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sam2008
Junior Member
United Kingdom
186 Posts |
 Posted - 20 September 2008 : 18:59:28
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i have explained my situation earlier in the forums when i needed some advice then, But today i have recieved a letter from a solicitor acting on behalf of one of my creditors telling me that if i dont pay £2585.00 within seven days they are instructed to issue court proceedings without further notice, the letter also states that they have added compensation of £70.00 and interest of £103.75 to the outstanding amount, Could anyone tell me what will happen next? do i reply to the letter? i can not pay the amount. I have written to the creditor numerous times explaining the situation, I dont have the money to pay. this is an outstanding bill from the wholesalers i used when i had the shop. i have no property and am living of benefits alone, what will happen next? i am really worried as i dont know what to expect!!
sam |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 19:43:31
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Hi Sam
I apologise an I don't recall your situation.
This sounds like the VERY beginning of a county court claim. If you don't respond then the solicitor MAY ( not guaranteed by any means ) start proceedings and you will receive a blue & white county court claim for this amount.
I would recommend you aknowledge the debt and make an offer of payment AFTER you have calculated the disposable income you have.
There is a section on this claim form to fill in your expenses AND your other creditors. If you can only afford to pay £1 per month then you need to put that in.
If the crediotrs don't like it they can take it back to court and everyone goes to see a judge ( MAKE SURE that you get the hearing moved to your local court ) . Then it is for th judge o decide what you should pay.
Clearly you need to consider a full solution but if your debts are less than 15k you may want to wait until April 09 when the new debt releif orders come into play.
hope this helps
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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sam2008
Junior Member
United Kingdom
186 Posts |
Posted - 20 September 2008 : 21:17:00
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Thankyou for your reply!! Do you mean i should write back to the solicitor that sent the letter and offer a monthly payment? or do you think i should wait and see if i recieve anything else? all in all i owe over 20thousand, mostly from the business(shop) i had to give up due the ill health of my youngest child. this has left alot of debt that i can not possibly pay as i am now in reciept of benefits and can not work as i have to look after my child, he was diagnosed with a serious illness in january and i gave up my business in April as i could not carry on physically running the shop. i needed to look after my child as he needs 24/7 care now. I just feel worried as i can not afford to pay the debts and i dont know what to expect. i had no choice in giving the business up as my main priority is the health of my child, and the illness was such a shock to the whole family.
sam |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 21:41:29
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Hi you can sertainly try writing to the solicitor prior to them issuing court proceedings but probably more importantly you should try to work out a debt solution so that you can be free from the burden.
You need to review Debt Management, IVA , bankruptcy, re-finance or negotiated settlement.
really the right solution will depend upon just a few things.
What are your assets ( house, car, endowment, savings etc etc )
How much are your debts and
Do you have disposable income at the end of each month.
If you have disposable income then you could potentially review a DMP or an IVA.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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sam2008
Junior Member
United Kingdom
186 Posts |
Posted - 20 September 2008 : 22:47:12
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Thankyou again for your reply, I really have tried to think of everything to solve the debt situation, but i just can not do anything at all. I do not own any property, I have no savings at all as all i did have went into the business, i do not own a car, i dont really have any valuable assets at all, i am living on benefits of child tax credits, family allowance and now disability allowance for my ill child. the last few months have been really hard and after i have paid for household bills and food, there is'nt really any money left over, i have three young children who are in school and there needs can be costly. what happens to someone in my situation when it all go's to court? i owe just over 20 thousand pound, with business bank overdrafts, and wholesale bills and vat bills and the remainder of the lease. and also my own two credit cards, ( but my credit cards total only 1,800) the rest of the debt has built up from the business. I ran the business for 16 months prior to having to give it up. I did'nt make any money out of the business as i was trying to build it up from nothing. when i had my accounts done the accountant explained my profit was nill. I just need to sort this debt problem out as it is all a worry, i have even stopped answering my telephone for fear of creditors. i have tried saving the money to make myself bankcrupt but everytime i save a bit something comes up and i need to use the money. what would happen in court would i have to pay the debts out of the childrens tax credits and family allowance? as when i have paid important living expenses like heating bills and shopping and the needs of the children there is not much money left over. I just need to know what would happen and what the outcome could be?
sam |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 23:01:01
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Sam
from what you said it certainly seems that petitioning for Br is a sensible option as you have no assets and no disposable income.
There are obviously some downsides to br but in your case these might be well outweighed by the advantages of a clean start and debt freedom.
The usual court fee is £495 ( £507) in central London, however you are probably entitled to a rebate of £150, so you would pay £345. There are forms to fill out at the county court for this.
I know it seems that this is a huge amount to find but obviously it is a one time payment and it is better than having creditors chasing you with the potential of bailiffs in the future.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Ian Richards
Junior Member
United Kingdom
296 Posts |
Posted - 21 September 2008 : 08:40:33
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Hi Sam/Paul
Firstly if you do reply to a CCJ claim be sure to send it back to the creditor by special delivery, because for some unknown apparent reason the creditor often denies receiving the claim back, or at least that's what they sometimes say!!
As regards for Bankruptcy if you get in touch with your local C.A.B they may be able to tell you of any local charities that may pay for your Bankruptcy petition for you! They will only usually pay for real hardship cases but its worth a try.
Good luck
Ian
If you are in need of any further help or assistance, please contact me regarding my services via email. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 21 September 2008 : 10:57:48
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I agree with you about the forms not getting back in time for the CCJ.
The best way is to follow the instructions and do it online so you have a record as well as the court. It is also easier
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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