You can pay your bankruptcy application by debit card or cash. If you are paying by card, you can do this in instalments. The payment methods are all explained in the new online application. I'm going through it in detail here as you might like to understand how this will work but don't yet want to start a bankruptcy application. If you want to know more about the rest of the bankruptcy … [Read more...]
Getting out of debt
Practical articles about the different debt options, which might work for you and different ways of dealing with creditors
Choosing a debt management company – free or pay fees?
If you want a debt management plan (DMP), where your creditors are asked to freeze interest and accept a lower monthly payment, which debt management firm should you use? This article looks at the things to consider. It is a big decision as you are going to have to deal with this company - including discussing the details of your personal expenses and income - for several years. Pick the right … [Read more...]
Joint debt – what happens when you split up?
A reader asked: "I had a joint loan, now sold off to a debt collector. I have been chased by numerous debt agencies for a few years now. The debt collectors have been chasing me solely and causing masses of stress when they should have been splitting the debt and chasing my ex partner as well. I think I have been very unfairly treated!" This is a very common problem. Lots of people think … [Read more...]
Must I tell Official Receiver what I spent money on
A reader asked if he has to give the Official Receiver details of his expenditure. If the expenditure is before he went bankrupt, the answer is "Yes, definitely - but this probably won't be in a huge amount of detail". But if he is worried about whether he has to report to the Official Receiver about his spending while he is bankrupt, the answer is "No, not normally". Expenditure before you … [Read more...]
One of the early payday loan affordability complaints in 2015
This is the story of one of the very early payday loan affordability complaints, made in September 2015. Since then there have been literally tens of thousands of affordability complaints made. All the UK payday lenders have been receiving them. four years later, in October 2019, the cost of paying refunds on these affordability complaints had forced the "Big Three" lenders tp go out of … [Read more...]
Unknown debts on your credit file
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...]
Can I add a debt to my IVA?
An IVA is binding on all the creditors for the debts included in the IVA - but what happens if a debt is accidentally forgotten at the time, or only later emerges? If this has happened to you, you are going to need to talk to your IVA firm about your situation because IVAs can be very "individual", but this article looks at what commonly can be done. First I'll look at the usual case where a … [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...]
FAQs about how your DMP may affect your partner
Debt problems come in all shapes and sizes. So do personal relationships. And debt management plans (DMPs) are very flexible arrangements. The combination of all of these means there isn't a simple answer to the question about how your DMP will affect your partner, but here I look at the most common questions people have. Will my partner's income be taken into account? In debt management, you … [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...]