Several debt accounts - need help - do not know what to do

[Kraken]

Hi,

It is my first time here and need some help or advice.
Me and my wife had several debt:
Wife: joint BOS loan with me , next directory credit online account, BOS credit card
Me: joint BOS loan with my wife, BOS overdraft, BOS credit card, MBNA credit card, Barclays credit card, 2x Capital One credit card, Marbles credit card, Argos store card.
I was paying for all that debt monthly about £1200 and most of it was interest. My situation changed and lost a source off additional income which allowed me to repay allt his debt. Also struggled to find better job for about 3 years.
Contacted with step change and was advised to cancel all direct debits for all creditors and make a payment plan.
To be honest had only two options:
Bankruptcy – would lose my home (have a 25% share in flat with mortgage), would lose my car which is worth about £3500 and need it to take my kids to school and two different nurseries in different city parts. Also even if would lose all of above still have to pay for about 4 years from my salary to cover any debt.
Repayment plan – would take 17 years to repay.
Both remedies would leave me and my family with no money to live like normal people. Could not afford even a weekend trip to zoo or safari park not mention even about any holiday.
All my direct debits were cancelled in November 2015 and since that time I ignored all letterers and phone calls. Never made any payment.
So after two years my wife got a letter from Soohsmiths on behalf of Cabot Financial UK Ltd with original creditor Next Directory asking for £800.

“We have been instructed by our client (Cabot Financial UK Ltd)that you have failed to repay the sums due in respect of the above account.
Your agreement with our client is terminated and our client requires your proposals for payment, in the short term.
Please treat this letter as notice that, unless an agreement is reached within 14 days of the date of this letter, we are instructed by our client to commence court proceedings against you for recovery of the sums outstanding.
This means tthat you may have a Court Decree registered against you. Any court decree registered against you may affect your ability to obtain credit in the future.
We are also instructed to seek legal costs in addition to the sum outstanding from you.
If Decree is obtained then we may be instructed to enforce that Decree which may include an application for an Inhibition against you. This will have the effect of preventing you from selling or granting any further securities against your house, or any land that you may own in Scotland."

This letter is with my wifes old name (maden) not sure it will make any difference.
Also Me got letter from Cabot that they will pass my case to Soohsmiths soon, so will get same letter with my name in few weeks asking for about £130 .

Not sure what to do. If I will make a payment other creditors will see it and will start to pursuit me .
Taking into account our whole situation, what is the best option and action I should take?

Thanks.

[Amethyst]

Re: Several debt accounts - need help - do not know what to do

This Next account sounds quite old, so it is worth sending a CCA request to Cabot in the first instance CCA Request Letter
Some older Next accounts had issues with their credit agreements. That might put things on hold for a little while while you figure out a plan overall.

When do you think you defaulted on most of these debts? you're in Scotland, so limitations is five years without contact ( acknowledgement or payment) It sounds like you might be at around 3 years, so you could find contact ramps up in the next couple of years.

On your concerns re a 'repayment plan' - it may sound like it will take 17 years when you go into it, but there might be an improvement in circumstances as you go along, and at least things will be on an even keel with a fixed outgoing each month to enable you to budget - and the amount would be calculated to be affordable based on your disposable income. You could look into whether you had PPI on any of the store cards/ credit card/ loan and use any rebates to make full & final settlements, or at least reduce some of the debts.

Did Stepchange go through your Income/Expenditure with you at all ?

What do you reckon is the overall amount you owe? If Next is £300 and whichever one Cabot have just taken on is £130 - are the rest the higher value ones?

This joint BOS loan - is that secured on your 25% share of the flat or unsecured ?

Debt options are slightly different in Scotland from England so you'll probably need to get in touch with a specialist advice agency up there.

[MENTION=48934]Debt Camel[/MENTION]; might have some thoughts though.

[Kraken]

Re: Several debt accounts - need help - do not know what to do

This Next account sounds quite old, so it is worth sending a CCA request to Cabot in the first instance CCA Request Letter
Some older Next accounts had issues with their credit agreements. That might put things on hold for a little while while you figure out a plan overall.

>When do you think you defaulted on most of these debts? you're in Scotland, so limitations is five years without contact ( acknowledgement or payment) It sounds like you might be at around 3 years, so you could find contact ramps up in the >next couple of years.

Stopped direct debits in November 2015 and had defaults on most of them in march 2016, so it is about 1,5-2years now

>On your concerns re a 'repayment plan' - it may sound like it will take 17 years when you go into it, but there might be an improvement in circumstances as you go along, and at least things will be on an even keel with a fixed outgoing each >month to enable you to budget - and the amount would be calculated to be affordable based on your disposable income. You could look into whether you had PPI on any of the store cards/ credit card/ loan and use any rebates to make full >& final settlements, or at least reduce some of the debts.
>Did Stepchange go through your Income/Expenditure with you at all ?

Had a reference nb with step change and was given two options repayment plan for 17 yeras (if bank will agree), or bankruptcy (about £10k repaid on mortgage, and car over £3000 - £3500). Nobody could tell me if will lose a home, car yes, and still have to pay for 4 yeras. It is better to have no home, no job and you are free in 6 months.

>What do you reckon is the overall amount you owe?

Me £130 to Next and Cabot and Soohsmiths looking for same money just now, my wife £800 and Cabot and Soohsmith alsow wants £800.

>If Next is £300 and whichever one Cabot have just taken on is £130 - are the rest the higher value ones?

Next and Cabot wants same money original £130 from me and original £800 from my wife

>This joint BOS loan - is that secured on your 25% share of the flat or unsecured ?

Loan is unsecured but still Soohsmith is talking about Decree and Inhibition only for Next account

>Debt options are slightly different in Scotland from England so you'll probably need to get in touch with a specialist advice agency up there.

@Debt Camel; might have some thoughts though.

There is many sites like this, and it looks fine and then you can hear stories like people were repaying for ages doubling their debts.

[Debt Camel]

Re: Several debt accounts - need help - do not know what to do

I am not an expert in the range of Scottish debt solutions, but let's start with some basics.

How much are your joint debts? How much is just in your name? In your wife's name?

How many children do you have and how old are they? Is your flat large enough for you now? In a few years time?

Does your wife work part time now?

Your 17 year debt repayment time - does this take into account the fact that at some point the nursery fees stop and the child care costs drop?

[Kraken]

Re: Several debt accounts - need help - do not know what to do

I am not an expert in the range of Scottish debt solutions, but let's start with some basics.
How much are your joint debts? How much is just in your name? In your wife's name?

Joint is only bank loan for about £17k
Wife: £26.5k (including joint debt)
Me: £30k (including joint debt)

How many children do you have and how old are they? Is your flat large enough for you now? In a few years time?

Two children 4 and 6. We have two bedroom flat so kids are in one bedroom. We should have 3 bedrooms.

Does your wife work part time now?

Yes, she works16hrs per week, I do full time.

Your 17 year debt repayment time - does this take into account the fact that at some point the nursery fees stop and the child care costs drop?

NO, 17 years was based at the time, but 10 years does no sound good either. I went trough budget plan with step change and tried to live with it for couple of months and it is a vegetation. I am not talking about buying new car or expensive goods, just casual life. Stupid trip to Safari Park with kids costs easly £80 etc. If I went for that plan with step change, my kids would be out of social life for several years...

[Kraken]

Re: Several debt accounts - need help - do not know what to do

Now just need to stop Soohsmiths taking my wife to court. Then will think about other problems.
There is no easy and good solution, if I went for bankruptcy, IVA I would not get my current job as I was credit checked in public registries so any CCJ or Bankruptcy. So I am glad I did not do anything for those 2 years, as it would damage my career. I have a lot to lose: Job (current or future), house, car...
I need realy smart remedy.

[Diana M]

Re: Several debt accounts - need help - do not know what to do

Cabot Financial (UK) Ltd is unlicensed.

Check out which of your debts are unenforceable in law before you make a decision on your next steps.

You may live in Scotland but the Consumer Credit Act is still applicable.

Di

[warwick65]

Re: Several debt accounts - need help - do not know what to do

This is a very difficult one to offer advice on if I am honest

Can you remember just how old each of the accounts are- I am guessing they are all after 2007 but if before it may help.

You say your work is credit checked but i am guessing a default is ok, just not a formal cci or BR IVO etc

The first thing you need to do about the shoo smiths debts is send a CCA for each debt - it might buy you some time

Now in my opinion, your debts are yours and your wife are hers so it is wrong to use a combined income on an income and expenditure form

The other problem is that even if you are on a debt management plan there is nothing ( In E+W) anyway that stops a court claim.

Do step change have a specialist Scottish service ?

Personally I have a lot of time for National Debt Line https://www.nationaldebtline.org/S/Pages/default.aspx that should be the Scottish page


Post crossed with [MENTION=87380]Diana M[/MENTION] 's

For all the non secured debts i would be sending a CCA request especially if they have been assigned ( to the likes of Cabot)

[Kraken]

Re: Several debt accounts - need help - do not know what to do

This is a very difficult one to offer advice on if I am honest
Can you remember just how old each of the accounts are- I am guessing they are all after 2007 but if before it may help.

Overdraft with BOS could be from 2006 but probably with changes several times as ammount I applied for has changed many times. Other debts are from 2008-2013

You say your work is credit checked but i am guessing a default is ok, just not a formal cci or BR IVO etc

I had about 13 defaults and got the job as they checked only public registries CCJ, IVA Bankruptcy.

The first thing you need to do about the shoo smiths debts is send a CCA for each debt - it might buy you some time

Right now only my wife got letter from soo smiths justr for Next account. I will get same letter probably in weeks time. What could be an outcome from sending CCA? Debt stopped, taken to court? If taken to court, what are my chances to remove this debt?
Other debts are still moving from one debtor to another, coming back to original creditor and back to debtor since 2 years. No court action yet.

Now in my opinion, your debts are yours and your wife are hers so it is wrong to use a combined income on an income and expenditure form

That was idea from step change, they said we can do that seperatelly but did not explained what is better.

The other problem is that even if you are on a debt management plan there is nothing ( In E+W) anyway that stops a court claim.

That is the point. I was reading plenty of aricles, sites. It looks good in theory all those remedy plans, but if you look carefuly then you can see it has a lot of loopholes. I have seen so many threads on internet how people got on management plans and stuck for years repaying even more than original debt.

Do step change have a specialist Scottish service ?

Yes, but it is available only over the phone and it is quite hard to find ideal solution hanging on the phone. Also I do not think they will tell me all tricks which would private money adisor say. I was told by step change on the phone that some of my creditors will take me to court some of them won't. But did not tell me which ones. So it is a help line for people but at same point they work in line with creditors.

Personally I have a lot of time for National Debt Line https://www.nationaldebtline.org/S/Pages/default.aspx that should be the Scottish page

Will have a look

Post crossed with @Diana M 's
For all the non secured debts i would be sending a CCA request especially if they have been assigned ( to the likes of Cabot)

All debts are unsecured. Should I send CCA to all creditors now or wait till they will try o take me o court?
It looks like right now have only hastle with Next, and maybe in some time with BOS.

[Kraken]

Re: Several debt accounts - need help - do not know what to do

Cabot Financial (UK) Ltd is unlicensed.

Check out which of your debts are unenforceable in law before you make a decision on your next steps.
You may live in Scotland but the Consumer Credit Act is still applicable.
Di

How is it with this Cabot? There were threads Cabot has other sister companies and they have license and can act on behalf of Cabot UK?
How can I check which debt is unenforcable? All debts will be 1.5-2 years after default, all unsecured.

[Diana M]

Re: Several debt accounts - need help - do not know what to do

How is it with this Cabot? There were threads Cabot has other sister companies and they have license and can act on behalf of Cabot UK?

The legal issue of unlicensed Claimants is decided in court by a judge not in cyberspace by posters on forums

Di

[Kraken]

Re: Several debt accounts - need help - do not know what to do

The legal issue of unlicensed Claimants is decided in court by a judge not in cyberspace by posters on forums
Di

And from your experience or other users experience is such a case in court in my favour?
What usualy Cabot will do? Give up? or try to go to court?

[MIKE770]

Re: Several debt accounts - need help - do not know what to do

every case is different

[Kraken]

Re: Several debt accounts - need help - do not know what to do

every case is different

Ok, so taking all of my debt aside and looking only into letter from Soo smith on behalf of Cabot UK. What should I do? Send Soo smith CCA and CCA to Cabot? or only to one of them? What next can happen?

[Debt Camel]

Re: Several debt accounts - need help - do not know what to do

You are in a mess (technical debt advice term there!) and it's natural you should hope there is a clever debt solution that will get you out - but that doesn't mean that it exists.

It is also good to do research and be suspicious of some debt advice providers. But some of your comments are simply wrong.

I'm going to highlight some problems here, not as a criticism but because you will find it hard to make a good decision while some of your current thoughts are going round in your head.

That was idea from step change, they said we can do that separately but did not explain what is better.

As the joint debt is so huge, it makes it less likely that there is a good option for you to consider your finances separately. It's going by instinct, but I suggest carrying on thinking about a joint budget for a while until some other points are clearer, only then drilling down to see what treating you as having separate finances could achieve.

That is the point. I was reading plenty of articles, sites. It looks good in theory all those remedy plans, but if you look carefuly then you can see it has a lot of loopholes. I have seen so many threads on internet how people got on management plans and stuck for years repaying even more than original debt.

The majority of the articles pointing that out are from people pushing IVAs (or their rough Scottish Equivalent, Trust Deeds). Those are not unbiased sources and they do not point out the many disadvantages of insolvency options. Most debts do have their interest frozen after a few months in a DMP. Those that don't can be challenged by going to the FOS.

NB I am not saying a DMP is right for you - the length of time is a serious consideration - but you should not be overly worried that interest will not be frozen.

Yes, but it is available only over the phone and it is quite hard to find ideal solution hanging on the phone..

If you want face to face advice, go to your local Citizens Advice.

Also I do not think they will tell me all tricks which would private money advisor say

That is simply untrue. Any commercial debt advice firm which claims to have "tricks" is lying. Do not trust any firm which says pay it £200 a month and it will be able to get most of your debts written off.

Commercial debt management firms provide exactly the same DMPs as StepChange do, except you also pay their fees. And they are all phone based as well.

I was told by step change on the phone that some of my creditors will take me to court some of them won't. But did not tell me which ones.

That is because it isn't as simple as "X will sue and Y won't". It depends on what your I&E looks like. It depends if you have a house with equity. It depends how many years your DMP has been running and if you have increased payments. But you are MASSIVELY more likely to be sued if you do not have a DMP than if you do.

So it is a help line for people but at same point they work in line with creditors.

Nonsense, I suggest you ignore the sorts of websites where this allegation is made. The fact is that the straightforward way for most people with a large debt problem to manage it is to come to an agreement with your creditors. StepChange will recommend bankruptcy or other forms of insolvency if that is appropriate.

Should I send CCA to all creditors now or wait till they will try o take me o court?

Now that is actually a difficult dilemma and something worth thinking about. If a creditor can't produce the CCA, the debt is unenforceable and you can stop paying - big win. But if they can, then you are going to have to come up with a good arrangement to pay them pretty quickly as otherwise, having already had the trouble of finding your CCA, they are likely to sue.