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| T O P I C R E V I E W |
| Falling Apart |
Posted - 22 October 2009 : 18:55:08
Hi there. I'm so relieved to have come across such a helpful and supportive forum. I'd really appreciate any advice as I've been struggling with a debt mountain for some time now and become so worried sick about what to do, I can hardly think, work or sleep anymore.
I've been to my local CAB and the CAB at the RCJ and got conflicting advice. My local CAB said that I should write to my 13 creditors and make pro-rata offers to them (or contact PayPlan), but the RCJ said that I should go down the BR route. I have £70k on credit cards and loans ... my repayments now total £1,500 per month, but my actual disposal income is approx £50 after living costs, so I'm not sure they'd accept such miniscule repayments out of that.
But the BR option is so scary as I'm really worried how bad it would look that I've been borrowing more to make monthly repayments over the past few years and I'm still currently living off credit cards to meet living expenses (as I have negative cash flow). I've heard about the possibility of getting a BRO for incurring debt in this way and the whole thing is worrying me to death. It all escalated from a debt of £25k that I was left with after a traumatic relationship breakup in 2004, after which I was forced to rent my own place.
Since then I increasingly had trouble balancing the books each month and my doctor referred me to a psychotherapy group to help with severe depression, anxiety & OCD. I've really not been coping for years now and just had my head in the sand until it's reached a crisis point. I'm in such a panic that I'm now paralyzed with fear and in a desperate state. It's taken me ages to build up the courage to register on here, as I feel so ashamed to be in this mess.
I've got to do something soon as I'll have to start missing repayments next month as I've run out of credit, so any advice would be so much appreciated.
Many thanks |
| 15 L A T E S T R E P L I E S (Newest First) |
| Richard P |
Posted - 26 October 2009 : 14:30:15
falling apart & lost the plot
would still recomend taking up Melanie's or one of the other experts offer in having a conversation with them.
I spent time with Paul at Reviva, a lot of my fears , concerns were in fact myths and he was able to provide reassurance.
good luck to both
regards Richard |
| In 2 Deep |
Posted - 26 October 2009 : 09:39:14
Hi lost the plot.
I would say with 89k debt, and being currently unemployed a DMP is not for you. In fact even in work a DMP would take you some considerable time to clear 89k. As RHB states stop using your cards now.
Have a chat with one of the experts on the forum about your specific details, and they will advise the best way forward for you.
Good luck.
Treat EVERY Penny as a prisoner. |
| RHB |
Posted - 26 October 2009 : 07:21:16
I think giving the DMP a go would be a good idea & yes, you should stop using the cards now you know you are in financial difficulties. If you are still not managing on the dmp, then look again at bankruptcy. |
| Falling Apart |
Posted - 26 October 2009 : 01:16:24
Thanks for the extra info and luck everyone. I'll give the Co-Op a call and see about setting up an account. Housing, thanks for that number, but where do you find these local telephone numbers? I've only got a mobile phone, so it would be useful to know as the "freephone" numbers certainly aren't!
Thanks for the DD info In 2 Deep, I'll cancel them and expect some calls next month. Should you let them know you're going BR or say something like you're struggling with repayments?
Thanks for the extra info Dec, it sounds like managing pro-rata payments was a lot of work but at least avoided nasty calls/letters. That's partly why I was thinking of doing the DMP with PayPlan so it would reduce the stress, but it would take 50 years to repay ...
Hello lost_the_plot and sorry to hear about how tough this year has been for you. I'm very lucky to have a job still and I can only imagine how much more stressful it would be in your position. Although as you say, at least it's helped to draw a line in the sand and you can look forward to the prospect of being debt free and making a fresh start. I've been struggling with debt for most of this decade, so perhaps the start of a new decade is a good time to start over. Very best of luck to you too. This forum is certainly a an amazing source of support and advice isn't it. 
Making the decision seems to be the hardest part so far. This weekend I've gone from being reassured it's the right move, to going round in circles worrying sick about the prospect and getting cold feet. I'm thinking maybe the PayPlan DMP option would give me some breathing space to consider things for a couple of months, although maybe that's just putting off the inevitable. It still worries me that I've had no choice but to continue using my cards for train travel, food etc., so maybe it would look better if I stopped using the cards now and managed on the PayPlan DMP for a few months? Or would it make no difference in the eyes of the OR when I finally went BR ... ? |
| Dec Bankrupt |
Posted - 25 October 2009 : 19:56:19
quote:
Originally posted by Falling Apart
I guess it must have been quite a struggle making nominal repayments over 2 years ... were you under constant pressure from your creditors or did they accept it?
I refused to allow any of the debtors a direct debt from my account and called every month the make card payments, which kept them informed and never reason to chase me.
I sent a printed statement I'd done with National Debt Line to the debtors with my proposed amounts and they accepted that. I only paid what i could afford and when it was pointed out it would take me 90 odd years to pay it all off, it was time to seek other solutions.
Hope all goes well on Monday |
| lost_the_plot |
Posted - 25 October 2009 : 15:38:02
Hi Falling Apart,
I'm new to this forum too, and this is my first post even though I've been reading in the wings for a while. I'm blown away by the all the support and well wishing that is freely given here, it really is reassuring to know there's a source of help around 24/7. I'm in a similar situation to yourself, I've debts of 89K in bank loans and credit cards built up from years (about 15 to 20) of consolidating and using cards to cover household costs. I used to have a good job and grossed 30k a year, but since being made redundant twice this year, I've come to the conclusion that at 51 there must be life after debt and so after getting financial advice have decided to go BR. The hardest part is making the decision as most people tell me. I'm not proud of my circumstances, i'm honestly ashamed, but if it was not for this recession the company where I worked for 26 years would probably be trading and I'd have a job and still be wading my way through the month with just enough money for food.
I think what I'm trying to say is that I've decided to draw a line in the sand and take another path.
A good friend summed up my circumstances and said "you've got a noose around your neck and it's the only thing that's holding you up and stopping you drowning".
It's time for a change - what's ahead in the near future can't be worse that the last few years.
Best of luck. |
| In 2 Deep |
Posted - 25 October 2009 : 13:29:30
FA,
Your creditors will be notified electronically by your bank that the DD has been cancelled. This is done within 48hrs of your instruction. They will then write to you about the cancellation of the DD, but will assume you will make alternative payment arrangements. It is only when no payment received by due date when they will write to you/telephone calls demanding payment.
Gd luck.
quote:
Originally posted by Falling Apart
Thanks to you both for the further info. It's reassuring to know that they definitely aren't linked, in case it caused a problem before going BR. Guess PayPlan's records hadn't been updated.
No luck with the Co-Op today as they closed at noon being Saturday. Checked out the other recommendation Nationwide, but they don't offer a debit card with their basic account. Looks like Co-Op is the only one that does offer this?
Just another question. When I cancel the cc/loan DDs, how long does it usually take for creditors to start ringing? Will they know I've cancelled the DD or just assume my account was over and it bounced? Should I contact them before to let them know what I'm planning? Just worried that I've always made payments till now and this is going to all come "out of the blue" to them.
Thanks
Treat EVERY Penny as a prisoner. |
| Housing |
Posted - 24 October 2009 : 20:30:00
Hi
Co-op landline is 01695 53760 - saves the o8457 no - a great website say no to 0870 - all these premium lines have a traditional landline under them - we always use them - saves a lot obver the year.
By the way the Co-op are fantastic for BR - no problem whatsoever.
Good luck Richard
"There are no problems - only solutions..." |
| Richard P |
Posted - 24 October 2009 : 20:21:21
you can do CO-OP by phone 08457 212 212
cashminder account
good luck Richard |
| Falling Apart |
Posted - 24 October 2009 : 19:38:44
Thanks to you both for the further info. It's reassuring to know that they definitely aren't linked, in case it caused a problem before going BR. Guess PayPlan's records hadn't been updated.
No luck with the Co-Op today as they closed at noon being Saturday. Checked out the other recommendation Nationwide, but they don't offer a debit card with their basic account. Looks like Co-Op is the only one that does offer this?
Just another question. When I cancel the cc/loan DDs, how long does it usually take for creditors to start ringing? Will they know I've cancelled the DD or just assume my account was over and it bounced? Should I contact them before to let them know what I'm planning? Just worried that I've always made payments till now and this is going to all come "out of the blue" to them.
Thanks |
| In 2 Deep |
Posted - 24 October 2009 : 11:16:00
FA,
Northern Rock sold its credit card business to the Co-op Bank in 2003 for a profit of more than £7m to free capital for its rapid growth in mortgage lending.
The Co-operative Bank and Northern Rock have cancelled their credit card tie-up, leaving the stricken bank without a card offering for customers.
There is no other tie-up between these 2 financial institutions, so you opening a CoOp account will have no bearing on debts to NR.
Hope this helps.
Treat EVERY Penny as a prisoner. |
| gettingoutofdebt |
Posted - 24 October 2009 : 07:37:07
quote:
If they did happen to be linked somehow, could they remove funds from the account after BR?
No, once you have been declared BR all of your debts pass to the OR and the creditors deal directly with the OR and not with you.
Let us know how you get on with opening the Co-op account and speaking to the court. |
| Falling Apart |
Posted - 23 October 2009 : 21:41:31
Thanks so much for speaking with me Melanie, especially after a manic Friday, that was very kind. It was so reassuring to talk it through with you and I feel like I may actually get some sleep tonight! You've really helped to alleviate my fears of BR!
Sounds exactly like my situation gettingoutofdebt. I'm literally on my last available credit and will not be able to meet my repayments next month. Just had my head in the sand as the interest/repayments rapidly increased. Thanks for the info about the car. It's a complete wreck really (and smashed in door), so £100 is a generous estimate! I do rely on it a lot though, as it would cost me a fortunate on public transport to frequently visit family as they're all spread out. Thanks for the tip about the phone, I'm going to get my numbers changed ASAP.
The PayPlan adviser called me today and we spent an hour going through the exact details of my situation. She worked out that under the "creditor accepted" calculations, I actually have £129 to offer each month and she said that's only £80 away from doing an IVA (although Melanie advised me that wasn't realistic!). Anyway, I'm not likely to be getting a payrise anytime soon (in fact, it looks like I may have to reduce my hours to continue attending my therapy group).
I've been so stressed with getting my head around the BR idea, I was actually thinking of signing up to this and making token payments to my creditors to buy me some time at least. However, it would take me 50 years to repay and thanks to Melanie I've started to see sense!
So I'm going to call the court on Monday, ask how long the waiting list is and work on the forms. Despite a dubious warning from PayPlan that one of my creditors (Northern Rock) is linked to the Co-Op, I'll see about opening a basic bank account there tomorrow so I can get my priority debt/rent DDs sorted out and then cancel all my DDs for creditors for next month. As advised, I wouldn't mention the account on the forms and hopefully it will be OK. If they did happen to be linked somehow, could they remove funds from the account after BR?
Thanks again |
| gettingoutofdebt |
Posted - 23 October 2009 : 08:04:47
quote:
In 2 Deep, I don't have any assets except for a 20 year old car worth £100, a DVD recorder, old computer, mini Hi-Fi and cheap camera. Plus some second hand furniture that I bought from the previous tenant. Not sure what's considered valuable?
The car would be considered an asset but that would be it. Even though it is 20 yrs old if the OR deemed that you didn't need it for essential journeys (i.e. to work) then they could take it. If it is only worth £100 then the would probably let you purchase it from them for this amount.
quote:
My debt has just increased as I've robbed peter to pay paul and also meet general living expenses. I've not purchased anything extravagant like holidays, but have probably bought too many coffees at the train station over the years (admittedly I probably haven't made economical purchases due to lack of time from a stressful job in London). So I should stop paying creditors and use the money I save to get by from now on?
You haven't done anything that other people on this board have done. I was in the same boat as you robbing Peter to pay Paul and living off my credit cards. I didn't realise how back my situation was until my credit came to an end and I realised that the following month I wouldn't be able to pay my debts.
If BR is the option you have decided (and been advised) on then there is no point continuing to pay the creditors unless you are not going to be able to afford the £510 BR fee for 6 months or so. If this is the case then a pro-rata payment to each of your creditors would probably be a good option as it would keep the creditors off your heels for a short time and give you some breathing room. If you are going to be able to save the BR fee in a shorter time then stop paying your creditors now and use the money to save for the fee.
If you want to reduce the stress that the calls will cause then you can buy a PAYG mobile put £10 or so on the phone and then update your contact details with each creditor to this number. Just leave the mobile on silent and the you won't be stressed each time the phone rings.
quote:
I've also heard it's a good idea to set up a different bank account and switch over income & priority bills to that. But if I did go BR, would that not get closed down?
The Co-op Cashminder is a very friendly BR account and I would recommend opening one before declaring BR. When you open the account mention that you are declaring BR and there won't be any problems.
The Co-op is very busy at the moment so it can take 2 weeks or so to get the account details so you will need to plan to get this account set up and your DDs moved to this account.
This account won't be closed when you declare BR as it is a basic account. It also isn't normally frozen but some experts recommend not putting this account on the BR forms and then mentioning it to the OR when you have the interview. This will ensure that the account isn't frozen and you don't have any problems with wages being paid in/DDs paid out, etc. |
| Melanie.n |
Posted - 23 October 2009 : 08:02:44
Hi Falling apart, sorry to hear of the circumstances you find yourself in. Charlie44 took up my offer (open to anyone who has difficulties) to have a free confidential chat with regard to bankruptcy and its implications etc. I help many people each week who contact me direct with the link at the end of this post or vhia the 'expert's button on the left hand side.
I will briefly go through your ituation with you to see whether or not bankruptcy is the right route - completely non-committal, and importantly free! All I want to do is ensure that everytone gets access to the right advice and is then able to make an informed decision as to thier debt solution.
I will be happy to help you in anyway I can
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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