A question about : Effects of ignoring creditors and feel i have no option!!!
Hello Everyone,
I am new to this site so apologise if I dont include all the info needed to help me.
My situ is that I seperated from a long term partner after years of abusive and depressing nature. We have a gorgeous little boy who's now 3, we only seperated last Aptil so it's all still new but I have got myself together and am the happiest and confident i've been in years.
The problem is I let our spending as a couple get out of control and even though it wasnt on luxury goods and just basics I know it was the wrong way to live. My ex contributed massively, I can see that now and controlled at lot of the spending but all in my name. He is a lovely guy and great Dad and still is. We now know he was suffering from post natel depression as a result of childhood trauma. Given this I never thought I would be saddled with debt but here i am nearly 15k owing!
I spend considerable time (whilst jugging a lot of stressful seperation issues and finding a new home plus coping on benefits!) speaking to the Debt Foundation Charity, CAB and lastely Baines and Earnest, yes i know the latter is an insolvency company but just wanted to get all options. They all said the same thing, go bankrupt, my earnings as a single mother working part time meant I have nothing at all to spare and can just about afford to survive.
Problem is I cannot afford to go bankrupt......crazytown!!! it;s 750gbp inc court fee's and no way i have this! Advise from Baines and Earnest was to pay them 90gbp for 3 months and then use them to help me save for the full fee's of 750gbp! This wasnt an option, I didnt have 90gbp a mth to event attempt this.
I had to move again after the seperation due to landlord wanting the house bak after 3mths!!! I am on a new place now and sooooo happy. It's affordable and my money is closely monitored daily to meet the bascis. Initially I started to contact the Creditors explain the situ and left them to send me letter asking for the money, I tried to cooperate and give them income and expenditure but if anyone is familiar with this situ.....getting a regular and accurate budget takes forever. I think I am there now but this will change when my son goes to school at the end of the year and fee's for nursry will stop thus tax credits will be altered. There are around 8 creditors so this is beyond time consuming to the point where I have ignored them all for so long.
At this point it's nearly a year and a half since i stopped paying the debt each month. The letters are starting to say someone will pay a visit. I live alone now so I am very cautious about answering the door if I am in the house alone. My father, having been in the exact same situ when i was little advised me with rental property and nothing of value over 1,000gbp they cannot take anything! it this true, should I let this ride out over the next few years??? I know this isn't advised but with zero options with regards to paying back and also struggling to speak to them all.......!!
I heard that after 5 years they just write the debt off....similar time it takes for the bankruptcy to disolve.
Any advise would be great and just confirmation that I am doing the right thing by ignorin them all....for my sanity.
I apologise for the essay above but I feel i have to tell my story in full, I am a proud person who always paid my debt so this is not what i ever wanted to happen. I dont care about credit history because it's already gone too far and out of my control being on my own.
Regards,
Singlemumindebtcrises
x
Best answers:
- Hi and welcome.
I assume you are in England or Wales?
Debt are not written off after 5 years, but they can become statute barred after 6 years of not paying or acknowledged in writing, assuming the creditor does not go to court.
Debt collectors cannot come into you home and take stuff, no matter what value. Only court bailiffs can to that, which requires that they have been to court, which you would know about, and you can stop, and besides even those you don't HAVE to let in and can tell them to get lost.
Basically put that idea out of your head.
Are you under or over Ј15K in debt? Have you discussed a DRO? Those cost Ј90 and the limit for those changes to debts beleow Ј20 in October, so may become an option then even if not now. - Thank you Fermi for the reply. Yes I live in UK, East Sussex to be exact.
This is exactly what I thought...thank you so much for confirming that I cannot do anything so to carry on as I am. The DRO option I do not qualify for as debts under 15k also other factors I actually cannot remember now but checked this option in full.
I manage my money now so well and have learn my lesson, I have never been happier since taking this path, I am sure it's not the advised option but what can i do.
Quick question though, you are 100% that no one will come to my door unless they have started court proceedings. The debt is made up from so many companies I cannot see any of them trying to persue with such a small amount. most is credit card for 3.5k. Also, I moved home last October and havent gotten around to telling them all my new address, should i put the effort in to advise them. I have avoided this up til now due to the time it takes plus they always try to ask me for my income and expenditure......I know they will find me due to electorial register so perhaps I can just leave it.
Thank you again this is exactly what I thought and have spend years struggling to pay the debt and make do with food and heating etc. No more, yay! My new place has a pre paid G&E which is prefect. I owe debt's on previous company SSE only 75gbp but just cannot afford to pay, also owe with both water companies due to ex not managing bill's. The water bill's are getting less but are now seperate from my current bill so I have left them to sit there for now...again cannot pay. Actually they are from years ago...wonder if they will arite them off at some point..only a few hundred?? My ex is still out of a job so cannot help with this so I just manage them as best ican.
It's all a bit of a mess but much more managable now.
Regards,
Singlemumindebtcrises - DRO is for people who have total debts under Ј15, but as you say there are other things that may exclude you.
Quote: - Changes to DROs from October will be:
https://www.gov.uk/government/news/i...h-problem-debt
Quote: - Ok given this info I think i will update them with the new address because it's hardly the landlords fault and i dont want to cause her any problems.
Fantastic thank you i will write a blanket letter to them now with my new address and leave it at that.
Over and out everyone - now to look at the money saving options on this life saver website!
Thank you Fermi your a star! - May also be worth giving National Debtline a call freephone on 0808 808 4000.
They are very good at talking you through all the options.
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