Panic stations !!! Capquest Statutory Demand for Bankruptcy... Please help

[shytalk123]

Hi folks...I think i'm up the Swanny with this and I don't know what to do. I received a letter this morning from Capquest in relation to a debt of £2,000. It is for a debt to Intelligent Finance. I'm currently on Benefits after recently losing my job and to be honest Bankruptcy doesn't seem the worst thing in the world as I've got other debts too. What should I do in the first instance. I don't want to be bankrupt if I don't need to be. What I'm wondering is if, in my current financial status, it would be a better decision to consider bankruptcy or should i try and fight this...All advice gratefully received.

[babybear39]

Hi shytalk,

 

You need to contact a debt advice charity ASAP. Here are details of 2:

 

CCCS - Free Debt Advice from the UK's Leading Debt Charity

 

National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

 

You have to wait a day or 2 for an appointment with CCCS, but nationaldebtline can give you immediate advice over the phone.

[palomino]

Hi folks...I think i'm up the Swanny with this and I don't know what to do. I received a letter this morning from Capquest in relation to a debt of £2,000. It is for a debt to Intelligent Finance. I'm currently on Benefits after recently losing my job and to be honest Bankruptcy doesn't seem the worst thing in the world as I've got other debts too. What should I do in the first instance. I don't want to be bankrupt if I don't need to be. What I'm wondering is if, in my current financial status, it would be a better decision to consider bankruptcy or should i try and fight this...All advice gratefully received.

 

Hello shytalk,

 

Sorry to hear your have problems. Just a few questions to see how best we can help -

1. Are you sure the amount claimed is correct? Are you sure that Capquest have the right to collect this debt?

2. Is this your only debt?

3. Do you own your own house? Do you have any other property?

4. Have you had any correspondence on this matter prior to the Statutory Demand?

5. Do you have any income other than your benefits?

Can you reasonable afford a modest or even token amount (£1) each week?

 

Now for some encouragement.

1. Capquest use SDs as a threat device to try and make you pay up. It is morally repugnant but nevertheless they can (just) legally do it.

You can apply to have the SD set aside of you wish. Contact the County Court at the place shown on page 3 of the SD and they will send the forms out. You need forms 6.4 and 6.5. They also available here England and Wales Forms if you want to download them instead.

If you really don't mind bankruptcy then you could just let the SD proceed. I would put serious money that Capquest themselves would pull it before the case came to court. On other words it's a big bluff on their part.

 

2. You can check out the validity of Capquest's claims by formally requesting a copy of your credit agreement and your current statement of account under the provisions of the Consumer Credit Act CCA). Letter N in the templates library should do the trick.

Send the letter by recorded delivery. Don't sign it. Enclose a £1 postal order with the letter.

[shytalk123]

Hi thanks for replying. I have other debts but I must confess I buried my head in the sand about them when I was working. That is my only debt with Capquest as far as I know. I do have other debts probably around £2.5-3k but to be honest i've ignored them now for years...not big and not clever I know but at the time I was very irresponsible with regards to financial matters. I live in rented accomodation and don't have any other income other than my £62 per week benefit. As to whether Capquest have the correct figure or the right to collect the debt, i'm not sure as I don't know if i've had any other correspondence regarding this debt as I'm ashamed to say up until recently I was too scared to open anything I didn't like the look of. I can afford to pay at around £1 or a similar amount but due to other deductions from my benefit by way of attachment of earnings orders, anything more than a nominal amount would be rather difficult. I was just wondering if Bankruptcy would stop everyone chasing me...

[palomino]

From what you have described it sounds like bankruptcy is probably the best option for you.

 

You need to know what you are letting yourself in for. Have a good look through the insolvency website here - The Insolvency Service Website and also try and talk to someone at your nearest CAB. Also talk to the National Debtline on 0808 808 4000. They can be quite helpful.

 

If you have any questions after that (and you probably will) then you should come back here.

 

One advantage of someone else making you bankrupt is that they have to pay the fee, not you!

 

If after fully considering everything you feel that bankruptcy is the way to go then just let the SD take its course. But as I said earlier Capquest will almost certainly back out.

 

 

What date do have to respond to the SD by? Should be on the SD itself.

[shytalk123]

Well that doesn't sound too bad either way. The SD doesn't have a response date...even though the accompanying letter states "action by the dates stipulated"...it just says that to comply I must act within 18 days. So shall I just ignore their SD letter? Is that how I let it run it's course? I've also just noticed on the SD itself that the debt in question is just over 5 years old. Thanks ever so much for all this help. I was frantic this morning but now I'm seeing a light at the end of the tunnel.

[rekovni]

Hiya,

 

Im in the same situation. It seems to be there weapon of choice at the momment.

 

If you have just recieved the SD get a CCA request off to CapQuest as soon as possible. Like now.

With any luck they will not reply (or atleast not provide the actual CCA) within the 12 days time period. You will then have 4 or 5 days to goto the local court and put in the forms to set aside the SD on the basis that it is dispute and they have failed to yet supply the credit agreement.

 

That should ward them off the bankruptcy attempt and with anyluck, they will not supply the CCA within another 30 days and you will have them by the dangly bits

 

Im no expert by a long shot but this is what am doing based on info from other posts.

 

Just make sure you get the CCA off by recorded post with a 1 pound postal order REALLY soon.

 

Good luck!

[babybear39]

Shytalk, I went through BR last year and it isn't as bad as it seems. But you must get all the advice and info. you need to make an informed decision.

 

Good luck and best wishes.

 

Please ask if you need help 'cos it always makes a difference to speak to someone who's been through it...

[palomino]

Well that doesn't sound too bad either way. The SD doesn't have a response date...even though the accompanying letter states "action by the dates stipulated"...it just says that to comply I must act within 18 days. So shall I just ignore their SD letter? Is that how I let it run it's course? I've also just noticed on the SD itself that the debt in question is just over 5 years old. Thanks ever so much for all this help. I was frantic this morning but now I'm seeing a light at the end of the tunnel.

 

Have you had a chance to go through the various web sites suggested above?

I would stress that you do need to make an informed decision because being bankrupt has serious and long-term consequences. You also need to plan how you are going to run your finances while you are bankrupt. For instance, if you are on benefits make sure you open a Post Office Card Account and get your benefits paid in there. You need to do this asap as you have to get an authorisation letter from the benefits people.

 

If after all the consideration and advice you still want to go bankrupt then the easiest way for you is to let the SD run its course.

 

Tomorrow please ring the CAB and the National Debtline.

[shytalk123]

Thanks folks. If I don't make any response what would happen? I've not responded to anything in 5 years so will they just proceed with the Bankruptcy action? I'm worried if I start sending Cca requests and the like that it might confirm ownership of the debt. I guess what I'm driving at is whether it'd be better just to keep on ignoring Capquest?

[winny14]

CCA requests wont confirm ownership and if you use the templates letters it will place the account in dispute and buy you some time to figure out what is the best course of action for you.

CCCS are excellent and when i used them in the past they came up with a payment plan that sent token paymnets of £1 per month, this got the creditors of my back but then i found this website and CCA'd them, none of which have complied with so they cant enforce.

if i understand you correctly you have not paid anything in over 5 years? this could mean you debts are coming up to the time of being statue barred which could be why the DCA's are trying to set the ball rolling again, i wouldnt send any money until they have complied with your CCA request in full, send everything recorded delivery so you have proof of posting and dont sign your signature on anything, just print it.

As for bancrupty, avoid if possible but there is also a bit of good news here, creditors only usuallly force bancruptcy if there is a very good chance they will recover monies by taking assets, i.e your house, if you dont own and are in rented its not worth them pursuing, it will cost them and they will recover nothing.

you are in the right place here and will get good support and advice every step of the way....

[shytalk123]

Guys this may sound silly but try as i might, i just can't find the Cca template. Is it just me or can this site be a little puzzling

[babybear39]

Don't worry, we were all new here once.

 

You need letter N from here:

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

[ImpoverishedStudent]

My boyfriend has had a similar thing with Capquest for a £2000 unsecured loan from the Halifax about 8 years ago. As he is currently training to be a a Citizens's Bureau advisor, this comes in very handy...

From what I can gather:

 

1) anything over 6 years old is 'time-barred' and Capquest can be charged with harrassment if they keep pursuing you

 

2) IF they they are to proceed with the bankruptcy, it will ONLY be for the loan/debt specified, not ALL of your loans, although each creditor is entitled to set up bankruptcy proceedings for their own loans.

 

3) if you are on benefits they are obliged to take the most minimum payment you can offer - say, £1 per week

 

Abive all, don';t let these people bully you. I have had dealings with people like these before, including bailiffs, and they work on people's ignorance to instill intimidation.

 

Good luck, and I know it's easy to say, but don't worry!

[palomino]

CCA requests wont confirm ownership and if you use the templates letters it will place the account in dispute

 

No it won't. You must write and state you are disputing the claim because ... whatever.

An excellent reason is a missing or non-compliant credit agreement. You can't dispute the account for these reasons until the credit agreement arrives and is found to non-compliant, or the agreement doesn't arrive within the prescribed timescale.

You can of course dispute the claim for lots of other reasons as well : statute-barred, not your debt, unlawful charges, etc. In every case you must write to the creditor or DCA saying you are disputing the debt for that specific reason.

[winny14]

thanks for pointing that out, i was getting ahead of myself and confusing it with when they have failed to come up with the CCA..

fingers crossed they wont come up with the CCa on this one, which doesnt sound likely but i will take more care when posting

[babybear39]

My boyfriend has had a similar thing with Capquest for a £2000 unsecured loan from the Halifax about 8 years ago. As he is currently training to be a a Citizens's Bureau advisor, this comes in very handy...

From what I can gather:

 

1) anything over 6 years old is 'time-barred' and Capquest can be charged with harrassment if they keep pursuing you You must inform them of this in writing

 

2) IF they they are to proceed with the bankruptcy, it will ONLY be for the loan/debt specified, not ALL of your loans, although each creditor is entitled to set up bankruptcy proceedings for their own loans. ALL your debts appart from crown, council and utilities ARE included in a BR

 

3) if you are on benefits they are obliged to take the most minimum payment you can offer - say, £1 per week £1 per month is considered the norm for people on benefits

 

Abive all, don';t let these people bully you. I have had dealings with people like these before, including bailiffs, and they work on people's ignorance to instill intimidation.

 

Good luck, and I know it's easy to say, but don't worry!

 

Sorry to correct you, but we must keep information correct on the site so as not to confuse or mis-lead people.

[ImpoverishedStudent]

Sorry if I made mistakes, just that I am speaking from personal experience. With regards to the time-barred thing, I just went along to my local law centre who dealt with it themselves on my behalf. I had some private investigators after me regarding a Lloyds loan (which had been taken out in 1998) And as for the minimum payment that is what I meant to say - £1 per month,sorry.

[babybear39]

Sorry if I made mistakes, just that I am speaking from personal experience. With regards to the time-barred thing, I just went along to my local law centre who dealt with it themselves on my behalf. I had some private investigators after me regarding a Lloyds loan (which had been taken out in 1998) And as for the minimum payment that is what I meant to say - £1 per month,sorry.

 

You had the statute barred info. right with regard to the 6 years (5 in Scotland). We were all new here once so don't worry about making mistakes It's great to see you wanting to help. Welcome to CAG btw *hugs*

[shytalk123]

Hi folks. Thanks again for all your wonderful advice...you've all been brilliant. *UPDATE* Received a reply from Capquest today dated 6th August saying they are putting the account on hold for 28 days in order that they can obtain information required. I sent my CCA on the 2nd so does that mean if they haven't satisfied my request within 12 days of when I sent the request, I then apply to the court to have this set aside? Is that what would be the next course me action? Or do I just hope that they don't provide the CCA?I'm just a little confused with the SD saying 18 days response and Capquest now saying it's on hold for 28 days. Thanx as always guys and girls. You are a beacon of hope in my stormy sea of current hassle

[babybear39]

You have to have it set aside. You cannot wait for capquest to try and delay you. They know the timescales, they're hoping you don't and trying to lull you into a false sense of security.

[palomino]

The 28 days are just standard words in a standard letter. They haven't even thought about the SD in this context.

 

The 18 days marches on regardless of anything else that might be happening.

[shytalk123]

So should I just apply now to have it set aside? Or must I wait?

[caledfwlch]

Just to answer an earlier post:

 

As far as I know Council Tax and Utilities ARE covered by Bankruptcy - when a relative went bankrupt ALL their debts disapeared, including a "crown" debt to the inland revenue.

 

From a citizens advice website Debts not covered are:

 

Fines levied by the court as a result of criminal offences (eg. traffic offences, nonpossession of a TV licence). Maintenance or other family court orders (CSA). Debts incurred through fraud. Loans from the Social Fund and Student Loan Company and benefit overpayments. Debts arising from Personal injury claims.

[shytalk123]

Well as i currently owe a disputed £3,000 odd to my local council and all told my debts are around £7,000. As I'm currently unemployed it seems like an impossible mountain to climb so I'm really considering the bankruptcy option especially if Capquest have to foot the cost me going bankrupt. I'm not worried about any detriment to my credit file as it went up the swanny years ago I'm afraid to say.