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  • #1

    CC Debt_before bankruptcy

    Hello,
    I have a UE Diary already here http://forums.all-about-debt.co.uk/s...ead.php?t=7342

    But It's looking wobbly. Want to try a different approach if its possible, as I'm contemplating BR.
    I AM in serious Financial difficulties as I'm Unemployed. Living with my long Term Girlfriend, and Daughter, She's taking care of the bills, (only just) My Partner that is, not my Daughter as she's only 9, and they frown on child labor in this country!!

    Anyway, I have not contacted the DCA about this situation as my head was/is berried in the sand and I could not see the keyboard.

    1) Should I explain my Financial situation and include an income expenditure sheet, with the household income on it, although My Girlfriend's wages are separate and not financially committed to the CC debt? or just let them know I have no income with which to pay them and leave out her income?
    2)Ask for them to write off the debt, telling them about the unemployment and financial hardship, lack of income, even with partners income its only a basic living, we Rent, have a cheapish car, no particular assets of value, basic household items, and no other funds?
    3)I'm thinking it won't hurt to ask and explain the situation, or will it?
    Last edited by gregco; 12 November 2012, 14:44.
    Tags: accounts, act, assets, atm, bank, bankrupt, bankruptcy, broker, ccj, claim, collapse, con, court, credit, date, dca, debt, debts, decline, director, directors, earnings, enforcement, fees, financial, fraud, free, house, income, information, insolvency, insurance, job, jsa, legal, legislation, life, loan, money, mortgages, orders, pay, payments, purchase, rate, salary, savings, tax, ue diary, wages
  • #2
    Re: CC Debt_before bankruptcy

    Hi

    1. Your partners income is irrelevant. I presume as a result of their salary you are not getting JSA (or are you, maybe Cont based?)...

    2. Could do, but they will usually decline unless a severe illness plays a deciding part otherwise we'd all ask for it to be written off...

    3. Depends, it could be a waste of time (most likely) but for the same respect as you have no assets why bother? they can get 100 CCJ's but they mean nothing if you have no income / house etc.....

    Maybe UE route is best for you, if all the main debts are in your sole name.
    I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

    If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

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    • #3
      Re: CC Debt_before bankruptcy

      We were not entitled as 1)she works more than 16 Hrs, and 2) I was self Employed not paying the 'right' NI contributions!! Where is a good place to find information about what happens when CCJ's are made against me?

      Comment

      • #4
        Re: CC Debt_before bankruptcy

        A Debt Relief Order might be worth considering if it's under £15K? Much easier than BR...

        Comment

        • #5
          Re: CC Debt_before bankruptcy

          Originally posted by gregco View Post
          Where is a good place to find information about what happens when CCJ's are made against me?
          What do you want to know.....
          I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

          If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

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          • #6
            Re: CC Debt_before bankruptcy

            Hi Greco,
            I should start by saying i am in no way an authority on such subjects although going by the many people i have read about on the forum (and my own dealings about 14K debt) - bankruptcy seems quite a drastic move.
            If you have no earnings, savings and assets i would have thought they are pretty screwed on any attempt to recover from you.
            I can only imagine that you are feeling quite low about all this but there are lots of people in the same boat mate.
            Assume the worst and someone does issue a claim against you; you haven't got any way of paying so not really sure what the outcome would be? I am sure others would know and be along to advise.
            Sorry if this doesn't really help you, all the best with whatever you decide.
            When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


            I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

            If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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            • #7
              Re: CC Debt_before bankruptcy

              Hi Gregco,

              I was strongly thinking of bankruptcy last year. I even had (and still have!) the fees ready and the forms filled in. I decided to give the UE route a serious go and haven't regretted it. I'm luckier in that all my accounts were pre-2007.

              I've looked at your UE thread and see you've quite a few after that date. Don't let it stop you from blagging! Just remember all time counts towards statute-barred after payments have stopped!

              I know every situation is different, but if I were you I would consider BR as a very last resort option. It is a way of wiping the slate clean, but it might leave long term fallout for you. Think of it as launching a nuke, when some well-aimed hand grenades might well produce the same desired result!
              Last edited by oldyboy; 12 November 2012, 15:47.

              Comment

              • #8
                Re: CC Debt_before bankruptcy

                Originally posted by Undercover Elsa View Post
                A Debt Relief Order might be worth considering if it's under £15K? Much easier than BR...
                Originally posted by Never-In-Doubt View Post
                What do you want to know.....
                Unfortunately I'm not in the criteria where DRO is possible as the Debts have crept above the threshold by about 3k, however the free legal advise team said there may be mitigating circumstances which would allow me to omit the debt if the debt becomes UE, or struck out of court, they really didn't know. I might get to find out In January!

                CCJ's if issued;If I'm unable to pay the CCJ, would it lead to a Bailiff knocking on the door, demanding money, in front of my Daughter. Will the Court take my Partners income into consideration?

                How much longer do I have to live with this apprehension and anxiety of not knowing whats going to happen,I'm just feeling exhausted atm and I'm looking for ways to finalize this situation. Just been knocked back from a Job interview which I guess has dented the spirits a little.

                Thank you all for your comments, they really do encourage me to keep going.

                Comment

                • #9
                  Re: CC Debt_before bankruptcy

                  Originally posted by gregco View Post

                  CCJ's if issued;If I'm unable to pay the CCJ, would it lead to a Bailiff knocking on the door, demanding money, in front of my Daughter.

                  In theory yes, but you're automatically assuming that they're going to get issued, and you're going to lose. Even if you lose, these can be set as little as £1 a month in payment.


                  Will the Court take my Partners income into consideration?

                  Only if it's a debt in joint names.


                  How much longer do I have to live with this apprehension and anxiety of not knowing whats going to happen,I'm just feeling exhausted atm and I'm looking for ways to finalize this situation. Just been knocked back from a Job interview which I guess has dented the spirits a little.

                  If you're looking for a quick fix, IMHO go bankrupt now if you can't get a DRO. All the other options, including UE, have a slight level of uncertainty.


                  Thank you all for your comments, they really do encourage me to keep going.
                  Have you looked through the thread in the UE section called 'UE-one year on' it is inspiring, and it made me pull back from BR.

                  Comment

                  • #10
                    Re: CC Debt_before bankruptcy

                    Few things to think about.

                    BR will last around a year, between being made BR and being discharged.
                    If you become employed during that time, you will need to notify your employer of BR and they will have to make an attachment of earnings(is that the correct phrase?) to pay back your debts before you are discharged.

                    Even though you are discharged after a year, BR will show on your credit history for 6 years. So you will find it hard to get any credit (i couldnt even get a littlewoods catalouge account lol)

                    That being said, a CCJ will also show on your credit report for 6 years, but you never axtually loose a CCJ unless you havent paid towards it and the lender has to re-apply to the court, which would be difficult for them to explain why they hadnt enforced it already, or its paid in full.

                    If you are given CCJ's and pay £1 a month towards them, they will be with you for life, as the balances will never be cleared at that rate.
                    If you get a job during that time, its likely they will add an atachment of earnings to that also, in which case, its likely the amount you pay each month would also increase. (for example the judge may say, £1 per month subject to review, or may not, depends who you get)
                    I think im right in saying that, if not, someone will correct me.

                    So my advice, and it is only mine, others may disagree, if you have no assets, and im talking, dont own a home or anything like that, then BR could be the best option as it will be all cleared after a year, even though it will remain on your credit file for 6, so will any CCJ;s but the difference is, a CCJ can end up costing you more than £1 per month sometime in the future. BR cant.

                    If it was me, i would prob blag the debts for a while, then make a decision, you might find after a few letters back and forth, everyone goes quiet and you only hear from them once in a blue moon asking for payment, you may never even receive any litigation, it really depends on whether it all does effect you physically and emotionally to much to cope with, or not.
                    Last edited by SXGuy; 12 November 2012, 18:19.
                    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                    Comment

                    • #11
                      Re: CC Debt_before bankruptcy

                      Originally posted by oldyboy View Post
                      Have you looked through the thread in the UE section called 'UE-one year on' it is inspiring, and it made me pull back from BR.
                      Actually, i have to add to that, as its just come up to a year for me also
                      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                      Comment

                      • #12
                        Re: CC Debt_before bankruptcy

                        Another point to consider before going BR is to take a look at your tenancy agreement. I understand some have clauses that can get you evicted should BR occur, assuming your name's on the agreement.

                        SXGuy's post after mine had a load of sensible advice in it. Granted, BR might be the way to go, but it's not something I'd do before exhausting other options.

                        I understand completely how you're feeling. I think it usually comes with realising what a mess you believe you're in. I think most forum members have felt the same. I thought to start with that there was no way out. There are in fact lots of options available. You might have to allow that no matter what avenue you decide to try there will be some stress and anxiety.

                        Comment

                        • #13
                          Re: CC Debt_before bankruptcy

                          Originally posted by Flowerpower
                          also you can't be a company director for 6 years. Probably not relevant to everyone, but it's worth mentioning.
                          Not correct. You are not allowed to be a director while you are undischarged. Once discharged, after a year or less, you are free to be a director again.

                          Company Directors Disqualification Act 1986

                          And as said in that above, it is possible to apply to the court for leave to act as one even while undischarged. Unusual for that to be granted, but it is possible.
                          I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                          If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                          Comment

                          • #14
                            Re: CC Debt_before bankruptcy

                            Originally posted by SXGuy View Post
                            BR will last around a year, between being made BR and being discharged.
                            If you become employed during that time, you will need to notify your employer of BR and they will have to make an attachment of earnings(is that the correct phrase?) to pay back your debts before you are discharged.
                            Not the correct phrase.

                            The correct one is:

                            Income Payment Agreement or Order

                            An AOE is a court order compelling your employer to pay any amounts directly before you are paid your wages.

                            In an IPA/O you get your wages as normal, and then it's up to you to pay the OR's agent. An AOE could happen as an enforcement measure if you are naughty and refuse to pay what you agreed or the court ordered, but is not how they normally work.
                            I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                            If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                            Comment

                            • #15
                              Re: CC Debt_before bankruptcy

                              Another consideration is that quite a few institutions (Hiscox insurance, Flat Chest Bank and others) include the following question in their forms:

                              "Have you ever been bankrupt?" (My Bold)

                              Of course, if you have been discharged long ago you may feel like answering to the negative, however this would be fraud.

                              If you answer to the positive you will be rejected.

                              Just something else to consider, your future choices will be dictated by this!
                              Last edited by Trumpet; 13 November 2012, 13:24. Reason: Punctuation

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