1st Credit Bankruptcy Petition. Please help!

[psn]

Recently 1st Credit issued a statutory demand followed by a bankruptcy petition for a credit card debt 3 years ago for £4462. I'm worried and don't know what to do next.

I've done myself a budget sheet to see what id be in a position to be able to pay back but I'm struggling every month to make ends meet as it is so would only be in a position to offer £15 a month and I have read on other forums of such offers not being accepted.

I'm worried as I'm a homeowner and don't want to lose my house. I was lucky enough to get one of those 125% mortgages 8 years ago. The mortgage was for £65,000 and I had and unsecured loan on top for £19,500 to pay off other credit cards.
In those 8 years I have cleared off £8,000 off my mortgage but my flat is only valued at about £70,000 as it has a low lease on it.
Will they be able to make me bankrupt on this debt even though I am offering to pay what I can afford or are they just scarymongering me? Has anybody else that's a homeowner had these experiences with 1st credit?

I don't know what to do if they refuse my offer

Thanks in advance

[FlamingParrot]

Re: 1st Credit Bankruptcy Petition. Please help!

Recently 1st Credit issued a statutory demand followed by a bankruptcy petition for a credit card debt 3 years ago for £4462. I'm worried and don't know what to do next.

Did you do anything with regards to the statutory demand at the time you received it? Are you saying you received the SD 3 years ago or was the credit card defaulted 3 years ago? What sort of credit card was this?

If they issued the SD recently, it could well be they are doing it in anticipation to the government's plans to increase the BR threshold from £750 which is beyond ridiculous, to £5,000.

I've done myself a budget sheet to see what id be in a position to be able to pay back but I'm struggling every month to make ends meet as it is so would only be in a position to offer £15 a month and I have read on other forums of such offers not being accepted.

I'm worried as I'm a homeowner and don't want to lose my house. I was lucky enough to get one of those 125% mortgages 8 years ago. The mortgage was for £65,000 and I had and unsecured loan on top for £19,500 to pay off other credit cards.
In those 8 years I have cleared off £8,000 off my mortgage but my flat is only valued at about £70,000 as it has a low lease on it.
Will they be able to make me bankrupt on this debt even though I am offering to pay what I can afford or are they just scarymongering me? Has anybody else that's a homeowner had these experiences with 1st credit?

I don't know what to do if they refuse my offer

One way you could avoid being made bankrupt is offering a voluntary charge on your home.

[psn]

Re: 1st Credit Bankruptcy Petition. Please help!

Hi thanks for your reply, the debt was from 3 years ago and only recently they issued a statutory demand and most recently a letter of Bankruptcy action.

I have read that 1st Credit have been regulated now because of their bully boy tactics so not sure if they will actually follow bankruptcy through however saying that it has got to this point which leads me to think they are serious.

I was thinking about voluntary charge but I've read that they can call for order of sale anytime

[FlamingParrot]

Re: 1st Credit Bankruptcy Petition. Please help!

Hi thanks for your reply, the debt was from 3 years ago and only recently they issued a statutory demand and most recently a letter of Bankruptcy action.

I have read that 1st Credit have been regulated now because of their bully boy tactics so not sure if they will actually follow bankruptcy through however saying that it has got to this point which leads me to think they are serious.

Is there any chance you could remove your personal details and post up what you received?

I was thinking about voluntary charge but I've read that they can call for order of sale anytime

Orders for sale are seldom granted for consumer credit debts of this size. If you are made BR, it is very likely that your home will have to be sold, whilst being granted an order for sale is unlikely. There are many factors taken into account.

Is your home jointly owned?
Have you got any children living with you?
Any other family members?
Anyone ill or disabled?

[psn]

Re: 1st Credit Bankruptcy Petition. Please help!

They say that now they have provided the CCA application and terms of conditions I now have 14 days to respond as they have complied.

I could offer voluntary charge but I have heard they can apply for order of charge whenever they like so therefore is still be worried of losing my home. I have a secured loan of £19k too. (Which I got a time of mortgage) and have to other credit cards with balances of £3k. So I don't actually see what they have to achieve by making me bankrupt as all those other debts would have to be paid out of the sale proceeds of my house plus a big chunk goes to the Official Receiver.

My studio flat is only valued at £70k due to the lease in need of extending. I have a balance of £57k on the property and a force of sale meaning it would go to auction therefor not getting the market value. I don't see any sense in them petitioning for bankruptcy and at the same time very worried they still will

[FlamingParrot]

Re: 1st Credit Bankruptcy Petition. Please help!

I have posted this on another thread but you may not have seen it. You may want to consider getting legal advice. Although legal aid is not normally available for civil and/or debt matters, it is still available in cases where a creditor is making you bankrupt. You'll find more details about legal aid here: https://www.citizensadvice.org.uk/la...-legal-aid-for-

[psn]

Re: 1st Credit Bankruptcy Petition. Please help!

I will contact them tomorrow thanks for your help