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GDC09
Starting Member
United Kingdom
3 Posts |
 Posted - 14 April 2010 : 11:20:14
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Hi there
This is my first post, thank you for a very useful website! I kind of have most of the answers from the site but just wanted to ask a few questions if thats okay.
* This morning I have been "served" with a letter threatening to have me declared bankrupt from a debtor for the amount of £3780, why is it good for a debtor to have me declared bankrupt?
* The total of my debts is probably around the £5000 mark but I have a very low income, I am a single parent and work part time.
* I have a number of "doorstep" loans with the Provident, what would happen to these if I was declared bankrupt?
* If this debtor declares me bankrupt is this the same process as me declaring myself bankrupt? Who pays the bankruptcy fee?
Thanks in advance!
I'm skint! |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 14 April 2010 : 12:13:29
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Hi GDC09
A creditor would only make you bankrupt as a last resort - it is an expensive process for them - they have to pay court costs, a deposit towards the OR costs, and legal fees as well.
They may feel that threatening it is the best way of "persuading" you to make an offer of settlement.
However, other than the fact that they know they have done as much as they can to collect the debt, the only benefit they would get from making you bankrupt would be if you had assets (such as equity in a property) which could be sold by the OR or a trustee in bankruptcy towards repayment of your debts.
If they made you bankrupt, all of your debts (apart from Court fines, student loans) are included in your bankruptcy, including the debts to Provident.
It is a different process if a creditor makes you bankrupt rather than if you do it yourself - they pay the costs and they go to Court - you don't do either unless you dispute the debt.
However, once they get a CCJ, they could instruct bailiffs, which you may wish to avoid by making yourself bankrupt
The upside of doing it yourself is that it is done quicker and avoids the hassle of debt collectors/bailiffs etc. The downside is that it costs you £450 for a deposit, and £150 in Court fees (although the Court fee can be waived in some circumstances)
Once you are made bankrupt, the OR treats you exactly the same irrespective of whether you did it yourself or a creditor did it to you.
Hope this helps
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 14 April 2010 : 12:42:35
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Hi and welcome to the forum.
If your debts are below £15k and you have very low disposable income and no assets then a Debt Relief Order may be suitable for you. If you search on here you'll find information about this.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
33 IPA payments made, 3 to go - the end is in sight! |
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Skippy
forum expert
United Kingdom
3290 Posts |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 14 April 2010 : 13:11:47
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Hi GDC
Welcome to the forum
As already stated Lots of creditors use words we "May", we "Could", "consult solicitors" etc these are as close to intimidation as they can get, yes of course they want you to pay the money to them.
very few creditors actually take you to court as it is too expensive for them, they will only do so If they think that you have assets or lots of equity in a property.
If your total debt is under £15K it may be appropriate to consider a Debt Relief Order (DRO) this is best speaking to the CAB.
Unfortuantly the debts will not just disappear so well done for raising the question and looking at your options,
good luck Richard |
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GDC09
Starting Member
United Kingdom
3 Posts |
Posted - 14 April 2010 : 13:14:11
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quote:
Originally posted by Bridgewood
However, once they get a CCJ, they could instruct bailiffs, which you may wish to avoid by making yourself bankrupt
Thank you both so much for your replies. Could you just clarify this point regarding a CCJ, if they declare me bankrupt can a company still obtain a CCJ? Would they be likely to do this before applying for bankruptcy against me?
I have no assets, I rent my house and dont own a car. Also, I suspect I have older debts long since forgotten as I was very foolish in my younger years so what would happen to any old debtors who may eventually "track me down"?
Cheers
I'm skint! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 14 April 2010 : 13:19:50
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Hi Again GDC
carry out a credit check using Equifax and Experian, that should high light all of your creditors.
most provable debts before the date of court will be included (some exceptions)
If you do not know the amount owed to a creditor put a nominal figure of £1
If you do not know all of your creditors, the OR will allow you to add some after the date of BR but it is probably best to search as many places as possible to include all debts
regards Richard |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 14 April 2010 : 14:00:13
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Hi GDC
The usual process for a creditor to take through the courts is to apply for a CCJ - that gives them the ability to instruct a bailiff to attend your premises to attempt to recover the debt - if you do not have any assets for a bailiff to sell, the creditor could then present a bankruptcy petition
As previously mentioned all of this costs the creditor money and they may not take the steps outlined. A creditor can't get a CCJ once you are bankrupt (unless it is for a debt incurred after your bankruptcy)
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Edited by - Skippy on 14 April 2010 16:50:46 |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 14 April 2010 : 16:13:21
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Bridgewood are you a Professional forum expert now because you are advertising your services with links on your posts???
Just so people know who the forum recommends
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 14 April 2010 : 16:27:25
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Hi Chester2005
I don't know to be honest - I went away for a week and when I came back the postings all had the comment re services offered - I know we are registered as experts on the IVA site, but I only deal with the bankruptcy side
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Edited by - Skippy on 14 April 2010 16:51:01 |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 14 April 2010 : 16:53:23
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Bridgewood, I've removed the links for now - it might be worth dropping Admin an email regarding this.
I didn't pick up on it as I know you're an expert on the IVA forum.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
33 IPA payments made, 3 to go - the end is in sight! |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 14 April 2010 : 19:52:01
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Hi
Just picked up on this thread.
There is a process a creditor can follow to make you bankrupt before obtaining a CCJ.
That process is called a "Statutory Demand" and is the first step that a creditor can take towards making a creditor who owes more than £750.00 bankrupt.
It is a process that is sometimes used to "jog" someone into paying. However, if anyone receives a Statutory Demand then you need to act fast if you are to challenge the creditor by an application to have it "Set Aside". Cutting to the chase, the process is geared to 21 days, BUT, the application to have it "Set Aside" is geared to 18 days - so the response must be treated with a degreee of urgency. Whilst some of the larger creditors may use it as a scare tactic, you cannot afford to "ignore" it.
Hope this assists, Richard
"There are no problems - only solutions" |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 15 April 2010 : 08:44:40
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Hi Skippy
I'm told we've e mailed admin in the past without response but I keep away from the technical side - I just do the postings. I'll get our marketing/computer bod to look into it today
And for now I'll try to self edit!
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Edited by - Bridgewood on 15 April 2010 08:45:30 |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 15 April 2010 : 08:52:36
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I sent an email to Admin yesterday so hopefully they'll pick it up.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
33 IPA payments made, 3 to go - the end is in sight! |
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GDC09
Starting Member
United Kingdom
3 Posts |
Posted - 15 April 2010 : 12:04:42
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Thanks again for all the advice, I've spoken to the company involved and am in the process of coming to an arrangement. Also decided to contact as many other people I owe to and doing the same, about time to grow up and take responsibility!!
I'm skint! |
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Bankruptcy "Threat" Received Today
