Bankruptcy over supposed interest and charges

[Teddybear]

Hello all

Just after some info, advice, anything really.

Got a call this morning and apparently Legal Collections who bought a debt off Citifinancial have forwarded my file onto a firm (didn't catch the name) to start bankruptcy proceedings.

I have to admit I've been stubborn, I have argued with Legal Collections about this for a while but I haven't heard from them since the beginning of the year when they refused to provide me written info rather than demand letters.

I defaulted on my agreed payments as I made an offer to Citifinancial to clear my debt, this was about July/August 2005, didn't get a response from them. I should have kept up payment regardless, I was a bit daft. Anyway once I knew that it had been passed to Legal Collections I paid off the balance as per my CCCS statements. That was in November 2005.

Then they claimed that the interest and charges were payable - a total of £1290.00. These charges and interest were frozen by agreement with Citifinancial.

I have kept up repayments perfectly fine on a loan that I have and my one credit card and would be loathe to have an IVA or bankruptcy just because of the hassle and it would mean changing bank but I don't have any assets to be seized, I don't anticipate wanting to be a company director in the future and I'm blacklisted anyway still from my past so I wouldn't ever be applying for credit. Plus being in that unlucky generation unless I come into money I think I'll be renting for the rest of my life.

At the moment I'm waiting for the berks that called this morning to call me back. I tried explaining situation to this firm but the idiot on the other end of the phone wouldn't let me get a word in edgeways, even when I tried giving him my correct address...how ridiculously stupid of him, so I ended up hanging up out of frustration instead of being abusive. It appears they have been corresponding with my previous address which I was at in March this year. I don't know if I have a CCJ in relation to this but as I said I'm not that bothered about my credit rating although I do promise to get a copy of my Experian report asap.

Any views on any of this?

Cheers
Fluffyted xx

A creditor can make you bankrupt if you owe £750 or more to that creditor and you have not been able to agree how to repay the debt. Creditors can club together to make you bankrupt but this is rarely done.

Before presenting a Bankruptcy Petition a creditor must send you a "Statutory Demand".

A Statutory Demand is a pre-court form that requires you to either:

• pay the demanded amount
• offer to secure the debt against any property you own (create a voluntary charge)
• offer to pay the debt in a way that is satisfactory to the creditors e.g. by instalments.

Statutory Demands can be hand delivered or posted. Some creditors use them as a bluff to try to get you to pay the debt quickly, for example by borrowing elsewhere but the creditor may not actually apply to make you bankrupt. This is because it does not cost very much for a creditor to send you a Statutory Demand but the creditor would have to pay large upfront fees to make you bankrupt.

Twenty-one days after a Statutory Demand is served, the creditor can apply for a bankruptcy order through the county court. However, you can apply to have the Statutory Demand "set aside" in certain circumstances - for example if your debt is below £750 (at the time of the set aside) or there is a dispute about the money owed.

[Teddybear]

I don't have a statutory demand but they might have sent it to old address, funny how it takes them 7 months to make a phone call though!

I'll have to wait until they call again and see what's happened. If they did make me bankrupt what would happen to my loan and credit card that I owe money on? Hmmm...will have to see what happens.

Cheers for the info, couldn't find anything like that online earlier.

Ta very much

xx

[falcon185]

Hi teddybear,
it does seem funny that after 7 months they make a phone call to you, if they have your new number they surely must have your new address too, if you manage to get their address if and when they call back it may be worth your while sending them a CCA? you should get copies of all relevent paperwork in relation to your case from them, that would in turn show what letters they have sent to your previous address and give you a little more time? I may be wrong and no doubt other posters may be able to clarify things more for you.

they are not going to make you bankrupt, do not give it a second thought, it is bluff to scare you do not let it work

[Teddybear]

I think you are right. It was my mobile number that they called me on which I haven't changed for a few years. I had a postal redirect for 6 months from my old address and didn't get anything from them over that period.

Thanks for reassuring me guys

Teddybear xx