Author Topic: In debt for +-30 K, need advice  (Read 3885 times)

mike001

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In debt for +-30 K, need advice
« on: Jun 14, 2011, 06:03:36 PM »
Hi everyone,
                    Well to make a long story short i'm in debt for +-30K. All on credit cards and one loan for 3800 £ remaining.
I used to have a good income and lost it all a year ago, i managed to keep paying the minimums and the loan threw my partner that helped me a lot but now it's making us both sick and next month nothing will be paid. What can i expect to happen and what would be my best option ? I have no income at all, as i'm too proud to go on benefits and keep looking for a job that could cover this debt with a nice loan as i wanted to pay it but so far nothing,...I also tried (where half the debt is ) to talk to the bank to see if i could pay may be a 3rd (as my partner would help me ) but they completly refused and said they don't do deals,...although i have paid over the years 2 thirds in interest,...what would you advice, thanks ever so much
Mike.

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Re: In debt for +-30 K, need advice
« Reply #1 on: Jun 15, 2011, 10:26:25 AM »
Hi Mike,
 
Welcome to the forum, I do appreciate that you say you are to proud to go for Benefits, I am in no doubt you have worked hard and paid your taxes and NI so you are entitled to it. It can be daunting having to go to register for unemployment but please do so as this will help you.
 
I don't know your full circumstances whether you own your home or not.
 
 
But one obvious solution to consider would be Bankruptcy. You would be bankrupt for 1 year and as you have no income it would be highly unlikely you would get an income payment order. However as I said I don't know your full circumstances so the best thing to do at this time is seek debt advice from a not for profit organisation.
 
 
Andy
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www.debtsupporttrust.org.uk

mike001

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Re: In debt for +-30 K, need advice
« Reply #2 on: Jun 15, 2011, 04:23:49 PM »
Hi, thanks for the answer
To be totally honest, it's a bit of a weird one because i used to live in belgium but english and moved to england 7 years ago.
Although i got regular money coming in threw belgium in my lloyds bank account, they threw at me all sorts of credit cards with high limits,...and same with other banks,... although i never had a property here ( my partner does ) I also never worked in the uk nor i am registered here ( council tax,... ) so i wonder what my best option is as i do want to do the right thing,...
thanks, mike

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Re: In debt for +-30 K, need advice
« Reply #3 on: Jun 15, 2011, 04:43:03 PM »
Hi Mike,
 
Did you move to belguim previously and move back to UK 7 yrs ago? or did you always live in Belgium and then move over for this first time 7 yrs ago.
 
What money were you receiving into Lloyds Bank, was it a pension???
 
If you have no income then I am afraid I don't see how you can manage to pay debt off and Bankruptcy may be the best solution for you.
 
I know you said you wanted to do the correct thing but if you have no income and this does not change, I do not really see other alternative
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Re: In debt for +-30 K, need advice
« Reply #4 on: Jun 15, 2011, 04:45:26 PM »
Hi Mike,
 
When you say you lost the money, exactly what does this mean?
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mike001

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Re: In debt for +-30 K, need advice
« Reply #5 on: Jun 15, 2011, 04:58:17 PM »
Thanks again, well basicly i moved to the uk for the first time 7 years ago ( to live with my partner ). I used to get money from a job i had in belgium that i picked up threw a debit card( belgium bank) in the cash machines here and put it in my lloyds account here. Although i have spent the money,...i'm starting to think that they should had never given me this line of credit but i've done it and want to do the right thing again.

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Re: In debt for +-30 K, need advice
« Reply #6 on: Jun 15, 2011, 05:06:56 PM »
Hi Mike,
 
Outwith you gaining employment to cover the costs of the debt you have outstanding, then I see no other option than Bankruptcy I am afraid to say.
 
Andy
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www.debtsupporttrust.org.uk

mike001

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Re: In debt for +-30 K, need advice
« Reply #7 on: Jun 15, 2011, 05:12:50 PM »
ok thanks for that, can you tell me more or less how i go about this , and will my creditors send me people at home to try to collect anything (like money, furniture,...) as my partner will not be able to take it.
thanks

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Re: In debt for +-30 K, need advice
« Reply #8 on: Jun 15, 2011, 05:20:50 PM »
Hi mike,
 go along to your local county court and get the forms from the clerks office, and once you have been declared Bankrupt then the creditors can no longer take any action against you. However the longer you leave it then the more chances of this happening. Even if bailiffs did come round then they can't take any furniture and essential household items like cooker, washing machine, fridge freezer and beds etc. Also to note that if bailiffs come round you don't need to let them in, but if you do then legally anytime they come back you legally need to let them in.
 
Andy
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www.debtsupporttrust.org.uk

mike001

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Re: In debt for +-30 K, need advice
« Reply #9 on: Jun 15, 2011, 05:27:38 PM »
Hi thanks again,
So if i understand well and do the forms,,... right away i should have no visits from anyone ? i am up to date until now but next month will not. Also like i said this is my partner's property and most things are hers. Will the bancrupty involve someone coming in her place and asses the belongins ?? i know these can be funny questions, but i have always worked hard and like lots of people lost this high living standart we used to have many years ago,...

mike001

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Re: In debt for +-30 K, need advice
« Reply #10 on: Jun 15, 2011, 05:43:42 PM »
and also final questions, at the time like many offers on the internet for credit cards, they used to mention " would you like to have a second card for someone else that you wish to include in your application to help us to make our decison,..." we have done that on a few but she never had to sign anything,...could this be trouble ?. And finally we do have a join account with £1000  overdraft,should we pay this off and then get her name out of it and then i declare bankrupt ?
THanks ever so much.

James Falla

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Re: In debt for +-30 K, need advice
« Reply #11 on: Jun 15, 2011, 05:46:41 PM »
Hi there mike
 
Given the levels of debts you have and the fact that you have no income, I agree with Andy that bankruptcy seems to be your best option. I assume that you are not a home owner, is that correct? If you are a homeowner and there is equity in your property, then bankruptcy could be more of a problem.
 
In terms of going through the bankrutpcy process, it is not quite as simple as perhaps has been suggested. Local courts do not generally give out bankruptcy application forms now (a cost cutting exercise I expect). However, the application forms are easily to download from the web. You can get them from [** sorry, no personal contact invitations allowed **] and many others. The forms are relatively complex (30 pages long) and need to be completed properly.
 
Once the forms are completed, you must go in person to your local county court (or the High Court if you live in London). You will have to pay a fee of £700. Given you are insolvent and have completed your forms correctly, you will be declared bankrupt. You then have a telephone meeting with the official receiver who will look at your assets and income and see whather you can afford to make a payment towards your debts. If so this will last up to three years. If not then you will pay nothing unless your circumstances improve.
 
Bankruptcy is not the only solution for resolving serious debts. You could also consider a debt management plan or an IVA. However, with little or no income these options may be limited. Nevertheles you should familurise yourself with them. My advice is to have a conversation with at least one debt advisor before making the decision to declare bankruptcy.
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James Falla

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Re: In debt for +-30 K, need advice
« Reply #12 on: Jun 15, 2011, 05:54:21 PM »
Hi mike
 
Sorry, to answer your last questions: Once you have declared yourslef bankrupt, your creditors cannot take any further action against you to collect their debt. As such, all collection letters and phone calls will stop and no-one will come to your home. As such, if this is what you decide to do, the sooner you go through the process the sooner you will be protected.
 
Having said that, given you are up to date with your payments now (or only just starting to miss them) the likelihood of a collect coming to your home is very low. If at all, this would not happen for a few months after you stopped paying. You will first get a barrage of collection letters and phone calls but there is no need to panic. You have plenty of time to get a solutuion in place before anyone knocks on your door.
 
Given you are upfront and honest in your application, bankruptcy will not involve anyone coming to your partners home to assess her belongings. However, you need to make it clear on the application form that you have not made contributions towards your partners mortgage payments and have no beneficial interest in the property.
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James Falla

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Re: In debt for +-30 K, need advice
« Reply #13 on: Jun 15, 2011, 05:57:50 PM »
and also final questions, at the time like many offers on the internet for credit cards, they used to mention " would you like to have a second card for someone else that you wish to include in your application to help us to make our decison,..." we have done that on a few but she never had to sign anything,...could this be trouble ?. And finally we do have a join account with £1000  overdraft,should we pay this off and then get her name out of it and then i declare bankrupt ?
THanks ever so much.

If your partner is a second card holder on any of your accounts, she is not liabale for these debts. She would only be liable if she was jointly named as an account holder.
 
In terms of your joint account, your partner will continue to be liable for this if you declare yourself bankrupt. If she has the means to pay it off, my advise would be to do so as she would have to do this anyway. However, you should then take your name off the account. This will allow her to continue to use it after you have been declared bankrupt. You can open a new account with a different bank to use moving forward.
 
Hope all of this helps
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mike001

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Re: In debt for +-30 K, need advice
« Reply #14 on: Jun 15, 2011, 06:12:49 PM »
thanks ever so much, this really helps. Since i got nothing,..( and not even on the property that is fully paid in her sole name,..) would you advise to wait until trouble comes or go bankrupt right away to avoid visits ,...?? that's what i really care about as i can take take anything but don't want my partner to go threw anything,..
As regards of the joint account,we only had it for me to use and she's got savings, and other bank accounts with no trouble...and would be willing to pay that 1k to help me, and then i could take her name off or mine.
thanks ever so much again, as this is getting to me something rotten.