Starting to deal with debt after you've been ignoring it

[Marymill]

Hi,

 

I have around £34k of debt, loans, credit cards and catalogue debt.

I stopped paying around December 2018 and have ignored it ever since but am going to start dealing with it now.

 

I also have 2 HP cars in my name that I will have to return early as due to coronavirus stopping my business I can no longer afford to pay them so this will add to my debt.

 

Should I just contact all the debt collectors that the debts are currently with and offer a token payment until I complete income and expenditure to decide what to do going forward.

 

I don't have money left over each month so probably going to be looking at trust deeds and sequestration but I am self employed so this might be an issue.

I don't employ anyone but I'm a sole trader and lease a premise so I understand if I go down this route they will probably cancel my lease.

 

This is what terrifies me the most as I'll then be unemployed which will leave me in a terrible state.

My total debt including the HP cars will probably be around £50k, how much would I likely need to pay per month for a trust deed to be accepted?

 

Also is there any other option that would not require me to give up my business?

I don't have any assets, rent my house so the only real risk is to my business.

 

Sorry for all the questions, just don't really know where to start. Thanks.

[BankFodder]

I think you are going to have to start giving detailed accounts of each one of the debts that you have.

This includes the name of the lender, the date that the debt was incurred – how much in arrears – last payment made – et cetera.

Fill this out<<<<< in respect of each debt.

I expect my site team colleague @dx100uk will be along at some point to have a look at what the situation is

[dx100uk]

not sure why you posted the court claim link BF?

not applicable where

 

MM

simply give use a list of these for each debt please

 

Original Creditor

type of credit

when taken out

how much outstanding

who owns the debt now

defaulted date from credit file.

last payment date and to whom?

 

as for the cars, SLOW DOWN upon rushing to hand them back

give us the details upon who you have the HP on each with

and how far you are into the agreement time wise...

 

just general notes...

do not EVER contact or respond to a DCA by email/phone..WRITING only put the phone down..and check here 1st if you want to send anything.

 

a DCA is NOT A BAILIFF

and have

ZERO legal powers on ANY debt.

 

lastly do not ever think of any type of DAS  IVA Sequestration etc etc for consumer debt, very bad and unnecessary idea 

 

[BankFodder]

2 hours ago, dx100uk said:

not sure why you posted the court claim link BF?

not applicable where

 

 

Sorry, I didn't look at the link

 

[Marymill]

Thanks, I'll need to get all that information from my creditors as my credit report doesn't show it all.

I think all my debts were taken out between 2014 and 2018.

My last payment on them all was December 2018 with all defaults mid 2019.

I'll post full details once I get them.

Should I contact the current debt owners for this information?

 

The cars are with motonovo and blue motor finance.

I am 18 months into each and they are both 5 year agreements.

I am currently negotiating a 3 month payment break for both but my business is unlikely to just bounce back immediately after the lockdown ends so I don't know if it's enough.

 

When you say not to go down IVA das or sequestration routes, what are the alternatives?

Can I just agree an informal arrangement to pay an amount each month and then hopefully get a reduced settlement some time or will they not accept that and force me into bankruptcy anyway?

 

I assumed of I start dealing with the debt I would have to choose one of these options.

[dx100uk]

you don't need to contact any debt owners.

have you been destroying paperwork then?

tell us what you know to date

all these must be on your credit file as they are all within 6yrs?

 

as for the cars.

just VT them.

you'll have to pay upto the 50% mark

start a thread for each in the vehicle finance and repo section in motoring.

 

as for iva/das etc etc no don't do that

you can manage these yourself easily never put any consumer debt on a legal footing, it harms you far worse that a few defaults that make the respective accounts vanish from your file on their 6th birthday paid off or not, paying or nor.

 

pop over to the debt self help forum and get reading as many threads as you can you'll get the idea.

 

but we need that list please.