ill afford or do I wait and see what HSBC do about it, letting them pay for it as it were. There are no other significant debts.

debt_doctor

Hi,

It would seem that HSBC have nothing to gain by petitioning your BR as neither your company nor yourself has any assetts, and would cost them approx £ 1200 for them to petition.

Unless you owe money to the tax man I fear you will have to pay for BR yourself.

Best

DD

baron_hardup_3

And whats the likely outcome if i sit back and do nothing?

debt_doctor

Debt collectors chasing you for ever. Remember that they have NO powers whatsoever, all they can do is ask you to pay.

The only power lies with the county court who should instruct a payment that you can afford. If you have a low income or are on benefits this could be £ 1.00 per month.

Debt collection agencies will lie to you in writing and especially on the phone, saying things like " we ll send the bailiffs" when they have no powers to do ( Bailiffs are ONLY insructed by the court, at a creditors request, when you have failed to comply with a court judgement.

DD