Traceydc - 1st Credit Bankruptcy

[Traceydc]

Re: Traceydc - 1st Credit Bankruptcy

Good morning everyone, thanks for all the replies. Sorry to sound so stupid, but does this mean with or without the CCA can 1st Credit still take some sort of proceedings against me? I plan to offer a F&F eventually, but thought if I could perhaps negotiate a lower settlement due to them being unable to enforce the debt, they may be more inclined to accept 1? Sorry to come over so silly!! Tracey

[Celestine]

Re: Traceydc - 1st Credit Bankruptcy

First Credit could very well issue you with a statutory demand for bankruptcy. If this happens you can easily defend it, probably with help from a solicitors firm if it comes to it. (at no cost)

Once served with a statutory demand you would have 21 days to apply to set it aside. It in itself does NOT mean bankruptcy but it would need proper handling.

[nemesis45]

Re: Traceydc - 1st Credit Bankruptcy

Good morning everyone, thanks for all the replies. Sorry to sound so stupid, but does this mean with or without the CCA can 1st Credit still take some sort of proceedings against me? I plan to offer a F&F eventually, but thought if I could perhaps negotiate a lower settlement due to them being unable to enforce the debt, they may be more inclined to accept 1? Sorry to come over so silly!! Tracey

1st Credit have since the option became available become quite adept at producing " reconstituted" agreements.

They have been known to use SD's as a method of debt collection and regulators have been involved in the past.

nem

[Traceydc]

Re: Traceydc - 1st Credit Bankruptcy

Thank you Celestine, I know its no excuse to be in debt, but I'm disabled & home has been adapted to accommodate my disability. I am trying to negotiate with all my creditors to hopefully clear the debt with F&Fs. These letters have just caused a lot of worry. I will copy your letter & send it to 1st Credit. I plan on sending proof of my disability when I eventually ask for their consideration in a settlement offer. If I wasn't disabled I would have paid all creditors in full, however I really don't want to risk losing my home & any possibility they may be able to push for it. Thank you for all your responses, I feel much better knowing there are steps I can take.

[Noah]

Re: Traceydc - 1st Credit Bankruptcy

Celestine
Thank you for the clarification on SD's and Bankruptcy and merging the threads , much clearer now
IMHO it is quite borderline as to what there intention is, no doubt they will argue that they are only listing the possible final outcome although I think we agree that it is clearly a threat.
i wonder how they assess ability to pay, do they use zoopla to value the property

nemesis
I had not mentioned a SD only the formal process of bankruptcy

[Celestine]

Re: Traceydc - 1st Credit Bankruptcy

Crikey, I didn't realise, I'm sorry to hear of your struggle. xxx

OK, this actually makes a difference, I settled many cases with vulnerable clients purely down to their illness and disability. Many creditors will be very supportive especially if the information is presented properly.

I'd suggest a significant addition to the earlier letter I suggested, detailing all your health worries. Enclose a doctors letter and a letter confirming your benefits entitlement. (Not how much you receive)

I'm off out for the rest of the day, but I think I might be able to help you put together a case and if need be, I'll speak to First Credit on your behalf? I have lots of experience speaking with them and they can be reasonable if we deal with things correctly.

If you like, private message me your contact details and we can have a chat?

xxx

[Noah]

Re: Traceydc - 1st Credit Bankruptcy

Tracey
Please do not blame yourself for being in debt
Remember that the whole world is in debt be it personal or as part of a national debt

Things change and people can not afford to keep up repayments
I think the fact that you are disabled and have adapted your home are very relevant
[MENTION=2]Celestine[/MENTION]
What do you think, should that be put in the letter now ?
my personal opinion is that they should know now because they should then treat you in a slightly more considerate way

[Traceydc]

Re: Traceydc - 1st Credit Bankruptcy

Would a court accept a reconstituted agreements? I have read a few conflicting posts? Sorry for ignorance, but what is SD's? what would be a probable outcome if regulators are involved? Sorry to be bombarding you with all these questions, would just like to be for warned. Thanks

[Celestine]

Re: Traceydc - 1st Credit Bankruptcy

Celestine
Thank you for the clarification on SD's and Bankruptcy and merging the threads , much clearer now
IMHO it is quite borderline as to what there intention is, no doubt they will argue that they are only listing the possible final outcome although I think we agree that it is clearly a threat.
i wonder how they assess ability to pay, do they use zoopla to value the property

nemesis
I had not mentioned a SD only the formal process of bankruptcy

Yes it is entirely possible that it is an empty threat presented as a range of options they could use to enforce. Unfortunately, I have a feeling First Credit are viewing the increase in the threshold as an opportunity to BR 5k+ debts.
I used to work as a consumer credit litigator and we saw hundreds of Lowell/Cabot/1st Cred stat demands which we easily set aside in every single case. As the rules tightened most DCAs stopped using SD's and BR, but there is no doubt at all that it certainly gets the debtors attention.

In this case, setting it aside (IF that happens) would be extremely easy, but hopefully we can avoid any of that happening in the first place.

[Celestine]

Re: Traceydc - 1st Credit Bankruptcy

Would a court accept a reconstituted agreements? I have read a few conflicting posts? Sorry for ignorance, but what is SD's? what would be a probable outcome if regulators are involved? Sorry to be bombarding you with all these questions, would just like to be for warned. Thanks

Highly unlikely on a 2004 agreement, they'd really need to find a proper copy with the correct T&Cs.

SD = Statutory Demand (the 1st step of bankruptcy proceedings)

No need or likelihood of regulators being involved at all.

[Noah]

Re: Traceydc - 1st Credit Bankruptcy

SD=Statutory demand and is a step in the process of making your bankrupt
If you receive one you will know as I believe it has to be hand delivered and quite clear

When was the account opened
A court will accept a recon as a reply to a cca request however if it is pre april 2007 they would also need to prove on balance that you signed such a document

[Traceydc]

Re: Traceydc - 1st Credit Bankruptcy

I know I keep saying this, but thank you all, really, really grateful Tracey

[Traceydc]

Re: Traceydc - 1st Credit Bankruptcy

Account was opened 2005, its balance stands at 6049, it was suggested I pay 1040 to bring it below 5000? I was hoping to offer this as a F&F to them. Thanks everyone for clarifying the various abbreviations, I really am naïve when it comes to all this!s

[nemesis45]

Re: Traceydc - 1st Credit Bankruptcy

Account was opened 2005, its balance stands at 6049, it was suggested I pay 1040 to bring it below 5000? I was hoping to offer this as a F&F to them. Thanks everyone for clarifying the various abbreviations, I really am naïve when it comes to all this!s

Don't send any money until you have their written agreement to the F&F.

nem

[Traceydc]

Re: Traceydc - 1st Credit Bankruptcy

Dear everyone. Just a little update on my situation. Thanks to Celestine's help & being my advocate, this case has been totally turned around. I am no longer worried about the outcome as Celestine has taken it all away!! Thank you so much Kate, I really don't have the words to express my gratitude enough! So glad I was directed to the site, you have achieved more in a few days, than my DMC achieved in 10 years!! Sorry to repeat myself, but THANK YOU!!!!!!!! Stress free Easter, 1st in a long, long time. Happy Easter everyone Tracey xxx