bankruptcy threats as debt collection tool.

[notmeguvhonest]

We often hear that stautory demands are often used as a debt collection tool. Has anyone had any experience of a debtor arranging a full and final settlement by threatening to file for bankruptcy?

[sequenci]

Yup. That tactic is used all the time - afterall the creditor is likely to get a far better deal via a F&F than via the debtor actually petitioning.

[FrankieBeee]

Yep it is and I'm going through it at the moment. Trying to negotiate with their solicitors before next tuesday to stop the bankrupcy hearing as I don't want to lose my house (and pets if I have to move as theye've all I have that means anything these days) over a few grand (which I can pay but not by tuesday).

[JunkiMunki]

Hi F/B..

IMHO I would rather take my chance in court, giving valid reasons why the Bankruptcy should not be allowed, explain the full reasons for the debt, whether or not they are the original creditors, or are they one of the uncouth DCA'S that have bought the debt for peanuts, and know that they can threaten and bully the defendant to get a fantastic return on the initial amount they paid, if the latter of thee above then is all the paperwork you have received "coatia", are you working at the moment or on government benefits, try offering a suitable payment each month, and suspend the bankruptcy on the terms agreed.

 

Me myself would not give them the satisfaction of lining their corrupt pockets anymore stand ur ground and dont backdown, they cannot refuse an offer of regular pmts agreed with the courts which is usually determined on what u can realistically afford at the timewhat was the debt originally for and is it covered by the CCA 1974 Act.

 

Is the debt increasing by way of criminal interest charges being applied by the DCA'S, dont let them win stand ur ground then if all else fails let them go ahead.

If u have more creditors demanding money secured by way of ur house they MAY not even get paid as they have to relinquish their rights over your property in order to gain the bankruptcy, as a SECURED Creditor, CANNOT gain the bankruptcy whilst still having security upon ur house

[FrankieBeee]

Beware though you will also end up having to pay their costs as well - I have to pay 1000 on top of a 7000 credit card debt because mine has gone to court. I am taking this seriously as I personally don't want to risk my chance at court and lose as I then lose my house and all my pets and subsequently what is my current life which is something I hold very highly - As a singleton I would be way down the pecking order for suitable rehousing - I do not want to lose all this for a 7000 (now 8000!) debt.

 

If you have a house and don't want to lose it or be homeless then take note and do something now (in my own defence my mother committed suicide at the time of the debt takeover so I wasn't in a position to stop it emotionally before it got to this stage but the law doesn't care about this all they want to know at this stage is do I have enough money to satisfy the debt to the creditor and making repayments after the event will not be an option many courts allow)

 

BTW the original debt was sold to 1stCredit who do what they say - in fact the whole process was about 4 months from original debt takeover to actual court proceedings - they have moved swiftly

 

I have offered to pay in installments but they want a huge portion of the amount for it to go away (ie, over 2/3 of it). I am not on benefits (am looking into tax credit and housing/coucnil tax benefit at the moment) but am self-employed with small income due to the recession (and I have fibromyalgia). I have been given a little time to do this now (already had 1 adjournment at my request and they requested another at last minute on friday) and hoping all the money is coming through on time.

 

I agree with you that by time everything is paid off they may not get much but my sanity can't afford to let it get that far!

Edited April 9, 2012 by FrankieBeee

[pcoventry]

I'm going through it also so I know how you feel.

 

Get some free advice apart from here - there's tonnes out there.

Edited April 11, 2012 by pcoventry