avoid bankrupcy

[freelili]

Would anyone mind me asking a question here?

One of my creditors was paid off as they were hassling me at the door and in the street, I did complain but the embarrasment in the close where I live was too much for me. Its a really quiet area and I just couldnt cope with it. I am sure this is creditor preference but what does this mean and how does it affect a debtor?

LILY

I asked God for a solution and have to live with his reply.

[MelanieGiles]

Hi Lily

I do not think that any Trustee would even contemplate pursuing a preference against this creditor, as I imagine the amount involved was relatively small and you effected the transaction under extreme duress.

Preferences are only really pursued if the amounts are large, with the transaction being effected in favour of a connected party - ie if you owed your brother £20,000 and paid him by borrowing monies from the bank and then declared yourself bankrupt. The action taken by the Trustee would be to recover those monies from your brother - you would largely not be involved.

Hope this makes sense.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

Yes thank you, it does, not that I am planning to go BR but I just worried that I had done something wrong.

LILY

I asked God for a solution and have to live with his reply.

[go_4_broke]

Andy - Yes, if you can pay off before the relevant date so much the better then as Melanie says the petition will fail anyway.

Lily - I think what you experienced was potentially illegal harassment and if it happens again consider contacting the police - although whether they would do anything about it is another matter.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[Adam Davies]

Hi
Just to remind everybody that under the consumer credit act 2006 as from 6th April this year any complaint that you make to the FOS [financial ombudsman services] will cost the creditor a minimum of £400 and complaints can include "intimidating tactics "
Have a look at Storms post dated 02/04 in the serious discussion section under"agressive credit and nasty phone calls"
Heres a part of it
"The industry is concerned that this will lead to complaints against creditors and debt collectors for use of unfair and intimidating tactics against debtors and possible suspension of Consumer Credit Licences if complaints escalate."
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[freelili]

Hi Andy

I did read storms post, I did complain and had a letter of appology. However the following weeks the caller stared at me and I used to dread leaving the house on a Monday morning, I was really ashamed to have borrowed money from this source, it was a first and most certainly the last. I just had to pay it off and it was such a relief to do this.

LILY

I asked God for a solution and have to live with his reply.

[go_4_broke]

Hi Lily

Well the most important thing is that you have done the right thing by yourself and resolved the problem.

Would it be right to assume this was a 'doorstep lender' type organization ?

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[freelili]

That is correct G 4 B.

I felt really bad as I had never done anything like this before, but at the time I was desperate and I really hadnt realised the extent of my mess. To be fair the company were OK and sent me a letter of appology. I was really scared of the agent.

LILY

I asked God for a solution and have to live with his reply.

[go_4_broke]

Thanks for that Lily.

These reason I asked that was because if it was, proving harassment against them would have been difficult even under the new legislation, as there is an expectation they will be 'on the doorstep' in the normal course of business - this being not true in the case of say, a credit card lender.

I think the agents often work on a comission/self-employed basis so stand to lose personally if a debt is defaulted, which is why the company can take a sort of good cop/bad cop approach.

All in all good reasons to get shot of them as soon as possible - another one of course being the eye-watering rates of interest they charge.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[andy.m]

Can things get any worse?

We finally have been served out bankruptcy docs. The hearing is on the 15th May as originally suggested.

We have scrimped and saved money to pay the debt to avoid bankrupcy but hopes have been smashed on receiving details of the costs for the bankruptcy petition.

Original debt - £2700
Debt after stat Dem £5200
Debt after bankrupcy petition £10300

We expected charges but nothing like this! To be honest, as niave as it sounds, we thought that the £5200 were the final costs and duly arranged the money. An extra £5000 leaves unable to settle and in a mess. To top things off - my mother in law is abbout to pass away with terminal cancer following my mums passing in Feb with the same illness. Battling both of these and this bankrupcy thing is starting to take its toll!

Any advice appreciated.

[freelili]

Hello Andy

I always thought that if a creditor files for your BR they have to bear the costs. Your situation seems very unfair, I would take advice on this.

Secondly, I am really very sorry about your loss and your mom in laws illness, this must be a very difficult time for you. I feel for you both, I really do.

Best wishes

LILY

can it be, I am forever loved and you are watching over from above, isnt faith believing all power is not seen?

[Skippy]

Andy, as Lily says please take advice on this. I too thought that your creditors would bear the cost if they are making you BR.

I so sorry to hear about your mother and mother in law - I'm not surprised that everything is taking it's toll on you. I know it's easier said than done, but please try and take some time for yourself and your family.

Good luck x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[andy.m]

Many thanks Lily.

To be honest, we are barely over my mothers death (valentines day), and are now facing the loss of my partners mother.

We thought we had come through the 'darkside' re the bankruptcy. We had raised the sum quoted on the Stat Dem and were looking to settle the amount. To say we are stunned that we have now accrued a further £5000 in costs is incredible, you try to sort things out and everything seems to be in place to oppose you. There is now no way we can raise the said amount by the 15th and look certain to add the house to our other loses this year.

[freelili]

Mark

Please take advice, I am sure this is wrong.

Believe me I know what youre going through with the death of your mom, without the added mom in laws illness. Please dont despair just now, I am sure creditors are not allowed to pass the cost of BR to you as they filed for it and they must bear the cost. You may be able to get a free half hours legal consultation. I know its hard to face anything when you are so full of grief and loss. It seems the world is against you. Please try to get this advice as soon as possible.

Thoughts are with you and your family

LILY

can it be, I am forever loved and you are watching over from above, isnt faith believing all power is not seen?

[andy.m]

You may be able to get a free half hours legal consultation.

How does one go about sorting something like this out, other than buying a house I have no experience of the legal world.