Please help i'm being made Bankrupt

[ceborame]

I owe Northern Rock over £11,000, the debt has gone from debt collection company to debt collection company.

 

Now I have a company , connaught collections, that is saying they are now in a position to present a Bankruptcy Petition against me, and will liquidate my assets.

 

I really can't afford to pay this money back, I know I have been foolish by burying my head in the sand, but I could really do with help on this.

 

Thanks

 

Ceborame

[Rich44]

Do you own your own home?

[powelll]

We need more info to give the best advice. Are you in rented or mortaged property? Are you working? Is this your only debt?

Connought are well known for threatening bankruptcy as a scare tactic. They are more likely to follow up on it only if they think you have assets ie a property.

They can't issue a bankruptcy petition without first issuing a Statutory Demand which gives you 21 days to deal with things. If you haven't had a Stat. Demand yet don't worry ( I know it's easy for me to say ).

You cannot be declared bankrupt for a debt where there is a genuine dispute ( you can also get a Stat Demand 'set aside' on this basis )

You need to CCA Connought ASAP - recorded or special delivery & keep a copy.

 

Hope this helps as a starting point

[shane5408]

Hi,

 

For them to do that, it will cost them cosiderably up front which is why in almost all situations like this it is a scare tactic, nevertheless it should always be taken very seriously. Are you able to post up what they have sent you?

 

I would also send a CCA Request via recorded delivery to the DCA currently dealing with theaccount ASAP, it can be found here http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html on letter N.

 

You also need to add at the top of the letter

 

''I ACKNOWLEDGE NO DEBT TO YOU OR ANY COMPANY YOU PURPORT TO REPRESENT.''

 

I would also not sign it using your signature but a digital one like this: http://www.consumeractiongroup.co.uk/forum/general-debt/110578-digital-signature-guide.html

 

 

 

regards,

shane

[JHLippy]

It's a scare tatic, I have one of them to

[powelll]

It's a scare tatic, I have one of them to

 

It shouldn't be taken lightly though - Connought have followed through with bankruptcy petitions in some cases ( ususally where there's property involved )

[ceborame]

Thanks everyone. I have a house but my wife and kids live there and I rent my own place since we split up. My wife and I have a joint mortgage on that property. Yes I work. And yes this is one of a long list of debts, in fact I've thought of going bankrupt myself to get out of this mess. Ive basically put everything that they said in my first post.

 

 

Kind Regards

 

C

[rory32]

The things is that even though you don't live in the property you have a financial interest in it. Is there equity in the property? Also have you received a default notice for this account from Northern Rock and a Notice of Assignment for Connought? Are there any charges on the account?

 

I would get that CCA request out ASAP and I would recommend under the circumstance it is sent next day special delivery before 1pm.

[ceborame]

Yes there is quite a bit of equity in it probably about 80k - 100k . The thing is isn't this cca thing just a way of avoiding/delaying paying. What I need to know is what about the long term. Can I perhaps still negotiate a monthly arrangement. I owe the money I know that because I borrowed it ! I'm thinking about going to CAB, is that a good idea.

 

Regards

 

C

[rory32]

If there is no copy of the credit agreement or the agreement doesn't comply fully with the Act then the debt is unenforceable even in a court of law. This will give you a lot of negotiating room and they can forget about bankruptcy. I appreciate that you took out the loan and wish to pay it back, but at the same time bear in mind there are probably unlawful charges on the account and the debt has possibly now been sold (Connaught tend to buy debts for around 10-20% of there value and the bank claims back the tax when it sells a debt).

 

Regarding negotiating a monthly repayment of course you can do this at any time. It's best to do a statement of affairs showing all your outgoing and income and the amount of disposable income you have. You can then show that your making a reasonable proposal in line with your ability to pay. Just be aware that it normally takes a few letters before they will agree to it and some will never agree to it depending on how much you are in a position to offer.

[tomterm8]

Yes there is quite a bit of equity in it probably about 80k - 100k . The thing is isn't this cca thing just a way of avoiding/delaying paying. What I need to know is what about the long term. Can I perhaps still negotiate a monthly arrangement. I owe the money I know that because I borrowed it ! I'm thinking about going to CAB, is that a good idea.

 

Regards

 

C

 

Asking for a credit agreement under the CCA 1974 is a legal right that you have, in order to see whether the agreement is valid.

 

either the agreement is enforceable, in which case you will have to pay, or it is not, in which case they can not seek to enforce it though bankruptcy action.

 

even if the agreement is unenforceable, you could still voluntarily pay back the loan. It may be that if you have already considered bankruptcy, your financial position might be such that allowing them to go ahead may be your best option.

 

However, I would contact the national debt line, and might consider making a pro-rata DMP offer.

 

 

EDIT: considering how much money is in your home, I really WOULD suggest calling the national debt line, since connaught / 1st credit have very definatly been known to go for bankruptcy where such a large equity exists.

[powelll]

EDIT: considering how much money is in your home, I really WOULD suggest calling the national debt line, since connaught / 1st credit have very definatly been known to go for bankruptcy where such a large equity exists.

 

Great minds and all that

 

It shouldn't be taken lightly though - Connought have followed through with bankruptcy petitions in some cases ( ususally where there's property involved )

 

Definitely - and in your current position I certainly wouldn't be advocating bankruptcy as your best option anyway ( petitioning yourself or allowing someone else to ). If you have a 'beneficial interest' in the property with your ex she will be expected to buy out your share & pay this to the OR. If she can't afford to do this and no one else can step in then the property will be sold. Although the OR can wait up to 3 yrs to deal with property relating to bankruptcy and even if they decided to deal with it immediately there would be a 12 months 'grace' period as kids are involved.

 

TomTerm8 is right; call National Debtline on freephone 0808 808 4000 so you can get advice on your whole situation not just an isolated creditor.