Debt - Next Steps - advice gratefully received...

[tpltpl]

Hello,

I have recently been to see a debt advice charity again,

and they have written to 2 of my creditors,

offering on my behalf a token payment of £1.00, as that is all I can pay.

 

Previously to this I was also offering a token payment of £1. (for about a year).

 

One of the creditors (Barclays) have accepted and said they will review it 6 months.

The other (a debt collection agency sold on by HSBC (from an overdraft I had with them) has yet to respond/accept).

 

The third creditor (HSBC from a loan I had with them) has never actually written to me to ask for any payment at all since it was defaulted on my credit report about a year ago

- why would they have not contacted me in all this time, should I contact them?

 

I have therefore never offered them a token payment (yet). Should I ?

 

I have just got hold of my credit report (on advice from the debt charity), and this debt is on there, and was defaulted at the same time as the HSBC overdraft

(which has now been sold onto the debt agency) - both of these were linked to the same HSBC bank account,

so it's a bit confusing why there are being treated so differently?

 

As it seems v. unlikely that my financial situation is going to change significantly

- I'm unsure how long I can go on paying only token payments for?

 

If this is the case, what do I do?

 

Will I receive county court judgements at some point ?

 

Shall I go bankrupt ?

 

Can I just continously pay £1 per month for 6 years if my circumstances don't really change, until the default comes off my credit rating ?

 

What happens to the debt if I can never pay it off ?

 

Will I need to go bankrupt ?

 

Barclays offered me a settlement figure, which I can't pay either.

 

I have a shared ownership mortgage with a housing association (with little, or no or negative equity),

and the debt advice lady said they I should be protected from loosing my house, as it is shared ownership.

 

My debts total about £13,000.

 

Thank you for any advice .

tpltpl

[Conniff]

The word to take note of is 'should' and not 'will'. No one can guarantee you will retain your share especially if there could be profit in the sale. This would be up to the OR. Applying for bankruptcy isn't free.

 

You should get the details of all the options available to you and then with them in front of you, make your decision keeping in mind how it will affect your future. £13,000 is an excessive amount compared to some.

 

Any creditor has up to six years to demand payment/bring court action, so that will always be waiting in the wings.

[tpltpl]

Thanks for your reply.

 

The word to take note of is 'should' and not 'will'. No one can guarantee you will retain your share especially if there could be profit in the sale. This would be up to the OR. Applying for bankruptcy isn't free.

Yes, I realise she said 'should', but that was the advice I was given.

 

You should get the details of all the options available to you and then with them in front of you, make your decision keeping in mind how it will affect your future.

Thanks, but that's why I have written this help thread, to see if there is someone who can help me determine what my options are, as I don't know!!

 

£13,000 is an excessive amount compared to some.

Yes, I know I'm in debt, I'm not proud of it - I though this was a 'support forum' - pls don't rub it and make me feel even worse than I already do!

 

Any creditor has up to six years to demand payment/bring court action, so that will always be waiting in the wings.

Can I ask what 'waiting in the wings' means:?: They will bring court action - they won't, they might or is there no rhyme or reasons if they will or not....

[Conniff]

Sorry, that should have said 'isn't' an excessive amount ....

 

No one judges you on here tpltpl and the reasons why are no ones business.

 

Waiting in the wings means they have six years before it becomes statute barred so any time up to then they can come asking for payment. They are more likely to sell the debt to a debt collection company for only a few pence in the pound at an auction who will more than likely offer you a reduced settlement figure because they haven't taken on the full amount outstanding.

 

If court action should be taken, you only have to take a budget sheet to court to show the judge and he will set the amount you can afford, he won't go over the top.

 

You can take charge and tell Natwest what you can afford and send that with the letter and then any court will want to know the reason you have been brought if you are already paying.

[tpltpl]

thanks Conniff. re: statute barred - this wouldn't be the case for me (?) if I have acknowledged the debt and offered regular token payments? I believe (from what I've read) that it can only be statute barred if you haven't made any payments at all or acknowledged the debt and they haven't chased you for the debt within the 6 years. Not sure if this is correct.

 

What actually happens to a debt after 6 years if you can't pay it off in full and it is not considered statute barred (if the above is correct?) - I'll need to be paying token payments for more years that I will be alive,

[tpltpl]

sorry, didn't finish the post.......

 

..........You can take charge and tell........what you can afford and send that with the letter and then any court will want to know the reason you have been brought if you are already paying..............

 

I didn't understand this bit....could you explain again?

 

Thanks again.

[tpltpl]

So it seems the best course of action would have been for me to have not acknowledged the debt at all,

as if i can't pay it off, it would have been statute barred after 6 years;

but I have acknowledged it, so that won't be relevant to me.

 

I have no idea what to do with the debt now - surely I can't continue to pay a token payment of £1.00 forever?

 

God this is confusing, and i feel like just throwing it all in, leaving work (whats the point of working so hard for so long and just getting into such a mess).

 

I only got into a mess as I was trying to improve my prospects by studying to get a better job, and buy a house (alone), as that's what you are 'supposed' to do.

 

I have never been irresponsible with money or anything...I haven't been on holiday for 5 years, what the hell is the point?

 

Apologies. you don't have to reply, and probably won't want to now. I just don't what the hell to do, and don't really see the point of trying to do anything anymore.

[Conniff]

I will flag this up for further assistance, hang in there a while.

[honeybee13]

So it seems the best course of action would have been for me to have not acknowledged the debt at all, as if i can't pay it off, it would have been statute barred after 6 years; but I have acknowledged it, so that won't be relevant to me. So I have no idea what to do with the debt now - surely I can't continue to pay a token payment of £1.00 forever?

God this is confusing, and i feel like just throwing it all in, leaving work (whats the point of working so hard for so long and just getting into such a mess). I only got into a mess as I was trying to improve my prospects by studying to get a better job, and buy a house (alone), as that's what you are 'supposed' to do. I have never been irresponsible with money or anything...I haven't been on holiday for 5 years, what the hell is the point?

Apologies. you don't have to reply, and probably won't want to now. I just don't what the hell to do, and don't really see the point of trying to do anything anymore.

 

Hello there. We don't give up on people that easily, sorry.

 

It's a bit slow at the moment on the forums, people will be on holiday and so on, but the guys will be along. I'm sure you can get through this, lots of people here have.

 

My best, HB

[IdaInFife]

It is a bit confusing so can we lay it out in simple terms?

 

You only have 3 creditors?

 

Total amount of approx £13000?

 

Can you say what each debt is?

who was the original creditor?

is it still with the oc or a dca?

 

Ida x

[dx100uk]

HI TP

 

to me it looks like you have 3 debts:

 

1. HSBC Overdraft - now sold to a DCA [which DCA please & i bet you've loads of PENALTY charge to reclaim]

 

2. HSBC Loan - not got PPI have you]

 

3. Barclay loan - had a discount offered i see so reclaiming to do there too

 

£13k can very prob be reduced by a good amount.

 

not really that bad

 

dx

[tpltpl]

Hi dx and ida. Thank you for replying . Would it be useful if put up my statement of affairs? I can do this tomorrow as its 3am now! I really need to calm down and get some sleep!! I'm doing this alot lately and not concentrating very well.

Anyway, to confirm my creditors are:

 

HSBC loan £2240 - I have had no communication or letters about this since I defaulted at the same time as my HSBC overdraft about a year ago. It is on my credit file though. I don't think I havee any kind of /PPI on this loan, - I have the original document, and there is nothing on there about PPI.

- this is still with HSBC according to my credit file. Not sure why the loan and overdraft (below) have been treated so differently.

HSBC overdraft £1976 - which has been sold on to a debt credit agency - they have written to me under 2 different names: MK Rapid Recoveries and Raven Recoveries (they are the same company as they told me they use different names!!).

Debt charity lady has written to them to offer £1 as a token payment. I was originally paying HSBC a token payment of £1.

I don't see any penalty charges - its the same amount as when I defaulted on the original overdraft.

 

Barclays career development loan £8093. This month they offered for me to pay £6000 to settle, which I obviously don't have. They have accepted £1 token payment and said they will review in 6 months. They said they don't intend to send it to a debt collection agency (...yet, anyway).

 

I also have a secured overdraft of £1,500, plus student loans.

 

I just want to know how get out of this situation as soon as possible by DMP or BR - I don't want to be paying £1 per month for years with all the stress that would entail. The only problem is I need a new car for work as mine (worth £400) will going to heaven before too long, and its a requirement of my job to have a car. I therefore was planning to go through a vehicle assisted purchase scheme via my employer - however, this would now mean I won't have any money to pay creditors as part of DMP - which is why I'm now considering BR.

 

I spoke to CCCS today and they went through some BR information with me, and suggested I call Insovency Service to ask if they would allow me to pay a monthly payment for a car as part of BR agreement, as I need it for work - he said it would be a good reason.

 

My options as I see them:

- wait until my car actually dies - and in the meantime do a DMP myself (CCCS said they wouldn't do it at the moment, as my circumstances may change before too long). CCCS have sent me the forms/calculations to use. According to CCCS I have about £200 to split each month between creditors (but I won't have this if I need a new car).

- continue paying token payments until I have paid off the car scheme (12 or 24 months, depending on what I go for), and then do a DMP or go BR. This will just delay things even more if I do eventually go BR, and be quite stressful with potoential for more letters, CCCJ's etc.

- go BR now - there are lots of implications that I need to make sure I'm clear about first though - especially about trying to get a mortgage again - as I'm desparate to move out of the area I'm in, but know that won't be possible for a long time

 

I will be put up my SOA tomorrow. Thank you!!!!!!

[tpltpl]

....or a completely different option. perhaps:.......:

 

Hello again. I have just read about settlement offers in a link. And I was wondering if I should use some of my current secured overdraft (available amount about £8000) to use as of a settlement offer? Ie. I offer £4/5000 divided up between all three creditors , and see if they will accept this. I have no idea if they would or not. And most people have said that i shouldn't use a secured overdraft to pay off the debts -BUT- I am not in default in this overdraft - it is available for me to use. I have used some of it (£1,500) and it shows up as a clear on my credit report. I planned NOT to use it again. And if I did this, I would then put a regular direct deibt payment to pay it off gradually.

 

(IF) the creditors accepted an offer (are they likely to?) - then I wouldn't have to do a DMP or BR, or token payments, letters, CCCJ's etc etc. I would retain my house (possibly wouldn't lose it anyway, I have been advised due to low equity). My credit file will be clear in 5 years from now, and then I may have more equity in house to obtain another mortgage (so I could have a plan to move then). I would just need to make sure I set up a monthly direct debit to pay off my overdraft and not touch it ever again (it is separate to my day to day bank account so should be doable). I need to check the interest rate on it, but it seems to be low, as I don't appear to get charged much (a few pounds in November for eg.). Things would still be tough financially generally, as I need to buy a car. But my stress levels and emotional health might be considerably better, as I have so many triggers for depression etc, and it really affects my day to day functioning - I need to be really careful I don't slide off the edge and end up getting really ill again (as I've been in the past - when I've been unable to work at all for long periods).

 

I know people have advised me not to use this secured overdraft (and you may do so too!), but it seems to make sense (possibly in my unwise financial mind!!) - as I'm thinking more about mental health to be honest - not having to deal with creditors, DMP, BR etc; but only if I can get a good settlement offer - a big if I know. Does anyone know about settlement offers and if they get accepted and what a reasonable offer is to make? I will thinking of offering £4000 or £5000 as a total offer split between all 3 creditors, as per the calculations in the link. Not sure if this is reasonable or not.

Comments gratefully received.

Of course this might be a completely rubbish idea!

Thanks again.

Edited December 29, 2012 by tpltpl

[dx100uk]

hi tp

 

i still think there is something 'wrong' with:

 

the barclays loan, no-one offers a discount for no reason.

 

the HSBC O/D - no-one sells a debt ,,, esp to MKRR, they are bottom feeders, there is something up here too.

 

as for the hsbc loan, diff to say.

 

by penalty charge we mean before things were sold, i bet you have missed payments or late payment charges in the history.

 

you need to do some digging.

 

pers i'd SAR HSBC

 

and

 

SAR Barclays.

 

your student loans...

 

new ones i take it not before 2007?

 

 

dx

[Wintry]

Hi dx and ida. Thank you for replying . Would it be useful if put up my statement of affairs? I can do this tomorrow as its 3am now! I really need to calm down and get some sleep!! I'm doing this alot lately and not concentrating very well.

Anyway, to confirm my creditors are:

 

HSBC loan £2240 - I have had no communication or letters about this since I defaulted at the same time as my HSBC overdraft about a year ago. It is on my credit file though. I don't think I havee any kind of /PPI on this loan, - I have the original document, and there is nothing on there about PPI.

- this is still with HSBC according to my credit file. Not sure why the loan and overdraft (below) have been treated so differently.

 

HSBC overdraft £1976 - which has been sold on to a debt credit agency - they have written to me under 2 different names: MK Rapid Recoveries and Raven Recoveries (they are the same company as they told me they use different names!!).

Debt charity lady has written to them to offer £1 as a token payment. I was originally paying HSBC a token payment of £1.

I don't see any penalty charges - its the same amount as when I defaulted on the original overdraft.

 

Barclays career development loan £8093. This month they offered for me to pay £6000 to settle, which I obviously don't have. They have accepted £1 token payment and said they will review in 6 months. They said they don't intend to send it to a debt collection agency (...yet, anyway).

 

I also have a secured overdraft of £1,500, plus student loans.

 

I just want to know how get out of this situation as soon as possible by DMP or BR - I don't want to be paying £1 per month for years with all the stress that would entail. The only problem is I need a new car for work as mine (worth £400) will going to heaven before too long, and its a requirement of my job to have a car. I therefore was planning to go through a vehicle assisted purchase scheme via my employer - however, this would now mean I won't have any money to pay creditors as part of DMP - which is why I'm now considering BR.

 

I spoke to CCCS today and they went through some BR information with me, and suggested I call Insovency Service to ask if they would allow me to pay a monthly payment for a car as part of BR agreement, as I need it for work - he said it would be a good reason.

 

My options as I see them:

- wait until my car actually dies - and in the meantime do a DMP myself (CCCS said they wouldn't do it at the moment, as my circumstances may change before too long). CCCS have sent me the forms/calculations to use. According to CCCS I have about £200 to split each month between creditors (but I won't have this if I need a new car).

- continue paying token payments until I have paid off the car scheme (12 or 24 months, depending on what I go for), and then do a DMP or go BR. This will just delay things even more if I do eventually go BR, and be quite stressful with potoential for more letters, CCCJ's etc.

- go BR now - there are lots of implications that I need to make sure I'm clear about first though - especially about trying to get a mortgage again - as I'm desparate to move out of the area I'm in, but know that won't be possible for a long time

 

I will be put up my SOA tomorrow. Thank you!!!!!!

 

Hi tpltpl

 

Welcome to the forum from me

 

Reading things so far it would seem that you are in a bit of a catch 22 situation and trying to do your best which is commendable.

 

You are not alone, many others are facing simliar situations and there is help available.

 

Sometimes with debt it can be difficult to move on but there is always a way of dealing with things, could be a little piecemeal at times but there will be a way.

 

It would help further if you put up your full Statement of Affairs if this is possible.

[tpltpl]

Hi dx, can I ask what you mean by thinking there is something 'wrong' re: HSBC O/D and Barclays loan - and what kind of 'digging' do I need to do? and how do I do it?....Sorry if I sound stupid, but I really don't understand what you mean?

 

re: student loans - the first student loans were in the 1990s - I have been deferring on these ones for years.

the second one was in about 2001-2002 - this is the one that comes out my salary now.

Thanks!

 

hi tp

 

i still think there is something 'wrong' with:

 

the barclays loan, no-one offers a discount for no reason.

 

the HSBC O/D - no-one sells a debt ,,, esp to MKRR, they are bottom feeders, there is something up here too.

 

as for the hsbc loan, diff to say.

 

by penalty charge we mean before things were sold, i bet you have missed payments or late payment charges in the history.

 

you need to do some digging.

 

pers i'd SAR HSBC

 

and

 

SAR Barclays.

 

your student loans...

 

new ones i take it not before 2007?

 

 

dx

Edited December 29, 2012 by tpltpl

[dx100uk]

so your salary is more than £15K?

 

as for the digging

 

get those sar's off

 

dx

[tpltpl]

Hi Dx,

yes my salary for the last year has been over £15k

- it was less then this previously hence getting into all this debt (and I wasn't paying the 2nd student loan either, as I wasn't earning enough).

 

I will do my SoA this afternoon.

 

The SAR link that you have given me - is that to see if I can claim back for any charges that may have made against me??

 

Do I send that direct to HSBC (rather than the DCA)? and Barclays.

 

The only thing is with Barclays that I don't remember ever actually starting to pay it off (it was a career development loan - which I needed to start paying 2 months after my couse finished)

 

which I haven't been able to do.

thanks again.

 

I don't know why they offered me a discount, as I didn't ask for one

- it was during a phone call when i said I was talking to CCCS - maybe because its a career development loan maybe?

 

Hi dx, can I ask what you mean by thinking there is something 'wrong' re: HSBC O/D and Barclays loan - and what kind of 'digging' do I need to do? and how do I do it?....Sorry if I sound stupid, but I really don't understand what you mean?

 

re: student loans - the first student loans were in the 1990s - I have been deferring on these ones for years.

the second one was in about 2001-2002 - this is the one that comes out my salary now.

Thanks!

Edited December 29, 2012 by tpltpl

[tpltpl]

did you have any thoughts about using my secured overdraft/requesting a debt settlement with each creditor?

[dx100uk]

sit on that for a while

 

SAR's always go to the original creditor.

 

are you saying you've never acked the barclays one?

 

what date is on the default?

 

dx

[tpltpl]

Hello - I have done my SoA (below). DX - I did acknowledge the Barclays loan - paying £1 token a month - I meant I don't think I ever paid the full monthly repayment amount. The default date is July 2011.

Thanks again.

 

Statement of Affairs and Personal Balance Sheet

 

 

[tt]Statement of Affairs and Personal Balance Sheet

 

Household Information

Number of adults in household........... 2

Number of children in household......... 0

Number of cars owned.................... 1

 

Monthly Income Details

Monthly income after tax................ 1431

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 300

Total monthly income.................... 1731

 

Monthly Expense Details

Mortgage................................ 305

Secured/HP loan repayments.............. 53

Rent.................................... 320

Management charge (leasehold property).. 11

Council tax............................. 105

Electricity............................. 45

Gas..................................... 40

Oil..................................... 0

Water rates............................. 15

Telephone (land line)................... 15

Mobile phone............................ 24

TV Licence.............................. 13

Satellite/Cable TV...................... 0

Internet Services....................... 25

Groceries etc. ......................... 200

Clothing................................ 30

Petrol/diesel........................... 60

Road tax................................ 12

Car Insurance........................... 40

Car maintenance (including MOT)......... 25

Car parking............................. 5

Other travel............................ 20

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 22

Pet insurance/vet bills................. 40

Buildings insurance..................... 10

Contents insurance...................... 20

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 20

Haircuts................................ 15

Entertainment........................... 17

Holiday................................. 0

Emergency fund.......................... 0

Total monthly expenses.................. 1507

 

Assets

Cash.................................... 0

House value (Gross)..................... 62034

Shares and bonds........................ 0

Car(s).................................. 400

Other assets............................ 0

Total Assets............................ 62434

 

Secured & HP Debts

Description....................Debt......Monthly...APR

Mortgage...................... 62034....(305)......1.09

Secured Debt.................. 1500.....(0)........1.09

Student Loan...................4000.....(53).......5.3

Student Loan...................3209.....(0)........5.3

Total secured & HP debts...... 70743.....-.........-

 

Unsecured Debts

Description....................Debt......Monthly...APR

HSBC Overdraft.................1976......1.........0

HSBC Loan......................2240......1.........0

Barclays Loan..................7977......1.........0

Total unsecured debts..........12193.....3.........-

 

Monthly Budget Summary

Total monthly income.................... 1,731

Expenses (including HP & secured debts). 1,507

Available for debt repayments........... 224

Monthly UNsecured debt repayments....... 3

Amount left after debt repayments....... 221

 

Personal Balance Sheet Summary

Total assets (things you own)........... 62,434

Total HP & Secured debt................. -70,743

Total Unsecured debt.................... -12,193

Net Assets.............................. -20,502

 

[/tt]

Edited December 29, 2012 by tpltpl

[tpltpl]

ps. The other income (300) is currently from a lodger. The overall picture is awful

[tpltpl]

Hi tpltpl

 

Welcome to the forum from me

 

Reading things so far it would seem that you are in a bit of a catch 22 situation and trying to do your best which is commendable.

 

You are not alone, many others are facing simliar situations and there is help available.

 

Sometimes with debt it can be difficult to move on but there is always a way of dealing with things, could be a little piecemeal at times but there will be a way.

 

It would help further if you put up your full Statement of Affairs if this is possible.

 

thank you! I have put my SoA now.

[tpltpl]

Hi DX, I am going to send the SAR letters as you suggested. Thanks.

 

hi tp

 

i still think there is something 'wrong' with:

 

the barclays loan, no-one offers a discount for no reason.

 

the HSBC O/D - no-one sells a debt ,,, esp to MKRR, they are bottom feeders, there is something up here too.

 

as for the hsbc loan, diff to say.

 

by penalty charge we mean before things were sold, i bet you have missed payments or late payment charges in the history.

 

you need to do some digging.

 

pers i'd SAR HSBC

 

and

 

SAR Barclays.

 

your student loans...

 

new ones i take it not before 2007?

 

 

dx