Author Topic: worried  (Read 1959 times)

mary

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worried
« on: Jul 08, 2010, 11:21:21 AM »
Hi all
i have been reading the posts on here and trying to find a solution to my problem and wonderd if any one can help. in brief we have aprox 38,000 of unsecured debt, and have been in a dmp with payplan for 5 years but the debt never seems to go down. my husband lost his job earlier this year is is currently on esa due to health problems. we are not intilted to any other benifit because i work. we are currently paying a token payment of 1.00 to each of the 7 creditors. we are both in our 50s and can see no way out of this mess. we have tried to sell our house for the last two years but have had no luck. i notice that some of you have managed to have your debys made unenforcible due incorrect agreement. i was going to try this route but i am sacred in case this makes them turn nasty and make us bankrupt.
thanks for reading this
mary

Steven Jackson

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Re: worried
« Reply #1 on: Jul 08, 2010, 02:20:09 PM »
Hello Mary
 
Sorry to hear about your circumstances. The first thing I would say is that you should not be considering the unenforceable credit agreement route as a way to try and resolve a debt problem. There has been a lot of bad press recently about the companies that provide these services and some have been closed down: http://www.beatmydebt.com/news-articles/cartel-client-review-closed-down-by-ministry-of-justice.htm
 
Before advising you further, it would be very useful to understand how much you feel you can pay towards your unsecured creditors each month. Is your disposable income any more than the £7 token payments you are currently paying?
 
Can I also ask you about your house. How much equity do you think there is in it currently?
 
If you feel able to give more information in these areas, I am sure we can help
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mary

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Re: worried
« Reply #2 on: Jul 08, 2010, 02:34:07 PM »
thanks for taking the time to read my post.
there is proberly enough equity in it to settle those debts by the time you take out solicistor fees and so on. but were would we live at the moment we dont have any more spare money but we are ever hopefull ta=hat my husband will be able to find some work. we would then of course be able to pay more to our creditors. it makes me mad that the creditors just keep on pliing on interes and charges all the time we haven been in a dmp for 5 years now and i feel that we have got nowhere
mary

Steven Jackson

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Re: worried
« Reply #3 on: Jul 08, 2010, 02:54:18 PM »
Hi again Mary
 
I understand your frustration regarding the interest being added to your accounts and I feel they your creditors could be being more helpful. However, they are sadly not obliged to do so.
 
Given that you have little or no disposable income to work with at the moment and the equity in your property is around £38,000, your options are limited.
 
You are doing the right thing by making token payments to your creditors and should keep this up. However, if you husband is unable to find work, then the debts are never going to get any smaller and as you say, if interest is continually added they will unfortunately grow.
 
If this situation continues and your position to make payments to your creditors does not improve, I know it sounds terrible to say it but bankruptcy might be an option which you consider. It would wipe out all of the debt. However you may well have to make the decision to move into a rented property and unfortunately give up your house which I know is an incredibly hard decision to make.
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mary

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Re: worried
« Reply #4 on: Jul 08, 2010, 03:12:23 PM »
I have a plan for the future because i am confident that my husband will get back to work. he lost his driving licience in march this year and as that is all he has ever done finding any other work is difficult. but he will get his liecenc back next march and then he will try for agancy work and because we will have been used to living on very little we plan to continue and throw every spare penny at our debts. i am also trying to save any bit of cash where i can and will also use this for debts. i dont want to ofer any more at the moment because i might have an extra pound or two one week but not the next and i just want to remain consitant. the only thing i am realy worried about is that any one of my creditors will make me bankrupt in the mean time.
mary

Steven Jackson

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Re: worried
« Reply #5 on: Jul 08, 2010, 03:33:08 PM »
I would not worry about being made bankrupt by one of your creditors Mary. Given that they are all standard commercial creditors (banks, credit card companies etc) it is extremely unlikely that they will go down this route. The reason for this is that it would cost an individual creditor around £3000 to make you bankrupt without any guarantee that they will get anything back.
 
The thing you need to watch out for is if any of them apply to take out a county court judgement (CCJ) against you. If they do and then you do not pay this, it would allow them to then apply for a charging order against your property effectively securing the debt. As such, if you do receive notification of any creditor applying for a CCJ, you need to make sure that you complete the appropriate forms stating how much you can afford to pay each month even if this is only £1.
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madison85

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Re: worried
« Reply #6 on: Jul 12, 2010, 09:20:00 AM »
I would not worry about being made bankrupt by one of your creditors Mary. Given that they are all standard commercial creditors (banks, credit card companies etc) it is extremely unlikely that they will go down this route. The reason for this is that it would cost an individual creditor around £3000 to make you bankrupt without any guarantee that they will get anything back.
 
The thing you need to watch out for is if any of them apply to take out a county court judgement (CCJ) against you. If they do and then you do not pay this, it would allow them to then apply for a charging order against your property effectively securing the debt. As such, if you do receive notification of any creditor applying for a CCJ, you need to make sure that you complete the appropriate forms stating how much you can afford to pay each month even if this is only £1.

it costs an individual creditor around £3000 to make you bankrupt, no wonder they try and scare your first as they lose money to make you bankrupt.

Steven Jackson

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Re: worried
« Reply #7 on: Jul 12, 2010, 05:08:06 PM »
Its is really really unusual for a commercial creditor to issue bankruptcy proceedings. The first issue is the cost. However, in reality the realy issue is that if you are made bankrupt, all of your unsecured creditors have to be treated in the same way and without preference by the official receiver. As such, the creditor who petitioned for your bankruptcy would have to pay for the process and then share any returns with all any other of your creditors (their competitors)  - not very likely.
 
For this reason, the only creditor who will really press the bankruptcy card are HM Revenue and Customes for outstanding tax debts. They are not so interested in the money outstanding as stopping the balance gettng worse and making a serious point - "Pay your tax".
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