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Drowning in dept, need advice


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Hi, Between myself and my wife we have total unsecured dept of around £70,000. We have a property, that is in my name only, and are concerned about protecting it against loss and charges being but on it. We have one dependent and another on the way (dew early July).

My wife works full time and I am self employed working from home but have no income as yet and look after our child.

There is little or no equity in the property and our income is £100 less then our expenditure, after essential bills ect, and so are paying each creditor £1 per month. This has gone on for some time and I now have one CCJ with another pending (with Northern Rock and expect them to look for a charging order) and my wife has one also.

I desperately need some advice on which route to take to protect our home. Is it an option to sell to a family member and declare myself bankrupt or do i wait for our income to improve and go for an IVA? and if I keep the house will I only be able to get a crappy interest rate when our current deal with Northern Rock expires? can I move to another part of the country and forget about these debts?

I am so worried and any advise would be greatly appreciated.


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ok Sepo


lets get this in to some type of perspective first

Break down your debts into Secured and non secured

Break down your debts into priorty and non priority


Dont fail payment on priority and CCJ or they will come after a charging order but only if you fail to maintain the order,You must protect your home at all costs


You need to request a copy of your Credit Agreements, of all of your non priorty debts via a CCA request to establish if they are enforcable see the templates section this will give u a little breathing space while you draft your course of action.


Are all the debts with the original creditors or DCA ?

I presume you are on your own DMP stating you are paying a £1.00 to them?


Break everything down as above and come back for further advise when you have stopped panicing.





We could do with some help from you.



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Didnt see you there Curly





We could do with some help from you.



 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service


If you want advice on your Topic please PM me a link to your thread

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Northern Rock £30,000 CCJ repaying at £1.74 PCM

Northern Rock £31,920 CCJ pending (have asked for CCA)

RMA resolve Originally Barclay card £2,500 repaying £1.00 PCM

Capquest Originally Egg loan £8,000 repaying £1.00 PCM

Capquest Originally Egg card £4,000 repaying £1.00 PCM

Debt Managers Originally American Express £5,000 repaying £1.00 PCM

Capital one Bank £569 repaying £1.00 PCM

Natwest Bank £1600 repaying £1.00 PCM

Natwest Bank £2000 repaying £1.00 PCM


My Wife

Debt Managers Ltd originally Barclay card £2,200 repaying £1.00 PCM

Credit Solutions originally AA Visa card £4162 repaying £1.00 PCM

(Not sure but can find out later) Barclaycard loan £10,0000 repaying £1.00 PCM

CL finance Ltd originally GE Money £1,032 repaying CCJ at £1.00 PCM

CL finance Ltd originally GE Money £2,346 repaying CCJ at £1.00 PCM

Capital One Bank £571 repaying £1.00 PCM


All debts are unsecured at present.

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We found ourselves in a similar situation and owing about money. We got behind last year when my husband was between contracts and got caught up quickly. It wasn't until a bad turn with Mercers (Barclaycard's in house jokers) that we ending up CCA'ing every creditor. We are now finding out that the majority do not have enforceable agreements which means we can fight them.


Just know you aren't alone and we have all been there. Worry about the house first and foremost and send out a CCA request to each creditor or debt collection agency. Good luck and congrats on your impending new addition to your family.

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Right then.

Lets get organised here.


You have a number of options here.

1/ FULL bankruptcy

2/ an IVA

3/ DMP via payplan, CCCS or similar NON profit organisation

4/ Fight hard !!!


Now in all honesty the choice is completely yours, but I would fight and then use the DMP option.


Now the NR debts will likely result in another CCJ and possibly a charging order, but as you have already posted this on another thread I will leave that there.

The others, well that's a different matter.


Get your self a whole bunch of folders to organise your self, either ring binders or simple cardboard jobs.

It is very important to keep everything together and in order.

Also get yourself a small notebook for keeping an activity log in, letters sent/received, calls received.

From NOW on NEVER talk to these people on the phone.

If you do answer the phone to them then simply state that you require ALL correspondence to be in writing for the avoidance of doubt. They wont like it mush and might even say it isn't possible, but tough really.

EVERYTHING must be in writing !!!

Now all the DCA related debts must be tested to ensure that they have the legal right to collect on them.


This is achieved by requesting a copy of the Signed, Executed Credit Agreement via a Consumer Credit Act (CCA) request.

There is a template letter to be found here: http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html

Letter N.

Is it important to start the letter:



It is best to send this request via recorded/special delivery as there are some important deadlines to observe.


After 12 WORKING days the "debt" is in default and stays that way until the request is complied with.

If a FURTHER month passes then the DCA has committed a summary criminal offence and the matter should be referred to Trading Standards for action once the DCA continues to demand payment.


The CCA requires a statutory fee of £1, best to use a postal order for this.

Also DO NOT sign the CCA letters, simply printing your name at the bottom if fine.


Now what the DCA should supply is a copy of the original agreement.

This is important as if it doesn't comply with the CCA 1974 act it will be unenforceable and therefore non-collectable.

This doesn't void or cancel the debt, but renders it legally stalemate.


Once the DCA's respond then scan and post the agreements here and we'll assess them for you.


Now the debts that are still with the original creditors are worth CCA'ing as well to ensure they too have the required paperwork and to see exactly what you agreed to, eg PPI etc.

Same rules apply as above.


Now once the agreements have arrived and found to be compliant then its time to get SAR's in and reclaim all of the unlawful charges that have been applied to the accounts, like late payment, over limit, etc.


Now this may seem like alot of hard work, but that's what fighting is all about.

It starts with a flurry of activity and then settles down some.


Good luck and we're here to help.

  • Haha 1

Be VERY careful whose advice you listen too

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Nice one Curlyben and congratulations on the little one. We are expecting our second in July.

Be in touch soon.

ps do I contact all creditors now or wait for them to write to me?

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