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Equivalent of Chapter 11 in the UK - does it exist

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Hi all

Is there anything like a Chapter 11 provision in the UK. This at least would stop Interest and other excessive "Fees" etc being added to debts.


In this way a lot of people I'm sure COULD pay off some of the debt.

Adding crazy extortionate fees etc just makes paying back a debt which you are already struggling with just IMPOSSIBLE and no wonder people are rightfully looking for every legal avenue to stop this.


Reading these Forums a lot it's often the "Excessive Fees" (Restons / HFC for example are not above charging OVER £1,000 for a £6,000 debt plus "Usurious rates of interest) that push people over the edge into not being able to pay.


Maybe there's too much vested interest in the whole disgraceful DCA and "Selling of Debts" to allow some type of sensible legislation for people who for one reason or other have got themselves into trouble.


Logic I Know isn't a normal part of the Law but even so wouldn't a Bank be better off getting say 50% of a debt back rather than selling it on for peanuts to DCA's and SCUMBAGS like Restons who then cause untold misery and distress - often illegally - to hundreds of thousands of people.


As Human Beings we aren't perfect and some do get into trouble -- not necessarily through any fault of their own -- the company they work for gets sold say and the new owner at a stroke off-shores jobs to India etc etc and then they are suddenly on the Dole at 62 GBP a week or so.


The whole process of Debt management legislation needs to be handled much more humanely -- with people who are in difficulties being able to get sympathetic assistance with proper legal systems in place for the "WON'T pay category.


"Backdoor tactics" like getting Charging orders for trivial small amounts of debt - especially where this type of action is NEVER SHOWN on any credit agreement in the first place should also be outlawed -- either a Debt is SECURED and should be stated at the outset or it ISN'T - that's why the interest is many times higher as presumably the lender is assesing the risk of whether they will get their money back -- they shouldn't be able to have it BOTH ways.


If Credit card debt can eventually be used to force re-possession of a house then surely THIS SHOULD BE SHOWN ON THE CCA. - Please Lawyers get this provison through to stop a lot of people suddenly finding that their home is now at risk on small amounts of debt (less than 1,000 I've even seen in one case).


I think that in the rest of the EU this is actually shown on a CCA where applicable -- probably another reason why interest rates on credit cards etc are SIGNIFICANTLY lower than in the UK.



For all the "Capitalist" jibes thrown at the US the legal processes seem much clearer than ours -- some of the antics of the DCA's in the UK make the "Old Time Feudal Tax collectors" seem quite benign by comparison.




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As far as I am aware chapter 11 is a business debt solution in the states. The England and Wales equivalent would be an administration order under the Insolvency act.


To get either of these you have to prove to a court that there is a resonable expectation that the business will return to profit and pay off the creditors else a winding up type order will be given.


I would say that a forced sale order against an unsecured debt is still pretty rare really. As long as you are willing to pay then a court will usually give you some lattitude

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