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inovermyhead
Starting Member
3 Posts |
 Posted - 21 October 2009 : 23:06:22
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Hi I am new to this site and would appreciate some advice.
I currently owe about 25k to various c/cards and 1 unsecured loan. I am a single mother and work part time with a top up of tax credits. I recently approached a reputable trust deed firm to apply for this but after going through all the details it became apparent i am not in a position to meet the minimum payments needed for TD so I was advised that applying for low income low asset bankruptcy would prob be best for me.
Now here is my problem, I currently still jointly own my old house with my ex although I take nothing to do with the mortgage payments. (I now live in rented accom) The house has been up for sale for a few months to no avail, no equity on it at all. Prob be sold at a loss. anyway my ex has applied to buy me out but cant without a large deposit, which he doesnt have.
So problem is, I cant apply for LILA bankruptcy until I no longer own the house, even though there is no capital. Meanwhile my credit card companie and loan company are chasing me for payments that I cant make.
I feel like I am at a dead end and am worried that the action my debtors will take may involve me having to attend court etc.
Any advice appreciated?? How long before these banks force me into bankruptcy anyway? |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 22 October 2009 : 06:52:44
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Unless you have an AMEX card it is highly unlikely that the other CC companies would declare you BR. They like to use the threat of BR but other than AMEX I have never heard of anyone being declared BR by a CC company.
You mentioned the LILA BR so I presume you are in Scotland? Unfortunately I don't know much about the BR procedure there but the National Debtline has their own Scotland site dealing purely with debt issues in Scotland so I would recommend you have a look at the website and give them a call:
http://www.nationaldebtline.co.uk/scotland/
There are two professional companies that post on this board and both are very highly respected. I am not sure if they have experience with BR in Scotland but it wouldn't do any harm to contact them:
Reviva UK: http://www.revivauk.com/
Jones Giles - http://www.jonesgiles.co.uk/ |
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inovermyhead
Starting Member
3 Posts |
Posted - 22 October 2009 : 17:00:12
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Thank you for your advice. I am keen to get the ball rolling with this but feel stuck until I am no longer associated with the house with my ex.
That is reassuring that my credit card companies may only threathen bankruptcy, can I ask about my personal loan? It is with tesco finance (RBS), I took the loan out over 3 years and managed to pay for a full year before my circumstances changed. Can you tell me if they are likely to file for my bankruptcy or arrest my wages?
Thanks |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 22 October 2009 : 18:01:46
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I had a Tesco loan before I declared BR. I didn't pay the loan for 3 months when I had decided to declare BR and only received 2 letters from them. No telephone calls at all and the letters were not the threatening type, they were only saying that I had missed a payment and should call a number to make a one-off payment.
After declaring BR I sent a copy of my BR certificate to all my creditors, including Tesco, and they continued to send me reminder letters about my loan for 4 months after I was BR!
The processes within Tesco Finance are absolutely terrible (don't get me started on Tesco Insurance) so chances are it would take them several years of missed payments until they would declare you BR.
The attachment of earnings (i.e. a creditor going to court to get their payment taken from your wages at source) is a bigger worry. I know there have been a few people here who have had court dates with creditors before they were BR but I am not too sure how long they had stopped making payments to the creditors.
I didn't pay my creditors for 3 months before declaring BR and didn't have too much hassle. It generally takes 3 missed payments before the debt is passed on to a collection agency and this is when the calls will get more serious. If it is going to be 6 months or so before you are going to be able to declare BR then this could be a problem and you may find that creditors start court action.
Hopefully other people will post their experiences if creditors have taken court action and roughly how many missed payments they had. |
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inovermyhead
Starting Member
3 Posts |
Posted - 22 October 2009 : 21:04:23
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| Thank you very much for your reply. It is reassuring. Out of all my creditors I would say tesco have chased me the least and been the least threatening. As I posted at the top I am just waiting to be released from my obligations to my old house and after that will be aplying for BR. Hopefully not too much longer. Fingers crossed.. |
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help please???
