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inapickle
Starting Member
15 Posts |
 Posted - 16 August 2010 : 09:38:50
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Hello all
I have been told about this website after confiding in a friend about the financial mess that I am in. She advised me to come on here and read the forum posts to work out exactly where I stand.
I have contacted a IVA companies and discussed my circumstances with them and an IVA is not possible because I do not have enough spare Income to live after bills.
Basically I owe approx £25,000.00 on Creditcards, store cards and catalogues. Debts have slowly racked up over the last 5years to a point now where I am a nervous wreck and I need help.
About 6 weeks ago all my bills came at once and I needed to payout just over £1200.00 (Clutch on the car went out of the blue, Tax was due, and it failed its MOT)
I couldn't borrow the money off anyone so I stupidly cashed ten cheques using my Alliance and Leicester Cheque Gaurantee card at the Moneyshop and Cash Convertors.
They filled in the cheqes for me which I signed and said that the cheques will be cashed in 28 days which will be towards the end of the week. My Account with them is empty and will not have the money in it to cover the cheques.
I know this was a very stupid thing to do but I need my car for work and if I didn't have it for a long period of time I would end up losing my job.
My concerns are does anyone know what will happen when the cheques are cashed and cleared with the bank and what will happen to me. I have been told that I may have committed a Criminal offence which was the last thing that I intended to do.
Any advice is greatly needed and appreciated. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 16 August 2010 : 10:17:19
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I am not too sure if writing cheques that you don't have money for is considered a criminal offence but I can't see you getting in a massive amount of trouble for it. If you used the cheque guarantee card then the bank will honour the checks even if you don't have sufficient funds in your account. They will probably charge you quite a bit in interest and admin fees so your bank account won't be too good. From my pre-BR experience I was charged by Abbey/Santander an admin fee per cheque so this may be the same in your case.
If you are not able to take an IVA then BR may be your best/only option. Some things you will need to consider:
- The BR fee is £600 so you will need to save up for this
- If you have decided to declare BR then there is no point paying your creditors any more
- Do you have any assets? You mention a car, do you know how much this is worth?
- Do you rent? If so, once you declare BR your landlord may be contacted to check that you don't have any outstanding rent owing on the property.
- Once you declare BR you will no longer be allowed the Alliance & Leicester account. You will only be allowed a 'basic' bank account. The Co-op Cashminder is one that most people use and it can be opened prior to declaring BR.
You need to plan for BR rather than rushing into it so take your time and plan when you will declare BR, opening a new bank account, etc.
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Edited by - gettingoutofdebt on 16 August 2010 10:18:29 |
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inapickle
Starting Member
15 Posts |
Posted - 16 August 2010 : 10:28:34
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Thank you for taking the time to read my question and reply
Bankruptcy is the only real option for me because I am unable to consider an IVA.
On reading the forms – the parts relating to my creditcards, loans and catalogues appears to be straight forward but by me cashing these cheques, it has seriously worried me about what the consequences may be.
If the bank doesn’t honour the cheque do I put the money shop and cash convertors down as a creditor or do I presume the bank will honour the cheques and it will take me £1000+ overdrawn? And just increase the approximate debt to them by this amount?
I can’t believer how stupid I have been by doing this and it has caused more stress and upset then you wouldn’t believe.
Does anyone know if this is Criminal and if the bank definately honours the cheques that have been wrote with the cheque gaurantee card? |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 16 August 2010 : 11:25:15
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If the bank doesn't honour the cheques then you will need to put cash converters down as a creditor.
This is from the Natwest site (http://moneysense.natwest.com/natwest/info/glossary.asp) regarding cheque guarantee cards:
quote:
Cheque guarantee card
A plastic card that is used with a cheque to guarantee that your bank will pay the sum of money written on the cheque to the named individual or organisation. The card confirms the name of the account holder and guarantees a sum up to the limit marked on the cheque card. It is not possible to place a stop on a guaranteed cheque (up to the limit guaranteed by the card) and once the bank receives the cheque, they will have to pay it even if there is not enough money in the account.
I don't know whether it is criminal or not to write a cheque knowing you don't have enough funds but I doubt it as it is something that practically every one has done. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 16 August 2010 : 12:57:10
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Hi In a pickle
technically sorry the answer is yes Obtaining Pecuniary advantage by deception, theft act 1968.
however before you go all sick and cause your self more upset, it is a complex peice of legislation that covers mens rea and your ongoing actions. it tends to be only used on a series of offences or high value transactions.
The banks very rarely speak to the police unless multiple offences / offenders.
i would suggest that once you make the decision to go BR (if appropriate) cut up your cheque book and debit cards into many peices.
once you have decided to go BR then you should not use any credit as you have taken it out knowing that you will not repay the money.
what has been done has been done. move forward to plan your bankruptcy and start getting yourself back on your feet, take guidance from an expert if you feel it would help.
Richard |
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integritydebthelp
Starting Member
United Kingdom
23 Posts |
Posted - 17 August 2010 : 17:53:01
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hi,
bankruptcy looks like it is the option for yourself but you need proper guidance and help as there are many things you need to get right regarding paperwork and creditors. do your research first and if it helps take a look at my blog for more info on debt solutions **link removed**
“A compassionate person develops an eye for spotting the qualities that make each person special. Even when others are at their lowest ebb, it is possible to help them restore their self-belief by keeping a firm, clear vision of their goodness and specialities. Taking a gently encouraging approach, I must never give up on anyone.” |
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debtinfo
forum expert
2826 Posts |
Posted - 17 August 2010 : 20:29:42
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| again i believe that Tracey asked you not to advertise on this site until you gain approval to do so. I thik it is fair to point out to the users that although some advertising is allowed by experts this is only given after they show their track record of offering good free information on the open furom first. This is so that a degree of protection can be afforded against thiose that are simply out to make a fast buck out of your unfortunate situation |
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integritydebthelp
Starting Member
United Kingdom
23 Posts |
Posted - 18 August 2010 : 16:05:22
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best thing to do is seek professional debt advice thats impartial from companies that don't really care about your situation and just want your money. Bankruptcy looks like it may be the best option for you but before you make any decision speak to a debt adviser who can look at your income and expenditure and your individual situation and advise you from there. Lots of people enter into the what they think is the best solution only to find out it was not and leaves them out of pocket and going no where. always speak to people who know the industry and know the answers. its easy to listen to people in a pub or street who say this and that about debt.
good luck and keep us informed.
“A compassionate person develops an eye for spotting the qualities that make each person special. Even when others are at their lowest ebb, it is possible to help them restore their self-belief by keeping a firm, clear vision of their goodness and specialities. Taking a gently encouraging approach, I must never give up on anyone.” |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 18 August 2010 : 22:53:24
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only ever take advice from someone who :-
1. Offers free impartial advice
2. Discusses ALL of the solutions to debt
3. Discusses how these solutions impact you and your family
4. has some reputation to defend and live up to
The experts on this site are always happy to discuss anything - however trivial - with folk directly . You could always call the helpline at the top of the page as well.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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In a real mess..
