Will They Make Me Bankrupt? - Advice Needed

lavender789

Hello all,

I am new to this thread, and would like to ask some advice.

I have unsecured debts of approx £40,000 payable between myself and my husband to 8 creditors. The largest debt is £21000 to a bank. This was taken out as an unsecured loan against our old home. We currently have a debt management plan with CCCS in order to repay our creditors, but this particular creditor is unhappy with the plan. We have not defaulted on the plan in over 18 months, and are commited to repaying our debts.

At the end of last year we sold our home, without getting any profit and decided to rent privatley as this was cheaper than having a mortgage and meant we could increase the amounts we pay to our creditors by a little bit. The large creditor is still not happy with payments.

Is it possible and/or likley that the larger creditor may petition for bankrupcy?

If they do, what will happen?

We have no assets other than 1 car that is needed for work and that is not worth any more than 1.5K, we don't have a flash lifestyle or expensive posessions.

Would it be good for us to be bankrupt and wipe the slate clean?

What would happen to our bank accounts? (we each have seperate accounts but never have a balance of such in them) and we have no savings.

Any advice would be much appreciated, all of our creditors have filed default notices on us, but as yet no court action, though the threat is always there.

Thanks guys,
Lavender!

So_Sad_Angel

Hi Lavender,

First of all `hi` we have not met b4.

I can`t offer advice but many on here will be able to...however I am making decision between DMP (advice of CCCS) or BR (advice from IP advisor) ...don`t know which is best...in some ways I have had this debt for so long that really worry about doing DMP then having to do BR anyway!!

I will watch your thread with interest.

Hugs Angelxx

Toon_Dave

Hi lavender,

Good evening and Welcome. Do you want to post a SOA on here and then we'll try and have a look at it for you. Then we will be more informed in giving you some advice..I am going through BR procedure now...Filled out forms online etc...

I've had some fantastic advice from folk on here so you have come to the right place.


As i said post your SOA, including if possible all income and expenditure and the current amounts you pay back on the your current DMP.

hope to read it and being of help to you.

Dave.

lavender789

Hi SSA,

Many thanks for your reply! I haev been really happy with the DMP and havn't thought about BR before now as we did own our property, but now that we are renting and have no assets I am wondering what the creditors are likley to do!!

It's good to know there are people on here who can advise so I hope that will help.

If you want any advice re DMP then just ask, you can also PM me anytime.

I'm logging off now, but will check back soon!

Take care and big hugs to you too!

Lav!! xx (really need a better nick name than that!!!!!)

Trollfever

More info on bankruptcy can be found here:


http://www.adviceguide.org.uk/d_bankruptcy.pdf



http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#1

lookingforhelp_2

Hi Lavender,
Welcome to the board .
Again i'm still quite new here so can't offer much advice. What i can say is you need to contact one of the free help lines.
We, hubby and i spoke with National debt line (who were very good),but the guys on here beat them hands down :T .
But you do need proffessional advice.
Hope this helps a little.
Take care
Sarah

JCS1

There's actually very few creditors who will go to the trouble and expensive of making you bankrupt, it costs them £1,500 - £2,000 in fees and unless you have assets such as a property with equity, they are unlikely to see any money back.

Exemptions to the rule, tend to be HMRC - both tax and VAT, and American Express.

mandi

http://www.nationaldebtline.co.uk/... Hi Lavender , I would highly reccomend calling National Debit Line ..Its free & confidential

fermi

lavender789 wrote: »

Is it possible and/or likley that the larger creditor may petition for bankrupcy?

Possible, but very very very unlikely. If you have no assets then none of your creditors would have anything to gain from doing it. In fact it would cost them over £1,000 in fees/costs to do it, and they probably wouldn't even get those fees back.

If they do, what will happen?

First step would be a Statutory Demand. However, even these are normally just a tactic to frighten you with the "prospect" of bankruptcy. Some of the advice agencies estimate that only about 5% of them are ever followed through, and I expect most of those (as JCS1 says) are HMRC who are about the only creditor that will actually do it.

Would it be good for us to be bankrupt and wipe the slate clean?

Have CCCS suggested it? You need professional advice that it is your best option from somewhere like CCCS before you seriously consider BR.

What would happen to our bank accounts? (we each have seperate accounts but never have a balance of such in them) and we have no savings.

Most bank accounts would get closed. There are a couple of basic ones that a bankrupt can have while undischarged, so you wouldn't be left completely without.

Any advice would be much appreciated, all of our creditors have filed default notices on us, but as yet no court action, though the threat is always there.

The creditors love to hold court action over your head, but don't actualy use it very often.:rolleyes:

Hope that helps.

Walter_J

lavender789 wrote: »

Would it be good for us to be bankrupt and wipe the slate clean?

On the face of it yes, it would.

You are currently making a hefty payment each month to your creditors; meanwhile your credit file is shot to pieces.

If you go bankrupt it is likely that you will have to pay nothing at all to your creditors; meanwhile your credit file is shot to peices.

You have no house to lose, and no major assets to interest the Official Receiver.

For me it's a no-brainer; however, seek qualified advice first.

PS from re-reading your post it appears that you are under the impression that people are made bankrupt. This does happen, but in the vast majority of cases people go bankrupt voluntarily by filing documents at their local court. Most posters you will meet here have done exactly that.

wherediditallgo

Hi Lavender,

No matter how much they moan & threaten it, I can't see this creditor making you BR. Firstly, it costs them a considerable amount to do so. Sometimes creditors will group together to make someone BR, but that isn't likely to happen in your case because (a) your other creditors aren't complaining about what they're getting, & (b) they know they'll get less or even nothing if you go BR. All creditors would like a bigger slice of the pie & some will use the threat of making you BR to frighten you, in the hope that you'll suddenly come up with more money. However, you're paying what you can afford through a DMP with a reputable company, so they know your income & outgoings have been checked, & you can't give more because you haven't got more.

Please let CCCS know that this creditor is contacting you for more money (pass on any letters you've had, but keep a copy for yourself), & ask them to contact them about it. Creditors do have the right to contact you even though you're on a DMP, but many creditors will stop once CCCS & other organisations like them ask them not to do it. A reminder of the regular payments they've had so far & that they'd get less or nothing under bankruptcy could help too.