bigmacandfries

ok firstly this isnt me but a v good friend mine, he was once secure and in control of his credit cards etc had a good wage allways made payments then he lost his job couldnt get another started missing payment charges made etc

hes now unemployed quite depressed and claiming housing benifit for his rented home, he has no assets doesnt even have a car

he prob owes to 5 or 6 credit cards to the amount of 25,000 pounds he currently getting threatening leaters from balifs companys etc

hes basicly ignoring everything throwing it in the bin stupid yes i know

hes moved home so none of the companys knows were he is

but hes depressed hence just seems to be going downhill, he has no hope of being able to pay anything or even contributing towards debt so today im gonna try help him out a little by looking into getting him bankrupt
ive been looking through google and found out he has to petition listing all amounts owed and assets etc ut no were have i found any tel numbers to departments to get forms from etc?

ill prob offer to give him the money as it looks like costs a few hundred to go bankrupt

the other thing is he cant exactly remember the amounts he now owes all the comapnys as he throws the letters in the bin lol but approx amounts can be guessed, also what happens if he forgets to list a debt when he applies and finds out a month or so later?

ok hes a fokin idiot hes done wrong but i want to see him come out of this in one piece and maybe build some confidence and start earnign a wage again and maybe just maybe the fookin coont can buy a round lol

hes in southampton by the way

NotoriousREV

He's probably better looking at this before going bankrupt:

http://www.adviceguide.org.uk/n6w/d_...ebt_advice.pdf

Kev_turbo

www.moneysavingexpert.com has everything you could ever want to know including loads of people who have been through the same thing in the debtfree wannabe forum.

Have a look

davegtt

There are other ways of sorting your troubles out, first things first, contact the companies you owe money too, Simply tell them you have no money, no job. Ive considered bankruptcy but think its better to speak tot hem first, chances are theyre going to help rather than put more pressure on him. If he goes bankrupt theyre going to get nothing so its in their interests to help him out. Trust me they will either half his debt, give him some breathing space or whatever, they will help though.

Distinguished Gentleman

Apart from the stigma attached to being declared bankrupt, there are all sorts of other ramifications that could be a problem long term. I don't suppose that is of any concern to him at the moment, but my advice is to get down to your local CAB. His situation is one that they encounter every day> They will give impartial advice and will, I'm sure, be of use to him

DG

KiwiGTI

In this case he should just go bankrupt. His credit history is screwed anyway, bankruptcy lasts only 12 months and he has no assets to lose.

And in this day and age there are enough sub-prime lenders out there for him to get mortgages or credit cards anyway once he is discharged and earning again.

His situation is exactly what bankruptcy was designed for.

I don't believe there is any stigma attached to being bankrupt anymore and unless he plans to work in certain industries there should be no long term effects, certainly no more than he has done already.

bigmacandfries

yes thats what i plan to do for him im going to go get the forms, do you get them from amagistrates court or a crown court?

mart360

CAB no longer deal with debt related cases, due to the huge increase, all they do now is refer to the main players


Mart

Thomas Wainwright

This company seem to be advertising a lot at the moment.

http://www.debtfreedirect.co.uk/index.php

2000TLondon

DO NOT GO BANKRUPT! There is no need these days. It's an extreme and un-necesaary measure.

The whole credit thing has become much more trasnparent thanks to government backed agencies like

http://www.nationaldebtline.co.uk/

Do not go to "companies" that will offer to help him by lending him more over longer term, speak to the national debt line people.

It's unsecured debt and as it's spread between many cards the losses to any single company is very minimal and they will back off when the cost of recovery starts to get near 50% ish of value of debt. However, this will still leave him with the debt, just no recovery hassles!

As far as I understand, he can either offer to pay them a pound a week, or whatever he can afford. Something is always better than nothing.

He can borrow a small amount of money from a friedn or relative, say 2 or 3 grand in total, and distribute this amongst his debtors on the condition they write the total off and clear the debt from his file.

He can wait to go to court, where in these circumstances a JP would tell him to pay the debts off at a pound or two a week.

He can do nothing. If he ignores the letters, what can they do if they don't know where he is? But this will ruin him credit wise for at least six years. But, if he is likely to get in a similar situation, not being able to borrow for six years may be a blessing!!!! If he doesn't have any contact with debtors / bailiffs for six years, it is illegal for them to continue to hound him after six years.

It's not the end of the world, it's scary and the recovery comapnies will try and intimidate him but it is illegal for them to do so, and he can tell them to stop harrassing him. Bailiffs cannot force entry into his home, but if he opens the door they deem that an invitation. If the few objects he has "don't belong to him" the bailiffs can't touch them.

Also, it's pretty easy for this to happen. It is irresponsible, but he must be feeling bad / stupid enough on his own. And in his situation, he should be able to find any sort of job, fast food, street sweeping, anything to start to sort himself out.

When speaking to the debtline people he has to be honest and candid, they will be on his side and advise him frankly and openly of all his options.

And there will always be someone somewhere in a worse mess!

P.S - This happened to my brother........

2000TLondon

Loans company, bad move!

davegtt

Good advice there 2000TLondon.... As I said earlier, the companies he owes money too will help him, but he has to tell them first otherwise they think hes just trying to get out of paying.

2000TLondon

Yep, agree best to be in contact with the debtors, although I would know all my options and rights from debtline people first. But like you say, they will want to help him, even if they just get pennies from him for ten years.

They won't be heavy with him, but he could always cry down the phone for good measure!!!!

Diablo

[quote=2000TLondon]Yep, agree best to be in contact with the debtors, although I would know all my options and rights from debtline people first. But like you say, they will want to help him, even if they just get pennies from him for ten years.

They won't be heavy with him, but he could always cry down the phone for good measure!!!![/quote}

Ok

I deal with personal insolvency (bankruptcy) as part of my job.

Do NOT go anywhere near one of the consolidation loan companies. they know neither the law or the options, regardless of what they may say.

PM me if he is serious, or you want further info.

2000TLondon

[QUOTE=Diablo]I couldn't agree more, my reference to the debtline people was for the independent government backed agency www.nationaldebtline.co.uk who will give him impartial, free, candid advice on all options available who as far as I can tell make it very clear what the debtors can do and can't do, and what you can do to help yourself.

The worst thing to do would be to appraoch a company advertising on Men and Motors who offer to slash your debts! Sharks!

Freak

But he could pay off his debts and treat himself to that holiday or new car he has always wanted.

2000TLondon

bigmacandfries

but his view is hes stuffed himself, his credit file is ruined anyway, he lives rented has no assets or money in the bank, why pay debts at a pound a month for a few years till hes ok then still end up owing thousands upon thousands when he can jjust go bankrupt, face embarisment go to court and no that in 6 yrs he can start afresh

i called the courts for him today and there sending out forms, aparantly there very busy lol and booking will take up to 5 weeks!!

Thomas Wainwright

If it is a loans company then you are correct, VERY bad move.

I'd heard it on the radio then Googled it for the web address. If i'd bothered checking/knew they were a loan company i wouldn't have posted the link.

I agree with the majority of the advice given here, i'd be doing that rather than going bankrupt. My other half works in the FS industry and i'm sure in the past she's said bankrupcies is a bigger no-no than entering into a voluntary agreement with creditors.

It may help your friend to hear of someone who owes more than him. A friend of mine owes just shy of £100,000 (yes, one hundred grand ) on his credit card/s.

2000TLondon

MY GOD! A hundred grand on credit cards!!!!! Makes me feel a bit better!!!!! That is an incredible amount, hope he has lots to show for it!

2000TLondon

Slow down, mate, you need to check all the options as bankruptcy isn't a light matter!!!!

So he has no assests, fine, nothing for them to reposess. Fine.

He can't be bothered paying a small amount, which I understand as it just keeps the weight of the debt on his shoulders and he'll be suffering still when he's earning again.

There is nothing emarassing about this situation. Half the country has borrowed up to their eyes, and as soon as rates start rising, there will be a lot more people struggling to make ends meet!

He doesn't have to go bankrupt in order to not pay any money back. If he decides to just ignore his creditors, it will be the same six year period before he is able to borrow again. This will mean he will have to live off his wages / the state from now on.

Bankruptcy can have serious implications, it's not a simple and easy thing, and isn't essential to get him out of the mess.

Take proffessional and independent advice, I'm not on commission here, but the national debt line will help. You / he can tell them he doesn't want to mess around with small payments, and they will give him optons. They don't care about the creditors, they don't care what he owes or why, they don't want to make him pay the debt and they don't want to lend him any money, they (ultimately the government) realise that these things happen and it doesn't have to be a disaster.

Alas

I can't believe how different people are.
I could'nt let myself get into the position of owing tens of thousands on loans/credit cards etc. Fine if you buy a house you need a mortgage but some people just buy sh*t and waste all the cash. Then a lot of them just look for an easy way out.
I don't think I'd be able to sleep at night if it was me.

2000TLondon

By the sounds of it, I think he's suffering for it!

Responsibility is the key, and it's nobody elses fault but the person who applied for the credit, but i think it is far too easy to run up debts and then borrow more. I think the whole industry needs to be regulated somehow, to help, or rather control, people with money burning hole in pocket syndrome who don't seem able or willing to control themselves.

KiwiGTI

And then destroy the only reason the UK is experiencing good retail sales

fatscoobyfella

So,if this guy does nothing,he will stuff his credit history for 6 years?But then it will be fine and will have a "normal" credit history.
But if he pays a couple of quid a week,this could last 10 years till he pays off a little chunk of his debt,prolonging the mess.
Would this also mean that,while he is still paying a little,his credit history will still be kakka till that debt ends,then have another 6 years until his slate is wiped clean??

My friend is in a smilar situaton,sounds like he would be better off paying nothing and just sit tight for 6 years instead of trying to do the honourable thing!

apples24

iTrader: (1)

will allways be ****e because his credit record will prob show his non payments defaults etc so doesnt really make a difference either way

i think i understand were your coming from but as for going bankrupt atleast if any balifs do find him as im sure they have some ways to find people he can turn round and say im bankrupt heres my case number etc and they will walk away, maybe it will lift a huge weight off his shoulder and give him his will for life back like you stated above
hes screwed for 6 years anyway as thats how long defaults etc stay on record for so might aswell go bankrupt and be screwed but safe for 6 years

davyboy

I'm sorry but he was clearly never in control of his credit cards.

apples24

iTrader: (1)

everyones circumstances are different, this chap owns nothing lives rented and has moved so prob the bailiffs wont be able to locate him, if they do theres not a lot they can take

but if peopple have nice cars a house or expensive tv's etc they will loose it and thats a different kettle of fish

i myself when i was young screwed my credit rating and it did take me 6 years before it all came off the record, i checked with experian and equifax every 6 months on my record

this bloke wont even be able to tick a library book let alone another credit card llol hes screwed as will show default after default, and its exactly 6 yrs from date of insertion that a default is removed

a long time but hey ho he must pay for his mistakes some how, to have 25 odd grands worth of debt wiped clean id be thanking my lucky stars

i bet ya one thing after 6 years if he re applied for a credit card with one of the same companys he already has one with they'd give him one lol
they ask for it all these companys they purely go on the information supplied ona application you could tell them anything

Diablo

Dude,

Bankruptcy these days is a comparative walk in the park. After 12 months he gets a discharge from his debts. The credit agencies see that he has taken matters in hand and done something about it.

Aside from the "stigma" of bankruptcy, he has nothing else to lose.

His credit rating is fubar'd anyway.

His alternative?

Years of paying back on the drip feed, or some stupidly high interest consolidation loan from a glorified loan shark.

In the knowledge that regardless of what "agreement" any of the sponsored debt agencies come up with, the creditors are not legally bound by it, and may, after years of getting £5 a month decide to make him bankrupt anyway.

Although, by then, he may have some assets or even a house which he would then lose as they would be sold.

And thats before you even come to the hassle, grief and harassment by firstly his creditors, secondly the debt agencies they sell the debts to and then the bailiffs that come banging on the door. Could you live with that uncertainty?

Far better to take the bull by the horns and deal with it now. get it over and done with and move on.

Thousands of people go bankrupt every year in the uk.

For many, its not a last resort, but a new beginning

davegtt

I personally think that getting in touch with the debtors is the best/easiest option, they will dramatically reduce his debt, not by a bit, by alot. They'll probably agree to giving him a couple of months off before he has to start paying the debt back, give the guy chance to get a job. Its going to be much easier and stress free than going bankrupt.

Maybe the guy just needs a kick up the *** and stop hiding from his problems. Once he faces them it'd be so easy to sort out.