£65000 of debts

[LegoBen]

Can anybody give me any advice I have £65000 worth of debt spread over 6 lenders,

(none are secured) Business failed back in February (sole trader) So have not been able to pay them since then. Now there starting to get heavy Barclaycard have defaulted me, the rest it is only a matter of time. I have a house with £100000 in equity, is the best course to sell the house and pay off the debts , my worries and two fold firstly I am thinking by the time I have sold the house the cost on the debts will have short up leaving me with nothing. Secondly and maybe more importantly the impacted on my family (Wife and three kids). Is there any other way .?

[monopoly23]

Is any of this debt made up of unlawful charges ie returned direct debits, unauthorised overdraft? I realise it is a large amount to clear but you should try to get rid of the part that you shouldn't owe in the first place.

 

Have a look at this site What's the cost? - Become debt free at WhatsTheCost.com

 

Its free to register and very simple to use and I've found it extremely helpful in working out how much can be paid and to who.

[hisholinessthepope]

Ben,

 

first call the National Debtline

FREEPHONE: 0808 808 4000

Monday to Friday 9am to 9pm

Saturday 9.30am to 1pm

 

I did a few months ago with more than you owe over more cards and loans. They will help you get it sorted out. They are your first port of call and will put you in touch with Payplan or CCCS who will help you with a debt plan and eventually the calls and letters will stop.

 

Am sure you will be nervous and worried but call them it helps massively and the sooner you do the faster it will be sorted.

 

Good luck

[hisholinessthepope]

Then you should invest time on here researching the Consumer Credit Act and the seperate issue of reclaiming charges. I can give you links to several excellent threads but that is for another day.

[sequenci]

Ben,

 

first call the National Debtline

FREEPHONE: 0808 808 4000

Monday to Friday 9am to 9pm

Saturday 9.30am to 1pm

 

They are your first port of call and will put you in touch with Payplan or CCCS who will help you with a debt plan and eventually the calls and letters will stop.

 

 

i agree, give them a call. However, they *may* not pass you to a DMP firm, they will only do so if it is the best option for you. NDL offer holistic advice so will give you all the relevant options to you.

 

have you had a go at filling in a personal budget?

 

National Debtline England & Wales | Personal Budget Sheet

 

give it a whirl before you call them, also let us know what your surplus is on here! good luck with it all!

[payingonlyencouragesthem]

The first step is to find out if all the creditors have the proper documentation to enforce these debts - ie the original credit agreement. Write to each of them requesting a copy under the CCA 1974 without admitting or denying the debt at this stage. Barclaycard keep records from Neanderthal times but many lenders destroy them after 6 years and these creditors can basically be ignored as no agreement = no debt as far as the law is concerned (you might come across some obtuse judge who will try to enforce it anyway but you can cross that bridge when and if you come to it). Furthermore, if they only have an application that tries to double up as the agreement form it has been strongly argued here and elsewhere that this is not enough to enforce the debt. If you have housing equity you will somewhere down the line get sued for it so I would just try to get into a debt management plan with the legally enforceable creditors.

 

PS I had bigger debts than yours and managed to whittle them down to just over a couple of grand this way but since you have housing equity they might put up more of a fight.

 

 

Can anybody give me any advice I have £65000 worth of debt spread over 6 lenders,

(none are secured) Business failed back in February (sole trader) So have not been able to pay them since then. Now there starting to get heavy Barclaycard have defaulted me, the rest it is only a matter of time. I have a house with £100000 in equity, is the best course to sell the house and pay off the debts , my worries and two fold firstly I am thinking by the time I have sold the house the cost on the debts will have short up leaving me with nothing. Secondly and maybe more importantly the impacted on my family (Wife and three kids). Is there any other way .?

[Laiste]

Hi Legoben,

 

I realise this a difficult and worrying time for you, but before you consider selling the house and/or opting for a debt management plan, I would suggest establishing the legality or otherwise of the debts you have. It may seem like an odd concept, that the debt is not legal if you have had the benefit of loans/credit cards. However, the Consumer Credit Act 1974 which regulates the provision of credit, requires that creditors strictly comply with the form and content of credit agreements, which, as you will discover when you have done some reading around the site, is not necessarily what creditors do! Some of them don't keep agreements, which means the debt is entirely unenforceable (until April 08) and others get you to sign an application form, which doesn't amount to an agreement in the majority of situations, as it does not contain terms and conditions, so is also unenforcable! I don't want to bombard you with too much info at this stage, as it will be too much for you to take on board all at once!

 

I concur with POET that you need to send CCA requests to all of your creditors in the first instance. I dare say somebody will come along to direct you to threads to read to get you started. I contribute to a number of threads, but I tend to be involved in helping people who have had Court claims issued against them. Which I must add is nothing for you to worry about, should it happen! I have helped people with debts in excess of yours get rid of them because the paperwork wasn't right. So what I'm saying is don't panic! It is by no means a foregone conclusion that because you have the debts in the amount you do, that you will have to sell your house and once you understand all the relevant issues and arguments, you will see why!

 

Have a good read read round the forum and familiarise yourself with the pertinent issues of what you need to do when you have debts, and are unable to pay.

 

A note of caution, do not speak with any of your creditors by phone. If they happen to catch you, tell them to put everything in writing as you do not discuss financial matters over the phone. Do not go through their security Q's with them. If they insist on speaking to you, re-iterate what I've said and then hang up. You are under no obligation be it legal or moral to speak to them, so invoke your right not to.

 

I hope this helps a little!

 

Regards and welcome to the forum, you're amongst friends!

 

Laiste.

[payingonlyencouragesthem]

The Heavy Cavalry just turned up. Laiste will sort it out have no fear!:grin:

 

 

Hi Legoben,

 

I realise this a difficult and worrying time for you, but before you consider selling the house and/or opting for a debt management plan, I would suggest establishing the legality or otherwise of the debts you have. It may seem like an odd concept, that the debt is not legal if you have had the benefit of loans/credit cards. However, the Consumer Credit Act 1974 which regulates the provision of credit, requires that creditors strictly comply with the form and content of credit agreements, which, as you will discover when you have done some reading around the site, is not necessarily what creditors do! Some of them don't keep agreements, which means the debt is entirely unenforceable (until April 08) and others get you to sign an application form, which doesn't amount to an agreement in the majority of situations, as it does not contain terms and conditions, so is also unenforcable! I don't want to bombard you with too much info at this stage, as it will be too much for you to take on board all at once!

 

I concur with POET that you need to send CCA requests to all of your creditors in the first instance. I dare say somebody will come along to direct you to threads to read to get you started. I contribute to a number of threads, but I tend to be involved in helping people who have had Court claims issued against them. Which I must add is nothing for you to worry about, should it happen! I have helped people with debts in excess of yours get rid of them because the paperwork wasn't right. So what I'm saying is don't panic! It is by no means a foregone conclusion that because you have the debts in the amount you do, that you will have to sell your house and once you understand all the relevant issues and arguments, you will see why!

 

Have a good read read round the forum and familiarise yourself with the pertinent issues of what you need to do when you have debts, and are unable to pay.

 

A note of caution, do not speak with any of your creditors by phone. If they happen to catch you, tell them to put everything in writing as you do not discuss financial matters over the phone. Do not go through their security Q's with them. If they insist on speaking to you, re-iterate what I've said and then hang up. You are under no obligation be it legal or moral to speak to them, so invoke your right not to.

 

I hope this helps a little!

 

Regards and welcome to the forum, you're amongst friends!

 

Laiste.

[LegoBen]

Thanks for the advise ,I have contacted the National Debtline, very helpful lady , she is going to send me a info pack, some template letters, and had a long chat about the rights or so it seems the lack of rights that non secured creditors have and some of the tactics they may use. Also I am trying to get my head around this CCA business. But I am going to give it a go and what happens.

Also Thanks Laiste for your reassuring word it is quite a relief to hear constructive advise.

[hisholinessthepope]

If you have any questions while dealing with National Debtline feel free to post here or PM if you prefer.

 

As I think you have gathered you are far from alone.

[powelll]

It's also worth mentioning that even if you did decide to sell your house and there is some equity there you are not obliged to pay ANY of this towards non priority unsecured creditors. You could make a million quid & they have no automatic right to your money.

 

Best of luck and I'm glad you took the advice to call NDL

[LegoBen]

Well the Info pack came today from the NDL, there is so much in this pack postie could not fit it thru the letter box and had to knock. Very impressed a lot of good info here , some alterative ways to deal with unsecured creditors. Reading round this site some of my creditor may be more difficult to deal with than others. Also this pack has template letters,

DWP , HM Revenue & Customs, FSA , banking code and ICO Booklets, and a budget planer. They have given me a ref no that I can quote to my creditors , (may help..!) Now it is time to sit down over the wet bank holiday and read thou all this and form a plan. Interestingly NDL have not recommended a DMP plan. They have basically said read the info and make your own mind up and if you need any more advice give up a call.

Thank you to everbody for kind words & offers of help and to the people who PM'ed me with tips & info. I wish I had found this site back in Sept when things first started to go pear shaped, I have covered more gound in 3 days than I did in six mouths..!

[monopoly23]

It really is a brilliant site Ben. Follow the guidance on here and you wont go far wrong!

Keep us posted as to how you get on.

[powelll]

It really is a brilliant site Ben. Follow the guidance on here and you wont go far wrong!

Keep us posted as to how you get on.

 

Seconded - good luck Ben

[pugsley]

subscribing

[davey77]

Hey Legoben.. I have been learning about CCAs after knowing nothing to start with and it's my main focus at the moment. My thread may be of some help:

 

http://www.consumeractiongroup.co.uk/forum/mbna/57846-debt-written-off-due.html

 

Good luck! D

[LegoBen]

That was a wet bank holiday. Anyway in between keeping the kids happy I read thru the NDL pack (well most of it). 9 A4 pages on unsecured debts . A very brief section on Credit agreements and The Data protection act. Interestingly and a quote “From Jan 05 Credit may be taken out over the Internet . The same rules may not apply..! My Cahoot loan was over the Internet. Any suggestions let me know. NDL are as you would gather a little more diplomatic about establishing CCA’s and no mention of claiming bank charges. Just that you can get bank statements under the Data protection act. My plans now are to CCA’s my creditors and see what happens. I will use the template letters from the site. One question NDL advices that you make you creditors aware of you situation and to pay them least some thing. But would this be seen as acknowledging these debts..?

[birchave0]

subscribing!

[powelll]

I will use the template letters from the site. One question NDL advices that you make you creditors aware of you situation and to pay them least some thing. But would this be seen as acknowledging these debts..?

 

You only really need to worry about acknowledging debts if you are going to argue Statute of Limitations ie that your creditors have left it too long to pursue you as you haven't either acknowledged the debt in writing or made a payment in the last 6 years.

 

Glad to hear you have had some good free advice as well as the great help on this site. You are right in that NDL will go more down the route of advising on viable and sustainable repayment options as well as considering bankruptcy & so on. I do understand that they are looking to put together some info in the near future on revlaiming charges etc.

 

Best of luck!

[LegoBen]

Thank’s for that Davey , Maybe not worth CCA’ing Barclay then. I think I will make them a offer after I have sat down and done a budget sheet . I will use your thread for reference.

Ben.

Barclays - Make a Offer

MBNA - CCA

Cahoot CCA

Natwest CCA

SkyCard - Make a Offer

Lloyds TSB CCA

[davey77]

Well, the ink wasn't very wet on my Barclays loan for late 2006. I think the older the debt the better chance they can't comply with any CCA! That's what i have heard. Although having said that, cahoot loan was late 2006 as well and they are stalling badly now for 10 weeks on it even though i wrote about it 4 times. Trading Standards letters going off regarding CCA's tomorrow and thurs!

[LegoBen]

Well finally got all the CCA’s off in the post today, thank you Michael for the template letters and addresses ,there here if anybody else needs them:

http://www.consumeractiongroup.co.uk/forum/site-questions-suggestions/53182-cant-find-what-youre.html

and I will CCA Barclaycard just in case. Also filled out the budget plan from NDL and will be sending all my creditors a copy of this plus a covering letter asking them to hold off any action of 28 days . Using again the template letter from this site. VAT , Halifax (mortgage), Water , Council Tax have all agreed to freeze any charges for 28 days. I have still got to tackle LloydsTSB about my Business account overdraft, £10,000 of my debt is this, Maybe a SAR’s to see how much is charges. The pens running out of ink a bit this week..! Anyway Thanks again , and I feel there is a light at the end of the tunnel now, I now spend more time on here than anywhere else, I hope I can start help others on the site soon. Looks like it is going to be a sunny weekend, I think I will take the kids up the park.

Ben

[monopoly23]

Hi Ben. Hope you're not as worried as you sounded at the start of your thread!

Have a nice weekend

[hisholinessthepope]

Well done Legoben, as you now know there is light at the end of the tunnel and the CAG can help make it brighter!

[pudsters14]

I'm subscribing, good luck legoben! I'm going through the CCA route with quite a lot of my hubbies credit cards so will keep you informed and will be watching your thread to see what happens. CCA them all you never know what they will have...

 

Good Luck

 

Pudsters14

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