A couple of readers have asked recently about whether it's sensible to turn down a job or overtime when you are bankrupt. Two things matter in this sort of situation. First, have you been discharged from bankruptcy? Almost everyone is discharged from bankruptcy after a year. And secondly, do you have an Income Payments Agreement (IPA) set? In an IPA, you have to make monthly payments for … [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
Overtime, bonuses & pay rises – what happens in an IVA
A reader asked about a friend who is looking at an Individual Voluntary Arrangement (IVA): Mr X is 23 and owes just over 10k on various credit cards and loans. He earns £20k and hopes to get a £10k bonus this year. The IVA firm says the bonus doesn’t matter as it's not guaranteed. But won't the IVA take half of it? Would it be better if he got a job with a larger basic salary and no bonus, or … [Read more...]
Should I end my IVA and change to a DRO?
In 2024 the Debt Relief Order (DRO) rules have been relaxed so a lot more people qualify. For example, the maximum limit of debts in a DRO has now been increased to £50,000 and you can also own a car worth up to £4,000. Will you now qualify for a DRO? If you are in an IVA, you are renting and your IVA payments are less than about £120 a month, you may be much better off switching from an IVA … [Read more...]
How does a payment arrangement work & is one right for you?
A typical payment arrangement is an agreement to repay a credit card, catalogue or loan in affordable monthly amounts. This is also called an arrangement to pay. You can ask a lender for an arrangement to pay, or a debt collector. The key points are: an arrangement is needed if you can't afford the normal debt repayments; do not offer more than you can afford; ask the lender or … [Read more...]
Bankruptcy timeline – what happens & when?
This bankruptcy timeline shows WHAT is likely to happen and WHEN if you go bankrupt in England, Wales or Northern Ireland. Some of the times are fixed - the bankruptcy marker is definitely going to drop off your credit file after six years. Others are less definite, but the indications in the timeline here should be right for a large majority of the people who go bankrupt. Take the decision … [Read more...]
No set off in a Scheme/Administration when debt had been sold?
In 2021, the Instant Cash Loans (ICL) Scheme Arrangement, Money Shop, Payday UK and Payday Express customers whose debts were sold to PRAC Financial (PRAC) have not been given set-off between their ICL redress and the loan they still owe. The same situation could occur with other Schemes of Arrangement and other debt collectors. In 2022, it seems to have happened to some Provident loans that … [Read more...]
Doorstep lending – a template letter to ask for a refund
UPDATE: The Morses Scheme has failed. See Morses - what is happening to loans and refunds UPDATE: in March 2022, Loans At Home went into administration. There is no money to pay any refunds. Any remaining loans have been written off and you should not make any payments to them. UPDATE: The Provident Scheme has now closed and it is too late to make any Provident complaints.Doorstep lending - … [Read more...]
Will my bankruptcy application be refused?
"Can I go bankrupt?" is a very common question. People worry that their bankruptcy application will be rejected because their debts aren't large enough. Or the Official Receiver will say they should repay the money they owe. Or that they don't meet the legal criteria. Or they have just borrowed some money. But less than 1% of bankruptcy applications are rejected by the Insolvency Service, … [Read more...]
No calls or letters about a debt for years?
If its been several years since you stopped paying a debt and you haven't had any phone calls or letters for a long while, you may be hoping your debt has "got lost". Perhaps the debt collector has forgotten about it... Mr H has a typical situation: I stopped paying a loan at the start of 2016 when I lost my job. I have a Default on my credit file for June 2017. The bank sold it to a debt … [Read more...]
Payday lenders – email addresses for complaints
If you want to get a refund for "unaffordable" payday loans, the first step is to complain to the lender. Often it's simple as the lender has a Complaints section on their website, but some have been taken over or the website isn't there anymore, so here is a list of their email addresses. For all these emails put AFFORDABILITY COMPLAINT as the subject of the email. If you haven't already … [Read more...]
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