I need advice on the possibility of writing off my £20K of debt, PLEASE, at my wits end

[znowdonia]

Hi

 

I was hoping to get some solid advice here....

 

I have debts totalling ca. £20K. £13K is to my Bank and £7K is owed in Corporation Tax for the LTD company I was running last year. I also owe Council Tax which has been passed to Equita and a Mobile phone bill passed onto 1s Credit plus I have £250 left to pay on my Argos Card.

 

I have been unemployed since May 2008 and work in the banking sector. I am in receipt of benefits and my rent is being paid plus the £60 pw JSA. I am being hounded by the bank and bailiffs... I dont answer the home phone anymore, changed my mobile number and dont answer the door. I have however, written letters to all my creditors explaining my situation and have asked them to freeze penalty charges and interest which they wont. Some creditors were kind in their responses to my problems now I have informed them of my situation.

 

Now my question is... what are my options?

 

I am looking into :

Bankruptcy?

IVA (but I can agree to payments at the moment as Im on £60pw)

Payment Plans

and then there are these companies which claim to write off most of the debt but I will still have to make payments for 60 months.

I have also heard about the possibility of the bank writing off my debt if they get a clever letter and theres some sort of discrepancy in the credit card/loan agreement or if they cant find my original agreement?!

 

Believe me I am taking none of this lightly by enquirig about getting my debt written off. I have learned my lesson and don't want another credit card or loan oin my life! Its amazing how I can actually survive on this £60pw!

 

Thanking you in advance for your time...

[znowdonia]

Can anyone give me advice?

[silverfox1961]

hi,

you're not being ignored honest:D but I'm hoping someone with a bit more knowledge will see your post.

The debt to the bank. is it loan or overdraft (different processes apply)

With the others, that is out of my league. sorry

 

fox

[underdog13]

Znowdonia, it's not a clever letter as such, just a request to see a copy of your credit agreement. If they can provide it and if it doesn't contain all the prescribed terms then it is unenforceable; the debt doesn't go away, but all your creditor can do is ask you to pay, not force you to. If they can't even find a copy of your CCA, the debt is unenforceable until they do find a copy, whereupon they can start collection procedures.

 

I'm certainly no expert with regards to IVAs, bancruptcy,etc - I'm sure some of our legal bods will be along to help you soon, in the meantime, perhaps it's worth giving National Debt Line or CCCS a call - they are free numbers. Get as much info as you can from as many different sources as you can before making such a huge decision. Beware of some of the IVA companies - I have heard a lot of them promise any remaining debt will be written off after 5 years, but it can actually fixed against any property you own instead.

 

In your shoes, I would request CCAs for all my credit cards and loans. If they are unenforceable, you can concentrate whatever funds you have towards the tax debts. That's just my opinion, of course.

 

Best of luck - at least you've found the site that will give you the help and advice you need; there are lots on here more knowledgeable than I.

[znowdonia]

Personal Loan, Credit Card and Overdraft - thanks for telling me I am not being ignored.... its taken me ages to get the guts to post on this forum!

[42man]

I would recommend in the first instance giving the National Debtline a call, the advice is impartial and free - National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

[lol321]

For an IVA you need to have been in full time employment for at least six months.

I would ring the debt helpline or CCCS or Payplan, they are all charities

Also at the same time send CCA requests off for your Loan and CC and see what they come up with if anything

[znowdonia]

Oh wow you guys are the best! Thanks so much! I don't suppose there's a template letter on here to send to my bank re the CCA requests for my CC and OD and Loan?

[silverfox1961]

This is it. Amend to suit

 

Ask your creditor for a copy of your credit agreement under the Consumer Credit Act 1974

 

 

1 High Street,

Newtown,

Kent

R21 4RH

 

June 28, 2006

 

 

The Loan Company

Company House,

Church Street,

Newtown,

Kent,

R1 7HG

 

Dear Sir/Madam

 

Re:− Account/Reference Number 4563210025897412

 

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77(6) will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

 

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

We look forward to hearing from you.

 

Yours faithfully

Mr A N Other

__________________

 

 

fox

[silverfox1961]

There is no CCA for an overdraft. All you can do with that is try to get your charges refunded

[znowdonia]

thanks! so the copy i am after fr them to send will be the one SIGNED by meelse its not valid, am i correct?

[znowdonia]

me (space) else

[znowdonia]

and this letter i can send for the amount leftto pay on my personal loan?

[Lula]

yes, but dont sign it, just print your name, it has been known for some companies to be a bit too enamoured of photoshop

[silverfox1961]

Absolutely don't sign. Just print your name. Send by recorded delivery at the very least. enclose a £1.00 postal order. Same for the loan.

 

With the overdraft, i think you have to SAR the bank. This costs £10.00 but well worth it as it'll show any charges on your account. You can apply for them to be refunded but that will probably be put aside as there is a test case going through the courts at the moment about unfair bank charges.

 

Hope that helps.

 

fox

[znowdonia]

It certainly does.... I wont sign it. What I am asking though is am I after the original credit agreement form them that I signed years back and if they cannot find it they cannot enforce me to pay it?

 

Also the above letter seems a bit aggressive have I the right to take that tone?

[42man]

Spot on Znow !! send off the requests !!

[znowdonia]

sorry one more thing re this postal order does it have to be made out to anyone in particular never used/sent one before

[silverfox1961]

I don't see any Debt collection agencies in your first post so I'm assuming you need to send the letters to your bank(s).

 

 

fox

[lol321]

Postal order and CCA letter to whoever is chasing you for money at the moment

[znowdonia]

thanks so so much everyone i wish you luck in all your endeavours

[znowdonia]

Hi everyone, hope you are all well.... Sooo I wrote my letters to HSBC and got a reply saying they cant look into it as i hadnt SIGNED the letters and returned the postal orders to me!!

[silverfox1961]

Hiya,

been a while.

This is starting to happen on a regular basis.

The point I see is that they have been quite happily sending you letters and statements to your address without the need for your signature so why start now?

If it comes to it and you have to send you sig, draw some lines through it so that your sig still looks the same but slightly different.

I would never say the HSBC would "lift" your signature but there is evidence that some unscrupulous companies would.

 

fox