Traceydc - 1st Credit Bankruptcy

[Traceydc]

Hi everyone, sorry to butt in on your thread Crystal, but I have been receiving letters from 1st Credit myself, threatening bankruptcy proceedings. My debt is 6000, taken out 2004, defaulted 2005. I have requested CCA in October last year (2015). They sent a letter stating they have not located documents & collections are suspended until they can comply. However, they are now bombarding me with letters threatening bankruptcy. They have told me they are aware I have a mortgage, as I was using a DMC & they believe I have sufficient means of clearing the debt.. My questions are can they force this threat without a CCA?, is it correct that because the debt is over £5000 they can pursue it in court? I have made no payments since they haven't provided the CCA. I am very confused as to what " suspended payments" actually means!!!! any advice will be gratefully received, thanks

[Traceydc]

Bankrupcy threat 1st credit

Hi everyone. apologise for repeating myself or other posts! I have been receiving Bankruptcy threats from 1st Credit. I requested my CCA last October & they said that the account will be suspended until they could comply. I ceased payments with the hope I may be able to offer a low as possible F&F, due to the fact I have other creditors & a small amount of money to play with (PPI redress). My questions are can they push for Bankruptcy without CCA?, is it also correct they can pursue this course of action due to the debt being over 5000 (it stands at 6000). I have been making payments through a DMC since 2005, but stopped in October when they didn't produce documents. Any info, advice will be so gratefully received, another possibility may be bringing the debt below the 5000 to avoid them going down the court route? I was hoping they would accept an offer for F&F for this amount to be honest. Thanks

[Celestine]

Re: Bankrupcy threat 1st credit

What exactly have they said about bankruptcy? Have they included it in a 'range' of threats or specifically said BR?

And no, they cannot bankrupt you with an unsatisfied CCA outstanding....but it would need defending vigorously, they love consumer ignorance.

[Traceydc]

Re: Bankrupcy threat 1st credit

Hi Celestine, the letter is headlined "Review for Bankruptcy Proceedings" & is as follows
We are committed to working with our customers who engage with us. However if we are unable to establish contact with you, we may look to initiate further proceedings.
We note that you are currently a homeowner and so believe you have sufficient means to begin repayment of this debt. As we do not have a repayment plan in place, we may soon pass your account to our internal legal department for review, the outcome of which may ultimately result in Bankruptcy proceedings being issued against you.

[Celestine]

Re: Bankrupcy threat 1st credit

Hmmm , so it does seem as if First Credit are resurrecting their bankruptcy approach for consumer credit debts over 5k.

This needs a written response.

Dear First Credit

I am in response of your letters dated X/Y/Z and I am disturbed to read that your company is considering bankruptcy proceedings against me in regard to account no: XXXX.

This account has been in formal dispute since your firm failed to comply with my Consumer Credit Act 1974 request sent on XX/10/15. In response to that request, your firm stated on XX/XX/XX that it would 'put the account on hold until the CCA request had been complied with'. Given that the request is still very much outstanding therefore I am very concerned that your firm intends to review my account for bankruptcy action.

If First Credit persist in this unwise course of action then I shall take further legal advice but in the meantime I draw your attention to this judgment of Mr Justice Warren in the High Court in the case of Hammond (a firm) v Pro-Fit USA Ltd [2007] EWHC 1998 (ch) at Para 27.

"27. So far as disputed debts are concerned, the practice of the court is not to allow the insolvency regime to be used as a method of debt collection where there is a bona fide and substantial dispute as to the debt. Save in exceptional cases, the court will dismiss a petition based on such a debt (usually with an indemnity costs order against the petitioner)."

Clearly there is a substantial and bona fide dispute regarding this debt and therefore any attempt by your firm will be vigorously defended by instructed solicitors with expertise in this area.

I now require written confirmation that your firm will desist this course of action and update me on a likely timescale for compliance with my CCA request made last October.

Yours sincerely

[Traceydc]

Re: Bankrupcy threat 1st credit

Thank you so much Celestine! They have been persistent to say the least!! I am more than happy to resume any payments should they comply with request, but they are trying to be heavy handed, especially since stating the account is effectively on hold. Thank you again

[nemesis45]

Re: 1st Credit sent Bankruptcy proceeding being considered letter ....Please Help !!

Hi everyone, sorry to butt in on your thread Crystal, but I have been receiving letters from 1st Credit myself, threatening bankruptcy proceedings. My debt is 6000, taken out 2004, defaulted 2005. I have requested CCA in October last year (2015). They sent a letter stating they have not located documents & collections are suspended until they can comply. However, they are now bombarding me with letters threatening bankruptcy. They have told me they are aware I have a mortgage, as I was using a DMC & they believe I have sufficient means of clearing the debt.. My questions are can they force this threat without a CCA?, is it correct that because the debt is over £5000 they can pursue it in court? I have made no payments since they haven't provided the CCA. I am very confused as to what " suspended payments" actually means!!!! any advice will be gratefully received, thanks

Good afternoon, welcome to Lb,

The threshold for BR has been raised from £759 to £5K to prevent the threat of BR being used as a means of debt collecting when small amounts are concerned.


I will ask LB admin to start a thread for you then you will specific advice for your case.

nem
[MENTION=49370]Kati[/MENTION] could you assist with a new thread for Traceydc

[Kati]

Re: 1st Credit sent Bankruptcy proceeding being considered letter ....Please Help !!

@Kati could you assist with a new thread for Traceydc

sorted

to LB [MENTION=73424]Traceydc[/MENTION] xx

[nemesis45]

Re: Traceydc - 1st Credit Bankruptcy

Thanks [MENTION=49370]Kati[/MENTION] nem xx

[Noah]

Re: Traceydc - 1st Credit Bankruptcy

You say that they are threatening Bankruptcy
have the said exactly that or just listed it as one of the options

Have they issued a statutory demand?

[nemesis45]

Re: Traceydc - 1st Credit Bankruptcy

You say that they are threatening Bankruptcy
have the said exactly that or just listed it as one of the options

Have they issued a statutory demand?

If you read post #1 Tracey says " Threatening".

[Noah]

Re: Traceydc - 1st Credit Bankruptcy

Yes but as you should know these types of letters can and do often threaten a series of options including bankruptcy

Without the CCA they can not get a BR order however it would be easier to not have to fight it

I would suggest a letter back reminding them that they are in default of a CCA request and that any claim would be defended

[nemesis45]

Re: Traceydc - 1st Credit Bankruptcy

Yes but as you should know these types of letters can and do often threaten a series of options including bankruptcy

Without the CCA they can not get a BR order however it would be easier to not have to fight it

I would suggest a letter back reminding them that they are in default of a CCA request and that any claim would be defended

When the op has provided more information further response can be made.

[nemesis45]

Re: Traceydc - 1st Credit Bankruptcy

Yes but as you should know these types of letters can and do often threaten a series of options including bankruptcy

Without the CCA they can not get a BR order however it would be easier to not have to fight it

I would suggest a letter back reminding them that they are in default of a CCA request and that any claim would be defended

Absolute rubbish a Statutory Demand can be issued without resort to any court!! As you should know!!

nem

[Celestine]

Re: Traceydc - 1st Credit Bankruptcy

Threads merged.
A Bankruptcy order and a statutory demand are two separate parts of the process. A stat demand can be issued without notice but a BR order would not proceed if the lack of CCA was used to challenge.

Be nice.