Questions about Debt Collectors rights

[Apexeus]

Right, hi all, i believe this is my first post here.

 

Im currently around £10,000 in debt (Lloyds TSB unsecured personal Loan, Lloyds TSB Credit Card and Littlewoods Catalogue), well, not in debt, as i currently have a job, but, on May 11th, this will no longer be the case. I'll be going from over £1,500 a month to possibly £200 or less. I know that without some devine intervention (lottery win or finding cash at the side of the road), i will be in serious ****.

 

Now, back on topic. I am NOT a homeowner, i live at home with Dad, i do not own a car or anything of significant value. If and when the Baillifs / Debt Collectors come round, what are they allowed to take? (if they gain access)

 

If i were to make all my possessions "disappear" from the house (2 TV's, Laptop, XBOX 360, PS3, PSP and various McLaren Models), are they allowed to take anything of my Dad's to cover the debt? I once read somewhere that they are only allowed to take your own possessions. Is this true?

 

I know i still have a couple of months before it gets to them coming, and i may, just MAY be able to work some deal out with Lloyds, and Bankruptcy may be a path to take but, if this is not the case, any advise will be useful.

 

Im currently contemplating faking my own death, setting up a fake ID, and other weird things to get out of this stupid position. Please help!!

[silverfox1961]

HI,

 

Debt collectors have no rights to anything. Only a court can involve a bailiff AND only if you fail to pay your debts.

 

You can tell the credit companies how much you can afford to pay. They don't have to accept it but their only legal avenue is to take you to court and if you're paying them, the judge will look down on them.

 

The only "power" these companies have is to send threatening letters and make nasty phone calls. easily dealt with.

 

fox

[mr.ton]

They cannot take anything - only court bailiffs can & even thats a very last resort.

[silverfox1961]

Completely missed your last sentence.

 

Don't be a twit!

[PGH7447]

Im currently contemplating faking my own death, setting up a fake ID, and other weird things to get out of this stupid position. Please help!!

 

Thats rather foolish, isnt this what the canoe man and his wife are now serving time in jail for.

[Toulose LeDebt]

oops

[cerberusalert]

John Stonehouse tried that, left his clothes on a beach in Miami & ended up in Australia. Besides Billy Connolly writing a song about him (John Stonehouse Went Swimming), he got 7 years after being convicted of fraud, theft, forgery, conspiracy to defraud, causing a false police investigation and wasting police time.

[minx1975]

Just work out your finances and make each creditor a pro-rata offer of how much you can afford until you get yourself back on your feet, send them a copy of you i/e's, they will have to accept this. Hope this helps.

[debt4get]

contemplating suicide or changing ids is a definite no no, you only have what are known as non priority debts, and they are definitely not allowed to come after anything your dad/parents own. there is no point in getting rid of stuff some of it you may already have paid a lot of money for. there are many ways on this forum to handle debt collectors have a read around

[Kraken1]

sounds like you are a potential candidate for the new DROs.

[wangster]

get your £90 together, and on the day after your job is gone get down to the CAB and get them to process the DRO before the interest and charges pile up.

 

12 months and it is over.

[mustang67]

Hi there, I know someone who was in same position as you,they owed a bit more, 27000.This was mainly on CCs and personal loan. They had no assets, only a six year old car lived at home with parents etc. When they saw what was coming ie. financial meltdown,what did they do?

He gave it a bit of thought and that was sod it. He went and booked a return flight to OZ, on his CCs and had a months holiday with relatives over there. Comes back gets a 42inch flatscreen telly on four year deal. Then he went to CAB to ask about bankruptcy, they gave him all the info. He then told them that he could not afford the fees, so they said to him, are you still up to date on your CC payments, yes, I am just paying above the minimum repayments. Thats okay then ,all you have to do is get enough money from cashpoint with your card and pay for your bankruptcy with that. So that is what they did, he still has his car and telly, had a good holiday, no bailifs came round and they are getting on with their lives. Nowadays the new DRO seems the better option, but if you want to go out with a bang, take them to the cleaners before you go.

[Out4Revenge]

sorry for posting on someone else's thread but whats a DRO?

[spamheed]

It either stands for Durham Registry Office or Debt Relief Order, depending on your location and circumstances.

 

A Debt Relief Order (DRO) is a form of insolvency which is designed to help people who have relatively low debt, little surplus income and few valuable assets - and who have no realistic chance of paying off their debts within a reasonable time.

 

 

Available as of 6th April 2009, a DRO will last for 12 months:

• during which, any creditor named on the order cannot take any action to recover their money unless they have the court`s permission, and
  
• after which, the individual will be freed of the debts included in the order (unless their circumstances have significantly improved).
  

DROs don`t involve the courts, and are run by The Insolvency Service in partnership with debt advisers known as `approved intermediaries` - the people who actually help individuals apply to the Service for a DRO.

 

People can only enter a DRO if they meet the following conditions:

• They must be unable to pay their debts.
  
• They must not owe more than £15,000.
  
• The total value of their assets must not exceed £300 - although they can own a car worth up to £1,000.
  
• Their disposable income (after tax, national insurance contributions and normal household expenses) must not exceed £50 per month.
  
• They must live in England or Wales - or have lived / carried out business in England Wales at some time in the last 3 years.
  
• They must not have been subject to another Debt Relief Order in the previous 6 years.
  
• They must not be involved in another formal insolvency procedure at the time they apply.
  

Some debts cannot be included in a DRO - such as :

• Magistrates` court fines,
  
• Student loans, and
  
• Secured debts (debt secured against property)
  

Secured debts are unlikely to be an issue anyway, as owning property would probably mean you`re not eligible for a Debt Relief Order, as your assets would almost certainly be worth more than £300.

[Out4Revenge]

thanx for that Spamheed:D

[Kraken1]

that is quite a nice summary.