Advise on debt I currently hold

[MANUKI12742]

Hello,

I hope you're all well,

I just wanted some advise on my debt situation.

currently my debt is a total of £17,000, 7k to Amex and 10k to TSB as a loan,

now I have never missed a payment and I have always been on time but I have had some personal circumstances that mean I need my money and I cannot afford to pay these loans off for the time being.

I'd need around 4/5 months and then ill be able to start making the payment again, I'

ve been reading on the forum and I have seen many options but I'd like to know what the best option for me is.

I don't want and IVA or DMP and nor do I want to go bankrupt.

I've read about defaulting and minimum payments etc, Say if I didn't pay anything for 4 months or maybe paid bare minimum then once the 4 months is over I make up for the payments?

Sorry If I sound stupid but I am just trying to figure out the best option before doing something stupid and going for an option that is more feasible.

Thanks

[dx100uk]

moved to the debt self help forum.

plenty of like threads here to read along with the ones you've done so far..good work.

last thing you ever want to do is look at any kind of IVO/BK or anything alike concerning consumer debt, never do that, turns unsecured debts into secured ones in many instances.

your best bet for now is p'haps looks at 

Options for dealing with your debts: Breathing Space (Debt Respite Scheme) - GOV.UK (www.gov.uk)

sadly you have to go thru one of the free debt charities to invoke that but DON'T be tempted to also open up a DMP with them, just get the Breathing Space done.

get that in place that gives you at leasy 60 days buffer

you've also goto to realise you'll probably get a default once breathing space is in place, bit if not it might pay you to withhold payments even after BS then p'haps re start payments once a DN for each debt is issued and registered.

at least that way, whatever happens in 6yrs the debt will drop off

dx

 

[MANUKI12742]

Perfect, thanks for the detailed response.

One question, do you know how long it takes for the breathing space to get applied?

Say for example I have payments due in 4 days and I apply today how does that work?

Also, sorry for sounding stupid but what do you mean by default once the breathing space is in place?

I mean what does "Default" mean. 

After the breathing space is over and I wanted more time, what would happen?

I can and will afford the payments after a few months but I just need that breather to sort some stuff out, as I have said I have never missed a payment.

Sorry for the many replies

but after doing a quick search, correct me if I am wrong.

If it then does go into default and it goes to a collection agency am I right in saying they will send many letters and they may consider a claim?

and I should only response if an official MoneyClaim is made?

Also, If it does go into default does this severely affect my credit score?

or will this only be in the case if a CCJ is applied.

Edited April 24 by MANUKI12742

[dx100uk]

please refrain from posting blocks of text...use sentences and line spacing ....

i notice your 1st post had been spaced and ive done your last three....

this is not facebook....its a forum.

...........

it does not matter how long BS takes i would cease payments now

and a DCA is NOT A BAILIFF. they don't own your debts so can do NOTHING!!

slow down and calm down , 4 post in 5 mins is no good.

Debt management and Debt self-help - Consumer Action Group

click the above link and go read a good 20+ thread in the above forum

and all your questions will be answered 

if you have any outstanding 

then please post with them later.

everything is explained in numerous threads already here for you to understand at your own pace.

there is not rush to do anything today or the next 10days bar simply stop paying.

though as explained in my last post, whichever way you go not paying will equal a default which will trash your credit file for 6yrs so the quicker you stop the quicker they will vanish .

dx

 

[MANUKI12742]

Apologies, I am still getting used to the site.

Understood, ill have a read and come back if I have any other questions. Thanks 

[dx100uk]

we're here for you.

take your time. 

dx

 

[MANUKI12742]

I have just opened another bank acc with lloyds (i have a few already)

After doing some research they may have some relation to tsb or be apart of the same group will this cause me issue if my salary is paid into my lloyds account?

Also, if the debts do go into default and nothing is paid then after 6 years it all goes away?

As the DCAs cannot do anything?

I do want to start paying in like 3/4 months or do you advise I leave it if it goes into default?

again sorry for all the questions, i am just processing everything

[dx100uk]

good you are getting there.

Lloyds/TSb...i certainly would not be risking possible off-setting going on if a choice were there, but in all honestly thats obv too late now..., however..you might not never be in that situation so dont worry too much.

regardless to being defaulted or not, if any debt that is not paid/used in 6yrs it becomes statute barred.

you need to understand a couple of things like 'default' and 'default notice'

a default is simply a recorded D in the calendar section/history of a debt, it does not really mean anything. might slightly hit your rating.

the important thing here is a default notice ,

these are issued by the original creditor (OC) under the consumer credit act, it gives you 14 days to settle whatever they are asking, if you don't then they have the option to register a defaulted date on your credit file. that can make getting other credit more difficult. and hits your rating.

once that happens, not matter what you do after that, paying it or not or not paid off or not, the whole account vanishes from your credit file on the DN's 6th b'day. though that might not necessarily mean the debt is not still owed - thats down to the SB date above.

an OC very rarely does court and only the OWNER of a debt can instigate any court action (Attempted a CCJ)

DCA's

debt collection agencies - DCA's are NOT BAILIFFS

they have ZERO legal powers on ANY debt - no matter what it's TYPE.

an OC make pass a debt to a dca as their client to try and spoof people into paying through legal ignorance of the above statement.

an OC may SELL on an old debt to a DCA/debt buyer (approx 10p=£1) and then claim their losses through tax write off and their business insurance, wiping their hands of the debt.

the DCA then becomes the debt OWNER.

since the late 70's dca's pull all kinds of 'stunts' through threat-o-grams to spoof a debtor into paying them the full value of the debt, when they bought if for a discounted sum (typically 10p=£1). you never pay a dca a penny!

if read carefully, NONE of their letters nor those of any other 'trading names' they spoof themselves under making it seem it's going up some kind of legitimate legal 'chain' say WILL anything....just carefully worded letters with all kinds of threats of what could/might/poss happen with other such words as instruct forward pass... well my dog does not sit when instructed too...so...

DCA's SOMETIMES will issue a court claim, but in all honesty its simply a speculative claim hoping mugs wet themselves and cough up...oh im going to court...

BIG DEAL DCA - show me the enforceable paperwork signed by me...9/10 they dont have it and if your defence is conducted properly, most run away from you .

however before they do all that they now have to send a letter of claim, cause the courts got fed up with them issuing +750'000PA speculative claims and jamming up the legal system.

so bottom line is two conclusions....

if you cant pay a debt, get a DN issued ASAP (stop paying it!) make sure it gets registered on your file

then it stops hurting your file/future credit in 6yrs regardless to what happens (bar of course a later DCA CCJ - fat chance mind!) 

once you've a registered DN , then look into restarting payments if the debt is still owed by the OC, if SOLD to a DCA, don't pay - see if they issue a letter of claim (then comeback here!).

 

 

 

 

[MANUKI12742]

okay, perfect and thank you so much for the help once again.

Firstly i am going to initiate the breathing space, during this time it's likely ill receive a default.

when i receive the default are you aware of how long it will take for me to know whether the OC have sold it off to DCAs?

Once it's with the DCAs i do not need to worry as they cannot issue a CCJ only the OCs can

Even if i decide to come an arrangement with the DCAs no point as the default will remain for 6 years paid or not paid

I should only consider repayment if the OC still own the debt and then issue a CCJ?

Just to confirm the default will not be seen after 6 years? No one can tell I had one then after 6 years ill be all good?

[AndyOrch]

48 minutes ago, MANUKI12742 said:

Just to confirm the default will not be seen after 6 years? No one can tell I had one then after 6 years ill be all good?

Correct but wont stop them chasing you though even if no payment for  6 years (statute Barred)

Some DCA s buy debts (the debt is assigned to them) and some do issue court claims ...just so you are aware.

 

Andy

[MANUKI12742]

okay thanks

do you know how long it will take for it to get to the DCA or could the OC try and issue a CCJ? even though it's unlikely

also for example would the OC agree to a reduction and a small payment over a super lengthy period of time if agreed? Rather than go through chasing

apologies again for all the questions, just trying to understand all the possible scenarios.

 

[dx100uk]

2 hours ago, MANUKI12742 said:

when i receive the default are you aware of how long it will take for me to know whether the OC have sold it off to DCAs?

receiving a default NOTICE (forget simple default cal markers) does not mean it will get sold on...

OC's very very rarely do court themselves. 

if it does you would receive a Notice of Assignment from the debt buyer/DCA. 

as for reduced payment if it remains with the OC and they issue a DN, no harm in trying but lets get all your ducks inline first.

dx

 

[MANUKI12742]

1. Potentially it may not even get sold on?
2. Just the default left for 6 years then gone?
3. but if it is sold on ill get a letter from the DCA which is the notice of assignment?
4. Sorry what is the different between a default notice and a default cal marker?

yes, i may try and work arrangements out with the OCs after the breathing space but I'll see my circumstances then

thank you again for all your help and patience, I really appreciate it and apologies If i am too fast or repeating myself.

[dx100uk]

1. who knows...

2. not the whole A/C vanishes from your file on the DN's 6th b'day ...already carefully explain this.

3.yes

4.already carefully explain this.

[MANUKI12742]

okay understood, just a final point to clarify please

so if I understood correctly, there is a chance I could get a default? and not a default notice and the default is not as bad as the default notice?

or is it a case where I'll get a default but I need the OC to issue a DN too?

Sorry just confused about that part because you said the D slightly impacts it but the Default notice is a big hit

thanks.

[dx100uk]

a default cal marker will not remove the debt in 6yrs regardless to whatever you do 

but as ive said 3 times now the issuance and registering of a default notice does.

please 

get reading up....

dx

 

 

[MANUKI12742]

On the phone to stepchange and they are really pushing for a DMP

I am pushing for a DRO, will fill in their form today.

I wont accept a DMP and ill keep pushing, they will look at my salary and my outgoings.

They have said a DRO is a form of insolvency lol and its really bad.

They said with a DMP you can pay quicker if you have more and it will initially be fixed then its my choice if i pay more

I dont believe them lol

[dx100uk]

you do not do either!

tell them you simply want to invoke BS.

dx

[MANUKI12742]

Okay, perfect.

they did say BS is invoked as soon as i fill in their application form, ill get a pin.

i had to press them more on this as they didnt want to discuss BS much.

so i should fill in the form and get the pin, then i can initiate BS. What will follow and what should i do after?

Thanks again for all the help and patience.

[dx100uk]

get it running .

2 hours ago, MANUKI12742 said:

What will follow and what should i do after?

re read your thread from post 1

thats already been covered....

[MANUKI12742]

I have initiated the breathing space so ill wait.

from re reading everything this what i understand

BS gives me 60 days break from the creditors

during these 60 days they may contact me and will most likely default

I need to wait until after a default notice to see whether the OC will keep the debt or sell it off

If kept by the OC then i should attempt a plan or pay some token payment?

If sold to DCA then don't pay and after 6 years it will leave my credit report once the DN is registered with a date.

DCA may start a CCJ but unlikely, if they do come back here.

last question, do you know roughly how long this will all take?

in terms of defaults/default notice, potential CCJ?

Would you say I have 12 months plus from when the BS ends?

[dx100uk]

put selling and dca's and a very rare chance of a court claim out your mind. months/years if at all.

but never ignore a letter of claim.

as for the rest, to be frank you are now in the knowledge/research stage.

On 24/04/2024 at 19:13, dx100uk said:

Debt management and Debt self-help - Consumer Action Group

click the above link and go read a good 20+ thread in the above forum

and all your questions will be answered 

a day.

 

[London1971]

AMEX and TSB the 2 Creditors who you need to worry about the least, ever!  Just stop paying them and forget about it, ignore all their threat o gram letters.  Only if, and with these 2 it's a massive if, you end up with a claim form you need to respond, and there will be plenty of help here.

[MANUKI12742]

Honestly you are all amazing on this site, thank you so much for your help and time.

ill keep an eye out and only return when i receive a claim letter for sure

also, i updated my address with amex and tsb before i even missed payments.

the initial address was my family home but i dont reside there.

to avoid a bombardment of letters there i have now updated my address, will they send all threats etc to the new address? Or old address?

 

do you reccomend i send both tsb and amex my update in address via a letter?

[London1971]

Definitely,