New Post Advanced Search

New poster, advice requested

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
5 replies 1.6K views
OldandpoorOldandpoor Forumite
3 posts
edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
Hi

Not sure if this is the right forum, anyway, here's my story.

About 7 or 8 years ago I ran up about £60k of unsecured debt . At the time I was in a well paid job and paying it off in due course would not have been an issue. Unfortunately I lost the job and have struggled since on various low paid jobs.

All the debts eventually got sold on and I have contacted the various DCAs and got agreements for token payments for the various debts. I looked into going bankrupt but I couldn't afford the fees and it never happened.

The last 3 years I've been lucky enough to have an office job for a Bank. It's enough to get by. I have no savings, no car, no assets, nothing but basic household possessions and I rent unfurnished. I'm in my 60's and there's no hope of ever paying off these debts.

Now 3 of the debts have been sold on again and the DCA is being very persistent. I've explained exactly what the situation is. If they start bankruptcy proceedings I will lose my job as I'd have to tell the Bank, who would immediately fire me. I'd end up on Universal Credit, have to move flat. They were so persistent that I eventually said look, there's nothing I can do and you're being such a pain I'm not even going to offer token payments.

Do you think they will file for bankruptcy? There's really nothing in it for any of the creditors to do so. Am I right in thinking they'd get nothing while I'm on Universal Credit? What else could they do? They keep saying they will commence collection proceedings but I have no idea what that means. CCJ? Bailliffs? I've got nothing for them to take.

I haven't deliberately planned this, it just seems to have happened. Not quite sure what the way forward is.

Replies

  • sourcratessourcrates Forumite, Board Guide
    20.6K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Hi,

    Creditors don’t file for bankruptcy, especially if you don’t have any money or assets, what would be the point in that ?

    They would spend £680 for no gain, it isn’t going to happen.

    Collection activity, all that means is there going to continue ringing and writing to you, it’s possible they may take you to court and obtain a CCJ, but again, if you haven’t got the money, why bother.

    How old are all these debts ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • I started defaulting on them about 8 years ago when I lost my job.

    Your thinking is my thinking too. Why would they spend £680 for no return? I guess I just needed another person to say it as well. Thanks for the reply.
  • fatbellyfatbelly Forumite
    15.2K posts
    Part of the Furniture 10,000 Posts Cashback Cashier Car Insurance Carver!
    ✭✭✭✭✭
    sourcrates wrote: »

    They would spend £680 for no gain, it isn’t going to happen.

    It's a lot more than that for a creditor petition.

    It's a shame about the token payments as these would have gone statute barred by now - shows what a poor strategy token payments is, unless done for a short period ahead of something different.

    For where you are now, you should try to build a fighting fund (obviously don't save or even bank anywhere that is connected to your debts) even if it's only small in relation to the 60k. For any creditor who is persistent, do a CCA request on them.

    If they comply, then it is potentially enforceable, and you could suggest a figure in full & final settlement. Using the National Debtline standard letter does not restart the statute barred clock.

    Maybe start a thread on dfw or the diary subforum.
  • Thanks for the reply. The token payment was the suggested route back in the day, and it had a benefit of stopping the creditors/DCAs from harrassing you. From reading further and recently I can see what you mean.

    I shall probably just ignore them all. THere's nothing for them to take even if they try.
  • fatbellyfatbelly Forumite
    15.2K posts
    Part of the Furniture 10,000 Posts Cashback Cashier Car Insurance Carver!
    ✭✭✭✭✭
    Oldandpoor wrote: »
    The token payment was the suggested route back in the day, and it had a benefit of stopping the creditors/DCAs from harrassing you.

    Yes that was the recommended strategy. I always had my doubts about the net benefits of token offers, more so as the years have gone on.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support