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I wanted to ask some advice. This morning I have seen someone from the Citizens Advice Bureau for some debt advice.
He has given me two options basically. The first one is to offer token payments to my creditors but I can’t afford my regular bills already and with my health issues and other stresses he didn’t really recommend this option.
His recommended option is for me to go bankrupt. I was wondering if anyone has any experiencing or knows anything about this. I am very worried and concerned about concerned about considering this option.
Thanks.
Karen x
Hey hun, I don't know a huge amount about it but I had a friend who did it and my sister and her husband are in the middle of deciding whether to do it now. I will ask them about it.
You really should speak to someone who is an expert, if he thinks it's the best option, he's probably right.
From what I remember my friend told me, it will totally clear all you debts by a court appearance, but means you are not allowed a normal bank account or any form of credit for a number of years (7 i think:shrug: ) and even after that can be difficult to get one. But it's sposed to be a good idea if you have a lot of debt and no assets like owning a house or anything that they could force you to sell.
Did he talk about an IVA? I think that's another option my sister is looking at. Maybe that's the token payments thing?
I think it's a bit complicated and depends on what sort of debts they are so it's not an easy thing to answer without knowing your particular situation.:shrug:
Jim:hugs:
Karen
Only on her for min at moment - will try and write more late - in meantime have a look at : http://www.insolvency.gov.uk/ They have lots of information there - main thing is to try and not worry too much about it, I helped a friend who went through bankrupcy and if there is anything I can do to help you then please let me know.
Love
Kathy x
Dear Karen
in 1999 i was in exactly the place where youre at now, and i choose the token payment option. This year after many many many months struggling i managed to pay off my last creditor. I know wonder if it would have been easier to go bankrupt and save myself struggling for all those years, i dont know....
Its a really hard decision to make, as you wont get credit if any for years to come, but then again if you dont own your own home and you dont work then it may be the correct option, how much do you owe if you dont mind me asking? Did the man mention an IVA which is pretty much the "cousin" to bankrupcy? I will have a word with a person I know who went bankrupt 18 months ago and get back to you.
The main thng is dont rush into anything and remember this is going to be sorted out
Love lilibet x x
Thanks for the messages.
Lilibet - I would appreciate it if you could ask the person you know thank you.
Jimbo - That is what I am worried about - Not being able to have a normal bank account. I don't know how I'll be able to get benefit payments and make all my payments etc. The citizens advice man said he would go to court and see me through it etc but from what I've read an Official Receiver takes over after that so I don't know. I'm very scared about that.
Thanks Kathy. Any information about what it involved practically would be helpful.
Thanks all :hugs:
Karen xx
Well I can't offer any financial advice hun cos what I know would fit on a postage stamp so I am just going to say how proud I am of you for taking the bull by the horns and taking this first step to get things in order!! It took guts for you to do it - so well done!!
The others have had some sensible things to say and I shall read with interest cos I think we should all know something about these matters cos there for the grace of god go a lot of us!!
Love Piglet :flowers:
Hi Karen
My husband and myself were in a similar situation also. We spoke to the CCCS (Consumer credit counselling service). Their advice and help is completely free. Thye speak to your creditors and arrange payments, some of ours were as small as £3 a month as that is all we could afford. Basically we gave the cccs whatever we could afford each month and they shared it out to our creditors. They also managed to get some creditors to stop the interest charges. Of course our credit rating was shocking (but it will be if you go bankrupt) but 7 years later we are all paid off and we can get credit again (though never will!!)
I'd really recommend you speak to someone there as they helped us so much.
www.cccs.co.uk (http://www.cccs.co.uk) 0800 138 1111
Helen
Karen,
Sorry to see you are going through such a tough time at the moment.
Did the CAB explain why the bankrupcy route would benefit you more than the token payment route? Personally, I would go with whichever one would cause you the least hassle in the long run. Did he explain to you about having any sort of bank account for your benefits or for paying your bills if you decide to declare yourself bankrupt? I definately think you need to find out where you would stand on this as they must allow you to settle your daily outgoings somehow?
I can't give you any advice I'm afraid, but I agree that you have been very brave in facing up to your problems.
Good luck with whatever you decide to do :hugs:
Love Kate xx
I think the CCCS helped my mum out before. We have a bit of a bad history in my family. :blush:
As for the bank account, I think you can get something, I'm not sure but I think you can have like a giro account or something.:shrug: Or you can always get your benefits paid to you by giro cheque and cash them at a post office and pay your bills there too.
Are you going to be seeing the chap again? Perhaps you could ask him?
Jim :hugs:
Dear Karen
I will be in touch soon after i have contacted my friend. I think that Helens post is really good, find out all the info from as many people as you can manage. I forgot to say that some of my monthly payments were as low as £3 per month too. I think that im right in saying that after 6 or 7 years your credit file will be rectified either way???? I had CCJs etc and life was really grim, and i decided that basically i would go without stuff for as long as it took and i did manage. I can now get credit again but im careful, the only bit of advice that i was given is:
* DO NOT UNDER ANY CIRCUMSTANCES LET ANYONE INTO YOUR PROPERTY AT ALL, OR LEAVE EASY ACCESS FOR THEM AS BALIFFS CAN COME IN THROUGH UNLOCKED DOORS IF THEY ARE ABLE TO AND ONCE YOUVE LET THEM IN ONCE THEY CAN COME IN WHENEVER THEY WANT TO*
Good luck, will reply again later
lilibet x x x
Kate - The CAB said with token payments it will take a lifetime with my ill health and I'll have the stress in the meantime too because not all the creditors agree to the token payments at present.
Also the debts get sold on and passed around and every now and then it comes back to haunt me whereas he said it will be for a year and the debts are written off.
It doesn't seem right and I am still worried though about bank accounts and getting access to benefits and paying bills etc and how to live a normal life etc.
Thanks Helen - I'll look at CCCS too.
Lilibet - I'm really scared of bailiffs :weep: I'm really scared of being here alone :weep: :weep:
Karen, i used to feel exactly the same so i can really understand how youre feeling at the moment, it isnt often that you can really feel what someone else is feeling, but i promise i can with this one.
All that you have to remember is:
BALIFFS CANNOT ENTER YOUR PROPERTY (UNLESS YOU HAVE ALREADY LET THEM IN ONCE? AND IM ASSUMING YOU HAVENT?) ALL YOU NEED TO DO IS REMEMBER THAT THE LAW IS ON YOUR SIDE, THEY CANNOT DO ANYTHING TO HURT YOU IN ANYWAY, PLEASE PLEASE PLEASE LISTEN TO ME ON THIS ONE AS I DO UNDERSTAND.
I also appreciate the fact that if all your creditors wont agree to a token payment of say for example £3 each per month for say 5 years, then it wont work as you will still have people chasing you, also youre right in saying that debts to get sold on and that is a problem too. Umm its a tricky problem and i think that tomorrows job should be to find out about where your benefits etc would be paid.
Remember, this can be sorted
lots of love lilibet xx
Well done Karen for taking the bull by the horns:hugs:
Proud of you:yesyes:
Luv Kaz x x x:hugs:
Hi I'm really sorry that you find yourself in this position. My dad went bankrupt a long time ago and we had to move house and everything. It was a difficult time but we came through it as a family, and mum and dad worked hard to clear their debts.
I agree that you need to find out more about the options and decide which one will be the best to suit your situation.
Hope things work out for you,
TC xxxxxxxxxxxxxxxxxxx :hugs:
honeybee3939
03-10-07, 21:52
Karen
Im real proud of what you have done today !:hugs: and you should be proud too. Try and stay positive Karen, theres always solutions to make things better.:hugs:
Love and hugs
:hugs: :hugs:
Andrea
xxxxxx
Hi sweetie, you could always get your benefits paid into my bank account couldn't you but I think Jimbo is right about Giro cheques, because you can cash them at post office.
Sorry I can't help financially, I wish I could and you know I would if I had the money.
:hugs: :hugs: :hugs: :hugs:
Jac
xxx
nomorepanic
03-10-07, 22:42
Karen
What sort of amounts are we talking here and how did you run up the debts? May make a difference to the outcome.
Hi Karen,
Really proud of how you coped with this today, well done :hugs:
I don't know what to advice financially but I wish you luck in making the right decision for you. You can always call the CAB again if you need more advice too I'm sure.
Thinking of you :hugs:
Lisa x
Hi,
I used to work for the Benefits Agency (dont know what they call themselves now) and a bank.
Some bank still offer an account to people who have gone bankrupt - a very basic account where you can accept your benefit payments but are not allowed any credit or anything on it.
I can't for the life of me think which banks they are but will post when I remember.
Having worked in Finance - more people go bankrupt than you think, I know you must be frightened about it.
There is also loads of info on net that can help you.
Yes your file is cleared after 7 years (I work in a credit department now and if they are old CCJs and small amounts we put it in perspective)
I do know it is a hard decision to make so take all the info people are giving you.
Good Luck and I hope it all works out for you
xxxx Claire xxxxx
My debt isn't all that much, only around 3,000 quid but I have a credit card with 2000 on it and I maxed it out and my minimum payments are just over 50 a month and only around 15 of that 50 is coming off the total I owe. I'm only left with about 70 quid a month to live on after I pay this, my internet, mobile phone, landline, catalogue and my Dad's lodging money (I rent my old room back lol).
I've put in for DLA for my illness over 4 weeks ago (waiting on the forms still) and might have another long wait before I get it but if I get knocked back I think I'm going to be struggling. I was using the card to live on, 10 quid for the cinema here, 30 for a night out there and it all mounts up in the end.......
They give out credit too easily these days and I think there has to be stricter laws on who can and can't have credit. I was self employed when I took my card out but soon had to give it up due to illness and they wouldn't let me claim on the card insurance as I never paid enough National Insurance credits. I was paying around 12 month approx on my card for an insurance that was useless and it was only recently that I found out I could cancel it. They reel you in these people, then chew you up and spit you out....
Good luck to all of you struggling, I hope you get it sorted.
Take Care
Gordon XX
Thank you all for the replies.
Lilibet - No I haven't let anyone in.
The debts get passed around though and every so often one comes back to haunt me again lik this one. Payment arrangements break down.
Stargazer- Jac - Hugs :hugs: You are so kind. I know you do all you can and would lend me the money if you could hun. I don't expect you to.
Nic - The debts are from a long time back. I was working at the time and then developed RSI and lost my job due to my disability. The debts are long term ones.
Bearcrazy :hugs: Sorry to hear about your experiences. I am in private rented accommodation but waiting to hear about supported housing due to my health problems. I am worrried about being homeless.
Lisa - Thanks sis :hugs: The CAB are helpful and he will come back but there are things I want to check out myself first.
Thank you Andrea and Kazzie :hugs:
Gordon - Hope you get your debt sorted too. It is true it is easy to get caught in the trap.
Claire - Thanks that would be helpful.
Karen xx
Hi Nigel
I saw a thread at Money Saving Expert about mis-selling of PPI and I wrote to my card company using a template letter from that website and got a rather abrupt letter back saying more or less tough luck as I had ticked the box to get it when I applied for my card online and that I should have read the T&Cs.
However, nowhere did I see an exact list of who could and couldn't claim!
They've cancelled it now so at least 12 quid more a month will be coming off my balance hopefully.
Gordon
Thinking of you Karen :hugs:
Lisa x
nomorepanic
06-10-07, 15:13
Karen
I found this for you today - well worth a read ..
http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf
Thank you Nic. I appreciate you spending time looking for possible solutions for me :hugs:
I've had a look through and it doesn't seem that it will be possible in my case. It states the £200 average repayments per month and there is a cost to set it up. It seems more geared to home owners and people with lots of assets which I don't have.
The CAB have said I can only afford to token payments to the debts of £1 or £2 each.
Thank you for spending time looking.
Karen xx
nomorepanic
06-10-07, 20:01
Karen
No probs - I just saw it and thought I would let you have a read.
I hope you can sort things out soon mate.
Have a hug from me in the meantime.:hugs:
Thinking of you and hope you get this sorted soon :hugs:
Lisa x
Thanks Nic :hugs:
Lisa - Thank you :hugs:
Karen xx
Just seen the representative from Citizens Advice. He is writing to my creditors in an attempt to get my debts writtens off due to my poor health I have long term disabilities and each debt itself is small.
They add up to a lot though and he said if this doesn't work I have no choice other than to go bankrupt :weep: It is such a worry.
Karen
I will keep my fingers crossed for you Karen:flowers:
Luv Kaz x x x:hugs:
Thank you Kaz :hugs:
Karen xx
Really hope he can sort that for you sis, sounds a good solution :hugs:
Lisa x
Hey Karen,
My name is Mandy, I'm responding from my partners NMP account, if you'd like to contact me my email is xanjra@hotmail.com.
A close friend went bankrupt a couple of months ago and said that she feels so relieved since doing it. From what I gather they arranged payments that she can afford to last for a year, after that they write off all remaining debt (so long as you are compliant) and after the year your credit is clear. You can definately open a post office account in which benefits etc can be paid.
If you have any questions let me know and I will ask my friend for answers.
Love Mandy x
Ps. I agree with the others, you should be proud for having the courage to face up to things and contacting CAB, it often feels easier to ignore things. Yah for you! x x x
honeybee3939
11-10-07, 21:10
:hugs: :hugs: <----- For you Karen
Love
:hugs:
Andrea
xxxxx
Karen,
I am so so sorry I missed this thread. I think my head has been too self obsessed recently hunny.
I can give no advice as I know nothing sweetheart of what to say in this situation.
Can I offer you a hug:hugs: and again say, I am so sorry for missing this hun.
Happyone
xxxx
:hugs:
Love Piglet :flowers:
Janice Booth
12-10-07, 00:02
Karen,
Unfortunately I have a lot of experience in IVA's and bankruptcy! We bought a new house on 2 good salaries just over 2 years ago and after just three months I was taken ill and have not been able to work since. We had to take out further credit cards to pay for a major op I had to have privatley as the NHS wait was way too long.
Anyway - you can only get an IVA if your debts are over £15k and if you work. My husband and I both had IVA's but these failed when I had to give up work. We considered bankruptcy - but as we own our house we would loose that so decided to pay "nominal payments" to our creditors. We may be paying these off for years, but they are at an affordable rate so we no longer worry about it.
If you do go bankrupt you do not have a court appearance. You just have to see the court clerk to hand over all the forms etc. Also, you can have a normal bank account, but without any overdraft facility etc and they often limit you to debit cards without cheque books. Usually the court will set amounts for you to pay the creditors over one year, but your credit history is marked for 6 years. However if you are struggling to pay anyway, that does not really matter.
Do keep dealing with the CAB as they are the best place to start and they should be able to help you. Just be honest with your creditors and you will not have a problem.
If you want to chat about it do send me a PM and I would be more than happy to help you.
Best wishes and keep your chin up!
Love Janice xx
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