lewells-----HELP ME!!

[Ineedhelp!]

Hello, i have debts of about £8,000(barclaycard/mastercard/barclayloan)

i kept up with payments up until january last year(2007) when i left my job to look after my daughter full time, my (now ex) partner at the time agreed to help cover the monthly payments but didnt, which means i havnt paid my debts for nearly 2yrs(yikes!!) i checked my experian credit info and it says "lewell financial ltd" looked into my credit info in july of this year but the address they have for me is one i lived in last june, moved and im so scared about not paying my debts i am not really registered as living anywhere(currently staying with my parents on a temp basis till i get a flat for me and my daughter) i dont have a bank account in my name as i was overdrawn with my acc at barclays aswell so didnt bother using the card again as i no it would have been taken etc, so im worried that they are looking for me and im not sure what to do, i dont have any way of paying my debts!! i really wanna get my debt trouble sorted as its really stressing me out and i think about it all the time! i got in touch last august with one of those companys who sort out payment arrangments with creditors but after they got in touch with barclays to find out the balance on my acc i havnt heard anything else!

can anybody point me in the right direction, i have been considering declarin bankrupcy in the hope it will get rid of the debt but as i live with my parents i dont want it being shown on their address!also i dont really wanna do it!

can anyone help?

thanks muchly

[ODC]

I assume from your post that you have no money with which to offer even a token payment each month to your creditors

 

Sit tight and do nothing until you hear from a DCA then SHOUT and we will help.

[ScabHunter]

OK, tough situation, but not impossible to sort out.

 

Firstly, you have come to the right place. On CAG you will get the help and support you need.

 

Forget about companies who claim to help with debt problems. They are just looking to profit from other peoples' misfortunes.

 

Don't worry about bankruptcy yet, although in your case it would seem to one possible option for the future. If you own no property or assets and live on benefits you could be discharged in a year and be free of all this.

 

When you consider that the worst thing that can possibly happen to you will not in fact be very painful at all then you can put this into perspective.

 

Having supportive parents is a great help. Many people in a similar debt and poverty situation would be petrified of being left homeless. The negative side of this is that once you declare your hand the telephone abuse that is likely to follow will severely affect them as well.

 

I would try to open a basic bank account while I had a stable address. Make sure it is with a bank totally unrelated to any you have alleged debt problems with.

 

Are you sure it was "lewells" and not Lowells (AKA Clownells or the Leeds Losers) who were checking your file?

 

I will think of a coherent plan of action, and then come back here.

 

SH

[ScabHunter]

There is a VERY strong case for declaring bankruptcy immediately here, as there are apparently no assets to go in to the bankruptcy estate, and it does not sound as though you are currently working.

 

As soon as the bankruptcy is discharged, you will be free.

 

I can understand you not wanting to go down this road, but it is one to seriously consider as the negative implications are so minimal.

 

Any other solution is going to involve a much longer and harder trip, and will probably involve some risk.

 

If you have the necessary court fee for bankruptcy, but really don't want to do it, I would keep it safe and in reserve. If any alternative strategy was to go wrong and blow up in your face, you would always have this fall back position to come back to.

 

Some factors which may influence the best plan -

 

How long ago were these cards and accounts actually taken out?

 

This is important to know for two reasons - firstly, it affects the chances of the alleged creditors holding enforceable agreements, and secondly, it will affect the likelihood of there being substantial unlawful charges which can be claimed back.

 

SH

[Pinky69]

There are other things that can be tried long before bankruptcy. For now all Lowell's have done is check your credit record. Leave well alone until they actually ask for payment then you find out if there is an enforceable agreement for any debt they claim.

[Ineedhelp!]

Hi, thanks everyone for your help, i dont work, i had the luxury of having some savings to live off of after i split with my ex in feb this year but they are running low so need to start looking for a job asap as i wanna get my life sorted lol! the only worry i have is that if i open an account and get a job and get a flat they will then know where i live so will start harrassing me for money and thats what freaks me out! i took out the loan and the mastercard and the barclaycard in 2004.....i think, or around that sort of time

if i declare myself bankrupt, what are the implications for my future? im doing a degree and want a well paid job/career in a few years but im worried about having a completely rubbish credit score!!!!

thanks xx

[ScabHunter]

Firstly, there are a few jobs that will ask for credit history, but a good many that don't. Even in the case of those that do, it is not always a complete bar to finding work. It really depends on which industry you want to work in.

 

2004 is a year which gives you a reasonable chance of stumbling upon an unenforceable agreement.

 

To be honest I am surprised the debt collectors haven't found you already, as your relationship with your parents should not be that hard to uncover.

 

I would take this one step at a time. Keep the savings that you have left in reserve (not in any bank accounts related to the alleged debts!), and try to find work first. Easier said than done, I know only too well.

 

Your parents' address gives you a stable base from which to launch a job search. When you find work, I would try to stay with your parents for a bit until you have got a bit of money behind you. This can be your 'emergency fund' should it transpire that there is no alternative to bankruptcy.

 

Don't let debt collectors' harassment freak you out. They have far fewer powers than they like to tell everybody they have.

 

Once you have managed to get your own flat, if you have not heard from the debt collectors yet, then you have a choice to make. You can wait until they come to you, and when they do, fire off CCA requests, or you can fire them off first. Waiting adds a bit of time towards the target of having the alleged debts reach statute barred status.

 

The CCA request will force the alleged creditors to reveal their hand. At this stage, it is a crapshoot. If they have no enforceable CCA, you are quite within your rights to stop paying them (if you ever started, that is).

 

If an enforceable agreement shows up, then it is time to send off an SAR, and see how much of the alleged debt is made up of unlawful charges. Obviously, without knowing your history, I cannot say whether this is likely to be a significant percentage or not.

 

At this stage you will know whether bankruptcy makes sense or not. It may well not, because if you are gainfully employed you will probably get hit with an income payments order and end up paying out as much as if you hadn't gone bankrupt. Bankruptcy is best for people living on benefits with no assets.

 

You will now be able to try and negotiate terms with the original lenders.

 

It may take a bit of time to straighten this out, but it certainly shouldn't be impossible.

 

SH

[eastendboy]

Hi there, I go with ODC (been around a while ) and pinky69, do nothing for now. Certainly don't go down the road yet of bankruptcy!

 

See what comes next and then we'll be here.

[palomino]

Bankruptcy is a very serious business because of the possible long-term consequences, and you should find out as much as possible about it.

There is a forum here covering bankruptcy (if you haven't already found it) - http://www.consumeractiongroup.co.uk/forum/formal-solutions-bankruptcy-administration/.

 

Other resources you should talk this through with are -

- the Citizens Advice Bureau

- National Debtline National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

- the Government's insolvency website - The Insolvency Service Website

[ODC]

I agree with Palamino. Its very important you reseach bankruptcy and its implications before you decide. Its not the end of the world and indeed there are quite a few members on here who have been there and got the T Shirt.

 

HOWEVER you are a fair bit awat from that stage yet. Wait and see what the DCAs come up with. If they do threaten bankruptcy and you feel that is the best for you then you might as well let them pay for it. You will then see how keen they are if you call their bluff especially if you have no assets. In the meantime stay calm and if you need help just shout.

[Ineedhelp!]

ok! thankyou odc for all your help and advice, and everyone else!!