Delta Debt Management & IVA Advice

100,000 people sign debt management education petition

Steve Shaw — Wed, 16 Nov 2011 11:40:18 +0000

It has now been confirmed that more than 100,000 people have signed an e-petition which calls for education on financial issues to be mandatory in schools.

The petition, which was launched by MoneySavingExpert’s Martin Lewis and supported by the consumer campaigning charity Which?, aimed to force the government to make financial education in schools compulsory. Those supporting the campaign believe such a move would help young people manage their money and avoid debt problems in the future.

The e-petition now has enough backing behind it to warrant a government response, which reads as follows:

“The government agrees that young people should have access to good quality personal finance education, so that they leave school with the knowledge and confidence to manage their money effectively.

“The existing PSHE programmes of study include elements aimed at ensuring that by the time they leave school pupils should be able to manage their money, understand and explain financial risk and reward, and identify how finance will play an important part in their lives and in achieving their aspirations. We are currently carrying out a review to determine how best to support schools to improve the quality of all PSHE teaching.”

However, this response was not received very warmly by Mr Lewis, who said that PSHE was not the solution as it does not include personal finance as an essential element, nor is it compulsory. He added that it was “slightly depressing to be greeted with such political waffle over the petition.”

100,000 people sign debt management education petition is a post from: Delta Debt Management & IVA Advice

Fermanagh businessman declares bankruptcy

Steve Shaw — Wed, 16 Nov 2011 11:37:55 +0000

A businessman who was at one time believed to be Ireland’s richest man has declared bankruptcy after racking up debt problems of £2.4 billion.

Sean Quinn, 64, was the head of a manufacturing and insurance business empire before he was declared bankrupt. At the peak of his career, the businessman was believed to have been worth £3.7 billion.

However, he has now declared bankruptcy over an alleged £2.4 billion he owes to Anglo Irish Bank. Quinn no longer has control of his business empire, but he and his family are currently in the middle of a lengthy legal battle with the bank.

Quinn’s bankruptcy order, confirmed at Belfast High Court recently, is said to be one of the largest ever made in Ireland, or in the rest of the United Kingdom. The businessman reportedly chose to have his bankruptcy application addressed north of the border, as he was born in County Fermanagh and worked there most of his life.

A bankruptcy order in Northern Ireland will also see him back in business in just six years, rather than the 12 years stipulated in the Republic’s courts. However, the Anglo Irish Bank – now known as the Irish Bank Resolution Corporation (IBRC) – is disputing Quinn’s claims to be a resident of Northern Ireland.

Speaking of his decision to declare bankruptcy, Quinn said in a statement:

“I have done absolutely everything in my power to avoid taking this drastic decision.

“The vast majority of debt that Anglo maintains is owed is strenuously disputed. I cannot, however, now pay those loans which are due.”

Fermanagh businessman declares bankruptcy is a post from: Delta Debt Management & IVA Advice

Bankrupt UB40 stars had £750,000 in debt problems

Steve Shaw — Wed, 09 Nov 2011 10:01:43 +0000

Four of the members of the famous reggae group UB40, all of whom went through bankruptcy proceedings recently, have debt problems totalling £750,000.

Drummer Jimmy Brown, saxophonist Brian Travers, percussionist Norman Hassan and trumpet player Terence Oswald were all forced into bankruptcy last month at Birmingham County Court, despite the fact that they sold more than 70 million records throughout their 30-year music careers.

The band members are now said to owe more than £750,000 to various creditors. Mark Sands, a spokesperson for the firm which is handling the bankruptcy, RSM Tenon, told the Sunday Mercury:

“The amount we are looking to recover is £750,000″

“We will assess their assets, which includes their properties and earnings, and see what we can get back.

“It may be that they don’t have anything, in which case we will look at them, then move on. It might be they have £100,000 equity in their homes.

“If they can give us that amount, or close to that amount, in cash, then we won’t go to the lengths of them selling their homes.”

Although he could not say how the members of UB40 managed to lose or spend all of their money, Mr Sands did confirm that most of the band’s debts were to HM Revenue & Customs and to the creditors of DEP International. This was UB40’s own company, which has now gone bust. In some good news for the band’s fans, however, Mr Sands did say that the musicians could continue to play, because their earnings can be used to tackle their debt problems.

Bankrupt UB40 stars had £750,000 in debt problems is a post from: Delta Debt Management & IVA Advice

Housing debt problems worsen in Coventry

Steve Shaw — Tue, 08 Nov 2011 10:00:29 +0000

According to the Coventry Law Centre (CLC), the number of people seeking debt help for housing-related problems in the city has increased in the last year.

The CLC said that the number of people it had helped with rental and mortgage repossession court cases in the first six months of 2011 was 165 per cent more than the same time last year

Sue Bent, who is the director of the CLC, attributed this rise in housing-related debt problems in the area to a nationwide increase in job losses, as well as the rising cost of living and falling wages. She said:

“It’s a sign of the times unfortunately,”

“More people are losing their jobs with people in and out of insecure employment.”

“The credit companies are also aware there’s less money around so they’re actually taking more action to recover people’s debts,”

The CLC’s comments were supported by other official statistics which showed the proportion of Coventry’s workforce that was seeking Jobseeker’s Allowance in September 2011 was 5.2 per cent. In the UK as a whole between June and August, unemployment figures reached 2.57 million people, which is the highest it has been for 17 years.

With people unable to find work or remain in employment, it becomes much more difficult to pay bills, rent and mortgage payments. Many people find they have to dip into their savings or rely on credit cards, personal loans and even payday loans to get by.

Housing debt problems worsen in Coventry is a post from: Delta Debt Management & IVA Advice

NFL star Mark Brunell files for bankruptcy

Steve Shaw — Mon, 07 Nov 2011 16:16:13 +0000

The National Football League (NFL) player Mark Brunell has reportedly filed for bankruptcy after racking up debt problems totalling $24.8 million.

Brunell, who formerly played for the Jacksonville Jaguars and is now a quarterback for the New York Jets, revealed that he filed for bankruptcy back in June. Despite earning around $50 million in his career so far, the US player has blown nearly all of his money on investments including nine businesses and projects.

One of the companies Brunell invested in along with his former teammates Todd Fordham and Joel Smeenge was Champion LLC, in which the quarterback invested $11 million.

The company had to borrow $2 million in order to buy a number of high-end Jacksonville properties so that condos could be built on them. The Jacksonville Jaguars teammates were guarantors of the loan, so had to cover repayments with their own money when the property bubble burst and the company began to founder. Brunell lost his entire $11 million investment, and he and his wife are now facing a lawsuit for defaulting on the loan.

In total, Brunell is the subject of six lawsuits over his debt problems, and he has already had to sell his $9.5 million home to pay what he owes.

Commenting on Brunell’s unfortunate financial situation was Michael Huyghue, the commissioner of the United Football League, who told Action News Jax:

“Athletes are at the highest end of the risk spectrum. When you think about what they do for a living, the risks they take with their bodies and their lives to go and play the game, so they are more inclined to want to agree to the most high risk investments.

“The consequences when they are wrong can be really debilitating.”

NFL star Mark Brunell files for bankruptcy is a post from: Delta Debt Management & IVA Advice

Staffordshire businessman in court for breaching bankruptcy terms

Steve Shaw — Sun, 06 Nov 2011 10:06:51 +0000

A businessman from Linton, near Burton-upon-Trent, has appeared in court accused of breaching the terms of his bankruptcy agreement.

Danny Ryan, 44, was made bankrupt in Burton County Court back in August 2007 and he was also banned from acting as a company director for a total of eight years. Despite this ban, the Department for Business, Innovation and Skills has found that Ryan has formed several companies in the last few years.

One of these companies, a recruitment firm based in Tamworth and called 1st Call Us Ltd, was set up in 2002 with Ryan acting as a business consultant. He registered himself as director of the firm, with control over its finances and bank accounts, in March 2009, two years after his bankruptcy was made official. The company eventually went under with debt problems totalling £350,000, and Ryan’s alleged offences were revealed when his former business partner reported him to the authorities.

Ryan’s other business, which he formed whilst still serving his ban from acting as a company director, was a healthcare and beauty firm known as Confident Ltd. It is not known whether this company is still operating, or whether it has collapsed due to debt problems, similarly to Ryan’s first company.

A hearing held at Burton Magistrates’ Court is Mr Ryan’s fifth in connection with the case, but he has yet to enter pleas for the charges, which relate to alleged offences taking place between 2007 to 2009 and 2008 to 2010.

Staffordshire businessman in court for breaching bankruptcy terms is a post from: Delta Debt Management & IVA Advice

Footballer Andy Carroll’s former agent faces bankruptcy

Steve Shaw — Fri, 04 Nov 2011 09:58:57 +0000

The former agent of Premier League star Andy Carroll is reportedly facing bankruptcy after he failed to secure a commission for the striker’s £35 million move to Liverpool.

Peter Harrison was seeking a cut from the deal in order to deal with his debt problems, which total nearly £2 million. The North agent reportedly told his creditors he would be able to pay them what he owed as soon as he received the commission from Carroll’s record-breaking sale, which took place in January 2011 and was the most ever paid for an English player.

However, Harrison was said to have walked away empty-handed from the FA’s arbitration hearing on the deal. This means that negotiations will continue with his creditors, which include the football manager Sam Allardyce. The former Sunderland defender, who is petitioning the agent’s bankruptcy for a debt of £370,000, is understood to be just one of the big names that Harrison owes money to.

A court has now ordered Harrison to make details of his finances and earnings available to his creditors, including Allardyce. Harrison reportedly tried to overturn this decision, but his bid failed.

The latest news on the bankruptcy case is that Harrison is considering using an IVAs (Individual Voluntary Arrangement) solution, so that all of his creditors will be paid and he will avoid bankruptcy. If he is declared bankrupt, however, Harrison will be banned from working as a football agent for a period of time.

Footballer Andy Carroll’s former agent faces bankruptcy is a post from: Delta Debt Management & IVA Advice

Debt problems affecting cancer patients

Steve Shaw — Fri, 04 Nov 2011 09:57:46 +0000

A leading cancer care and support charity has warned that more than two-thirds of cancer patients are experiencing debt problems, at a time when money is the last thing they need to worry about.

A survey of 1,500 patients conducted by YouGov on behalf of Macmillan Cancer Support showed that 66 per cent were facing a rise in costs. This increase was due to rises in household expenses, as well as the cost of hospital trips and medical care.

Of those who were suffering money worries and debt problems, 5 per cent said that they had skipped meals in order to save money. Meanwhile, 17 per cent said they had been forced to cut spending on everyday essentials, which occasionally included food.

Nearly half of the people included in the survey were worried about their finances and debt problems, whilst 7 per cent admitted that they were scared of losing their homes. Almost a third said they had already dipped into or spent their savings, and 9 per cent had previously had to borrow money in order to get by.

These findings have been published by the charity as it challenges the Government’s Welfare Reform Bill, which is to be debated in the House of Lords. This Bill involves changing the Employment and Support Allowance, which Macmillan says could leave as many as 7,000 cancer patients as much as £94 a week poorer.

What’s more, the charity claims that another proposal could mean that cancer patients who need immediate financial help after their diagnosis will have to wait an additional three months to get the money.

Debt problems affecting cancer patients is a post from: Delta Debt Management & IVA Advice

Stranraer named bankruptcy capital of Scotland

Steve Shaw — Tue, 01 Nov 2011 14:42:36 +0000

An MP has named Stranraer the bankruptcy capital of Scotland, after figures were released showing that the region has one of the highest rates of bankruptcy per 10,000 residents in the country.

The figures showed that 49 of the 10,000 residents covered by Stranraer’s Sheriff Court were declared bankrupt in the period 2009 – 2010. This is significantly more than the 25 per 10,000 residents who faced bankruptcy in the Sheriff Court’s other towns – Dumfries and Kirkcudbright.

The MP for Dumfries and Galloway, Russell Brown, spoke to The Galloway Gazette about the worrying new figures, and expressed his alarm about the debt problems faced by people in Stranraer. He said:

“These shocking figures lay bare the scale of the crisis facing local people. Stranraer is the bankruptcy capital of Scotland and has twice the level of insolvencies of Dumfries or Kirkcudbright. It shows the alarming nature of the financial difficulties facing the west of our region in particular. Every one of these bankruptcies is a personal tragedy because it means a family struggling to pay bills and keep food on the table.”

The MP also touched on an issue that has been discussed quite a lot in the press recently – payday loans and the companies which provide them. He condemned such companies for offering loans which had “ludicrous interest rates”, whilst the people who relied on them to cover basic living costs were not properly informed how much they would be paying back.

Stranraer named bankruptcy capital of Scotland is a post from: Delta Debt Management & IVA Advice

Owner of fire-ravaged garage faces bankruptcy

Steve Shaw — Tue, 01 Nov 2011 14:39:30 +0000

The owner of an MOT centre in Rhyl which was nearly completely destroyed by fire has been left facing bankruptcy due to a row over planning permission.

Terry Ledden, the owner of the family-run garage in Ffordd Las, is not able to rebuild his fire-damaged business until the council grants him planning permission.

Rhyl Town Council is withholding permission due to objections over Mr Ledden’s wish to extend the garage when it is rebuilt, so as to include a purpose-built taxi operator’s office too. Planning officers are refusing the application on the grounds of highway safety and concerns over parking.

However, Mr Ledden already lost thousands when his business was subjected to a vicious arson attack. A 12-year-old boy has reportedly been arrested over the incident, which caused approximately 500,000 in damage. Every day that his business remains closed is costing Mr Ledden more in lost profits, pushing him nearer to serious debt problems and maybe even bankruptcy.

The garage owner spoke to the North Wales Daily Post about his situation, saying:

“The cost of the damage caused by the fire has already proved immeasurable. All I want to do is get my business back up and running but I honestly feel like I’m being penalised for trying to be successful.

“This economic climate is hard enough and now I’m forced to consider laying people off or be pushed into bankruptcy because the garage is integral to both businesses.

“I can’t demolish the garage, which is an unsafe structure, and rebuild it to include a taxi office until the plans are approved.”

Owner of fire-ravaged garage faces bankruptcy is a post from: Delta Debt Management & IVA Advice

People with debt problems targeted on Facebook, OFT warns

Steve Shaw — Tue, 25 Oct 2011 10:52:00 +0000

The Office of Fair Trading (OFT) has warned that debt collectors may be pursuing people on social networking sites such as Facebook and Twitter.

Numerous complaints have been received by the OFT from people with debt problems, who say they are being chased for what they owe online.

The main concern for the OFT is that as well as it being wrong to pressure people over their debt management problems, these debt collectors could be revealing embarrassing details on the Internet relating to the money worries of the people they are targeting. These details could be seen by friends, family members and even businesses and employers, thereby having a detrimental effect on the debtor’s home life or career.

In order to deter the practice, the OFT is warning debt collectors not to use social networking sites to pursue debtors. It has even said that anyone caught doing so could lose their consumer credit licence.

Commenting on the issue, the OFT’s director for consumer credit David Fisher has said:

“In the present economic climate, with many people, including those who may be particularly vulnerable, in financial difficulties, it is crucial they are treated fairly by companies recovering their debts.”

This is not the first improper practice carried out by debt collectors, as in the past it was common for debt collection agencies to pursue debtors through threatening letters, phone calls and messages. It was only a matter of the time before the Internet was used as a way of reaching debtors and pressuring them to pay up.

People with debt problems targeted on Facebook, OFT warns is a post from: Delta Debt Management & IVA Advice

Rising rent debt problems reported in West Cheshire

Steve Shaw — Tue, 25 Oct 2011 10:51:29 +0000

An increasing number of West Cheshire residents have reportedly sought debt help for rent arrears in the last few months.

The West Cheshire Citizens Advice Bureau (CAB) reportedly that over the last three months, nearly 200 people had sought debt advice and help in relation to paying their rent. The average debt was around £900 per household, and the total for the period from April to June was £181,000.

A possible reason for this increase in rent debt problems in the area could be the gradual rise in rental prices this year, in West Cheshire as well as in the rest of the country. One of the founders of the Chester-based Cavendish Manley and Cavendish Ikin, Julian Adams, said that as many as 34 per cent of its landlords had upped prices in the last three months. He also estimated that letting prices in Chester, in particular, may have risen by as much as 5 per cent recently.

The chief executive of the West Cheshire CAB, Paul Nicholls, commented on this situation, and explained that issues with rent arrears are usually a part of wider debt problems for a lot of families. He said:

“Property debts should be taken as a priority over other money debts. Obviously all debts should be taken seriously, but in these kinds of debts, as well as utility debts, these are ones which should be looked at as failure to do so could see them losing their home.”

Rising rent debt problems reported in West Cheshire is a post from: Delta Debt Management & IVA Advice

4% rise in personal bankruptcy reported in Scotland

Steve Shaw — Tue, 25 Oct 2011 10:48:57 +0000

New data has revealed that the number of people facing personal bankruptcy in Scotland has risen by as much as 4 per cent in the last year.

The Accountant in Bankruptcy (AiB) published the figures, which showed that in the second quarter of 2011, there were a total of 5,378 personal bankruptcy cases reported. This is only a 1 per cent rise compared to the previous quarter, but year-on-year it represents a 4 per cent increase.

The number of bankruptcy awards experienced an annual drop of 8 per cent, and 3 per cent compared to the previous quarter. However, the number of people choosing voluntary protected trusts (similar to IVAs in England, Wales and Northern Ireland) as a solution to their debt problems, rose by a huge 22 per cent compared to the same period in 2010.

The AiB figures also heralded bad news for Scottish businesses, as they showed that 361 firms went into receivership or faced insolvency in Q2 2011. Compared to the same period in 2010, this is a 46 per cent increase.

Meanwhile, the homelessness charity Shelter revealed that as many as 207,500 (5 per cent) of Scottish people paid their mortgage or rent payments using credit cards in the last twelve months, which is a sure-fire route into debt problems.

Shelter’s Gordon MacRae, who is head of communications and policy at the charity, warned:

“As Scotland begins to feel the full impact of cuts to jobs and housing benefits, and as more people face greater debt, the perfect storm is brewing for a rise in homelessness,”

4% rise in personal bankruptcy reported in Scotland is a post from: Delta Debt Management & IVA Advice

Halifax accused of fuelling credit card debt problems

Steve Shaw — Wed, 19 Oct 2011 07:54:53 +0000

The building society Halifax has been accused of acting irresponsibly in encouraging families to rack up debt problems, after a letter was sent to customers recently advising that they take out cash on their credit cards.

According to the Mail Online, letters were sent by the bank to customers in which they were encouraged to transfer money from their credit cards into their current account. The bank promised that this would take one quick phone call, making it very easy for even very hard-up families to rack up thousands in credit card debt problems.

The letter, which was signed by the head of card operations at Halifax, Pam Wilson, read:

“Whether it is for an everyday purchase or an emergency, sometimes you need a little more money without the hassle of applying for a loan or an overdraft.

“Or perhaps you need another way to pay for things in places where you can’t use your credit card.

“Either way, there is a really simple way to make life easier. Just transfer money from your Halifax credit card straight into your current account.”

Finance experts are now branding the bank irresponsible in sending the letters, as it blatantly encourages people to borrow money on their credit cards for purchases they cannot afford. Due to the potential interest and fees they may have to pay, poorer customers could find themselves in desperate need of debt help if they take the bank’s advice and transfer money into their accounts from their credit cards.

Halifax accused of fuelling credit card debt problems is a post from: Delta Debt Management & IVA Advice

US students facing debt problems and high unemployment

Steve Shaw — Wed, 19 Oct 2011 07:53:38 +0000

According to official sources, students and graduates of US universities are currently facing a double whammy of financial and career problems, as their debt problems are mounting and unemployment rises.

The Federal Reserve Bank of New York claims that student debt problems have rocketed in recent years. Since 1999, the total amount owed by students has increased sevenfold, from $80 billion to $550 billion by the end of June 2011.

The Department of Education, on the other hand, puts outstanding student loan debt at an enormous $805 billion.

Coupled with these mounting debt problems is a high unemployment rate, which could make it difficult for graduates to find work when they leave university. The unemployment rate for 20-24 year olds at present is nearing 15 per cent, a figure which is considerably higher than the overall 9.1 per cent.

This inability to find a job upon graduation could leave US students with no means to pay off their growing debts. In fact, student loan delinquencies (failure to make payments on student loan debts when they are due) have increased from 6.5 per cent to 11.2 per cent between 2003 and June 2011. This is the only category of lending in which the delinquency rate increased in the first half of the year.

Commenting on the situation in a recent report, the rating agency Moody’s said:

“The long-run outlook for student lending and borrowers remains worrisome,”

“Unlike other segments of the consumer credit economy, student loans have not demonstrated much improvement in performance despite some improvement in the broader economy.”

US students facing debt problems and high unemployment is a post from: Delta Debt Management & IVA Advice