Help Needed

[unfortunatelybroke]

Hi
I have posted a few questions about debt and got some interesting answers from lots of people on this site so can I ask another question ?
First both my wife and I are claiming benefits including income support we live in rented accomodation and have no assets, we were paying a DMP but it was cancelled last year during a review when we were told that our benefits were not enough to pay our living expenses and pay the DMP and we were advised to apply for bankruptcy.
We have made enquirees about bankruptcy and the cost and because we are on a low income and in receipt of IS we are not liable for some of the costs involved however we will have to pay at least £350 each to the receiver which we do not have. We are now getting lots of letters from OC's and from DC's saying they are going to start litigation and that we will be responsible for their Solicitors costs which are quite high. We cant afford to apply for a bankruptcy just yet so should we wait and let the creditor/debt collector take us to court and if we did wait for this could a court take our benefits to pay these charges and also the debts owed, there are 14 creditors all wanting their slice which does add up to a lot of money, all our creditors/debt collectors are aware of our financial situation but they still write and tell us if we do not pay they will start litigation.
Thanks

[Nibbler]

Re: Help Needed

If your only income is benefits, then the worst the court could really do would be to order token payments. Really an empty threat.

Have you checked out the possible sources of help for the Official Receiver fees? These are very very hard to get in recent times, but some people do still manage it.

Do you owe individually over £15,000 each? If not have you looked a Debt Relief Orders?

[unfortunatelybroke]

Re: Help Needed

Hi Nibbler

Thanks for the reply, we both owe above the rate for a DRO so thats out but I will check about the fee's in court so thanks again.

[Nibbler]

Re: Help Needed

I'm not sure how up to date this is, but it may help.

For those who have taken proper advice and decided on bankruptcy as the long term option for dealing with their debts, it is often difficult to raise the necessary fees. It is our experience that any delays in raising the fees for bankruptcy can often prolong the stress and suffering for those with overwhelming debts.

For anyone in this position, there are a number of charities and organisations that may help with Bankruptcy costs and fees depending on eligibility. Examples below.

• Severn Trent Trust Fund and other water trusts
• EDF Energy Trust
• Royal British Legion
• Some Trade Unions
  • Trades Union Congress
  • Union Finder from Worksmart
• Turn2Us enables you to search for charities

Please note you will usually need the assistance of a recognised Debt and Money Advice Worker in completing applications relating to the above.

Also, please be aware that any applications to the above may take a number of weeks and are not guaranteed to be sucessful, however we know of many successful applications so it may be worth a try.

[unfortunatelybroke]

Re: Help Needed

Hi Nibbler
Thanks for this advice however both my wife and I are 2 very proud people and consider it not right in asking for help or begging if you know what I mean. We have tried to talk to our creditors and advised them of our financial standing, we are claiming all the benefits we are allowed to claim including £60 a week income support, we have therefore decided that we will wait for 1 or all of our creditors to start the ball rolling. We have decided let them pay the court costs. We have had many letters from our creditors and debt collectors saying litigation may be started if we do not phone their expensive phone lines and speak to one of their helpful advisors who will agree a payment plan for us but we have not done so and we have also had lots of letters from them saying that we are living where we live, why they send these letters is beyond me because they know we live where we live, I think these creditors/debt collectors must hire imbeciles/idiots to work for them, so if they think I am going to call their idiots then they must be really stupid.

[WendyB]

Re: Help Needed

Just a quick question, Ive been reading your other thread. Did you ever send SARs to the OCs? These cost £10 each so maybe do one at a time, and I would start with the credit card companies. This will get all the info they hold on you, including statements, at least for the last years, and hopefully more. You will then be able to see if there are any charges/PPI etc you can reclaim, which would then reduce the debt.
Might also be worth sending a SAR to CCCS so you can find out exactly how much they paid to who, etc.

[unfortunatelybroke]

Re: Help Needed

Hi WendyB
Nope not been able to afford the fee for the SAR, the cccs have sent a list of payments that they have made to each creditor/debt collector for the last x number of years but thats all, I did ask for lots of info regarding what kind of proof they received from the debt collectors who took over certain debts or bought debts but nothing has been sent, so at the mo I am at xroads, I had to stop payment to the cccs on their judgement not mine and i haven't paid any money to all my creditors since, I have received lots of letters regarding litigation from most of my creditors and they all know my financial circumstances so I will just have to wait for the court papers to drop through the letterbox and take it from there and as someone said earlier a court has to take my financial status into consideration which means they could award a token payment out of my benefits.