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insanepenguin
Starting Member
United Kingdom
13 Posts |
 Posted - 06 October 2009 : 16:32:58
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I have over £12,000 debt in a loan, overdraft and credit card (all with natwest) all my debt is due to an operation I had in Berlin (NHS didn't want to know)
I live with parents so don't own any property. I'm also on job seekers at the moment.
I tried using the CCCS and sent my bank a token payment (cancelled my loan debit online) but they rejected it and now force my loan payments anyway. So basically they're using up the overdraft they've given me to pay their loan.
Any advice very much appreciated!
Mike |
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stephen
Starting Member
1 Posts |
Posted - 06 October 2009 : 18:46:42
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| First, don't worry about it. Cancel all standing orders and direct debits. Let them continue to take money from the overdraft, don't put anything into the accounts. When they write to you, delay for about 2 weeks and then write back. Tell them you have no money and no prospect of paying anything. Keep a copy. All the letters you receive are computer generated so you will not get an acknowledgement but just another letter. Any letters from bank appointed debt chasers, just answer in the same way. The letters keep coming you just keep answering and it will take them up to a year to really start getting heavy, in this time try to get some cash together and keep the cash. You really only need to BR when you get your first court letter for a CCJ. Until you get that courtletter you really don't need to do anything unless you want to. BR yourself is easy but you have to balance up all the implications. Do you do it to get it done and finished, or do you hang on until the last moment, he choice is yours, my advice - hang on do nothing, don't worry. |
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insanepenguin
Starting Member
United Kingdom
13 Posts |
Posted - 06 October 2009 : 19:11:43
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I have set up a co op account that my jobseekers goes in to.
What happens when my overdraft limit is reached? shall I just reply to the letters saying I have no means of paying as Stephen said?
I was made redundant in June, I'm just looking for anything at the moment, probably part time.
I have approx £12,000 owing to natwest and £400 on a computer that starts in Feb, that's it basically.
Should I move my car insurance and gym membership to my co op account? also what about credit card charges? should I continue to pay the minimums until my overdraft runs out. |
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Dave Perkins
Starting Member
United Kingdom
7 Posts |
Posted - 06 October 2009 : 23:08:20
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You say that the bank rejected your token payment - did they return the cheque? Pay it by bill payment. Even if you are only paying a pound a month, at least you are making the effort. The CCCS offer a £5 per creditor per month system which is really effective, have you tried that? They are really knowledgable people and will help you through the process. As you have no assests, you would probably qualify for a Debt Relief order rather than bankruptcy. These are available to people who have assets of £300 or less and disposable income of £50 a month or less, with no more than £15k of debt. They are admninistered via the CAB and you can not be in an IVA to apply for one. They are a good alterantive to bankruptcy, but hopefully you will get a job soon so none of the above will be an issue!
Don't let debt overwhelm you. Be brave and take control - you only have one life. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 October 2009 : 12:08:02
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Baines and Ernst can also assist with DRO's, as can Payplan, CCCS and a couple of others, it's not just CAB.
As stated, you must only have £50 per month of disposable income after rent etc is paid, and this must continue for the whole 12 months of the order, otherwise the DRO will cease.
It will cost you £90, as opposed to £510 court costs for bankruptcy.
The glimmer gets brighter all the time
Jan
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insanepenguin
Starting Member
United Kingdom
13 Posts |
Posted - 07 October 2009 : 12:31:02
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The debt relief order sounds promising, does this clear my debt after a certain time or just freeze/delay it?
thanks
Mike |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 October 2009 : 12:40:26
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It clears your debt after 12 months and you are then debt free again.
However, if you ran up any more debts, you wouldn't be able to use one of these again for 6 years.
The glimmer gets brighter all the time
Jan
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insanepenguin
Starting Member
United Kingdom
13 Posts |
Posted - 07 October 2009 : 12:57:32
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I have contacted the CCCS for advice.
So I could include rent, insurance, food, petrol, clothing, internet etc and whatever is left as disposable?
And say I got a part time job that didn't affect my disposable after 12 months my debt should be gone?
thanks for your help
Mike |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 October 2009 : 13:00:35
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Yes, you need to sort out your regular payments first, and whatever left is DI.
As long as that doesn't go up at all during the 12 months, the debt is written off.
The glimmer gets brighter all the time
Jan
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insanepenguin
Starting Member
United Kingdom
13 Posts |
Posted - 07 October 2009 : 13:47:11
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Thanks Jan I think this could really help me
Mike |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 October 2009 : 23:01:45
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Good luck Mike, and let us know how you get on.
The glimmer gets brighter all the time
Jan
xx |
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Dave Perkins
Starting Member
United Kingdom
7 Posts |
Posted - 07 October 2009 : 23:07:29
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DRO's are designed for people in exactly your position and are a lot cheaper than bankruptcy.
Good luck.
Don't let debt overwhelm you. Be brave and take control - you only have one life. |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 October 2009 : 06:46:15
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I hope CCCS can sort you out, but if not, give one of the other companies I mentioned a ring.
You could be debt free before you know it!
The glimmer gets brighter all the time
Jan
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Blackie
forum expert
United Kingdom
565 Posts |
Posted - 08 October 2009 : 08:28:04
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I would just like to point out that a DRO gives a debtor a 12 month moratorium from his creditors. The debts are not written off during that period. If, after 12 months, you are in the same or worse position than you were when you applied for the DRO, your debts will be written off. However, if your financial position is better then you would be expected to make a payment to your creditors.
All the best.
John Blackadder |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 October 2009 : 19:22:57
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| That is basically what I said. If your DI or other circumstances don't change within 12 months, the debt is written off. |
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Topic |
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Do I qualify for bankruptcy?
