unenforceable credit agreement CCA prescribed terms?

[Amethyst]

Re: Does this cca comply with the prescribed terms?

lol, I agree, some pet expenditure is okay, but when people are on the breadline and unable to pay rent or debts, you'd be suprised how many of them still spend insane amount on pets...and by that I mean £200 a month odd, rather than feed/clothe themselves.

Just deal with the creditors then as they rear their ugly heads, as I think you are doing anyway. Just wanted to see if there was anything obvious. You don't have any assetts to speak of so bankruptcy wouldnt be a killer, but as the total debt is under £15k you might want to look at a debt relief order.

Will find some info.

[caledonia2]

Re: Does this cca comply with the prescribed terms?

Updated ie see attachment.

[Amethyst]

Re: Does this cca comply with the prescribed terms?

Just as an idea so you know the option's there, I have no experience of these so can't recommend them, and I don't know any more about them than what's here.

Debt relief orders

What is a debt relief order

A debt relief order is an order you can apply for if you can't afford to pay off your debts. It's granted by the Insolvency Service and is a cheaper option than going bankrupt.
You must have debts of less than £15,000 and a low income.
A debt relief order usually lasts for a year and during that time, none of the people you owe money to (your creditors) will be able to take action aginst you to get their money back. At the end of the year, you'll be free of all the debts listed in the order.
You can't apply for a debt relief order if you:

• own things of value or have savings of over £300
• own a vehicle worth more than £1,000
• have a private pension fund worth over £300.

To apply for a DRO, you'll need to contact an authorised adviser who checks whether you meet the conditions and then applies for the order on your behalf. The order will cost you £90 but you can pay this in instalments over six months.
You may have other options for dealing with your debts besides applying for a debt relief order. For more information about these options, see Help with debt.
On the following pages, we will explain in more detail:

• what a debt relief order is
• who can apply for a debt relief order, including the conditions you need to meet
• who can't apply for a debt relief order
• what type of debts can be included in a debt relief order and which can't
• how to apply for a debt relief order
• what happens during a debt relief order, including what to do about your creditors
• things you should do during a debt relief order and things you won't be able to do
• what happens after a debt relief order finishes, including what happens to your debts.

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Who can apply for a debt relief order

You can only apply for a debt relief order if you meet certain conditions. These are when:

• you have qualifying debts of £15,000 or less. These debts must be of a certain type
• you have spare available income of £50 or less a month after paying your normal household expenses
• the things you own (your assets) and any savings are worth £300 or less. However, if you have a motor vehicle, this must be worth £1,000 or less unless it has been specially adapted because you have a physical disability
• in the last 3 years you must have lived, had a property or carried on a business in England or Wales.

Only certain types of debt can be included in a debt relief order. These are called qualifying debts and are debts such as:

• credit cards, overdrafts, loans
• rent, utilities, telephone, council tax
• benefit overpayments and social fund loans
• hire purchase or conditional sale agreements
• buy now - pay later agreements.

[caledonia2]

Re: Does this cca comply with the prescribed terms?

Unfortunately its my understanding that Scotland does not have a debt relief order but I could be wrong but I think this just applies to England. I think but what is it anyway what does it do?

[Amethyst]

Re: Does this cca comply with the prescribed terms?

Ahhh, missed that you were in Scotland, should have guessed from the name !

No I don't think they do, they have administration orders tho I think, but thats under £5k, I think this Low Income Low Asset (LILA) | Accountant in Bankruptcy is the equivalent of debt relief order - low income low assetts - but you'd need to do some reading as I have no clue on how it works.

[caledonia2]

Re: Does this cca comply with the prescribed terms?

Sorry didn't realise you had replied already I am not sure but I don't think we have that we have a 3 year plan where you have to be able to pay money to your creditors but it has to me more than a £1 but I will check up on debt relief orders sounds a good option.

[Amethyst]

Re: Does this cca comply with the prescribed terms?

low income low asset bankruptcy

might be of some help. worth looking into as it is likely to take more than a year and a lot of stress dealing with the various creditors via the cca / dmp routes.

[caledonia2]

Re: Does this cca comply with the prescribed terms?

Yeah LILA is the equivelent it is bankruptcy but it only last one year and the likelihood is that given my current situation during that year I would not have to pay anything towards the debt and would be spent in a year! If I could get next or whoever the H**l they sold the debt to to take me to court I wouldn't have to pay the fees! Pluss under this scheme my furniture and computer etc is protected infact just about everything in the house is protected. Seems like it could be the option for me but I shall try writing to the creditors first to ask them to write of the debt if they dont I will then tell them they will have to take me to court so they can pay for the LILA order.

[Amethyst]

Re: Does this cca comply with the prescribed terms?

How much is the fee for LILA ? For the DRO its only £90 payable over six months, so would think its something similar on LILA ?

[caledonia2]

Re: Does this cca comply with the prescribed terms?

LILA is £100 and it has to be paid to the Accountant in bankruptcy on application for the order.