Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

#167895 Hi there I am new on here and would appreciate anybody that could spare sometime to give me some advice.

After a really messy divorce and a failed business I ended up in debt beyond belief. This was some 3 years ago and the Citizens Advice Bureau put me in touch with Pay Plan and they put me on a debt management plan paying off some £40k. Needless to say the debt in 3 years has hardly dropped away it will take years to deal with.

I now have a real issue with one of my creditors who could not be included in the debt management plan. he debt is a car on finance which i no longer have and they are owed £6k. The car was taken by my ex business partner and I have no idea where he or the car is. I have tried in vain to pay the debt off but just cannot manage it. I received a default notice from them this morning and they have given me until 2nd October to pay or they will take legal procedings against me. I have no way of returning the car or paying the debt off in one go, could I offer them installments maybe?

I also have had the Royal Bank Scotland issue a default notice against me for £1000 and I need to contact them by the end of this month.

I have spoken to a company Citizens Advice recommended about entering into a trust deed which sounded good, but they wanted me to pay £360 a month which is £190 more than I am currently paying and I just cannot afford it.

To be honest I am now worried sick over the whole thing and loosing sleep over it. If anybody out there can advise me what to do next I would really appreciate it. The few times in the past I have spoken to creditors over the phone I have being bullied in to committing to payments I cannot make so i prefer to write to them (is this ok?)

many thanks to anybody that replies.
User avatar
By Yogi Bear
#167913 If you haven't still got the car, then I don't see why the debt shouldn't now be included in your DMP as pro-rata instalment payments - it's no longer a priority debt.

You definitely shouldn't let yourself be bullied over the phone into promising payments that you can't afford. It's perfectly in order to refuse to deal with creditors over the phone and to insist on having everything in writing - in fact I'd strongly recommend it! Otherwise the creditors will simply keep on harassing you for more money.

I'd suggest you get back in touch with Payplan straightaway and update them on the problems you're having.
By wdm
#168397 Is sequestration an option for you?