UE vs Bankruptcy

[fiscalfool]

Quick question (Niddy loves my questions).

For someone with no worthwhile assets ... what is the point in UE in comparison to Bankruptcy?

My rationale being:
* Both screw your credit rating for 6 years
* The aim of both is to not pay back the debt
* Both result in Defaults being registered

I can see the value of UE for those with houses or cars etc, that might get repo'd in BR.

For major credit these days you are asked if you have any Defaults, CCJ's or "ever" bankrupt.

Am I missing something key?

[mk_chatham]

Re: UE vs Bankruptcy

Hi FF

I was considering bankruptcy with my debts and no assets, one problem was the cost which I think was £450 plus £150 court fees if not on benefits, I simply could not afford it.

Sending out letters to the lenders and DCAs is certainly cheaper !

MK

[fiscalfool]

Re: UE vs Bankruptcy

Hi MK,

That's certainly very true.

I guess one aspect of BR that I hadn't considered was the "IPA" Income Payment Arrangement, whereby after BR, for three years you pay pretty much all your disposable income.

Sending off letters, even at recorded pricing is considerably cheaper!

[LooLoo]

Re: UE vs Bankruptcy

Hi FF

I seriously looked in to BR which is how i first got to know a lot of people on her (on other sites)

With BR you do go someway to paying off your debt esp if you are working. It would be mean for me for 3 years it would be very hard to cope. You have do a statement of Affairs and the OR will go through this with a fine tooth comb you are given a set amount for groceries, petrol, tv licence, phone, internet... etc - certain things are not allowed ie sky TV, they don't always include pet insurance and the rules have changed somewhat to when I was looking into it and before you used to be able to keep some of your surplus but now that has changed and everything you have spare will go to the OR to pay off your debt.

It is a hard slog and really is not an easy option. For most it is the last resort. As it UE it is something as you know already is hard again not the easy way out.

Each person has to do what it right for them - I went from considering BR to a DMP and now to UE........ at the end of the day I was trying my best to pay something back and sort things out but certain creditors just would not play ball............

[fiscalfool]

Re: UE vs Bankruptcy

Hi LooLoo,

Hope you are well.

Yup, the payments was something I'd totally overlooked. I've learnt my lesson with debt, and think that if it were all gone, that would be fantastic.

I think at present of my six debts, I've got:
2 x Unenforcable
2 x Enforceable
1 x not replies
1 x not provided CCA

So on balance my unenforceable ones are saving me a lot of money. I'm just unsure about how best to fend off the enforceable ones.

[LooLoo]

Re: UE vs Bankruptcy

Nid will guide you in the right direction FF - and you will see at somepoint after blagging you might need to start payments but if i was you just sit tight - since moving are you being hassled?

[fiscalfool]

Re: UE vs Bankruptcy

No, the only hassle I'm getting is Santander, whom I have my car personal loan with. I stopped paying, had a barrage of letters from "Ooops looks like you need a direct debit", to "if you don't pay us, we will default you", to "You have been defaulted!". Nothing since!

You've just reminded me, I hadn't cancelled my DMP, so will do that right this minute. I hadn't cancelled it until I saw outcome from a few of the CCA's. But now I realise that if it all goes titsup, then I have other options ... another DMP, IVA or BR. But for now, UE is the way to go

Being steered on Captn Nid's ship of UE pillaging ! :P

[brewster0101]

Re: UE vs Bankruptcy

Reading though this, what does UE mean?

[Never-In-Doubt]

Re: UE vs Bankruptcy

Quick question (Niddy loves my questions).

For someone with no worthwhile assets ... what is the point in UE in comparison to Bankruptcy?

My rationale being:
* Both screw your credit rating for 6 years
* The aim of both is to not pay back the debt
* Both result in Defaults being registered

I can see the value of UE for those with houses or cars etc, that might get repo'd in BR.

For major credit these days you are asked if you have any Defaults, CCJ's or "ever" bankrupt.

Am I missing something key?

Usually when asked if ever b/r - it means ever. Whereas with ccj's/defaults, after 6yrs they usually go forever, a b/r marker, whether spent or not, is still visible - forever. So it *can* affect future employment etc....

As with UE, the worst they can do is get a CCJ - then what? After 6yrs you can pretty much forget about it (assuming they don't apply to renew it) - however with b/r it's for life, as to speak!

[Never-In-Doubt]

Re: UE vs Bankruptcy

Reading though this, what does UE mean?

Unenforceability / Unenforceable!