lloyds bankrupting me is this legal

[calkim1]

Hi, 2 years ago my business went under leaving me with a bank debt and credit card debt with lloyds.I went to an debt management agency who got me to fill out the various forms, and after lloyds ignored me for around 6 months and adding on charges they eventually accepted my offer of finance monthly.Last week I found the debt had been passed onto AIC after being with MHA, who suddenly stopped sending me payment slips for around 2months.The first letter from AIC sent a letter saying Urgent Final notice of intent, this was the first letter i had had from this company, after speaking to Mr.Hughes who told me they would put the debt against the house.Today i received another letter from the company saying i had ignored this letter( which i hadn't - spoke to Mr.Hughes 3 times!!) they are now going to make me bankrupt and take the house and any goods worth anything - can they do this.I have been paying agreed amount as agreed and suddenly this has happened - it is a lovely xmas present!!.Not that they will get much as i am skint - don't drive have a tv,dvd and basic stuff in the house.I am really worried and AIC treat you badly when you speak to them - they couldn't care. Any advice wld be great- thanks Mark

[palomino]

They say they can. But they all full of bluster and cow manure.

 

Before anything remotely like that can actually happen they have to obtain a CCJ. Since you are making regular repayments as agreed they won't even try. All they are doing is trying to bully you into paying up early.

 

AIC are one of the worst at this. Insist on all communications being in writing. If they continue to ring (they will...) just refuse to confirm your 'security' details.

[Wolvesman89]

Unfortunately Mark, if you aren't paying the full amount each month for the debt, and it is over £750, it will be legal. Even though you have set up an agreement with them, they have the power in these situations. It has become increasingly common, and even councils are bankrupting people after going behind on council tax payments, letting this build up to the £750 minimum and then starting bankruptcy proceedings. Sorry to be the bearer of bad news.

[phat256]

befoer they make you BR they will have to serve you properly with a statutory demand ! and threatening takin gall your goods well as palomino said it is all smoke

[angel_1]

hiya

 

this was worrying to read, so surely there must be ways to defend this,

 

have a look at the bankruptcy thread to see if any help can be sought there, im going to have a look myself

 

but i knew the amount was about 750.00 but thats a figure that most people could be owing on lots of stuff

 

i think we need another petition on this, this is very scary

 

good luck and keep positive lets see if anything can be done

 

take care angel x

[angel_1]

hiya

 

glad you got some good info here

 

 

phew

 

take care

 

angel x

[Enron]

Will get some more experienced eyes in here to look over this for you.

 

From the point of view of the credit card I would be tempted to apply for a copy of the executed agreement under the Consumer Credit Act, to see if that alleged debt is enforceable against you.

 

If you have been denied the opportunity to make payments towards a debt by a DCA, and they now issue bankruptcy proceedings it does seem very unreasonable on their part.

[42man]

Are ALL the debts to Lloyds for business accounts ? To avoid bankruptcy being forced upon you, you would need to substantially dispute the debt.

[42man]

Did they tell you on the phone they were going to make you bankrupt ? or is it in writing ?

[42man]

I'll also move this to the BR forum, where you may get some more advice / comment

[calkim1]

Hi, I spoke with AIC, who told me they wld put debt against my house,so if i sold it they wld tke their money.When i foned again they told me verbally they were going to go for bankrupcy and take everything they can including house, as house hasn't got alot in it and i don't drive they will only get maybe 10000 if they are lucky at todays prices.They are also getting pretty rude when they call now, so have told them i will only reply to letters,as i am getting pretty stressed and my health is beginning to suffer and if i'm off work they won't get anything then t all.

[calkim1]

No, credit card debt is in my name,the rest is business, have asked for them to provide written proof as per yr letters, not heard anything back yet.

[calkim1]

tks for all yr help,at moment am awaiting the lovely AIC and Mr.Hughes to get back to me, though have told them i will only reply in writing

[phat256]

good for you calkim and don't worry there is a lot of lovely and knowledgeable people to help you and support you

[calkim1]

hi ive sent off for the cca how long should this take beofre i hear anything

[palomino]

Reading your first post above you've been threatened with bankruptcy by AIC. Having dealt with AIC in the past I personally would assume this to be idle threats in order to panic you - and this appears to have worked.

AIC are known for these tactics.

 

To make you bankrupt requires a certain set of procedures, none of which has happened yet (wild threats don't count). In any case it costs a creditor around £1600 to make you bankrupt, and then any assets of the bankruptcy will be apportioned pro rata to all creditors. This means that the creditor will only be repaid in full if all your debts are repaid. That requires considerable assets which you are most unlikely to have.

On top of that the creditor would hope to get his BR petition fee back. Again there is little chance of this happening.

 

So, to put it bluntly, there is almost no chance of AIC petitioning for your bankruptcy because of the financial considerations. If they ever do go that route then you will have plenty of time to come back here for further advice (many of us have been this route already:)).

 

As for what to do about the debt.

1. Have you had a notice of assignment from Lloyds to whoever purportedly took over the debt? - was it MHA? If not you should continue to pay them (although I gather that have stopped already).

2. Never talk to AIC on the telephone. As you have found out they pressurise you and tell lies in order to try and get you to pay. Ritual humilation is part of the process. If they ring you say that all communications must be in writing and then hang up (don't worry about being rude - they don't).

You should write to AIC saying that you have had no notice of assignment from the creditor so the matter is still with that creditor. Nothing more, nothing less. Ignore all further letters until you do receive a notice of assignement. NB. The notice of assignment must come from the the party selling the debt, not the purchaser.

 

In the meantime rest easy and do not let yourself be bullied about. AIC are one of the worst companies for this and it's unfortunate that your first encounter with a DCA was with AIC. If you need help and advice please come back here - there are many people here who have dealt with AIC.

[angel_1]

hiya all

 

wishing you all a lucky 2009

 

ive sent a reputation thanks to palomino for his informative post and its assured me no end regarding the proceedures for bankruptcy -

 

and so hopefully you are too calkim1

 

all the best and keep positive

 

laters angel x

[calkim1]

tks for yr comments, all the best to you 4 2009, I am awaiting Lloyds to reply to my letter,as yet deathly silence and no calls from AIC, got to be a plus, tks to everyone who has offered advice

[Desperate Daniella]

Hi Mark,

 

AIC are known for their horrible bullying tactics. I was shaking, crying, in utter despair and suicidal after they contacted me in October over my Amex bill. They threatened charge on my house, repossession, and actually now you have mentioned this bankruptcy too. I

[cadencealex]

Was your business Sole Trader or Ltd company.

 

If it's Ltd they can't touch your house.

[Desperate Daniella]

Sorry, my computer has being playing up today and posted before I had finished.

 

They also said they were entitled to £1000 on top of the Amex amount and demanded the whole lot immediately. I offered 10% which was all I had and they refused to accept it.

 

I was so terrified by AIC I called the FSA who sent me to CCCS who said they were totally out of order, couldn't do anything until they took me to Court and probably wouldn't anyway. They gave me a reference number to quote to AIC who stopped the bullying immediately. As soon as they knew there was an organization monitoring what they were doing to me their behaviour changed immediately.

 

Then I found this site, CCAd Amex, got somewhat dubious copy of agreement and I am working out what to do next. Yesterday I got a letter from RMA (another company Amex uses) saying they wanted to work with me to clear the debt. The £1000 for AIC has disappeared.

 

Hang in there. If you do a search here on AIC you will see exactly what they are like. I don't know how anyone who works for them can sleep at night. I have spoken to one decent person there, but she is the exception. The men are total bullies, and they don't care what they do to anyone.

 

DD

[palomino]

ive sent a reputation thanks to palomino for his informative post and its assured me no end regarding the proceedures for bankruptcy -

 

Glad to be of help .

[angel_1]

hiya all

 

firstly i have to apologise to palomino,,,i actually assumed perhaps incorrectly that you were male and infact you may be female....anyway whoever you are many thanks - now im blushing,lol

 

also i wanted to further add that from my own experience - i actually know how you have all felt in the past year, and it contributed to my illness - but somehow learning all about this stuff on cag and reading threads after threads, my courage has returned and somehow from the bottom of the despair you pull yourself up and logically start thinking, and knoweledge really gains you power to realise you are being bullied.

 

so deep breaths all and keep positive, any concerns ive learnt to come here straightaway and post my fears and i get feedback that helps you to get it all clear in your head again

 

ive gone back to work but im now looking at entering into another career because ive realised ive changed - this past year has in one way made me face up to lots of stuff and now im ready for any battles i have to face debt or otherwise

 

keep happy and take care for now

 

laters angel x:cool:

Edited January 11, 2009 by angel_1

[palomino]

firstly i have to apologise to palomino,,,i actually assumed perhaps incorrectly that you were male and infact you may be female....

 

I'd better check ... I know, I'll go and ask the wife.

 

Anyway glad things are now under control and good luck in choosing a new career.

[calkim1]

hi just needed some advice i am still waiting for the cca nothing yet and it been over 16 days im due to pay aic this week do i still pay or will that cause problems