Hello Everyone, Where to start?

[rottiemad]

Hi,

Been reading this forum on and off for a while now, and i was hoping this wasn't a road that i'd have to go down, but it now looks certain i'm going to have to start defaulting on all my loans this month. Looking for advice on the best way to proceed really. I run 2 businesses and have been able to keep up with payments for many years, but one business which is basically half my income is struggling due to pressure from competition and possibly the uncertainty of brexit. This has left me with no where near enough money each month to cover everything, in recent months i've robbed peter to pay paul with other credit cards hoping the market would improve, but its time to call it quits, causing far too much stress and i've got no assets left to sell.

I have 2 personal loans with around £19K balance left

7 credit cards totalling just shy of £50K balance

All of the above where taken out after 2007, more like 3/4 years ago

I need advice really on which road to take.

From doing some reading on here i think i'd like to phone up all the companies and "ask" for them to freeze the interest and pay them all £1 each. Hoping in the future they get bored, pass it onto a debt collection agency and hopefully get a reduced final offer to clear them all off in a year or so, which hopefully i should be able to afford if the amount is low enough. I did go through something similar nearly 20 years ago and the offers we got to clear back then went as low as 15% of balance, but was SB by this time. Or even better my businesses pick back up and i continue where i left off without having a huge increase in debt due to the interest.

Am i right or wrong in thinking as long as pay them "something" whether that be £1 or £10 and not simply ignoring them then they wont/can't go down the court/ccj route?

Also i have all my accounts, personal and 2 LTD business accounts with a bank that i also have a £12K credit card with, i've already set up a new personal account as i know they take the money out of it to pay the card, but can they take money out of my business accounts as they are both LTD? I'd like not have to switch providers as its a lot more complex to switch due to wages/suppliers etc... than the personal one.

I don't know if the unenforcable route is one i can take as the debts are only around 4 years old or more recent.

Thank you in advance for your advice.

[nanna58]

Hello and welcome , most of us , probably all have sent of for a CCA from each creditor of the alleged debts. Debts taken before 2007 tended o have faulty
credit aggreemena. Of course you could offer as you say, but you need to write and keep copies as proof.
It's also avoid idea to make a diary on here listing g each debt separately adding as much detail as possible ,amounts dates etc so that we know how to help .
Good luck xx

[rottiemad]

Thank you so much for replying. But do you or anyone else know the answer to these questions?

Am i right or wrong in thinking as long as pay them "something" whether that be £1 or £10 and not simply ignoring them then they wont/can't go down the court/ccj route?

i have all my accounts, personal and 2 LTD business accounts with a bank that i also have a £12K credit card with, i've already set up a new personal account as i know they take the money out of it to pay the card, but can they take money out of my business accounts as they are both LTD? I'd like not have to switch providers as its a lot more complex to switch due to wages/suppliers etc... than the personal one.

I will definitely be going down the route of seeing if the debts are legal eventually after more reading. But for me stop paying the cards now, I need to know the answer to the questions above. Then I can sit down and list all debts and start going down the is the debt legal route, once I have new accounts sorted.

[nightwatch]

Hi. welcome to AAD,

in answer to your 1st question, no one knows till you try,
some companys will accept a reduced amount for so long, but May well be asked to supply an Income and Expenditure sheet to prove that is all you can afford, they may also ask for bank statements, BUT, you do not have to supply them with one.
some will stop intrest some won't till they sell it on, as for court action they have to show that they have tried to help so will accept a reduced payment at the start for 3/6 months then ask for updates in your income, they may threaten litigation in the hope you will sell your soul to not go that far, but if you ain't got it they can't have it, there is normaly a couple of options befor the court papers.

I do not know about buisiness accounts, there may be something in the account T&C's that may explain what MAY happen.

you could message Niddy and see if he knows the answer, but I think he may be on holiday at the moment,

sorry not to be of more help, will see if any other Mods can help with your question

best wishes NW x

[rottiemad]

Thank you very much nightwatch. Looks like I was wrong then, I thought I had read somewhere that as long as you pay them something and don't completely ignore it, they can't go down the court route. I'm probably going to still go down that route for now and pay them each £1. I realise this will affect the SB route, but thats probably a road I won't take, unless they keep stacking interest on the debt in which case they can do one.

3 of the debts are also over £10k, I'm sure I have read somewhere that this can change the way they progress with the default?

thanks for the info on business account, I have just started applying for an account with other banks and done the research to see if they are linked or not to my current loan providers. It's too risky to hope that they can't and it would kill both my businesses if they took money off me.

[nightwatch]

Normaly they will have to show why they decided cout action was the best thing, But it could depend on the amount owed, each case is different,
all you can do is offer the payment and say it will be paid every month, that should give you some space to sort things out.
mine were happy with the pro rata payment's offered for a few years, Although one or twe did send solicitors letters, i just replied that I had no money so may have to reduce the payments, nothing more was said and most were sold on.
It was the ones that were assigned to Debt collection Agencys that caused most stress, demanding blood from a stone,one screamed down the phone that I was so stupid to get into debt, i think she knew how it felt when she lost her job
I then found this site and none of them got a penny ever again. now all SB even the ones thought enforceable

hope you sort things out