Author Topic: Debt, collectors and bankruptcy  (Read 3293 times)

nic1975

  • *
  • Posts: 3
Debt, collectors and bankruptcy
« on: Nov 09, 2010, 12:58:00 PM »
Hi all, Hope someone out there can help...  :)
Last year i was made redundant from my job & also split from my partner, we co-owned a house which has been repossesed by the bank(£150,000) this is still up for sale & also have several debts (catalogue/loan/overdraft with a joint account + few others (£12,000)
I am still unemployed (+plus now having to live back at my parents house)and seriously considering bankruptcy, i have had some debt collectors send letters to me & have ignored so far (sent some back saying not at this address, not sure some are buying it!?)..... the problem i need to avoid is any of them coming to the house as i think my parents would kick me out & i have nowhere else to go....so my questions are.....does bankruptcy take effect straightaway? would the offical reciever question why i have not made contact with them? Also because i am having trouble raising the money to declare myself bankrupt (on JSA), i have an overdraft at my bank which i am seriously considering using to do it and i need to know if that would have any repercussions on me filing for bankruptcy as it would be classed as another debt....would appeciate as much help with this as possible as my heads in bits with all the stress & worry! :'(

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Debt, collectors and bankruptcy
« Reply #1 on: Nov 09, 2010, 05:02:37 PM »
Hello nic1975
 
Do you have any feeling for whether there will be a shortfall on the mortgage after your property is sold by the lender? Any such anticipated shortfall will also need to be added to your debts. Do you think this would push your total debt above £15,000? If so and given that you have no income, bankruptcy does seem to be a sensible option for you. If not, and your debt is less than £15000, you could consider a debt relief order which only costs £90.
 
If you were to go down the bankruptcy route, you would be bankrupt as quickly as you can complete the application form and go to the court. It happens on the day.
 
I do not think the official receiver would make too much of the fact that you have been avoiding your creditors. You are certainly not alone. Many people simply bury their heads in the sand and have had very little contact with their creditors by the time they declare bankruptcy.
 
In terms of using your overdraft facility to pay for your bankruptcy, you are allowed to do this. You are allowed to pay for insolvency advice and the cost of declaring bankrutpcy on credit (although that may sound crazy).
 
Let me know if I can be of further help. 
Debt Expert & Author
beatmydebt.com

nic1975

  • *
  • Posts: 3
Re: Debt, collectors and bankruptcy
« Reply #2 on: Nov 09, 2010, 07:23:57 PM »
There will be a short fall i reckon of at least 50 grand!!  So i think debt relief order is out of the question i think!?

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Debt, collectors and bankruptcy
« Reply #3 on: Nov 10, 2010, 06:55:30 PM »
Hello again nic1975,
 
Yes, given the shortfall that you expect, your total debt is currently c£62,000 and you are not eligable for a debt relief order. As such you will need to use the bankrutpcy route. I know that this sounds bad but actually for someone in your position, it would be a sensible solution to consider and would mean that you could put your debts behind you and get on with your life.
Debt Expert & Author
beatmydebt.com

debtcorSA

  • Guest
Re: Debt, collectors and bankruptcy
« Reply #4 on: Nov 11, 2010, 11:57:10 AM »
Hi James,


How many years experience do you have?

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: Debt, collectors and bankruptcy
« Reply #5 on: Nov 11, 2010, 09:56:09 PM »
I agree with James, the best solution for you would be bankruptcy. If you could show them some kind of guarantee or income there would be some kind of other solution but with the shortfall, I would also go down that route. You have to know though, that there are loads of people who can help you with that, you don't have to go through it all, as in your current situation it might be too much for you.
Best wishes, and give us an update.
Laura
I help people sort out bad debt.
http://www.solvem

nic1975

  • *
  • Posts: 3
Re: Debt, collectors and bankruptcy
« Reply #6 on: Nov 12, 2010, 02:55:39 PM »
 ;D  BIG THANKYOU to james & laura for your advise much appricated! i will keep you up dated, will go to cab for forms monday morning!

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Debt, collectors and bankruptcy
« Reply #7 on: Nov 17, 2010, 06:06:25 PM »
Hi nic1975
 
How did you get on with the CAB? Are they going to help you complete your bankrutpcy forms?
 
You can actually declare yourself bankrupt without having to wait for an appointment with the CAB. 
Let us know how you get on.
Debt Expert & Author
beatmydebt.com

Kurt

  • *
  • Posts: 3
Re: Debt, collectors and bankruptcy
« Reply #8 on: Jan 27, 2011, 09:47:40 AM »
I have a credit card debt that is about five years old and I have some questions. This company called my wife today and told her that we needed to pay this now or make arrangements or they were going to repo our car. Is that legal?

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Debt, collectors and bankruptcy
« Reply #9 on: Jan 27, 2011, 12:05:40 PM »
Hi Kurt
 
A credit card is an unsecured debt. As such, if it is not paid, the associated creditor cannot repossess your car. As such, you have nothing to worry about on this front. What are you planning to do about repaying the debt? Do you have any disposable income each month you could use to make a payment?
Debt Expert & Author
beatmydebt.com

FinanceGenie

  • *
  • Posts: 9
Re: Debt, collectors and bankruptcy
« Reply #10 on: Feb 08, 2011, 10:24:32 AM »
Once bailiffs have gained entry to you home they are allowed are certain things they are not allowed to change this varies depending on what type of bailiffs they are.

Bailiffs (except bailiffs acting on behalf of the magistrate's court - see below) cannot seize the following goods:

tools, goods, vehicles and other items of equipment necessary for use by you in your employment, business or vocation;
clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of you and your family
Bailiffs acting on behalf of the magistrates' court cannot seize the following goods:

clothing, beds and bedding tools of the trade
basic domestic needs of the family would normally include fridge, cookers, freezers, but may not include video recorders, second TVs, jewellery, washing machines, stereos or microwave cookers.

If a bailiff seizes goods that are subject to a Hire Purchase agreement, seek advice urgently. Goods on HP do not belong to you until you make the final payment, but there may be circumstances in which they can be seized.

If goods have been seized wrongfully, then the owner of the goods can apply for them to be returned. You will need to get further advice about this.