Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By swifty
#224740 Today I had a Field Agent serve me with a letter for Statutory Demand for Bankruptcy, he then called the debt recovery firm on his mobile and passed the phone to me.
After confirming who I was they said they the full amount is now due (£5165.06) and how would I like to pay it, I told them that I have no money as I am currently unemployed.
They said I have 18 days to send them a letter with my incoming/outgoings listed on it otherwise they will go to the County Court for a bankruptcy petition against me.

They also said that in 2007 I made a payment to them,I told them that I have paid nothing and that the debt goes as far back as Feburary 2005.

Not sure what I should do from here, I along with my wife do own our home but like I said earlier I have no job at the moment as I've just lost my job so all money we get is put aside to pay the mortgage.
I know the bank where the debt originated from handed over the account to the banks Debt management team on or before 01/02/2005, this is the date on the letter from the bank that I have kept.
I did not let the Field Agent into my property and I didn't sign anything.
Can anyone tell me what options are open to me and how I should address this please.
By nomlas
#224743 I am no expert on BR procedure and I am sure someone will be along to offer more detailed help. However you were right not to sign anything; the debt is nearly Statute Barred. Is the debt a credit card or unsecured loan? If so you can dispute the debt and request a true, fully executed copy of the Credit Agreement, cost £1, they might not be able to produce it and then all is well. You can also demand a Subject Access Request, it will cost ten pounds and the bank will have to supply all their records they hold of you. Their debt total will probably be more than your own records, you can dispute everything.

If you do decide to dispute the debt I would write recorded delivery, do not speak to them by phone, and clearly state that the £1 payment, use a Postal Order, is for the cost of producing the copy and not to be taken off the debt as that would start the clock again, likewise the SAR. You need to go on the attack if you do not want to go to court.

There are lots of template letters for CCA requests on here, if you need help just ask. Regards. -- nomlas
By squeek2211
#224746 Nomlas,
When I went to the CAB about my debt, I showed the letters I had done to send to the catalogues etc to prove the debt basically with their signed credit agreement, he told me there was no point as that didnt stand for anything anymore and whether they could or couldnt produce it, it didnt make an ounce of difference to the debt I owed.

Sarah
By nomlas
#224747 There is a lot of confusion about credit agreements as the recent ruling by Judge Waksman at Manchester states a reconstructed copy will suffice. However he also states that where the debt has been varied, and most if not all credit card debts have, then the debtor is entitled to see a copy of the original he/she signed, he also says it must legible. So in my opinion if the debt is a credit card then they must supply a true, fully executed copy if swifty decides to request one.

I would not take everything the CAB tell you as gospel, I dont like to criticize but I have found a lot more on here and other sites than from them. A friend of mine went to see them about a Debt Relief Order and was initially told there was no such thing! We downloaded info off here and went back, even then it took another appointment before he could see anyone who could help. I am not sure about catalouge debts but I would still think you would be entitled to see a copy of anything you had signed even if it is reconstructed. Any DCA could just come up with a figure and demand payment if nothing was required to back it up. Regards. -- nomlas
By swifty
#224750 The debt was run up on an advantage gold account, it was for £4100 in total.
There was a lot of bank charges included in the total amount, some bank charges where added on because of previous bank charges.
If my memory serves me right I think all the bank charges and interest from the original £4100 debt was around £1000 to £1200.
User avatar
By JaneClack
#224752 Do remember Squeek you are talking about Scotland too where thing may be different - and you yourself have said you have had some duff advice from CABs and an original IP.

It has often been proved - certainly this side of the border - that catalogue debts are unenforceable and often because there is no signed agreement.

Nomlas is giving some sound advice and the OP has been served with a stat demand so does need to take action. Remember there is only 17 days to reply to a stat demand IN ENGLAND AND WALES - it may be different in Scotland but this is not in the Scottish section. After 21 days the creditor could then petition for his bankruptcy.

OP - do you own your property? Is there a lot of equity in it as this would influence responses.

I would also say to get on the telephone to National Debtline, Payplan or CCCS with this question. It's free and they will be able to talk you through options.
By nomlas
#224753 swifty, Is the debt now with a Debt Collection Agent? If it is they have bought it for peanuts and are trying to cash in big style. Also is it an actual Statutory Demand or a threat of one? I would think that as they are giving you time to supply an income and expenditure list it is a threat of one.

I think you most certainly have grounds to dispute this, for one thing the figures need to be explained in the form of statements. I would definitely hit them with a CCA request. Can not stress enough about communicating in writing only (recorded), do not talk to them other than to state you have taken advice and been informed that you are within your rights; just put the phone down on them. Regards. -- nomlas
By swifty
#224754 There's about £95k owed on the house and the way house prices have dropped since last having the house valued at £105 (2 years ago) I would say it's probably less than what's owed.. :(

What's bothering me the most "well I say bothering me, I mean annoying me" is the issue with the payment in 2007 they say I made.
I know for a fact the I made no payments!
Come to think of it the debt recovery firm 'CapQuest' took over the account on the 30th October 2007
By swifty
#224755
nomlas wrote:swifty, Is the debt now with a Debt Collection Agent? If it is they have bought it for peanuts and are trying to cash in big style. Also is it an actual Statutory Demand or a threat of one? I would think that as they are giving you time to supply an income and expenditure list it is a threat of one.

I think you most certainly have grounds to dispute this, for one thing the figures need to be explained in the form of statements. I would definitely hit them with a CCA request. Can not stress enough about communicating in writing only (recorded), do not talk to them other than to state you have taken advice and been informed that you are within your rights; just put the phone down on them. Regards. -- nomlas


It's a threat of Statutory Demand so far but I have been recieving the same letter off them theatening this since 2007, this is the first time they've send an agent around to hand deliver the letter.
By nomlas
#224762 Threat of Stat Demand: -- Then you have a lot less to worry about. If you send in a CCA request also state that you require a full set of statements which will show details of the "payment" in 2007. If the agent returns he has NO RIGHTS WHATSOEVER. Dont speak to him other than telling him to immediately leave or you will call the police. They might very well not be able to produce a CCA and in any case it will buy you time. The time limit they have given you is hogwash, however I would not ignore this matter as you have a House. I must say you have been playing a rather dangerous game in not paying anything for all this time when you were working and own a house. Regards. -- nomlas
By swifty
#224829 OK! What I intend doing is sending them the CCA request 'recorded delivery' on the 19th August (14 days after receiving my hand delivered letter), they should receive it by the 23rd which is when my 18 days are up.

I'll keep you informed as soon as I hear something

Thank you for all the help guys :mrgreen:
By swifty
#226843 UPDATE

I received a letter today from CapQuest, it read-

"We are in receipt of your request for documentation under section 77 of the Consumer Credit Act 1974 which was dated 21 August 2010, and can confirm that the documents have now been requested from National Westminster Bank Plc and will be forwarded to you as soon as we are in receipt.

I note from your letter that you require information regarding your account history and can confirm that data of this nature is generally provided under a Subject Access Request for which there is a fee of £10.00. If you require such information kindly forward this fee and your request will be dealt with as a separate issue to that of your Consumer Credit Act request."

Now I thought the £1 postal order I sent off with my CCA request would cover all of the above mentioned, the fact that they already have the information on of my account to hand sounds a bit suspect to me.
Are they hoping that I won’t send them the £10 so they don’t have to dream up an alleged payment in 2007?

Does anyone have any insight into how these people work and what are they up to.


I NEED ADVISE ON WHAT TO DO NEXT PLEASE