£100,000 in debt. Where do I start?

[anxious1234]

Hi. Trying to keep it short, I lost nearly £150,000 in 2005/6 in uninsured stock to do with my business (Insurance company got out of paying). Since then I have struggled to build my business back up and pay my debts. I sold a parcel of land at my house, remortaged pensions etc. Borrowed more on cards etc. All was going okay until last November, when, due to a downturn in business (caused by the economic climate) I found myself in the position thast I could not repay my debts.

I took advice from a company regarding an IVA and started the ball rolling. Was informed that it would take around 4 weeks. However, five different people in this company have dealt with me and all five have changed things, asked for different things, confirmed various figures etc etc. Really ****ed off with them. At one point it was agreed that the repayments to the IVA would be £660 per month, then a few days later it was £1200 etc etc. Last straw, is today, received the draft proposal. This shows a repayment of £424 at 24p in the £. Ths is great for me but I can't see this being accepted as from what I have read on the internet, creditors look for 40-50p in the £. By the way, I have negative equity in my house.

 

I found this forum last week and have sent off requests for copy agreements etc in the hope that some will be unenforceable.

 

I have 12 credit cards totally approx £100,000 debt.

Some have terminated the accounts etc and stated they will be passing on to debt collectors etc.

I am three months in arrears as I was told by this IVA company last December,if I could not pay them all then do not pay anyone. However, las week I have sent them all token payments.

Upto last November, I had a 100% credit history. Never missed a payment and never late. At 57yrs old, I now find myself in this position. Because of it, my business and health is suffering.

 

The advice, I think I am looking for is:

 

1. Should I let the IVA go through at 24p in £?

2. Should I approach all creditors and offer 40p in £ over three years with interest frozen. If so, what is the chances of this being accepted?

3.Do I stall and wait for the credit agreements to come through first? Do I send some kind of payment each month albeit not the minimum amount.

4. What happens when it is passed over to debt collectors? Do I just ignore or what?

5. Will they eventually issue court proceedings? If so, what is the usual outcome. Is it likely that the court will agree a small nominal payment per month?

6. What is the chances they will issue bankruptcy papers?

7. Anything else I should know?

 

Any help / suggestions would be appreciated.

 

Gordon

[42man]

I think as long as something like 70% of your creditors accept the IVA then it should be ok.....and I suppose you can certainly try the 24p in the £.... Have you rung the National Debtline ? or the Insolvency Helpline ? both free and impartial.... Do you have any excessive penalty charges or missold PPI that you might be able to claim back too ?

[Ron 2015]

Hi and Welcome.

 

I am in a similar position to you and there are lots of others in the same boat.

 

If you read through some of the threads you will find lots of different ways to deal with debt.

 

I have choosen to send CCA requests to all my unsecured debtors. Most did not reply until I sent account in dispute letters at the end of 14 days.

 

Most of them seem to be unenforcable.

 

But the Credit card companies will not give in easily. They phone constantly and send letters ect. You can stop the calls with a letter which you can find on here. Then a debt coollection agency will start.

 

But if they dont have a properly executed agreemnent then should they take you to court they should not win.

 

Not all Judges seem to be up to speed with CCA 1974.

 

I am going to fight tooth and nail.

 

Should you loose you have to do an income and expenditure form for the court and they will decide how much you pay each month. As far as I am aware as long as you keep up these repayments then thats the end of it. Game over.

 

No Balliffs , no orders on your house nothing. Just keep up the repayments to the court and thats it. OK so your credit rating is shot to bits , but mine is going south fast anyway. And as far as I am aware 1 CCJ or 10 CCJs makes no difference. And I dont want to borrow another penny for the rest of my life so what does it matter what my credit rating is!

 

I have not heard of many people recommending IVA or bankrupcy , maybe its the best way for some.

 

I too until Jan had a 100% credit history , now thats gone. I have adjusted my lifestyle and am now cash only. And I feel better.

 

So spend time reading some of the threads , you will learn a lot.

 

I would wait and see what the CCA requests bring up.

 

Best off luck Ron

[anxious1234]

Hi. Thanks for both replies. Ron and 42man.

 

Please keep advice coming. May be able to sleep easier.

 

Gordon

[itsamomentintime]

Have you rung the National Debtline ? or the Insolvency Helpline ? both free and impartial.... Do you have any excessive penalty charges or missold PPI that you might be able to claim back too ?

 

this is great advice

[silver1977]

Gordon,

 

Just to say that you are in the right place for advise and support. I too was a nervous wreck before I found this site. Was terrified that I'd be getting door step visits and dreaded the postman coming - had my head in the sand totally. This site has given me confidence to face things and fantastic advise about how to deal with it all.

 

There are people far more knowlegable than I who will be able to help you with what you need. All I will say is take it bit by bit, a day at a time....

 

You're not on your own

 

Best wishes