bankruptcy case with 1st credit finance

[1970curly]

Hi i am currently in the middle of being made bankrupt over a credit card bill of £5400 originally with lloyds then brought by 1st credit.
1st contact i had with 1st credit was when i was served with a stat demand back in march then received a 2nd stat demand less than 2 weeks later hand delivered by the same person the details was then passed onto Stepchange who are currently dealing with my DMP. offers of a payment plan was made and rejected.
in june i received a letter from Lester Aldridge informing me that 1st credit had made a bankruptcy petition against me once again i informed stepchange who then increased the repayment offer only for it to be rejected again.
Day before i was due into court i contacted lester aldridge with a new offer of £121.14 a month with was accompanied by an email from my employer stating with extra shifts my new income amount would more than cover this new amount... again rejected by 1st credit.
Had the hearing yesterday and it has been adjourned giving me approx 4 weeks to sort this mess out

Please help if you can

[1970curly]

Re: bankruptcy case with 1st credit finance

Ok quick update i have just recieved a phone call from Lester Aldridge informing me that 1st credit will accept a monthly offer of £201 if i am willing to put a charge on my property and the debt has now gone from £5400 to £6800

[nemesis45]

Re: bankruptcy case with 1st credit finance

Ok quick update i have just recieved a phone call from Lester Aldridge informing me that 1st credit will accept a monthly offer of £201 if i am willing to put a charge on my property and the debt has now gone from £5400 to £6800

What's your feeling on that, totally unaffordable?
What would BR achieve if it were to go through, it is there sufficient equity in the property or other assets that are realisable?

nem

[FlamingParrot]

Re: bankruptcy case with 1st credit finance

Ok quick update i have just recieved a phone call from Lester Aldridge informing me that 1st credit will accept a monthly offer of £201 if i am willing to put a charge on my property and the debt has now gone from £5400 to £6800

Securing the debt is one way to avoid bankruptcy so a voluntary charge is often used in these cases as a last resort. If you were made BR the property would have to be sold in most cases whilst the charge can have conditions attached such as that they won't be applying for an order for sale. Securing the debt in itself should be enough to avoid BR. Can you afford £201 a month? Have they explained the extra £1,400?

[1970curly]

Re: bankruptcy case with 1st credit finance

Good morning.
Can afford the £201 a month which is a massive increase from the original amount of £21.14 but am worried about it being secured against the house with the way 1st credit has acted so far and i had an email yesterday after a phone conversation with Lester Aldridge saying the offer of £201 was rejected and they will only consider the offer if it is alongside security on the house.
Debt now stands at £6830.11 due to costs of £1377 being added and that's the current balance with no doubt more costs to be added.
Sole owner of my house and it has equity in it so not prepared to risk losing it and make my family homeless

[CYNthesys]

Re: bankruptcy case with 1st credit finance

Whilst I know very little about bankruptcy, I understand that from Thursday next week (1st October) the threshold has increased to £5000.

[Nibbler]

Re: bankruptcy case with 1st credit finance

Have they explained the extra £1,400?

Since there has been an actual bankruptcy petition and hearing here, may be the...

£750 petition deposit
£280 court fee
£xxx legal fees for preparing and presenting petition etc

[1970curly]

Re: bankruptcy case with 1st credit finance

Since there has been an actual bankruptcy petition and hearing here, may be the...

£750 petition deposit
£280 court fee
£xxx legal fees for preparing and presenting petition etc

That sounds about right.. should i have been told about the charges prior to the hearing because they could be charging excessively for their services ?

[1970curly]

Re: bankruptcy case with 1st credit finance

Securing the debt is one way to avoid bankruptcy so a voluntary charge is often used in these cases as a last resort. If you were made BR the property would have to be sold in most cases whilst the charge can have conditions attached such as that they won't be applying for an order for sale. Securing the debt in itself should be enough to avoid BR. Can you afford £201 a month? Have they explained the extra £1,400?

How easy is it to arrange securing the debt on my property as i am not sure exactly the time scale before next hearing ? And can they refuse if i have the conditons attached

[Debt Camel]

Re: bankruptcy case with 1st credit finance

Can afford the £201 a month which is a massive increase from the original amount of £21.14 but am worried about it being secured against the house with the way 1st credit has acted so far

Would you mind giving a rough outline of your situation
- how large are the debts in the |DMP not including this one?
- How much are you currently paying to StepChange as a DMP? Have you talked to them about reducing this?
- how much equity is there in your house?
- is your mortgage repayment or interest only?

How easy is it to arrange securing the debt on my property as i am not sure exactly the time scale before next hearing ?

The hearing can be postponed if necessary. If you and the creditor both want to organise a charge instead, this will be possible.

And can they refuse if i have the conditions attached

Yes, but if you are increasing your payment a lot I would be surprised if they do. They may well end up withj NOTHING if they make you bankrupt - this is a game of poker to some extent. The problem is that they only have to win a few to make a good living whereas for you it is your only house that is at stake.

[MIKE770]

Re: bankruptcy case with 1st credit finance

tut tut another 1st discredit to make bankrupt against debt collection advice from regulators, they are shit and whilst we got governments who ignore these corrupt operators then it will continue as the people sit back and do nothing! state of this country these days.

[nemesis45]

Re: bankruptcy case with 1st credit finance

1st Crud have been warned in the past about issuing SD's and threats of BR which is even described by the CSA as an absolute last resort not to be used as 1st line of debt collection'

I personally believe there is no place for such action in regard to unsecured consumer credit debts.

nem

[MIKE770]

Re: bankruptcy case with 1st credit finance

Kate not able to deal with this one???

[Nibbler]

Re: bankruptcy case with 1st credit finance

Proportionality

CONC 7.3.14R01/04/2014

1. (1) A firm must not take disproportionate action against a customer in arrears or default.
   [Note: paragraphs 7.14 (box) of ILG and 3.7t of DCG]
2. (2) In accordance with (1) a firm must not, in particular, apply to court for an order for sale or submit a bankruptcy petition, without first having fully explored any more proportionate options.
   [Note: paragraph 7.14 (box) of ILG]

CONC 7.3.15G01/04/2014

A firm should not make undue, excessive or otherwise unfair use of statutory demands (within the meaning of section 268 of the Insolvency Act 1986) when seeking to recover a debt from a customer.
[Note: paragraphs 7.10 of ILG and 3.7n of DCG]

[Amethyst]

Re: bankruptcy case with 1st credit finance

She's on Maternity Leave, however it could be worth contacting Howlett Clarkes anyway - http://www.legalbeagles.info/forums/...053#post578053