Head about to explode- please help!

[MrsHT]

Hi,

 

Where do I start?

 

Up until about an hour ago we were going to go bankrupt. We being my husband actually. We have about £23k of debt, including a loan, sofa payments and credit cards. We've paid loads off by doing minimum payments and over and it seems such a shame to go bankrupt finally for *only* £23k.

 

Anyway, having cancelled all the direct debits to creditors last week (sending token payment letters in) I started going through the particulars of it all this morning (again but properly now). There has to be some other way.

 

At the moment I'm thinking that I'll write and see if any of the creditors would be prepared to wipe the debts, if you don't ask you don't know right? If they won't then I can ask for them to freeze the interest and accept token payments right? I'm currently registering as a childminder and when I'm working it will make a massive difference to our income so in 6 months time we would be able to pay something, maybe less than 6 months.

 

If we write and ask for debt to be written off and they refuse can we then offer token payments until our circumstances change then negotiate amounts we can afford?

 

The past couple of weeks have been really hard and I'm feeling VERY sorry for myself now. I won't bore you with my list but there's tons going on and I just want this sorted now once and for all.

 

One last question - does having debt written off and altering payments go on your credit record if you're still paying something?

 

Hoping someone can give me a good old shove in the right direction.

 

Thanks

[PGH7447]

Hi and welcome to the start of a new life

 

first things first

 

send each creditor a cca request for each loan and credit card

 

these cost £1 postal order send recorded and they then have 12+2 days to supply an enforceable agreement, after that time if no response then stop paying them until they do

 

secondly everything in writing from now on, if they phone just say in writing and put the phone down

 

you will find all template letters here

 

The Consumer Forums - Debt collectors

 

on the loans and credit cards did you have PPI - payment protection insurance, if yes then claim it back

 

in the meantime on the date of payment only pay a token £1, and be prepared for some hassle from these firms and their pet dca's

 

good luck, any questions just shout

[postggj]

Well This Is Me In Your Position

 

Your Credit File Is Prob Shot With Defaults So A Bankrupcy Wil Make Little Difference

 

Most People Are Discharged From Bankrupcy After Only One Year

 

Take The Bankrupcy And Restart With A Clean Slate

 

Its Not Very Nice Having Debt Collectors Constant Harrasment

 

Thats Just Me

 

its Your Choice

BUT DO YOU Own Your Own Home

[MrsHT]

Hi

Thanks for your replies.

 

No we don't own our home, we privately rent. I know the bankruptcy would make a lot of things easier but it just brings so many of it's own problems, and to be honest we're happy to pay it back just unfortunately we can't right now each month. I don't think our credit file is *that* bad, there have only been a couple of late payments although it's suddenly going to become defaults as I've just stopped all the direct debits in a fit of pique.

 

What is a CCA? And what does it do/mean? I've never come across this before.

[postggj]

cca

consumer credit agreement

 

just think on your options

 

debt colection agencies are no more than **** and do not care about your welfare

 

we can deal with the telephone harassment but they will destroy a rain forrest in threatograms

 

you have to ask your self

 

how long will it take me to pay this all back

 

the debt collection agencies will still charge you interest

[loobyloo85]

Hi

 

I can understand what you mean about bankruptcy, for some it is a good option, but you need to really look into this before choosing this route.

 

Have you considered entering into a debt management plan at all? The reason I ask is because you say you dont mind having to pay it all back, and in a debt management plan, you can both pay what you feel you can afford at the end of every month whcih gets distributed to all creditors. You woudl have someone actign on your behalf if you have any problems, but this saves you having to do it all yourself, releiving a lot of the pressure x

[MrsHT]

Hi,

I was under the impression that under debt management plans they choose the amount you pay? Although thinking about it that might just be IVAs.

 

You're right, having someone else to sort it out would be a massive relief.

 

Having talked about it with my husband I think we're decided on writing to see if any of the debts can be wiped off, and then if not we'll go to token payments until I'm working in the Summer and we can afford to start making proper payments. Would a DMP allow the above to happen?

[PriorityOne]

Firstly, a DMP doesn't "allow" anything to happen.... you do. You offer to repay only what you can realistically afford to repay and no more. If they don't like it, then it's tough on them because with no assets, there's diddly squat they can do to you.

 

You can do your own DMP and don't need anyone else to do this for you. Write with your offer and stipulate that payments will be maintained providing all interest is frozen on the account(s). Some will agree and some won't, but for those that won't.... their only option is to go for a CCJ (County Court Judgement) which would set an affordable repayment amount anyway..... assuming that they succeed in getting one, that is.

 

A CCA request will establish if they have any legal right to collect payments from you at all and is well worth doing. If they refuse to write off the debts due to your circumstances, then this should be the next step you take. If they have an enforceable CCA, then suggest token payments and go from there (as above).

 

[MrsHT]

Hello,

 

If the payments aren't enforcable with the CCA thing do we just hang on until we can pay or try and sort a settlement figure? Or ignore it as long as possible?

[PGH7447]

either or - or stop payment altogether