posted on Mar, 5 2009 @ 06:08 PM
Originally posted by anachryon
Yes, you'll have to keep making payments. If a bank fails, the debt will be bought for pennies on the dollar by another bank, whom you will then
Partly true, though it is important to realise that this debt is bought as a whole and no individual loan can be identified as the original paperwork
must be found.
You can also claim that the agreement between you and the creditor has been made null and void due to the fact that you did not sign an agreement with
this new so called owner of the debt.
You are indeed home free; the worst that could happen is you will be pursued to admit the debt is yours.
Don't admit anything, just say I don't recognise this debt and there is nothing they can do.
Even if they are able to establish you owe the debt by producing the original paperwork then, you can claim personal insolvency (not the same as
bankruptcy) by producing a personal statement of incomings and outgoings. You then make a gesture offer to pay say £1 a month; if they refuse to
accept this offer then you can say take me to court then.
If in the highly unlikely case they do take you to court you can produce your statement of earnings and the judge will rule that you pay a minimum
payment that is within your means, normally if you have no money to payback due to your outgoings this will be £1 a month...
For this reason most banks do not take people to court over a debt and move to accept any offer you make.
What used to be a deterrent for people to do this is bad credit rating but as people are unable to get any level of credit now or for the foreseeable
future, not paying your debts becomes a really attractive way forward.
Hope this helps,
All the best