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nicola123
Junior Member
180 Posts |
 Posted - 19 June 2008 : 15:48:33
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My partner has just phoned me in a panic. A debt collecting agency called him a few weeks ago and he made a credit card payment. They phoned him back to say the payment didn't go through - so he called his bank while still on the phone to the agency who said there was sufficient funds. The agency said they'd try to take the funds later but would call him if any problems. He's just received a call from them yesterday and called them back today. They say that payment didn't go through and they've been unable to contact him. If he doesn't pay £3,500 by 3pm tomorrow they will start the process of making him bankrupt on Monday (on instructions from the creditor). My partner can't be bankrupt or he'll lose his job - but he can't afford the £3,500 by tomorrow either. Any advice please? He's up to his eyes in work and can't take time off to sort this out :-(
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 19 June 2008 : 15:57:22
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Hi Nicola and welcome to the forum.
It is disappointing that too many DCA's employ underhand bully-boy tactics, with some frequently breaking the law.
Before thay can take you bankrupt, they'll have to get a CCJ. When the papers come through, your partner has the opportunity to put down income and expenses and make a reasonable offer of payment by instalments. When the CCJ is granted, as long as he continues to make the monthly payments, they will not be able to take it any further.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 19 June 2008 : 16:12:50
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How do they sleep at night! Clearly people that work in DCA have never experienced debt or they would conduct themselves differently.
I experienced a similar problem a few years ago. I wrote out twenty cheques for an amount I could afford - dated over twenty months - photocopied the lot as proof - sent them a letter saying this is payment in full and that I had kept a copy of every cheque should there by any issues in the future.
Never heard from them again and the cheques cashed each month no problem.
Maybe not the ideal solution but it made me feel good! Don't like being bullied!
Vicki x |
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nicola123
Junior Member
180 Posts |
Posted - 19 June 2008 : 16:32:37
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Hi thanks for your valued response Julian & M&V. I'm home now and my partner is looking at your responses with me. He says that what they actually said was they are starting county court proceedings on Monday - where there may be an attachment of earnings order made -but because of the level of debt that my partner has, they will be pushing for bankruptcy. He did an income/expenses analysis for them some time ago and due to his car breaking down and other abnormal expenses he was unable to keep to the repayment plan agreed.
1. From your comments can I glean from this that he will have another opportunity to make an offer of regular payments and avert the county court proceedings (despite them saying that they will only consider regular payments if he pays £3,500 by tomorrow) - or do you think because he defaulted they are likely to take it to the next stage anyway?
2. If so, will a court grant a CCJ initially and then consider bankruptcy - or will they possibly go straight to issuing a bankruptcy order (sorry I'm a little confused).
3. Also would a court consider bankruptcy if it means the end of my partners job (where T&Cs of employment necessitate that you cannot be a bankrupt)?
4. If a CCJ is granted does it mean that an attachment of earnings order is granted?
Thanks for reading and sorry so many questions :-( Your advice is really appreciated right now.
Kind regards
Nicola
Background info: He owes a total of £60,000 to creditors and £40,000 to the tax man and he's doing his best to keep up payments and sees no reason why he can't continue to keep up repayments with everyone now - as everyone is playing ball except this company. |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 19 June 2008 : 16:46:44
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Hi Nicola123,
I will let Julian answer your questions as he has much more knowledge on this than I do.
I am certain that a judge wouldn't put you in a position of losing your job though.
Julian will be back soon - I hope it works out ok
Vicki x |
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nicola123
Junior Member
180 Posts |
Posted - 19 June 2008 : 19:33:10
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| Thanks Vicki for your advice. Sorry so many questions. We're just really worried right now as my partner also borrowed money from his business when he shouldn't have done (to pay for our house deposit - the house is just in my name) but he still owed corporation tax which is now outstanding...so if it all goes wrong and bankruptcy arises then he's worried he'll be prosecuted and face a prison sentence for taking money out of his business? :-( |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 19 June 2008 : 19:44:14
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Hey don't worry about asking questions - I have had enough money worries in my life to know how it makes you feel.
Are you both going BR? Do you have any assets that the OR could realise monies from?
Vicki x |
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nicola123
Junior Member
180 Posts |
Posted - 19 June 2008 : 21:44:48
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Hi Vicki
I have the family house in my name only, and own 2 properties in my name in Spain (which I've tried to sell for a few years without success and which I purchased prior to meeting my partner) - one is mainly land with a mortgage on it costing c£180 per month - and the other is a house which is part built by the coast with no mortgage. Other than that I have no other assets other than a c.7 year old Fiat Multipla. I'm not planning on going bankrupt - and hope to keep my financial status separate to my partners (we're not married) - so that we have a way forward as a family. Kind regards, Nicola |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 19 June 2008 : 22:54:34
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Hi Nicola - no I understand where you are coming from. I went BR and my husband didn't and we have managed to keep our finances seperate - although we don't have property. An expert will hopefully be online tonight or in the morning to advise you.
take care
Vicki x |
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nicola123
Junior Member
180 Posts |
Posted - 20 June 2008 : 00:54:27
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| Thanks Vicki. My partner is feeling a little calmer now after reading your posts (and other posts on this forum) so thank you so much. We look forward to getting a bit more advice from everyone but appreciate we're not the only ones in dire straits so will try not to overburden you guys. I've even got him thinking positively about bankruptcy which is a complete turn around from this morning! Thanks again - I can't tell you how much we appreciate all the advice. Nicola xxx |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 20 June 2008 : 09:20:57
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nicola123
What is your partners job that he feels it may be at risk on bankruptcy?
Have you taken any formal insolvency advice as there may be other options open to you such as a Debt Management Plan or Individual Voluntary Arrangement. Or you may even be able to refinance and have a fresh start.
There are lots of people you can get advice from and many Insolvency Practitioners will give you their time for free in order to discuss your options.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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nicola123
Junior Member
180 Posts |
Posted - 20 June 2008 : 10:22:04
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Hi Suzanne
He's a management consultant and offers business advice to companies as well as running various change management programmes and/or projects for them. He took financial advice last year and pulled together a list of creditors and went through the process of income/expenditure and made offers to all creditors to avoid bankruptcy/IVA. He would have preferred to go the IVA route but because he owes corporation tax (he took the money out of the company and hasn't been able to put it back yet) he scared that if it goes official the tax man will accuse him of fraudently taking out money of the company and he may have to go to prison :-( All our money problems started when he did a contract with a county council for several months - who then refused to pay the bill leaving £25K owing to him. Kind regards, Nicola x |
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nicola123
Junior Member
180 Posts |
Posted - 20 June 2008 : 11:02:08
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| When I say all our money problems started after the council refused to pay a contract - I mean this is when things really went pear shaped - since my partner had money issues prior to this - this just blew us out of the water!! Nicola x |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 20 June 2008 : 11:11:14
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Nicola123
That is a tricky one. What did the previous IP suggest regarding the Corporation Tax? How much is it?
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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nicola123
Junior Member
180 Posts |
Posted - 20 June 2008 : 11:13:53
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| Hi Suzanne - I don't think the advisor gave him any constructive advice regarding the corporation tax owing - other than to pay it back (which he can't) - he owes £40,000 in corporation tax :-( Kind regards Nicola x |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 20 June 2008 : 11:26:57
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Nicola
I think he needs to go and see someone else to discuss his options with this debt. The best type of advice is that from an Insolvency Practitioner in this case, as they would have a better understanding of the tax issues as well as the debt issues.
Don't allow anyone to fob you off with an 'advisor' or 'councellor', get an appointment with the IP themselves.
Good luck, and I will follow this one to see the outcome.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
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My partner has just phoned me in a panic
