I need help and some information on debt Plans etc

[porrohman65]

I have 2 credit cards with a combined debt of £14,000, I also have smaller debts of £150 which can be dealt with

 

As well as the debts I have a £30,000 mortgage, with repayment s of £210 per month, with NR, which I am trying to move to my bank RBS. It seems banks are only giving 70%ltv, this only gives me a small amount to maybe clear one small debt; are there any banks that go to 90% which could allow me to clear most of my debts, and make them manageble

 

In the last year, my health has not been that good, so I dont work as much as I used to, used to work 40 hrs pr wk, but now I only work 26 hr per week. I am hoping this year I can claim tax credits which would go some way to applying of my debts, as well as an increase in hours to meet conditions to claim tax credits

 

Since I am starting to struggle with payments, for credit cards, elec&gas bills, council tax, I find my self falling behind, but somehow manage to make the payments; currently I pay out £240 to barclaycard, £150 to Halifax. Just had my Ele&gas bill of £320, which I just paid

 

I am looking for information on trust deeds in scotland, and debt plans, it more I am looking for who I should speak to in the glasgow area

[Moonlighter]

Hi Porrohman65

 

I'd suggest getting in touch with your local Citizens Advice Bureau or local authority's money advice centre as they will go through the options with you. It may well be that a debt payment plan through one of these bodies (ie for free!) would be a good option for you just now as they would ask your creditors to stop interest and charges for a period of time.

 

All the best.

 

G

[Crocdoc]

I assume by the level of the mortgage that there is substantial equity in the property and therefore Trust Deed is not a viable option as is simply a lesser form of Bankruptcy and the property would be at risk.

 

The mere fact that you are currently meeting the unsecured debt payments would suggest to me that a Debt Arrangement Scheme may be an option. (Do not confuse with Debt Management Programmes)

 

This scheme give you up to 10 years (some go beyond this period but only in exceptional circumstances) to repay the unsecured debt. The advantage is that the house is safe so long as you keep up the repayments and the interest is frozen.

 

A list of FREE providers of this scheme is available on the Accountant in Bankruptcy's website

Come back if you need further info.

[porrohman65]

I assume by the level of the mortgage that there is substantial equity in the property and therefore Trust Deed is not a viable option as is simply a lesser form of Bankruptcy and the property would be at risk.

 

The mere fact that you are currently meeting the unsecured debt payments would suggest to me that a Debt Arrangement Scheme may be an option. (Do not confuse with Debt Management Programmes)

 

This scheme give you up to 10 years (some go beyond this period but only in exceptional circumstances) to repay the unsecured debt. The advantage is that the house is safe so long as you keep up the repayments and the interest is frozen.

 

A list of FREE providers of this scheme is available on the Accountant in Bankruptcy's website

 

Come back if you need further info.

 

Crocdoc, thanks your information has been most helpfull

[porrohman65]

In he next month after my holidays, I am going to have to deal with my debts, remortgage was declined, I need address for collection department for the following groups

 

Halifax, I already have there address, just need

 

barclaycard, argos, and RBS Mastercard

[Crocdoc]

Please find the following.

 

Barclay Card

1234 Pavillion Drive

Northampton

NN4 7SG

 

Royal Bank of Scotland

Business Services

Credit Card Operations

1st Floor Thanet Grange

Westcliff on Sea

Essex

SS0 0EJ

 

Argos

Card Services

Royal Avenue

Widnes

WA88 1AL

I am unsure about the level of debt, however I would suggest that as a homeowner with equity. The best way to go may be the Debt Arrangement Scheme to protect your home. (Do not confuse with debt management, which provides no protection to property whatsoever).

 

I would suggest that you Google Money Scotland's website for the nearest Money advisor who can administer the scheme free of charge.

 

I should add that this relatively under used Scottish Government scheme also freezes interest and charges as soon as it is accepted, the period of repayment can extend to a maximum of 10 years, in the event that the creditors object this does not prevent acceptance if the proposal is reasonable. So long as you meet the agreed payments throughout the duration of the scheme, you are protected from any legal proceedings. (Some collection agent's may try simply because they cannot get the hang of it) however, they can be dealt with quite simply by the approved Money Advice Worker who creates the arrangement.

 

I hope this helps.

Edited June 10, 2010 by Crocdoc
Add further detail

[porrohman65]

Please find the following.

 

Barclay Card

1234 Pavillion Drive

Northampton

NN4 7SG

 

Royal Bank of Scotland

Business Services

Credit Card Operations

1st Floor Thanet Grange

Westcliff on Sea

Essex

SS0 0EJ

 

Argos

Card Services

Royal Avenue

Widnes

WA88 1AL

I am unsure about the level of debt, however I would suggest that as a homeowner with equity. The best way to go may be the Debt Arrangement Scheme to protect your home. (Do not confuse with debt management, which provides no protection to property whatsoever).

 

I would suggest that you Google Money Scotland's website for the nearest Money advisor who can administer the scheme free of charge.

 

I should add that this relatively under used Scottish Government scheme also freezes interest and charges as soon as it is accepted, the period of repayment can extend to a maximum of 10 years, in the event that the creditors object this does not prevent acceptance if the proposal is reasonable. So long as you meet the agreed payments throughout the duration of the scheme, you are protected from any legal proceedings. (Some collection agent's may try simply because they cannot get the hang of it) however, they can be dealt with quite simply by the approved Money Advice Worker who creates the arrangement.

 

I hope this helps.

 

Level of debt is around £16,000, and I am going to go with the Debt Arrangement Scheme, and have got the persons details from money scotland gov,uk, as this is the best way for me

[porrohman65]

I am looking for information on a few points

 

1. Servred with court order

2. Making my self bankrupt

 

At the moment I have debts of around £16,000, trying to get an application for the Debt Arrangement Scheme set, but unfortunate when I enquired back in Oct 2010, the person at the Citizen advice Bureau

wasnt able to go ahead with application, as she has to many clients, how ever she will be do this from Feb 2011

 

For my debts, with the main creditors, have been making £100 token payment every 4 weeks of my wages, and currently living on my tax credits, as wages go to wards bills, mortgage, and debts

 

Now due to my poor health, I have not always kept incontact with creditor, which I have made known to them, I contacted them all last week by post, and mercers, and halifax sent me 48 hr notice, which I countered by replying by letter of my current postion

 

With regards my 2 points, looking for infomation which I can use in my letters to my creditors, so if court action is raised against me, what will this mean for me

 

Already making token payment £100 every 4 weeks, I have no addtional income or earning apart from wages,what would the creditors get out of taking court action, I think any court action against me is pointless

 

If in the end I consider bankruptcy, what is going to happen to me, and my debts, I know the general details of going bankrupt

 

Would I be allowed to keep my job, in a supermarket,

Flat is mortgaged, so how safe is my flat

Do the debts get written of, even though still earning

 

I am very willing to repay my debts

[leothelioncub]

I'd get in touch with the citizen's advice bureau and go on the debt arrangement scheme if you can, under that creditors can take you to court... but they cannot enforce any court order! so a court order is absolutely useless for them. I'd be careful of going bankrupt if you have any equity in your flat. keep on at the CAB good luck

[IdaInFife]

Hiya,

 

If the creditors know you own your own home they may wish to go to court so they can get an inhibition order on you so they can guarantee any payment if you decide to sell your home.

 

It is not just CAB that can help with DAS, you will have a local money advice via the council through trading standards and also national debtlne scotland can hlep you with this.

 

Re bankcruptcy: some mortgage companies will not let you contimue with a mortgage if you go BK, also if there is any equity any appointed trustee will be looking to relaease that to your creditors

 

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=01_bankruptcy

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=21_trust_deeds

 

 

 

you should be able to keep your job, it tends only to be jobs within the financial sectore that can be effected with BK etc

Debts are not effectivley written off - you would be asked to pay any surplus income to your crediotrs - the length of this is determined by which route you take and as long as your trustee is happy that you have been complaint.

 

If you are still struggling with what to do, please give national debltine a call 0808 808 4000 - it a free service and they can go through everything for you and help you decide what could be the best option for your circumstances

 

ida x

[Crocdoc]

Return to CAB and ask them to do a pre - registration and provide a letter to the court, the sheriff will grant additional time to allow the admin process to be completed.

 

Having read you post again, I don't think your in immediate danger as getting to court would take two months at least and a further extension could be requested if a DAS is being processed.

 

In the meantime, if you ask any Cab adviser to complete a financial statement, calculate your disposable income and deduct 10% as contingency, which is compulsory under the regulations. Then divide the monthly remainder into the total debt, if repayment can be made in the period of 120 months or under it is more than likely that the proposal will be approved, in which case your assets will be protected.

Edited January 21, 2011 by Crocdoc
Add further detail

[porrohman65]

Return to CAB and ask them to do a pre - registration and provide a letter to the court, the sheriff will grant additional time to allow the admin process to be completed.

 

Having read you post again, I don't think your in immediate danger as getting to court would take two months at least and a further extension could be requested if a DAS is being processed.

 

In the meantime, if you ask any Cab adviser to complete a financial statement, calculate your disposable income and deduct 10% as contingency, which is compulsory under the regulations. Then divide the monthly remainder into the total debt, if repayment can be made in the period of 120 months or under it is more than likely that the proposal will be approved, in which case your assets will be protected.

 

 

Everything has been sorted, now have spoken to someone at CAB, and my application for DAs is being put forward to my creditors, at £200 a month

[Crocdoc]

Job Done, Good Luck

Edited February 4, 2011 by Crocdoc

[IdaInFife]

[porrohman65]

My application was made around beginning of Feb, for me to pay my debts through the debt arrangement scheme

 

So far 1 out of the 4 creditors have responded, and so far only one to respond and freeze interest is Halifax, and I am very happy with there payments, which they have asked me to make

 

The other 3 Argos, RBS, and Barclaycard/Mercers dont seem to have replied, in fact argos and rbs still send out statements, everyone is aware of my postion, have had no statements from Barclaycard for the last 6 weeks, som hoping the next statement from barclaycard in with interest frozen and reduce payments

 

With argos and rbs I have never missed a payment, so would this make a difference with them

 

It now been about 8 weeks, does it usualy take as long as this to complete things

 

Going down next week to see the advisor after getting time of work to do so

[bluedogx]

Hi

 

Creditors get 21 days to respond to the DAS offer after which they are deemed to have consented if they haven't replied.

Some only respond if they are with holding consent. you have to sign a form 3 application before your adviser can send it to the DAS Administrator.

 

B

[IdaInFife]

Hi,

 

Not much help i'm afraid as i donlt knwo how long these things can normally take.

 

National Debtline may be able to help

[porrohman65]

In April 2011, the debt arrangement scheme was set up for my debts, afters ome issues, finally making payments of £200 per month, now I can relax

 

Around June, I am requested to phone Argos, to discuss a problem with myaccount, they have a problem with the DAS, namely they wont give permission for my debt advisor to deal with my account, but for the time being would accept payments of £8. As I wasn’t well, I forgot about this, but sent a letter out in Aug, I might have sent it unsigned

 

Roll on today, received a letter couple of days ago, again requesting I phone them, as there is a problem, with my account, try phoning them, unable toget through, and cant afford to hold on.

 

15 Sept, received a letter from Moorcroft Debt Recovery, the person I spoketo was very understanding, and helpful, even to the point I pointed out, I amalready on the debt arrangement scheme for Scotland

 

Phoned Argos today, and spoke to someone, but they refused to deal with my account, as it is now with Moorcroft Debt Recovery, and I must speak with them.

 

Have already emailed them, with all details including that I believe I amprotected from any legal action against me, and informed them, I will bespeaking to my money advisor on Tue, and they should contact her as soon aspossible

 

Have asked them to speak to Argos, and find out what the problem is, and see if we can get it fixed

 

 

How much protection do I have

[gamekeeper01]

Ho Porro, I'm just looking about and noticed your posting and it's likely you have an answer by now but just to let you know I'm in a DAS too and provided the Argos debt is within the DAS they can't do a thing. Just keep paying it and tell Moorcroft to take a running jump or words to that effect.

Hope it's all worked out by now.

Cheers

[porrohman65]

My debt advisor now dealing with this, but it going to take a wee while to get things fixed, but Argos werent forth coming, turns out they refused to deal with the debt advisor, because of a technicality. The debt advisor according to Argos had no authorisation to deal with my account, and Argos tried to contact me, but would tell me why, so finally they have passed the debt on to Moorcroft

 

Received second letter, but not from Moorcroft, but from Midas credit services, with litigation warning and £12 for the letter which they sent

 

Have sent them a email, telling how stupid this looks, and I have protection under scottish law, and the onus is on the side of Argos, who by not contacting my debt advisor back in March/April, with in 21 days consented to the DAS

 

Any charges and interest on my account, we intend to claim them back, under the basis my DAS was set up in March/April, so no fees, charges can be applied

 

Wont be long till my review

[gamekeeper01]

I had similar problems with my DAS at the start. I wrote and directed them to the CAB office which arranged the DAS. I think I also advised to read the rules about the scheme they may find it helpfull.

It's the best thing I ever did all these people chasing me was driving me bonkers.

Good luck.

[porrohman65]

I find my self with a dilema, received my letter from the tax credits people, telling me I have lost my appeal, I already have a thread on this subject in the benefits section

 

I can take this to the tribunal court if I want, but it could take up to 9 months for me to get a hearing date

 

Now at the moment I have health issues, namely problems with my heart; chest pain, exhaustion, fatigue, and because of this have been suffering financialy, to the point I just dont have the funds to cover every day bills, at this time in discussion with all, companys, Scot power, council, tv licence, virgin media

 

Now the tax credits people admit I have a disbility, but I dont meet the benefit qualify conditions anymore, so I now feel like there forcing me to work extra hours which I really dont want to be doing, as I believe it will cause me untold stress, or I try to work a bear minuim amount of hours, but now this posses a question, how do I deal with my debts

 

Already on the debt arrangement scheme in scotland, with payments at £200 per 4 week period, with debts originaly of £16,000, already 2 year into the 7 yr plan, considering ask to reduce payment, and increase the number of years

 

Mortgage is £200 per 4 week, 25 yr repayment with £28,000 outstanding from £45,000 valuation of flat

 

With the tax credits, they have now told me I have an overpayment of around £4000

 

But I think I also need to consider going for bankruptcy, as I find I just dont have the funds to live on, so I have a couple of questions relating to bankruptcy, so if some one can answer the following, it would be most helpfull

 

How long would my bankruptcy last, based on debts of £14,000

 

The overpayment of £4000 on my tax credits, is this debt viable for bankruptcy

 

From remain earnings of £110, after expenditure has been costed, what would the accountant take

 

If I declare for bankruptcy, how easy is it for someone in my family to find out, I realy dont want my family to find out

 

I am currently in full time employment, so do I need to inform my employer of my bankruptcy, for any reason at all

 

What happens to my mortgaged flat, would I be able to ask the local council to buy my flat from me, and I pay them rent, under the mortgage to rent, or Mortgage to Equity scheme

 

Are you allowed to take holidays abroad,

 

Luxury goods, is there a limit to what your allowed to buy, for instance, a new tv, previous tv broken, and how much would you be allowed to spend on a new tv

 

Entertainment costs, like cinema, concerts, birthdays, day/weekend trips..glasgow-london

[BRIGADIER2JCS]

I think you are getting a little mixed up here Holidays abroad, luxury items entertainments cinema, concerts trips away and you are considering BR.

These are things you may well have to forgo until such time you get your finances on an even keel.

Bankruptcy is not cheap either, you will be expected to contribute available funds towards meeting you debts as well.

BR does not automatically remove your debts.

 

Take a read around the forums and other sites on what BR acrually means.

[porrohman65]

I think you are getting a little mixed up here Holidays abroad, luxury items entertainments cinema, concerts trips away and you are considering BR.

These are things you may well have to forgo until such time you get your finances on an even keel.

.

 

I sort of knew that, just really need confirmation,

[porrohman65]

I have been getting letters from DLC with regards my debt with RBS, now in 2011, i was finally accepted onto the Debt Arrangement Scheme, but it looks like the Money advisor has left this debt out, hence me getting these letters, there was even a debt which was wrong, refund being sought

 

Now 2 years have passed, dont know what the current debt lies at, in 2011 it was £550, have no idea what it is now, could be around £1400 now by my guessing

 

How much of this debt Im I responsible for paying, I pay the original debt, but no what been added on for the last 2 year, now in 2010 I had sent letters to the RBS credit card company, laying out my plans, and I could no longer pay my debts as normal, but would be going on to a debt program to deal with my debts

 

Now the money advisor is trying to sort things out, and I hope they get things fixed