Quick bit of advice needed

[Pirus]

Hi there,

 

A used to have a bad gambling and shopping addiction and ran up debts of about £50,000 on cards and loans. The banks have stopped calling me, the letters about debt keep coming and saying they are going to take further action etc etc if they can not get hold of me will they declare me bankrupt without me being in court etc?

 

Its been just over a year since I stopped making payments towards the debt as I lost my job and couldnt afford to carry on paying them. Does anyone know how long it usually takes for them to declare you bankrupt and how long it will last for?

[linz2011]

Hi Pirus

 

It is very unlikely your creditors will make you bankrupt the costs for them is too much for nothing in return (if you have no assets) and even then it is unheard of.

 

Best of luck

[diskmandave]

Pirus,

 

This is a very informative site about bankrupcy (link below).

 

The Insolvency Service Website

 

What you have to consider is how long is it really going to take you to pay all this back? Bankrupcy is an extreme final anwer to things, but if it suits your situation it might be the better option. I think a bankrupcy lasts for up to 3 years.

 

Have you checked out the Consumer Credit Counselling Service? (Link below)

 

CCCS - Contact Us

 

 

Consumer Credit Counselling Service,

Wade House,

Merrion Centre,

Leeds,

LS2 8NG.

 

They're a registered charity, I can't speak more highly of them, their service is free and they are completely respected within the finance industry.

 

Good luck & best wishes, Dave.

[Pirus]

Hi there,

 

I have no way of paying the money back at the moment and after the way the banks treated me piling the pressure on when I needed a little time to get the funds together and adding charges to my cards, bank and loans I dont really want to pay them back now.

 

I have numbers for a few places that offer advice but I hate talking on the phone, I dont know just seems awkward for me and thats why I end up on forums

 

Thanks for the advice though, I guess I will just have to push my self to call one of these places and see what they say.

 

If the banks didnt declare me bankcrupt what would they do? Just keep bugging me for the money?

[tiglet]

Yes they probably would or may apply to court for a CCJ.

 

You mention charges - how much do they think the debts could consist of unfair charges? It could potentially considerably reduce your debt. Why don't you SAR your creditors to find out exactly how much the debt consists of charges and then claim them back? Although it won't give you money in your pocket, it may significantly reduce your debt and once it's a smaller amount, they may be more inclined to take a smaller amount monthly in order to pay the remainder off.

 

It's highly unlikely that the situation will go away, but if you act now you may be able to get yourself into a better bargaining position with your creditors and stop the stress and worry.

 

You can also visit the CAB with an income/expenditure sheet and they will help you negotiate an affordable amount to pay back each month.

 

Remember, they cannot pressure you to pay more than you can actually afford - even if that is a token payment of £1 per month.

 

Do you know how much you owe each of these guys?

[Pirus]

I think my debts were:

 

HSBC: 23,000

Egg: 18,000

MBNA: 5,000

Capital One: 200

Citibank: 1000

Littlewoods: 1250

 

I am unemployed at the moment, not even signing on I am living at home with my parents and they have been good enough to support me through this bad time.

 

Maybe 6 months ago I was stressed and worried but I am no longer, I realise that the worst that can happen to me is that I will go bankrupt, you get all strange ideas into your head when the first letters start coming through but I am past caring now.

 

I have sent letters to 2 banks for bank accounts only nothing to do with the credit cards or loans. The way I see the loans is I cant afford to pay them so even if I did try and claim the charges back to reduce the loan I still wont be able to afford it and the same outcome will happen.

[sequenci]

hello there.

 

if you do choose to go down the bankruptcy it is likely that the official receiver will impose a Bankruptcy Restriction Undertaking (BRU) on you. This is due to the gambling, it is viewed as culpable conduct. Usually you would be discharged within a year, however you may have further restrictions imposed on you from anywhere between 2 and 15 years. The insolvency service website is a really good resource and well worth a read.

 

You should also contact CCCS or one of the other debt help charities too.

 

The Insolvency Service Website