Creditors bankruptcy petition

[Panic72]

i have been advised to post on here to see if anyone can help advise me this is my original post on mse forum


I don't know where to start. I am roughly 44k in debt to credit card companies and loans to my old bank who i still have my mortgage with and a loan to tesco bank.

i have set up a payment plan through stepchange and are paying a monthly fee to all the creditors that has been running for the last 4 months however 1st credit who i owe 15k to have whilst this has been going on put something called a b10 notice of registration on my property and last night i had a man at the door with a creditors bankruptcy petition and he said i have to go to court on the 28th of august.

i am absolutely bricking it the wife and kids been up all night crying i have rang stepchange today and they have said i need to call 1st credit if i don't want to go bankrupt and see if i can come to a separate arrangement with them to stop them proceeding with the bankruptcy and possibly put a charge order on the property?

I really do feel like im up the creek without a paddle keep getting told different things by people i know like let them make me bankrupt they wont make me sell the house as i have 3 kids but stepchange said they would if there is equity in it which i roughly think is about 15k.

can anyone tell me what i need to do next as i have not got a clue?




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I have contacted the solicitor today who have informed me that although 1st credit have been receiving payment each month stepchange have never had an agreement for this amount from them. I have been told by lester aldridge solicitors to get step change to send the offer along with my expenditure to them and they will see if first credit will agree to a payment plan.

i have called 1st credit who say its out of their hands

i have called step change who say that they do not pay money to companies unless an agreement has been made and they advised me to get legal help to deal with the court hearing and turns out i do not qualify for legal aid

i guess all i can do now is wait until next week which will hopefully give step change enough time to send the offer to the solicitor and then see if they plan on still taking it to court.

[Debt Camel]

Re: Creditors bankruptcy petition

hi Panic72

keep getting told different things by people i know like let them make me bankrupt they wont make me sell the house as i have 3 kids but stepchange said they would if there is equity in it which i roughly think is about 15k.

It can be difficult to know who to believe in situations like this, but in this case Stepchange are very likely to be right if you estimate of 15k of equity is accurate.

Is the house in joint names? Are all the debts in your name? I am going to assume YES and YES, but this is important.

One option here is to try to come up with some other offer to 1st Credit. They should prefer to reach an agreement with you as they would get about nothing if they do make you bankrupt... Is there any chance of you getting a settlement amount, to pay them off now, possibly from a relative?

How large is your payment to Stepchange each month? How much are 1st Credit getting of this?

Another option is to be made bankrupt and for your wife to 'buy' your share of the equity from the OR - is there any change of her raising this amount?

What sort of debt is the 1st Credit debt? How old is it?

[FlamingParrot]

Re: Creditors bankruptcy petition

i have set up a payment plan through stepchange and are paying a monthly fee to all the creditors that has been running for the last 4 months however 1st credit who i owe 15k to have whilst this has been going on put something called a b10 notice of registration on my property and last night i had a man at the door with a creditors bankruptcy petition and he said i have to go to court on the 28th of august.

Did you ever receive a statutory demand? You should have been served with one before being served with a BR petition.

i am absolutely bricking it the wife and kids been up all night crying i have rang stepchange today and they have said i need to call 1st credit if i don't want to go bankrupt and see if i can come to a separate arrangement with them to stop them proceeding with the bankruptcy and possibly put a charge order on the property?

You may want to consider offering a voluntary charge on your property. Securing the debt is one way of avoiding being made bankrupt.

[Panic72]

Re: Creditors bankruptcy petition

[/FONT][/COLOR]Did you ever receive a statutory demand? You should have been served with one before being served with a BR petition.


[/FONT][/COLOR]You may want to consider offering a voluntary charge on your property. Securing the debt is one way of avoiding being made bankrupt.

thanks for the reply guys

i have had a BR Petition which i informed stepchange about and they said that they were dealing with 1st credit.

the house is in my name only as we could not borrow no where near enough with my wife on the mortgage.

the debt is mainly in my my name but some is in my wifes the 15k loan was one i got when i logged into my online banking to our joint account and a few clicks later i had the money sat there.

i currently pay stepchange £210 a month which is all of what they say i should have to spare each month 1st credit are getting £29.40 of this they have the lions share of the debt the next biggest being about 8k.

i think i will offer to secure the debt onto the property if they will stop the bankruptcy i do not qualifier for legal aid and i cannot afford a solicitor so im feeling a bit lost with it all really

thanks again for taking the time to reply

[Debt Camel]

Re: Creditors bankruptcy petition

the house is in my name only as we could not borrow no where near enough with my wife on the mortgage.

bother. I was hoping at least your wife's equity would be safe.

i currently pay stepchange £210 a month which is all of what they say i should have to spare each month 1st credit are getting £29.40 of this they have the lions share of the debt the next biggest being about 8k.

ah. So although 1st credit have 34% of the debt, they are getting a bit less than 14% of the payments you are making...

StepChange are unusual in that they pro-rata your payments according to the minimum payment for each debt, not according to the size of the debt. It is unusual for this to make so much difference but it can happen and I am guessing that it has here.

You could consider calling StepChange up and asking them about this. Say you would like to be able to increase your payment to 1st Credit to £75 a month if they agree to not pursue bankruptcy. point out that you could do this by taking over and running your DMP yourself or by switching to Payplan. But you would rather stay with them if this is possible. See what StepChange say. Point out this will become a priority creditor if you offer them a charge over the house.

I think an offer to 1st Credit to secure the debt and increase the monthly payments to £75 would have more chance of success.