Not sure what to do next

[wildheart83]

I have recently been made redundant for the 2nd time in 6 months, last time I secured another job immediately but this time round I'm really struggling.

 

I have around £17,000 of unsecured debt made up of credit cards, overdrafts and one loan. Most are up to date but there are 3 accounts that are defaulted and with DCAs.

 

I have been looking at the options open to me - I have zero savings or assets as I live with my parents but am keen to keep paying what I contribute to them each month.

 

I am considering going straight for an IVA rather than speaking to CCCS or similar organisation as I have been slowly drowning over the last year or so.

 

Looking for opinions mainly before I go any further

[miss muppet]

Why not consider going the CCA route i.e. requesting a true copy of the executed agreement for the three cc accounts that are with DCA's? The request letter is in the Debt Collectors Library. Enclose a £1 postal order and don't sign, print your name or use digital signature. That will at least give you some breathing space. If/when they send agreements, remove identifying details and use one of the free imaging sites such as photobucket for folks here to give their opinion as enforceability. They have 12 + 2 days to comply after which if there is no enforceable agreement you can legally stop paying. There are many members of CAG who have experienced problems far greater than yours (i.e. the amount of debt) and are now in a much stronger position as a result of following this route.

[wildheart83]

Sorry I should have said i've already CCA'd the accounts that are with DCAs. I have recently applied to open a new bank account as I can soon see any benefits I get being swallowed up by bank charges and overdraft interest.

 

Is there any point in me writing to each company telling them I can no longer afford to have the account?

[miss muppet]

You could but then you would be expected to supply an income and expenditure form. The thing with people like CCCS is they will only help you if you go along that route. Why not CCA the credit cards to see if they have enforceable agreements and the loan. The overdraft might be more difficult but then if it isen't too huge you might be able to come to an agreement with them to pay them off at a much reduced rate. Nothing ventured nothing gained.

[wildheart83]

I don't have a problem with supplying an income and expenditure form. My car is worth maybe £500 but I'll probably need it if and when I start working again.

I have CCA'd the loan which was found to be unenforceable, likewise with one credit card.

At the moment the other credit card that's been defaulted has gone quiet, but I also have defaults on my credit file from 3 catalogues, none of which supplied a CCA.

I currently have £4000 on 3 different overdrafts, £1500 on one catalogue, £1750 on another, and lots on other credit cards so I need to do something soon

[miss muppet]

So forget the catalogues, they won't have agreements, good news about the loan and one CC, now why not go on to do the others as well. With regard to the overdrafts, any charges on them? If they took you to court, the DJ would look at your circumstances and set payment to suit, then if you broke that, you would get a CCJ, you have no property they can get hold of so you are safe and so is the car. Your credit rating is stuffed anyhow. I know it can all seem a bit much taking these credit cards on and you can seem to be drowning in paperwork but at least you are being proactive. Have a look at the legal successes forum for people who have been successful in dealing with the catalogue companies.

[miss muppet]

Here's an interesting link:-

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/237096-overdrafts-covered-ccas-6.html

[wildheart83]

I claimed back my charges on all credit cards and overdrafts a few years ago and at the moment I'm up to date on all accounts.

 

I would rather include every account I owe money to rather than start some kind of payment / management plan and find other accounts appear from nowhere.

 

My biggest concern is the council tax debt I have been paying back at £92 per month. the funds have all but run out now and I still owe around £285. The council were quite clear that if I didn't stick to the plan I'd be straight to court, and I know there's no way they'll just wipe the remainder of the debt.

Does it make any difference that I'm in Scotland rather than England?

[miss muppet]

Yes, I can see the council tax is the biggest problem, don't know the answer to your question so giving your thread a bump.

[wildheart83]

The only option I have is that I have a final salary which consists of holiday pay I was owed from my employer, due at the end of the month. I have created a whole bunch of letters to go to each creditor stating that I am now unemployed with only benefits coming in now and offering to pay £1 a month to each.

 

Realistically though, does anyone know what the chances are that each creditor will accept this?

[miss muppet]

Well, you can but try.

[wildheart83]

Ok so I've sent off letters to all the creditors I'm up to date with (ignoring the ones who don't have enforceable CCAs) to tell them i'm now unemployed, along with a breakdown of my income and outgoings, but I've only sent them 1st class not recorded, how long should I allow for each creditor to reply to me before taking the next step?

[wildheart83]

I've been paying off my council tax debt at £92 per month and have about £285 left to pay. The account is in both my name and my former flatmate's but I have recently found out he was declared bankrupt in April 2009. Is there any way I can find out what was included in the bankruptcy to see if we've both been paying the same debt? Also if he's not included in this, is there any way I can get half of what I've paid back off him?

I realise I'm probably clutching at straws on the latter but I'd really like to find out what debts are included.

 

Thanks,

Wildheart

[loobyloo85]

Hi

 

Usually council tax and utility debts are joint if you live together, therefore if your ex went bankrupt, the debt should have been included in his bankruptcy. I would suggest contacting the council to see if there is anything more outstanding. Are you still in contact with your ex to find out who dealt with his bankruptcy and which debts were included in this? This should also be shown on his credit report

[loobyloo85]

Bankruptcy by one spouse

[debtinfo]

Bankruptcy by one spouse

 

That is a USA bankruptcy site not a UK one.

 

BUT a similar principle applies here, if you are jointly liable for a debt like council tax and one goes bankrupt, the other is still fully liable for debt

[wildheart83]

I have recently gone to Citizen's Advice to see about going bankrupt, and they have stated that if he went bankrupt that's probably why the suddenly started chasing me for the outstanding balance.

 

I am now being inundated with phone calls from a few of my creditors regarding payments, namely Barclaycard and Capital One. I have told them I am filing for bankruptcy but they are still phoning all the time. (I am still waiting for confirmation of my council tax account balance before I officially file for bankruptcy)

 

Does anyone know how long the process takes, from when you pay the fee for bankruptcy, to when it's actually granted? I don't think I can cope with many more phonecalls. I can't not answer the phone as I am applying for a lot of jobs just now and would prefer not to deal with these morons.

[rapterman]

Does anyone know how long the process takes, from when you pay the fee for bankruptcy, to when it's actually granted?

 

Depends on how busy the court is at the time.

When I filed at the court for my BR it took about two weeks to get my court date.

Once you go to court, and if everything is in order, the judge should adjudge you bankrupt, effective immediately.

 

Do you have an estimate of how much your council tax is?

I wouldn't worry about it being 100 percent accurate, just as long is you list it in your SOA.

 

Not to put a dampener on things but even after I have been declared BR'ed I still get the odd phone call and letters from DCA's looking for thier money. One creditor just doesn't seem to give up and accept the situation that I'm BR'ed and keeps on moving the debt around to different DCA's.

I don't care because I know that they cannot do anything about it and they are just wasting their time!

However, after the last lot of letters that I have sent them things do seem to have gotten quieter. No phone calls from them for over three weeks now!