What can I do?

[jackie1]

Hi I have a debt bank loan for £13.000, I recently moved and have not told them my new address as yet. I am afraid, I was working fulltime with 4 children and im single. I became sick thus took time off to spend with my kids and try to get better. I wrote to the bank and they allowed me to pay £5.00 per month, (for a short period), but they were calling my home at least twice a week. Now im afriad that I have broken that condition, moved and dont know where to turn. Can they send baliffs to my new home? Oh I also got advice from CAB - which was why they dropped payments to £5.oo. What can I do?

[MelanieGiles]

Hi jackie and welcome to the forum

If this is your only debt, and you are happy to pay off relatively small amounts just to stop the collections procedure, then you should tell the bank of your new address and re-commence payments to them.

You might also want to consider bankruptcy proceedings of all you can afford is £5 per month, as the debt will just continue to grow as ongoing interest is levied. A shame to have to do this for a relatively small sum, but it would remove the debt for ever and you probably would not pay any contributions by way of an Income Payments Order.

Are you a property owner or do you rent?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jackie1]

Hi, I do not own property, Im renting at the moment

[MelanieGiles]

So if you have no assets which would be at risk from bankruptcy proceedings you may wish to consider this - or perhaps try a Debt Relief Order when these become available in a few months time. They have the same effect as bankruptcy, but do not cost anything to propose and relate to debts of lower than £15,000.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jackie1]

Do you think I should contact the bank to ask if I can continue making minimum payments and sit tight for the Debt Relief Order Remedy. Also can they send baliffs to myhouse, Im in a real stress state and on antidepresants. Thanks for all you time and well apreciated advice, thank you.

[MelanieGiles]

Yes - I would start up the payments again, as at least these ought to stop the reminder letters and threats of ongoing legal action. Bailiffs will only become involved if they get a Court Order against you, so by offering ongoing payments this should be avoided.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[pdd]

One thing that has amazed me is how long the banks are prepared to write letters in an attempt to retrieve their money. I had a substantial debt over 25 creditors and stopped paying them in January. By the end of August (when my IVA was approved) I was still receiving threatening letters, but no one came knocking on the door and I didn't end up with a CCJ.

The letters all say that they "may" take legal action in x number of days or "may" consider a home visit, not that they will. From my (limited) experience in this it seems that they would be reluctant to take this action unless really pushed into it. I also think that by keeping them informed (via letter) that they will not hasten towards using baliffs.