Jump to content


style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 4032 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Recommended Posts

I am hoping someone on here can give me advice. I have been on disability benefit for the last ten years and have spiraled further and further into debt. Up until four years ago I only had one credit card debt with Lloyds, the repayment was £110 a month which I was struggling to afford, but I had stopped using my card and had intended to gradually try and pay the debt off. Then my bank manager at Lloyds called me in for a simple review of my account and said he could help me and advised me to take out a loan with Lloyds at a cost of £170 a month plus payment protection insurance of £58. I stupidly agreed, thinking he had my best interests at heart. He advised me to take out payment protection insurance by telling me that as a single parent [ my son is twenty three and still lives at home] I owed it to my son as if I died he would be liable for my debts. Luckily I found out in time that this wasn't true and canceled my payment protection insurance. My bank manager was not too pleased about this and I had a phone call from him saying, his words; 'through hell and high water I had to repay this loan'. I felt intimidated and also very scared, he was not a happy man.

I had every intention of paying back the loan but as the months went by I found I was not able to make ends meet without having to use my credit card again. Now I am hopelessly in debt, I owe about£18000 and don't know what to do. I have filled in a questionnaire online with the CAB and they recommended bankruptcy. I live in a housing association property and have no assets, not even a car. My situation is not going to improve as I have arthritis and a knee replacement. I can't sleep at nights for the worry and I get more scared as each day passes. I have managed to keep up with the repayments until now, but this month I don't think I'm going to make it. Could any of you give me advice on bankruptcy. My weekly income is £130 . I would be so grateful for any advice as I am just so frightened at the moment. Many, many thanks in advance.

Link to post
Share on other sites

Hi and welcome to CAG

 

Not much I can advise but just by my replying will put your post onto todays pages. Hopefully one of the more experiences members will give you some advice

If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Link to post
Share on other sites

Hi ericdog,Just offering you my support and welcoming you to the CAG.You will get plenty of advice and help here.I will follow your thread and try to help in what must be a difficult time for you.Many on here have gone bankrupt,including myself.If you have to go that way try not to worry to much its not as scary as it sounds.As you do not have many assets i think it would be straightforward enough to do.And someone in your position would i hope be discharged possibly early,maybe 6 months.Others will advise soon i am sure,just have a nice cup of tea and relax,help will come your way.Maybe have a little read of this while relaxing, http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Bankruptcy/DG_187323

And http://www.insolvencyhelpline.co.uk/debt_special_situations/disability-debt.php

Edited by tawnyowl
Link to post
Share on other sites

Hi Eric

Try not to let this get you down too much, there is a way out, and as the CAB have advised the best option may be bankruptcy.

 

As you say you have no assets, you are struggling with the debt etc. With being on benefits you may well be eligible to have the court fees waived in order to facilitate the bankruptcy and solve the problem.

 

Speak to the CAB as soon as possible and they will go through the process with you, help you with the forms etc.

 

It will get better, just hang in there a little bit longer while you speak with CAB. If you can't get an appointment with the CAB for some time due to their workload, the Consumer Credit Counselling Service also offer excellent, free advice and assistance

Link to post
Share on other sites

Hi, Thank you so much for all your replies. You are all making this a less scary option.

I have spent all of today working out my figures and wondered if you could give them a once over and see if they look okay.

It turns out after adding up my outgoings that I have a deficit of £190, though it is difficult to work out my outgoings and I don't know if I have missed out anything.

INCOME;

373.00 INCOME SUPPORT AND INCAPACITY

199.40 DISABILITY ALLOWANCE

185.00 BOARD MONEY FROM MY SON. TOTAL INCOME; 758.20

 

 

OUTGOINGS;

ELECTRIC 100.00

WATER 40.00

PHONE +INTERNET 45.00

TV LICENCE 13.00

FOOD 300.00

CLOTHES 30.00

STUDENT GRT OVERPAYMENT 10.00

PETS 30.00 TOTAL OUTGOINGS; 568.00

 

DEBTS

CREDIT CARD 10263

LOAN 7296

EGG CC 814

LITTLEWOODS 430

OVERDRAFT 500 TOTAL DEBT; 19,303

 

I found information on another website saying that a Debt Management Plan could be an option but as my situation regarding eligibility for work is going to get worse instead of better I think Bankruptcy is the only option. I am phoning the debt helpline tomorrow with all this information but just wanted to ask you good people on here if there is anything else I need to tell them.

With many thanks in advance.

Link to post
Share on other sites

I don't think a debt management plan is a good idea as you don't have enough disposable income. If you wanted to go the DMP route, you could try a self controlled one but to be honest (from what you have put above) bankruptcy is probably the best option

If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Link to post
Share on other sites

Thanks, I had got myself all geared up for the bankruptcy route anyway and was a bit taken aback when the DMP was mentioned as they stressed it was a good plan if there is a chance your prospects are going to improve. As mine are either going to stay the same or get worse I didn't feel it was going to be of benefit. Thanks for looking over my last post.

Link to post
Share on other sites

One other quick question. My credit card payment is due in a few days time and I haven't got the money to pay it in full. Should I just pay what I can afford and then grit my teeth and wait for the backlash?

Link to post
Share on other sites

Look at the first link HERE for letters to negotiate with your creditors.

 

As you are on such a limited income, enclose a token payment by postal order. If you have any direct debits set up to pay the debts, cancel them. Make sure that you contact your bank in writing, telling them never to pay them (some creditors will try to re-instate DD's) Send them all token payments. Don't give a creditor a 'heads up' on you potential bankruptcy.

If you have any debt with a bank you currently use-change banks (and that includes overdrafts)

If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Link to post
Share on other sites

My two biggest debts are with Lloyds who I currently bank with. Is it best to change banks now and what do I tell the new bank about my financial circumstances. Do I have to give the new bank a reason as to why I am changing my bank? Is it best to choose a Barclays account where I will be able to keep that account after I have been made bankrupt. I know it will be frozen while the bankruptcy goes through but it would make it easier to have a bank account already set up for afterwards. So sorry, so many questions.

Link to post
Share on other sites

Tha main problem with having debts with a bank you use for personal banking is the banks right of off-set (removing funds from one account to pay a debt) They do this even if it takes you over your overdraft limit.

 

Here is a leaflet that shows what basic bank accounts are out there.

http://www.moneymadeclear.org.uk/pdfs/bank_accounts.pdf

 

If you have a poor credit rating, getting a current account will be hard but getting a basic one is less so. You do not have to tell them why you want a new account.

If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Link to post
Share on other sites

Thanks, Amazing as it may seem I think, as far as I know, that my credit rating is still okay as so far I have managed to keep up with all my payments. But if I opt for the Barclays cash card account I think that will be simpler. So really I need to open that as soon as possible, get any benefit payments payed into my new account then send token payments plus letters explaining the circumstances regarding my debts. Think I've got all that. Thank you so much. Will Lloyds bank know why I am changing banks, will they be able to take any action?

Link to post
Share on other sites

As you have an existing overdraft, you won't be able to close the account so no doubt they will attempt to dip into your account sending you further into overdraft.

You could do with sending them a letter (once the new account is open) explaining your circumstances, asking them to hold off on further charges and interest.

 

One thing I forgot to mention. If you can, send all letters by recorded delivery and if that is not an option, get a certificate of posting from the post office

If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Link to post
Share on other sites

Okay, have just phoned Insolvency Helpline and they suggested bankruptcy and advised me to open another bank account as soon as possible.

Regarding my payments to creditors, the next one coming up on the 13th Jan, he told me just not to pay it then wait for a letter from them and then notify them I am filing for bankruptcy. Is this correct advice do you think?

They also tried to sell me their services where they take over the bankruptcy proceedings for you and only charge £495. I explained that I was going bankrupt as I had no money and he just laughed:roll:

Still trying to get in touch with CAB as he suggested contacting them for step by step procedure. It makes it more difficult as I am virtually housebound.

Also contacted Barclays to ask what ID I can bring when I open account as I don't drive and don't have a passport, so don't know what I am going to do. Still waiting for their reply via email. Couldn't contact any branch by phone as it is the same number for all and to talk to anyone you have to first key in your account number. Help!!!

Link to post
Share on other sites

One of our site team members has done this blog. It is very useful

 

http://www.consumeractiongroup.co.uk/forum/entry.php?190-Who-s-afraid-of-bankruptcy

If you are asked to deal with any matter via private message, PLEASE report it.

Everything I say is opinion only. If you are unsure on any comment made, you should see a qualified solicitor

Please help CAG. Order this ebook. Now available on Amazon. Please click HERE

Link to post
Share on other sites

Hi there.

 

The Insolvency Helpline is a COMMERCIAL firm. There is absolutely no point in paying anyone to help you fill in a form. You can do it yourself, and if you get stuck you can seek help for free - either via your local CAB Money Adviser, or by speaking to an adviser at one of the debt help charities. National Debtline are on 0808 808 4000.

 

Feel free to drop me a line if you have any queries, I'm a qualified debt counsellor so am pretty well versed in all this (hence the blog)

 

Best wishes,

 

Seq.

Link to post
Share on other sites

I have so many queries Seq, I don't know where to start. Everything seems to be getting very confusing. The thing I'm worried about most now is when I open a new bank account at Barclays, I've heard they ask for the last three months statements from your last bank and that is not going to look good. Would I ruin everything if when I saw Barclays I told them the truth. That I was planning on filing for bankruptcy, just be completely upfront with them. I just hate lying to anyone. Or would they just not let me open an account. I just don't know what is the best thing to do.

Link to post
Share on other sites

Just in case you decide against Barclays have a look at this account. http://www.co-operativebank.co.uk/servlet/Satellite/1193206368743,CFSweb/Page/Bank-CurrentAccounts ---And note where they say when asking for id-----

If you are applying in person at a local Co-operative Bank branch, you will be asked to take some paper proofs with you to confirm both your Identity and Address – any of the following are acceptable. (You need to bring one proof from each list or two proofs of identity)

Proof of Identity:

 

  • Passport*
  • Full or Provisional Photo-Card Driving Licence*
  • Member State Identity Photo-Card*
  • Shotgun Licence or Firearms Certificate
  • Identity card issued by the Electoral Office for Northern Ireland

Proof of Address:

 

  • Local Authority Tax Bill
  • Bank or Building Society statement
  • Utility Service Bill

Please note that if you are applying for a student account you will need to provide proof of your course in the format of a letter from your college or university.

Providing proofs at this early stage should avoid us asking for additional proofs at a later stage which would delay the application.

If you are applying by post, telephone or internet you will be advised if paper proofs are required.

xxIf you are unable to provide any of the paper proofs listed above, please call into a local Co-operative Bank branch or contact us on 08457 212 212 and one of our customer services advisers will be able to discuss with you any other proofs we can accept to open your account.xxGood luck ericdog.

Link to post
Share on other sites

Thanks for all the info. The only reason I was leaning towards Barclays was that there is a branch 2 miles from where I live whereas the co-op its32 miles.

Also I haven't got any ID with a photo on, I don't drive, haven't a passport or ID card. I suppose all I could do is phone the co-op and ask what proof I can give. Do I have to close my Lloyds account before I open one with the co-op as I will still have an overdraft there. Will Lloyds have to know I have opened another account, in other words can I have two accounts open, one with Lloyds and a new one with co-op and just have all my income payed into the co-op one.

Or do I just leave changing my bank account until after the bankruptcy, are they allowed to take any income of mine that is paid in to that account to go towards my debts to them if I default on my regular payments?

Sorry this is sounding more and more confused but I'm in a right state, don't know what to do first.

Link to post
Share on other sites

Hi ericdog,all will become clear in time.There is no branch in my town as well.Just liked the idea of being able to use the post office for paying in etc.I had no need to visit the branch.You get the opening pack through the post,photocopy documents required or what they want as proof send back and that should be it.Cant remember the last time i went into a branch.I believe when opening your new account they are kind of called a parachute account.A account which is opened before trouble starts with your old account.Will be interesting what id the coop will accept instead of passport driving license,if you find out will you let us know.I will be interested how you fare.

Edited by tawnyowl
Link to post
Share on other sites

Here is what one person said about the coop when they did not have passport driving license--------

 

 

I don't have a passport and managed to get an account at The Co-operative Bank. They ask for my tenancy agreement and a letter from the DWP as I was claiming benefits at the time.

Link to post
Share on other sites

Well, just phoned the National Debtline and what wonderful people they are. They agreed bankruptcy was the best option by far and are sending me out details in an information pack. The best thing about them is they give you a reference no, so you can call back anytime with any problems. I can't tell you what a weight has been lifted from my shoulders as you no longer feel as if you're alone. And also my thanks to everyone on here, you have helped me out tremendously and I can't thank you enough. Shall let you know of my progress.

Link to post
Share on other sites

Just an update. Went to open a new bank account at Barclays today and they couldn't have been nicer. I told them I had been with Lloyds for tewnty years but now had issues with them regarding debt and had been advised by the Nationla debt line to try to open an account with them. I took everything imaginable in with me as proof of id but still had problems as they wanted something with my full name on [ most forms just have the initial as the second name ] and they don't accept a birth certificate. Eventually they took as proof a letter from DWP and statement of interest charges from Lloyds. She also told me that they would check on the electoral role. She left for a few moments then came back and printed off my new bank account number and sort code and gave it to me, saying that I could set up direct debits and arrange for any money to be paid into the new account. She said I would receive my debit card in the next few days with the pin number to follow. Couldn't have been nicer, so would definitely recommend Barclays cash card account. She didn't ask any further questions regarding why I wanted to change accounts which I was relieved about.

Also called in to the court and picked up my petition for bankruptcy and SOA. Again couldn't have been nicer, the woman even joked about it being a popular time of year for it. It is dealt with on an appoints system so she recommended I fill out the forms and get together whatever I need and then phone back to make an appointment. The waiting time for an appointment to file for bankruptcy is currently about a week. Can't tell you how relieved I am. Worked myself into such a state worrying that I would get the third degree from both bank and courts and it was completely the opposite.

Just received my help pack from the National debt line, who again have been wonderful, so am going to read through that.

One thing I need help over is that on the form from the court about waiving of fees [£150.00] it says that you need a letter from Income Support with your full name and address stating you are in receipt of benefits. Do you have to phone and ask the Jobcentre to send this out and what reason do you give.

Many thanks, feeling a little less stressed now.

Link to post
Share on other sites

 Share

  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?


×
×
  • Create New...