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

By SisterBliss
#82733 I know avoidance isn't the best option... so can anyone offer me an alternative?

I haven't paid any of my creditors for 3 years now. I owe approximately £12K to 7 different creditors. All debts are unsecured (personal loan, credit cards etc.). We are on a low income with tax credits. We don't own any property. We haven't paid anyone because we were waiting for them to give us the chance to declare bankruptcy, but this hasn't happened.

What should I do? Should I continue like this and wait til the 6 year limitation period expires? Or is there another way?
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By TalbotWoods
#82745 Hi Sis

At thsi stage you need to speak to free confidential profesional advisors, because debts ont tend to go away (especialy as the new Credit Act is about to start takeing effect)

You can obtain free and impartial advice from the following organisations (Click on the name and it will take you to the relevant home page):

PayPlan

Consumer Credit Counselling Service

National Debt Line

Citizens Advice Bureaux - please make sure you book your appointment with the specialist money advisor as many of the volunteers don’t have the necessary experience and knowledge

It is also recommended that you do this in the earlier stages, as all the services are very very busy, so patients is a must.

Talk these people they will then be able to guide you in making your decisions

Tim
By SisterBliss
#86421 Thank you for your reply. Sorry it took so long for me to come back here.. :)

I will take a look at some of the sites you listed. Right at the beginning of our problems, we got advice from the CCCS, and at the time we had no surplus income and were advised to offer £1 a month, which we did. Unfortunately nearly all of our creditors refused this offer (we have 7 creditors), and the "arsey" letters and phone calls were relentless.

This has all but stopped altogether. We only get about 2 letters/calls a month now. This is why I was considering "avoidance" as an option. However, I am not familiar with the new legislation nor do I want this to be hanging over my head for the rest of my life. We are still not in a good place financially so I doubt that the CCCS would find surplus income at this stage even with an updated personal income/expenditure calculation. I am now reluctant to communicate in any way with the creditors for fear of the mailbox/telephone harrassment starting up again. It took almost 2 years for it to cease the last time.

However, on the upside... a lot of the letters we do receive nowadays offer a substantial discount on an agreement to pay. Some are even offering to "settle" the debt for half the original amount outstanding. Believe me, if I had the money, I would bite off their hand as these offers are certainly very good. It was never my intention to get into debt and then ignore it. Circumstances just led me here, which is probably a familiar story.

I have been offered a personal loan umpteen times from a certain company who deals with people like me, and although I haven't been tempted to take it thus far, I sometimes wonder if that's my answer. Do I take the loan and consolidate at the discounted rates my creditors are offering? I currently owe around 12K, but 6K would probably cover it if I was offering prompt payment. I'm reluctant to make a decision on this, as my previous financial decisions have been quite catastrophic. :?

Any input/advice would be most welcome.

Again, I thank you for your reply. I'm glad I came here and I hope to be able to take my head out of the sand sometime soon! :lol:
By Mel_Odious
#86424 We always say that consolidation never works because many of us have been there and got deeper in debt. The reason being that once credit cards are cleared it is so easy to start using them again. Also you could borrow the 6k and then it may not be accepted by some and then you may be tempted to break into it, leaving you more in debt.
The problem with leaving the debt is that some may be passed to Debt Collectors who will do their utmost to trace you having bought the debt cheaply. There is also the chance that there may be a CCJ issued. The only way is to contact them again and offer them the token payments or indeed sit tight until the 6 years are up. It will be a worrysome 3 years though.

Mel
By JLP
#86986 In Scotland I would only recommend a face to face advisor through an advice agency, CAB or your Local Council.

try this site

http://www.moneyadvicescotland.co.uk

I know someone hasnt taken you to Court up here, but if you have decided on the Bankruptcy course, just let it run until the new laws come in in 2007. Things will be a changing
By SisterBliss
#87326 Will the new bankruptcy laws be beneficial to us in our situation?

We were originally taking that route, but as yet, since nobody has taken us to court, we haven't been able to.

I tried to read up about the new laws, but to be honest, they are a tad confusing... :? That's why I like to come here. I can ask stupid questions and someone answers without leaving me feeling stupid!... :)
By Mel_Odious
#87334 The major changes, should it copy English legislation, is that it will only last a year and not three as present and you will also be able to petition for your own bankruptcy without waiting for a charge from a creditor.

Mel
By SisterBliss
#87790
Mel_Odious wrote:The major changes, should it copy English legislation, is that it will only last a year and not three as present and you will also be able to petition for your own bankruptcy without waiting for a charge from a creditor.

Mel


Oh, that will make a huge difference to us then. That way we could petition for it right away and basically be debt-free 12 months later. I would definitely choose that option, assuming it applies up here.

When will the new law be in force?
By Mel_Odious
#87807
SisterBliss wrote:
Mel_Odious wrote:The major changes, should it copy English legislation, is that it will only last a year and not three as present and you will also be able to petition for your own bankruptcy without waiting for a charge from a creditor.

Mel


Oh, that will make a huge difference to us then. That way we could petition for it right away and basically be debt-free 12 months later. I would definitely choose that option, assuming it applies up here.

When will the new law be in force?

JLP is the expert. She is a Debt/Money Adviser based in Glasgow. The last I read from her it was to be in 2007, I'm afraid.

Mel
By JLP
#87843 Yep 2007- we are going to some meeting in October where we should get an update on whats going on so Ill post a synopsis. Apparently a Summary Warrant (non payment of Council Tax)

You could of course go to Glasgow for the day, park your car if you have one at a meter (nowhere else or they will lift your car), forget to pay the parking and youll get a ticket. You could then not pay the parking ticket, get a charge for payment and go bankrupt that way. Aparently GCC dont get the police to enforce Parking as it is a Civil Offence, so the wardens issue one.You then include it in your Bankruptcy.

I would check this out before you go down this route as I dont know if this has all changed now.I never go to Glasgow by car, as I hate driving in the bloody place.
By SisterBliss
#87859 I also never go to Glasgow by car either... it's a bleedin nightmare to drive in!!! I shall sit tight at the moment though, and eagerly await your update....

After all, I haven't paid anyone in over 3 years, so I'm sure another year wont make much of a difference.. (if any)... :roll:
By JLP
#88006
SisterBliss wrote:I also never go to Glasgow by car either... it's a bleedin nightmare to drive in!!! I shall sit tight at the moment though, and eagerly await your update....

After all, I haven't paid anyone in over 3 years, so I'm sure another year wont make much of a difference.. (if any)... :roll:


IF they havent taken you to Court in 3 years-then I doubt they will,just sit tight, if theye were going to enforce the debt they would have done it by now I would say.
By SisterBliss
#89806
JLP wrote:IF they havent taken you to Court in 3 years-then I doubt they will,just sit tight, if theye were going to enforce the debt they would have done it by now I would say.


Fingers crossed!

Thanks for all the advice. I will let you know how it turns out. :D