When I got myself out of debt I did it the hard way, through my own research. I didn’t have access to a debt book that told me what I should be doing. What I really want from this post is responses! I want anyone that has used a debt book or debt reduction program to give me some honest feedback on how useful (or not) it was!
All reviews will be published in this post and I will give a love (followed) link.
Many thanks!
Tags: debt book
If you are worried about being declared bankrupt by your creditors (this is very unusual) or are considering bankruptcy as a solution to your debt problems then you may be worried about the bankruptcy hearing and what will happen at it. Although bankruptcy is a very serious step to take, the hearing itself is (in the UK) a very straightforward affair.
Bankruptcy Hearing – What Happens
In the case of debtor petitions (people declaring themselves bankrupt) the procedure is extremely simple. You make an appointment at your local court and at this time you will be sent a bankruptcy form to fill in. Please take advice when filling in this form because this may have a big affect on how much money you have to pay into your bankruptcy. The hearing itself will just consist of the judge reviewing the bankruptcy form and perhaps asking a couple of questions to confirm that you are unable to pay your debts. As long as you have the required court fee you will be declared bankrupt immediately and all of your unsecured debts will be removed from you. That’s it!
If a creditor is attempting to declare you bankrupt then you really need to seek legal advice if you want to avoid this.
Tags: Bankruptcy, bankruptcy hearing, Debt Advice
If you have a very old debt you may be wondering whether it ever becomes too old to be chased/recovered. The answer is that (in the UK) unfortunately a debt can exist indefinitely and the creditor has the right to contact you about it (although you as ever are under no obligation to speak to them about it). The status of the debt and the measures that can be taken to chase it do change after a period of time.
Old Debt – What Happens to it
If a debt goes for a period of 6 years without any attempt at contact between the debtor and the creditor it becomes “statute barred”. This means that although the debt still exists the creditor cannot take any legal action relating to it. So you cannot be given a County Court Judgement or be made bankrupt over a statute barred debt. The fact that no action can be taken often means that creditors in this situation will accept a nominal sum to settle the debt.
If you have a very old debt that has not been chased for a long time what you must not do is try and contact the creditor in any way – this will re-start the 6-year period. Also note that the 6 years rule doesn’t apply if the creditor has been making reasonable efforts to contact you if for instance you have moved.
Tags: Debt Advice, old debt, statute barred