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Advice For A Friend Needed Please. Thanks.

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:unsure: Hi. My friend is in a bit of difficulty. He's unfortunately been depressed for the last 6 months and has gone on a beserk shopping spree and cleaned almost £20,000 off his cards. This he now can't pay and wants to know his options. FYI, he's lost his job and he doesn't have anything to his name.

I'm more interested in what he should choose, i.e. Blacklist, ccjs or bankrupt? What is the difference with these and how long do any of these stay to his name.

Any help would be appreciated.

Thanks

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www.moneysavingexpert.com

Forum, debtfree wanabe.

See GP for depression, medical record may help.

Thank your friend too. Spending is patriotic.

The cynic in me asks, you been imbibing?

Edited by Mushroom

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Thanks for your answers, as its much appreciated.

He should probably go to Debtors Anonymous (DA) if it exists near him, as overspending is a common-or-garden way to beat depression.

And to answer your question - none of your options. Read this book - it's the best if you are in money trouble.

The reason I asked about the options was that I was told that he can ignore the bailiff letters and he'll eventually get CCJs and if he declares bankruptcy, that his name will clear in a few years..

www.moneysavingexpert.com

Forum, debtfree wanabe.

See GP for depression, medical record may help.

Thank your friend too. Spending is patriotic.

The cynic in me asks, you been inbibing?

He's already seeing his GP and this is why he's trying to tackle his problem.

The cynic in me asks, you been inbibing?
Sorry m8, I didn't get that??????

Finally, I'm sorry if I wasn't clear in my message, but what I'm interested in is if he can't pay, then what are his options, regarding CCJs or Bankruptsy?

Thank You again for your help

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Thanks for your answers, as its much appreciated.

The reason I asked about the options was that I was told that he can ignore the bailiff letters and he'll eventually get CCJs and if he declares bankruptcy, that his name will clear in a few years..

He's already seeing his GP and this is why he's trying to tackle his problem.

Sorry m8, I didn't get that??????

Finally, I'm sorry if I wasn't clear in my message, but what I'm interested in is if he can't pay, then what are his options, regarding CCJs or Bankruptsy?

Thank You again for your help

Sorry.

It's just that as this sort of thread is so prevalent on forums such as moneysaving expert and knowing how HPCers do like a joke, especially in the early hours after a few, I wasn't sure how genuine it is.

To be serious there are folk with a lot of knowledge and experience of giving advice on those forums.

Motley Fool might also have info.

Bankruptcy may have longterm implications as there's been mention here that it might not be the easy route some think it may be.

Then there's organisations like CCCS, although I believe they are very busy.

Disclaimer, I'm not qualified to offer any financial advice.

There is lots of info and help out there, you just have to help your friend make the first step in asking for it.

Try to not let them ignore things, they don't go away.

I know this sounds trite but good luck and at least you are there to try to help and support.

Edited by Mushroom

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If he files with over £20,000 debt he'd be a discharged bankrupt in three years and with a debt of under £20,000 then he's clean in two years.

Tell him to pay a quid off the £20K he owes would be my advise :)

Edited by ILBB

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Thanks for your help. And No, its not a joke. I'm very stressed as he's a very close friend whos looked after me when I've been feeling down and I believe I owe him the very least this advice.

Durch & Mushroom, thank you both of you for your advice. I'm thinking that since he has no assets and he won't be able to afford anything for at least a few years, that bankruptcy may be the better option. And since ILBB has said that if he's below the £20,000 threshold (which he is) that his credit should be clear again within the 2yr period, he may be better off taking this option.

I'm off to talk to him on phone, and I'll speak to you guys tomorrow...think then pls advice further if you can.

Take Care & Thanks again.

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He may not get all his debts written off even with bankruptcy though. If the OR considers his situation is due to reckless spending then AIUI he could be in for a longer spell.

What are the main changes of the new legislation( Enterprise Act 2002)?

The main changes are as follows:-

* In certain circumstances you may be discharged from bankruptcy after one year (previously the minimum was two year’s)

* A limit of three years may be placed on the Trustee’s rights to realise equity in your home. (previously this was open ended).

* Harsher penalties imposed on those who are considered to have brought about their bankruptcy through reckless or irresponsible behaviour. Restrictions after bankruptcy could last for a further two to fifteen years.

More Here

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Just following on from this - if bankruptcy is discharged, does this mean that new credit can be attained?

The reason I ask is, that 6 years ago I moved house and managed to overlook an O2 mobile phone bill. It was for £115-ish and eventually defaulted.

After eventually applying to Experian to find out what the problem was, I noticed the default and paid it off in full in July of last year. Bearing in mind the original default was in November 1999, how long should this affect my credit rating?

I just applied for a new lower rate loan and was rejected because of the default, and was told it would affect me for 6 years from the date of satisfaction - which was August last year?

Is this right? Would I have been better off leaving it, as I understand even unsatisfied defaults would drop off after 6 years......

Noone can seem to give me a good answer on this, so any advice appreciated.

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He may not get all his debts written off even with bankruptcy though. If the OR considers his situation is due to reckless spending then AIUI he could be in for a longer spell.

More Here

Thanks nobody. I believe that even if it is reckless spending, that the OR will consider his medical circumstances as a priority. FYI, He's been borrowing money from credit cards to pay off debts in the first place, so I very much doubt it that it'll be classed as reckless spending, do you?

Just following on from this - if bankruptcy is discharged, does this mean that new credit can be attained?

The reason I ask is, that 6 years ago I moved house and managed to overlook an O2 mobile phone bill. It was for £115-ish and eventually defaulted.

After eventually applying to Experian to find out what the problem was, I noticed the default and paid it off in full in July of last year. Bearing in mind the original default was in November 1999, how long should this affect my credit rating?

I just applied for a new lower rate loan and was rejected because of the default, and was told it would affect me for 6 years from the date of satisfaction - which was August last year?

Is this right? Would I have been better off leaving it, as I understand even unsatisfied defaults would drop off after 6 years......

Noone can seem to give me a good answer on this, so any advice appreciated.

Yes, all these questions, salsa is what I'm also interested in too, so if anyone can answer them, then I'd be grateful

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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