What are my other options please?

[pipin]

I have asked on another thread about bankruptcy, both Cab and CCCS have advised me this is my best option. I have nearly £27,000 in debts all unsecured, credit cards and an overdraft. Due to a mental breakdown (this was not due to my debts) and other health problems I'm no longer working, my income at the moment is Incapacity Benefit, I have no house or car. So on the face of it, I can see this may be my best option, but i'm still very weary of doing this, my dad went bankrupt when i was young and i can still remember all the family trouble it caused. I have not even been able to bring the subject up because of all the trouble and memories I know it will unlease and at the moment family trouble is just something extra I could not cope with.

So I have made another appointment with CAB and I just want to make sure I'v there is no other way, before I go down the bankruptcy route. I have tried to lower my payments myself, but NatWest will not budge on the credit cards min payment and they are adding interest to the loan at an alarming rate. Both Barclays and Goldfish have lowered a bit, Barclays to £25 and froze interest and Goldfish to £30 but still adding interest, but now I can't even pay that. I have started to make a £5 token payment to all these as advised by CAB. Littlewoods Direct Catalogue, Evans, Debenhams store cards i have been able to meet min. payments on so far.
According to CCCS I have not got enought for a payment plan as with there working out i'v only got £17 spare a month, though CAB worked it out at £55. I think this would also mean I can not have an IVA

So is there any other suggestions, how could I advoid going bankrupt.?


Thanks for reading.

[rory32]

No I'm afraid you couldn't have an IVA. Realistically bankruptcy does look like your best option. The legislation governing bankruptcy have changed quite a lot over the years and is a lot more sympathetic to the debtor than it used to be. National Debtline are a charity that you may wish to have a chat with as well about bankruptcy FREEPHONE: 0808 808 4000
Monday to Friday 9am to 9pm
Saturday 9.30am to 1pm
You may also wish to have a look at the Insolvency Service Website here

[rory32]

though CAB worked it out at £55.

This seems rather high if you are on Incapacity Benefit. Are you sure they are allowing enough for all your bills including things like clothes, utility bills, telephone, etc as well as a small emergency fund?

[pipin]

Thanks Rory, you have confirmed what I sort of already knew, but I just want to make sure I'v thought of everyway before my next meeting with the CAB. Some of the DCA's that have rung have been really nasty but compared to how I think my family is going to react they are not bothering me at all, since my breakdown alot of things don't even seem to registar in my mind, the dca's just seem like annoying little fly's, but my family have held me together and now I feel like i'm going to blow everything apart again.

The figure of £17 which CCCS came up with seems to match up more with one I do have spare each month, but I think that figure CAB came up with was my fault, i did not want to look like I was wasting money so tried not to put any down for clothes etc. which CCCS insisted I should. It's hard because i'm not sure whats an acceptable amount to say and not look like I'm living it up, which I'm most def. not.

I have rung the National Debtline today, the person on there suggested I stopped paying even the £5 token amounts and use that to save up for the bankruptcy but not sure about this because I think the phone calls would get even more and while I can shut them out of my mind when they have gone, just a ringing phone can cause me to have a panic attack depending on my mood, I can go from very high to very low and it don't take much to tip the balance.

[pipin]

Do you think I should still send CCA's to my credit cards?

[rory32]

I would tend to agree that you can not afford the token payments at the moment. If applying for bankruptcy yourself remember that you will get exemption from the court fee as you are on benefits. Have you thought about writing to your creditors and asking them to make you bankrupt?

Regarding telephone calls you may wish to change your phone number. This you can do for free simply by phoning your line provider and requesting a new phone number on the grounds that you are being harassed. There is also a template harassment by telephone letter here which I would send to the DCA's.

Regarding budgeting figures you must make sure that you have money for things like clothes. There is some advice on budgeting here

Did you actually speak to a Money Advisor at the CAB or was it just a member of staff? A Money Advisor should have given you more realistic advice on the amount of money you will need per month.

[rory32]

Do you think I should still send CCA's to my credit cards?

You could, yes. Although please be aware that your creditors won't often give up easily even if there is no enforceable credit agreement. when were the agreements taken out roughly?

[pipin]

Thanks again for the reply.

the newest credit card i'v got is about 5 years old or maybe a bit longer, the others are 10 years or more for the store cards.

[rory32]

Well the store cards are probably GE Money as they issue most of the store cards. Their record keeping tends to be poor at best and a lot of their credit agreements don't contain all of the prescribed terms.

[pipin]

Yes my store cards Evans and Debenhams are GE Money, at the moment they are not bothering me because I have been able to meet min. payments, but CCCS have told me to cancel my direct debts with them and give them token amonts too. There is not much on the store cards, Evans is under £200 and Deb's under £300
My other cards are 2 for NatWest, Goldfish and Barclays but I'v just had a letter from Goldfish to say they are sending the debt to Barclays, but it does not say when, just to keep paying money to goldfish in the meantime.