Discussion
Could do with some information.
A customer of mine is about £3000 in debt. The main cause of this was loss of his job and reposession of the house and moved into a council house. He managed to find a job and he has been paying small amounts off using a debt plan. However, he has now been made redundant again. It worries him over the debt and gives him sleepless nights.
What options does he have regarding bankrupcy?
Because he is unemployed, does he have to pay to put himself through bankrupcy or can he get help towards it?
A customer of mine is about £3000 in debt. The main cause of this was loss of his job and reposession of the house and moved into a council house. He managed to find a job and he has been paying small amounts off using a debt plan. However, he has now been made redundant again. It worries him over the debt and gives him sleepless nights.
What options does he have regarding bankrupcy?
Because he is unemployed, does he have to pay to put himself through bankrupcy or can he get help towards it?
I think bankruptcy is now for more than 15K, isn't the new thing the short form version. He should go to Citizens Advice but for 3K, I doubt anyones going to bother pursuing him. If debt collectors are pursuing him then he should make them do it but they won't.
Debt Collectors are Scum and they only terrorise the weakest
Debt Collectors are Scum and they only terrorise the weakest
kojak said:
Could do with some information.
A customer of mine is about £3000 in debt. The main cause of this was loss of his job and reposession of the house and moved into a council house. He managed to find a job and he has been paying small amounts off using a debt plan. However, he has now been made redundant again. It worries him over the debt and gives him sleepless nights.
What options does he have regarding bankrupcy?
Because he is unemployed, does he have to pay to put himself through bankrupcy or can he get help towards it?
A customer of mine is about £3000 in debt. The main cause of this was loss of his job and reposession of the house and moved into a council house. He managed to find a job and he has been paying small amounts off using a debt plan. However, he has now been made redundant again. It worries him over the debt and gives him sleepless nights.
What options does he have regarding bankrupcy?
Because he is unemployed, does he have to pay to put himself through bankrupcy or can he get help towards it?
Mr POD said:
Not much is it. As an ex house mate told the credit card company who he owed £15K to. "I have no assets, come and take it all", and re-negotiated to £3K, with payments that would take about 3 years to pay off.
I hope he is never allowed a credit card again, although I bet they can get one after X years.Has he been working with a debt advice service to negotiate payments? There are plenty of free services around who specialise in this kind of situation, and the biggest issue is sticking one's head in the sand and hoping it's going to be OK.
I finally contacted a local service about 2 months ago and the sense of relief is monumental - they deal with these problems every day of the week and will deal with negotiating on your behalf, leaving you free to get on with finding another job. We got our first letter today indicating that interest had been frozen and the repayment plan accepted for one of our credit cards.
I don't know the details, but I would be genuinely surprised if it's worth going bankrupt over a £3000 debt. Surely most creditors who have been kept informed would either sit tight and wait for the money to be forthcoming, or just write it off as bad debt.
I finally contacted a local service about 2 months ago and the sense of relief is monumental - they deal with these problems every day of the week and will deal with negotiating on your behalf, leaving you free to get on with finding another job. We got our first letter today indicating that interest had been frozen and the repayment plan accepted for one of our credit cards.
I don't know the details, but I would be genuinely surprised if it's worth going bankrupt over a £3000 debt. Surely most creditors who have been kept informed would either sit tight and wait for the money to be forthcoming, or just write it off as bad debt.
Don't go bankrupt for £3,000 it is definately not worth it. As he has lost his house already and sounds like he has few assets then go for a Debt Relief Order (DRO). You need to have debt of less than 15k, and NO assets or savings.
He then becomes liable for the debt for a maximum of 12 months and is then discharged from it. So for example if he agrees to pay £5 a month then that would be the case for 12 months only. DRO's are designed to help the most in need.
He then becomes liable for the debt for a maximum of 12 months and is then discharged from it. So for example if he agrees to pay £5 a month then that would be the case for 12 months only. DRO's are designed to help the most in need.
sanf said:
Don't go bankrupt for £3,000 it is definately not worth it. As he has lost his house already and sounds like he has few assets then go for a Debt Relief Order (DRO). You need to have debt of less than 15k, and NO assets or savings.
He then becomes liable for the debt for a maximum of 12 months and is then discharged from it. So for example if he agrees to pay £5 a month then that would be the case for 12 months only. DRO's are designed to help the most in need.
Cheers for that.He then becomes liable for the debt for a maximum of 12 months and is then discharged from it. So for example if he agrees to pay £5 a month then that would be the case for 12 months only. DRO's are designed to help the most in need.
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