A reader asked: I have recently signed up to Experian and Equifax. Experian's is what I was expecting to see but Equifax's has debts that I have no recollection of. I have taken this up with Equifax and all but two of the companies have responded by saying that the debt stands, please get in touch to discuss. Equifax say that they can’t remove anything from my report unless these companies give … [Read more...]
Bankruptcy, IVA, DRO & your credit rating
If your debts are so bad that you are going to have to choose one of the three types of insolvency, you know this will wreck your credit rating, but how long will this continue? This article answers this and other you may have about the effect of insolvency on your credit record such as Will you ever be able to get credit again? What about a mortgage? Is bankruptcy worse than an IVA or a DRO for … [Read more...]
Is your pension safe in a DRO?
You may be worried about whether your pension will be safe if you are already in, or have finished, a Debt Relief order (DRO), or if you are thinking about applying for a DRO. The 2015 pension changes mean that many people over 55 can now withdraw some or all of their pension. so what happens if you take money out? Can you lose your pension? Can you get a DRO if you have a good pension? I … [Read more...]
Will my pension be safe in a DMP?
The pension changes that came in in 2015 gave many people over 55 a new option for paying off their debts, by taking money from their pension pot. I've looked at whether this is generally a good idea in Should you use your pension to pay your debts? but in this article I focus on people who are already in a Debt Management Plan (DMP). This article is relevant for people who are over 55 (or … [Read more...]
Should you use your pension to pay off your debts?
More people than ever are retiring with significant amounts of debt. One in three people planning to retire now expects to have debts - an average of over £17,000. And annuity rates have been low for a long while, although they should be starting to rise as interest rates edge up in 2022. So with more debt to pay and their likely pension income getting less, it's not surprising that many people … [Read more...]
Is your pension safe in an IVA?
Many people who are over 55 can take some or all of their pension pot in cash before they actually retire. You need to know how this may affect you if you are considering an IVA. If you already have an IVA, you may be wondering if your pension is safe. First a warning: IVAs are individual arrangements and it is possible for almost anything to be included or excluded in the detailed terms and … [Read more...]
Repossession after bankruptcy – be careful!
What do you need to do if you want your house to be repossessed after you go bankrupt in England, Wales or Northern Ireland? Perhaps the house is unaffordable, has negative equity, or it's the wrong size for you. For whatever reason, you want to move out, are happy for the mortgage lender to repossess and may want to "hand back the keys" as fast as possible to get it all over with. The … [Read more...]
Bad credit loans to avoid
Logbook loans, guarantor loans, "pay weekly" shops such as BrightHouse - these may sound attractive if you are short on cash but have a poor credit rating or have been refused a payday loan. But this sort of debt can end in disaster if you have money problems. This article looks at bad credit loans, how they create a lot more problems than they solve and what alternatives might work better for … [Read more...]
How IVA, DRO or bankruptcy affect affordability complaints
If you have been insolvent - bankrupt, had an IVA or a Debt Relief Order (DRO) - then you need to know how this affects a claim for a refund for a financial product. You can't make a new claim for a PPI refund - the deadline for this passed at the end of August 2019. But you can still make affordability complaints and other sorts of compensation eg for packaged bank accounts. New credit … [Read more...]
A friend owes me money – what can I do?
What should you do if a friend owes you money? Perhaps you took out a loan or bought something with your credit card for them because you had a better credit rating. Or perhaps you just lent them the money. And now they aren't repaying you. It would have been better to have thought all this through BEFORE lending the money... research has shown that nearly a third of people have fallen out … [Read more...]
Do a million need payday loan compensation?
On 2nd October 2014 the Financial Conduct Authority (FCA) announced that Wonga had agreed to compensate an estimated 375,000 customers where Wonga's "affordability" checks are likely to have been inadequate. The common reactions were first that Wonga was being made an example of to warn other payday lenders and second that this was a huge number of refunds... But should many more people get … [Read more...]
Bankruptcy – will the OR make me …. ?
Debt Camel's bankruptcy information looks at the major questions most people have about bankruptcy - will my job be affected, what will happen to my house etc. There are two other types of queries that people have: concerns about their assets, which I covered in a previous article, and worries about what powers the Official Receiver has to control people's lives, which I am going to be looking at … [Read more...]
Is a DRO better than a DMP or bankruptcy?
Choosing between a Debt Relief Order (DRO) and other debt solutions is often a pretty easy choice! Let's look at when a DRO is a good option for you and what the alternatives might be. Debt Relief Orders DROs are a form of insolvency in England, Wales and Northern Ireland. For an overview of DROs, read What is a Debt Relief Order? They are meant for people who have little or no spare income … [Read more...]
Will debt collectors stop calling after a Debt Relief Order?
One of the biggest advantages of a Debt Relief Order (DRO) is that it is a formal, legal debt solution. It prevents your creditors taking any further action against you for debts that are included in your DRO: you can't be taken to court for a CCJ (or a Liability Order for council tax arrears); if you already have a CCJ, the creditor can't send the bailiffs in - and debt collectors should … [Read more...]
Inheriting money when bankrupt
A reader has asked if my recent article on redundancy payments and bankruptcy also applies to inheriting money or assets when you are bankrupt. The answer is "Yes", but there are a few extra points to consider. The date of death is the key date You become entitled to an inheritance as soon as the person has died, so it legally forms one of your assets from this point. There are three cases … [Read more...]