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sophie
Starting Member

16 Posts

Posted - 11 April 2011 :  10:58:55  Show Profile
this year i started getting letters from capitol one for unpaid payments on a credit card which i ignored, i thought they would go away! i started using an old bank account in my name which i assume alerted them to me.

about four years ago i took out about 4 credit cards and used up all the credit on them, i moved a couple of times and they lost touch with me. i dont remember who they are with or how much now as i didnt keep any paperwork although they would have been sold on. just recently i have had letters from capitol one and now it has been passed on to Red collection services.
i live with my partner in his house and do not own a property or have any asessts. i do not have a job and with the economic situation as it is will find it hard to.

i really dont know which way to turn, if i respond to them will i alert the other companies? i know i have to do something but really need some advice and i know it is not moral but i am desperate here!
any one out there!

Amy Jellings
Debt Diva Expert



110 Posts

Posted - 11 April 2011 :  11:23:16  Show Profile
Hello sophie and welcome to Debt Divas.

I can understand why you will be worried about this situation. I have a couple of questions for you that will help us to make some suggestions to you about possible courses of action.

How much do you think you might owe in total? I know this will be difficult if you have not received statements... perhaps let us know how much you borrowed originally if that's easier.

Could you let us know who the other creditors are?

Are you in a position to pay anything towards the debts at the moment do you think?

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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sophie
Starting Member

16 Posts

Posted - 11 April 2011 :  12:23:14  Show Profile
thank you for the reply!
the capitol one debt is for $4049.67. After i took the cards out i repaid them for a few months and then when i moved i threw away all relevant correspondance so do not remember how much and to whom the debts are for. i do remember that there is a barclaycard, halifax and santander and at least another one. the possible total amount could be around ?25 - 30,000, i would think that that figure is the least it would be. i would not be able to pay anything off that figure as i have no income.
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 11 April 2011 :  13:04:21  Show Profile
Hi sophie.

I think that the fact that Capital One have located you is likely to mean that your other creditors may do so at some point as well. Such companies can employ "tracing agents" who specialise in this. They're especially likely to do this over the next couple of years as the debts might become uncollectable if there is no contact between them and you for a period of six years.

If the whole situation is worrying you, you cannot pay anything to the creditor that has located you, and you would not be able to pay anything to the other creditors if they do find you, you may wish to consider dealing with the situation in a direct way.

Given the debt total, your lack of income currently, and your lack of assets, it would seem as though bankruptcy might be the only way to do this. However I would say that you shouldnt make any final decisions without seeking out detailed advice from a debt adviser first.

The alternative could be to explain to your creditors that you simply aren't in a position to repay the debts currently. There's actually not much that they can do to you given your circumstances, though of course the situation will remain "out there" for you pending any change in your circumstances (or a decision to deal with the debts directly through a measure such as bankruptcy).

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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sophie
Starting Member

16 Posts

Posted - 11 April 2011 :  13:46:38  Show Profile
thank you amy,
i have changed my address for the bank and mobile phone although i am aware that this is not the answer in the long run. as i havent replied to capitol one how do i make them aware that my address is different?
i will make an appointment with CAB to go through possible options. i am concerned about going bankrupt, the process is very worrying, i have thought about IVA what are your thoughts on that although the length of time for the completion is fairly long, 5 years i understand.
many thanks again, sophie
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 11 April 2011 :  15:02:04  Show Profile
Hi sophie.

If you aren't in a position to make payments towards your debts every month an IVA simply will not be available I'm afraid.

You are right that they often last for five years.

Even if you were in a position to pay towards the debts, payments in bankruptcy would be for three years normally.

The bankruptcy process seem very intimidating to many people. However the more you read about it, and perhaps discuss it at your CAB appointment, I think you'll find that the reality of it is nowhere near as bad as the perception that many people have.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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sophie
Starting Member

16 Posts

Posted - 11 April 2011 :  17:48:24  Show Profile
me again!
it is very comforting knowing that there is someone out there to ask questions to.
i am phoning CAB tomorrow, they were closed today, and make an appointment with them, i will let you know how i get on!
i always assumed that when made bankrupt ALL the debts were written off, from your previous answer it seems that this is not the case - what is it?
thank you for your help again
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 11 April 2011 :  18:21:11  Show Profile
Hi sophie.

All debts would be included in a bankruptcy.

As part of the process an assessment would be made as to whether you can afford to make monthly contributions which would run for three years if they could be afforded.

It sounds as though, from the information that you have given us, that no such payment would be required unless your circumstances imporoved.

Any such payments would go to the Trustee supervising your bankruptcy rather than directly from you to any of your creditors.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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sophie
Starting Member

16 Posts

Posted - 12 April 2011 :  15:57:01  Show Profile
hi amy,
i went to CAB today to see which way to turn! the advisor had a very good listening ear although it was only a preliminary meeting. i was surprised that even just talking it through made me feel a bit better! i have applied for a credit report on myself to see what the debts are and to whom although this takes a few days to get together.

i have also been in touch with a couple of friends as regards to work, one said a while ago that she was sure she could get me some work where she is.

do you think that the debt company who are writing to me would take a one off payment, and if so how much should i offer? or have i left it too late?

i know this is just the tip of the iceberg but its a start, i think this is the best option for me as i dont want to bring my partner into this, although financially he is solvent, he works from home and doesnt declare anything although to be honest he earns such a small amount each week that his payments would be negliable.

do you think i am going to go down the right track here amy?
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 13 April 2011 :  09:16:40  Show Profile
Hello sohpie.

I'm glad that your meeting went well and has made you feel better.

Any creditor may be willing to accept a settlement if you are in a position to put together a lump sum.

It's hard for me to say whether you are going down the right track or not without fully understanding your circumstances. I would hope that the CAB adviser will present all of your options to you and detail the positives and negatives associated with each.

Hopefully that will leave you in a position to make an informed decision when you are ready.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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sophie
Starting Member

16 Posts

Posted - 13 April 2011 :  16:27:39  Show Profile
hi amy,

just to let you know that today i have written - although not posted - a letter to the debt collectors asking them for a settlement figure or token payments.i have given them another address for correspondence so as to take them away from here.
i did not give them an incoming/outgoing breakdown which i know they will ask for but i am stalling them for a bit of time. i dont know what the outcome will be but i hope that they will be co-operative with my circumstances.
i feel like my head is going to explode, if i dont get a helpful response from these people than i dont know what to do.but can only take this one step at a time, is this the right way to do this amy as i am not posting this letter yet!
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 13 April 2011 :  17:00:41  Show Profile
Hi sophie.

It's really not possible for me to say what the right thing for you to do is I'm afraid. All of the options have pros and cons attached to them that you need to weigh up. For example:

Token payments may help to remove the pressure temporarily pending a change to something more concrete later. In themselves however they offer little more than a "holding" measure.

Settling this particular debt may be useful for you assuming that you have the means to do so. However the other debts will remain out there and could catch up with you at any point.

Do you have a lump sum available to use for settlements?

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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sophie
Starting Member

16 Posts

Posted - 13 April 2011 :  17:07:04  Show Profile
yes i do, although you could say it belongs to the credit cards as i borrowed from them - i have about 15,000.
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 13 April 2011 :  17:31:33  Show Profile
Was the money borrowed with a particular purpose in mind sophie?

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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sophie
Starting Member

16 Posts

Posted - 13 April 2011 :  17:40:49  Show Profile
i dont know amy, they are all credit cards, with the possibility of one that might be a bank loan. i am sorry that i cant answer this properly but really cant remember the amounts or to whom.
i think though that with the credit cards i just took them up to the limit.
and i think that i should say, now i have looked at it, that i took rather than borrowed. im being truthful here!
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 13 April 2011 :  18:40:20  Show Profile
Thanks sophie, I appreciate you being so open about this. So, just to confirm, the run of events was that around four years you ran up the balances on a few cards (and perhaps a loan), some of that money was saved at the time, and around ?15000 remains available to you in a savings account that is under your control?


Amy Jellings
Bright Oak
Debt Advice & Debt Management
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