Advised to go bankrupt ! Help

[FlamingParrot]

Re: Advised to go bankrupt ! Help

I originally spoke to a welfare rights debt adviser over the phone about a DRO and went to the office today and she then advised to go for bankruptcy as she said I'd be able to keep the car due to my sons being disabled and I need it.

Yes, that's very likely to be the case with either a DRO or BR, there are allowances for vehicles which are necessary for family use, especially when someone in the family has a disability.

It would be useful if you told us a bit more about your debts so we can comment on the alternatives. There are a number of people on here with a variety of experiences to share, unlike the one way, one-on-one advise you get from the official sources.

[MissFM]

Re: Advised to go bankrupt ! Help

Just a thought (forgive me if you've already considered this or it's irrelevant) - if either/both of your sons is receiving or eligible to receive the mobility component of DLA he/they would be eligible for a Motability car, which would be untouchable by any debt collector and not in the picture in a bankruptcy or DRO, as it would be for your son(s). The same applies to all their DLA - it is theirs to meet their needs, not a part of your income (although you no doubt receive and administer it as appointee) therefore not vulnerable to being seized.

Perhaps if you could thus remove this particular car from the equation it might change the advice you receive from the experts? And change how you feel about the situation? With two disabled sons I would imagine that all your vehicle use is related directly to their needs, which would satisfy the Motability criteria.

[DebtSanity]

Re: Advised to go bankrupt ! Help

Deleted post.

[chrisp1968]

Re: Advised to go bankrupt ! Help

Hi, thanks for all the advice. Both my sons only get lower rate mobility, all my debts are at least 10 years old and not SB. Catalogues and credit cards... Oh and provident !!!! And there is a clause in the HP agreement. The car is worth about £9000. And still have 2 years left to pay. 11 Our right to end the agreement
11.1 We will be entitled to assume that you refuse to comply with the terms of this agreement and to end this agreement, after giving you a default notice, if:
a) you break any of the provisions of clauses 2,3,4 or 6 of this agreement;
b) you provided false information when entering into this agreement;
c) the Vehicle is destroyed or treated as a total loss under any insurance claim;
d) you entered into this agreement for the purposes of your business and you stop trading or, if you are a partnership, the partnership is ended or court action has commenced to end it;
e) you have done anything which would allow any of your belongings, property, income or
savings to be legally removed to pay off any of your debts; or
f) any of the following happens:
(i) a statutory demand (that is, a written demand for payment of a debt of at least £750, which,
if not paid in full, may result in bankruptcy proceedings being brought against you) is not paid
in 21 days, or any steps are taken by you or anyone else to declare you bankrupt;
(ii) you take steps to enter into an arrangement or debt management plan with your creditors;
(iii) a bailiff or other officer controls or seizes the Vehicle or any of your assets following a
court order; or
(iv) the landlord of premises where the Vehicle is situated threatens, or takes steps, to seize or in any other way control the Vehicle or any of your assets.
11.2 If we end this agreement, subject to your rights as set out in the notice, “Repossession:
Your Rights,” we may take back the Vehicle from you and you must pay to us:
a) all instalments and other sums which have become payable by you to us under this
agreement, and
b) the outstanding balance of the Total Amount Payable, less:
(i) any Option to Purchase Fee and any rebate of charges to which you may be entitled and;
(ii) any money we receive from selling the Vehicle after we have deducted the costs of recovery, insurance and storage.

[Amethyst]

Re: Advised to go bankrupt ! Help

[MENTION=61249]DebtSanity[/MENTION] - I am sure FP will respect your view and experience as I, and I'm sure others, do. Just because you are new(ish) it doesn't make your opinions any less valid than anyone elses. We all have strengths and weaknesses in different areas and help as best we can where we can, and personally I'd rather have someone input / correct anything I'd said if it needed it, than worried about hurting my feelings, the priority always must be the OP. Equally people can share experiences and opinions on issues, bearing in mind everyones situations will be different and we are only ever able to scrape the surface on here. BR & DRO issues should always seek formal advice, but it is good to talk through things with others too.

As you were. Apologies Chris for the sidetrack there.

Sharon

[FlamingParrot]

Re: Advised to go bankrupt ! Help

.........

[Nibbler]

Re: Advised to go bankrupt ! Help

I originally spoke to a welfare rights debt adviser over the phone about a DRO and went to the office today and she then advised to go for bankruptcy as she said I'd be able to keep the car due to my sons being disabled and I need it.

While I take FP's point, at least a small part of it, but lets nots go there on this thread, I think you should broaden your range of professional debt advice a bit there, just so you get more than one perspective as opinion even in those does vary significantly.

One advisor's opinion of the appropriate option should never be the 'be all and end all', for reasons discussed.

For example, know some CAB advisors who will fight tooth and nail - if appropriate - on CCA and SB issues before they go for insolvency options; one at least who ended up going BR himself so he can speak from both sides of the fence.

Not specifically recommending CAB there, as you can also sometimes get some dreadful advice via them (sorry CAB, but it's true), but official debt advice is not always a narrow sighted one option process. Although you do have to be cautious of being steered too strongly.

[FlamingParrot]

Re: Advised to go bankrupt ! Help

While I take FP's point, at least a small part of it, but lets nots go there on this thread, I think you should broaden your range of professional debt advice a bit there, just so you get more than one perspective as opinion even in those does vary significantly.

One advisor's opinion of the appropriate option should never be the 'be all and end all', for reasons discussed.

For example, know some CAB advisors who will fight tooth and nail - if appropriate - on CCA and SB issues before they go for insolvency options; one at least who ended up going BR himself so he can speak from both sides of the fence.

Not specifically recommending CAB there, as you can also sometimes get some dreadful advice via them (sorry CAB, but it's true), but official debt advice is not always a narrow sighted one option process. Although you do have to be cautious of being steered too strongly.

Totally agree with this, the thing with CAB is that the advice you get varies wildly depending on when and where you go and who you speak to. Some CAB advisors are paid staff, others are volunteers, nothing wrong with that, except some volunteers are just unemployed people with very little knowledge, for example, a former colleague of mine who was totally clueless was volunteering at a CAB not long ago. CAB advice is more consistent when it comes to things like benefits which are more prescriptive.

[jon1965]

Re: Advised to go bankrupt ! Help

Time for me to chip in. As Sharon said this site is not like some consumer sites who have a corporate policy and do not credit people for the number of posts. I personally have well over 40k of debt and have not gone BR partly because I can not afford the fees and partly as I am now 3 years in of no payments. I have no job so sometimes a letter to the creditor saying make me BR if you think your hard enough is good. As FP has said without the full details no one can give advice and I read her comment as she wouldn't and didn't go BR for that level of debt. That was all.
My advice would be to examine all your options. Talk to people like National Debt Line, I have always found them helpful although I do not always follow their advice. Are any of your debts old enough to be from before April 2007. Are any of them PDLs with charges and interest that can easily be challenged. A full fact find is really what is needed.
One of my concerns at the time was that at some point I may inherit, well 4 years on she is still living the life of Riley and spending that bloody inheritance .
Every case is individual and you will get the support whatever route you follow.

[seduraed]

Re: Advised to go bankrupt ! Help

I have been round this forum for a number of years. I have no legal training and this only opinion. Try and avoid Bankruptcy if at all possible.
Letting unpayable debt go statute barred is and option . Statue barred is six years after the last payment or uneuivical acknowledgement of the debt in writing. You stated these debts are ten years old. Is that ten years since any payment was made? Have you checked with the loans companies whether they have enforceable agreements ?

[Nibbler]

Re: Advised to go bankrupt ! Help

If I recall they have been making token payments for years?

[jon1965]

Re: Advised to go bankrupt ! Help

I have just looked at the thread on a PC and not a tablet. If your debts are over 10 years old I would be sending CCA requests to them. Are the provident loans actually over 10 years old or have you just been a customer for 10 years taking out numerous loans?

At least if you send out CCA requests you can find out if they are enforceable or potentially enforceable , I suspect the catalogue debts will not be