Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MSE Andrea
    • By MSE Andrea 18th Nov 16, 1:05 PM
    • 8,615Posts
    • 20,858Thanks
    MSE Andrea
    Struggling with debt? Ask a debt advisor a question
    • #1
    • 18th Nov 16, 1:05 PM
    Struggling with debt? Ask a debt advisor a question 18th Nov 16 at 1:05 PM
    If you need help with your debts, this is the thread for you.

    Trained advisors from StepChange Debt Charity (formerly CCCS) are here and waiting to answer your debt questions. Theyíre a friendly bunch so please donít be shy!

    There are three ways to get in touch:

    1 - Simply post your question below and Richard, Allen, Rachael, Linsi or Kirsty will reply. If your question is about bankruptcy, then pop over to the Bankruptcy board.

    2 - If you would prefer to ask a question in private, feel free to send a message to StepChange Private Messages.

    3 Ė StepChange Debt Remedy is a free and confidential online debt advice tool. You can put a budget together at your pace, and you can also talk it over with an advisor through online chat.

    If you're a StepChange Debt Charity client already, please contact its Aftercare team rather than posting in this thread (their contact details are in your Welcome Pack).

    This is discussion thread part four, see parts one, two and three.

    Finally, follow @MSE_Forum on twitter for debate and discussion on all things MoneySaving and more.

    If you havenít already, join the forum to reply!
    This Forum tip was included in MoneySavingExpert.com's weekly email!

    Follow MSE on other Social Media:
    MSE Facebook, MSE Twitter, MSE Deals Facebook, MSE Deals Twitter, Forum Twitter, Instagram, Pinterest
    Join the MSE Forum
    Get the Free MoneySavingExpert Money Tips E-mail
    Report inappropriate posts: click the report button
    Point out a rate/product change
    Flag a news story: news@moneysavingexpert.com
Page 1
    • izboo
    • By izboo 18th Nov 16, 3:17 PM
    • 19 Posts
    • 4 Thanks
    izboo
    • #2
    • 18th Nov 16, 3:17 PM
    • #2
    • 18th Nov 16, 3:17 PM
    Hi,


    Due to a combination of gambling addition and losing my job I am in a financial mess and have a couple of questions about setting up a DMP. In brief, my income (JSA) is less than my priority outgoings (mortgage, council tax etc), I have considerable credit card debt but do have some equity in my house. Up until now I was looking to get a new job and then re-mortgage to consolidate all debts. With this target in mind my family had been giving (gifting) me money to keep the mortgage up to date and up until last month I had also been up to date with credit card payments but have subsequently failed to make the minimum on two of them. Unfortunately my circumstances have now changed and with little likelihood of me getting and keeping a (well paid) job in the near future I have to reconsider my position. As of now I will not be able to afford the minimum payments to all the cc debt and my family will not be able to help me out with the mortgage indefinitely.


    My new plan is to prepare and market my house for sale which would (in theory) release enough money to pay all current debt (mortgage and credit cards) but it will probably be a couple of months before I am in a position to market the house and therefore a minimum of four months before any sale completes.


    Having used the online Stepway assessment tool it seems to me that all I can currently offer the unsecured creditors is a token payment.


    My question is what should I tell my creditors? I intend to set up a self regulated DMP and obviously will send them a copy of my income/expenditure statement to prove I cannot currently pay anything other than a token but:


    1) Should I let them that I am intending to sell the house in order to honour the full outstanding balances or should I simply say that I intend to resume normal payments when my circumstances improve?


    2) If I do tell them I am planning to sell the house will it make them less likely to suspend interest and other charges?


    Any thoughts on these two points would be most welcome.


    Izboo
  • StepChange_Linsi
    • #3
    • 18th Nov 16, 3:47 PM
    http://forums.moneysavingexpert.com/showthread.php?t=5559140
    • #3
    • 18th Nov 16, 3:47 PM
    Hi

    Welcome to the forum and thanks for your post.

    Iím sorry to hear about whatís happened and that youíve been having difficulties with your council tax.

    Unfortunately, anyone liable to pay council tax loses the right to pay by instalments if they miss a payment and are then unable bring their payments up to date within 14 days of receiving a reminder notice.

    Iím assuming you missed this deadline, as you werenít aware of the reminder notice which means your council can demand that the council tax be paid in full even if itís not the end of the tax year.

    If you feel this wasnít explained to you when you called your council in August you could make a complaint. Your councilís complaints procedure should be available on their website.

    At the hearing in August the council will have applied for a liability order. This allows them to take further action to recover the debt and application costs are usually applied to the outstanding council tax.

    Equita are also allowed to add fees once theyíre instructed to recover a debt. This will likely account for the £127 still outstanding. Equita may not be aware that youíve paid your council tax, so it would be a good idea to let them know so they can update their records. This may be why they're still asking you to repay £426.

    If youíre unable to repay the remaining balance owed to Equita in one go, we can help you to work out what is affordable, here are our contact details.

    In the meantime you can find information about what enforcement agents can and canít do on our website, hereís the link.

    I hope this helps.

    Linsi







    Thank you and I hope you can help.

    I will try to keep this short.
    I paid a lump sum on my council tax which took me to July '16, halfway through the month.
    I didn't get the first notice that the remaining balance of July was due. (it had been hidden by my housemate who is dyslexic and has a tendency to hide letters).
    I then received a hearing letter in August, upon which I rang the council.
    Speaking with a live advisor, I requested the amount which would bring me up to date and paid that over the phone.
    I then was under the impression that my next month's payment would be due by the end of the month as usual.
    I then received a letter from Equita and, not wanting to deal with them (I won't pay my council tax to a private company, sorry), I rang the council again.
    Long story short, the hearing in August had gone ahead (?) and apparently I was liable to pay the council tax IN FULL.
    After a long conversation where the council rep insisted that the money had to be paid to Equita, I said to the advisor 'so, if I pay the council tax directly to the council, in full, you would not accept the money?'. She confirmed that they would not refuse any payment. I paid in full.
    I am now receiving threatening letters from Equita. my council account shows that all council tax was paid, but there is now a charge on it for £127 for the bailiff.
    Equita is demanding £426.

    my questions are:
    what is the legal standing of the bailiff and of the council?
    how should I deal with these bailiffs?
    as it is not even the end of the year and my council tax is paid in full, how is any of this acceptable?

    I am a reasonably confident individual who pays all my bills on time and I find this difficult. how the hell do people deal with this who are less secure, both financially and socially? horrible.

    thank you for any advice you can give.
    Originally posted by lulublulub
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • danielle_turner
    • By danielle_turner 18th Nov 16, 4:04 PM
    • 1 Posts
    • 0 Thanks
    danielle_turner
    • #4
    • 18th Nov 16, 4:04 PM
    Help with Credit Cards
    • #4
    • 18th Nov 16, 4:04 PM
    Hi,


    I currently have 2 credit cards, one with Lloyds and one with Barclaycard. I never miss a payment however the interest on the Barclaycard is tedious and it is as though I am not making any payments and cant see any light at the end of the tunnel!! I owe £2,700 on each card. I pay £60 on the Lloyds and £80 on the Barclaycard.


    I approached my bank for a consolidation loan but they couldn't offer me one at the moment as I had a student account but I want to get this sorted sooner rather than later as I'm 22 and need to start saving for a mortgage.


    Can anyone offer me advice on what to do? I can afford to make the minimum payments but the interest is killing me!
    • Huskyrunner
    • By Huskyrunner 19th Nov 16, 6:11 PM
    • 540 Posts
    • 953 Thanks
    Huskyrunner
    • #5
    • 19th Nov 16, 6:11 PM
    • #5
    • 19th Nov 16, 6:11 PM
    Hi sorry too gate crash your post but linsi does not have a direct/pm message thing set up.

    I just have a quick step change question, i did had a step change debt management plan but i decided too take everything on my self.

    If i still have my client reference number for stepchange would they be able too provide me with all the sort codes and account numbers of my creditors if i rang them? Or post something out.

    I have something like 10-15 creditors but 2-3 i am having issues with ie Vodafone and Pounds too pocket.
    debts 16550
    Mortgage 69500
    • vinghj
    • By vinghj 20th Nov 16, 12:02 PM
    • 20 Posts
    • 3 Thanks
    vinghj
    • #6
    • 20th Nov 16, 12:02 PM
    • #6
    • 20th Nov 16, 12:02 PM
    Hi, I require some desperate help please.....this is what has happened:

    1) Received county claim form for Stature barred debt over 10 years now. The date on the claim form was 3 weeks later to when I received.

    2) By the time I could respond, I received judgement against me.

    3) I have applied for set aside, quoting that debt is statue barred and I did not have time to respond to claim form. I also selected on the set aside application that I want "No hearing"

    4) Now my set aside application has been moved from Northampton to Croydon where I live and I have received correspondence from Northampton that I will be invited for hearing at county court.

    The value of debt claimed is 12 k and with all addl interests charged. the loan is statue barred and I have not responded to anyone in the last 8-9 years, made no payment or acknowledged in any shape or form. What do I do in the hearing please? and what do I do from now?

    Please help, my credit rating is good and this judgement has destroyed everything.

    Thanks
    Vin
    • vinghj
    • By vinghj 20th Nov 16, 12:16 PM
    • 20 Posts
    • 3 Thanks
    vinghj
    • #7
    • 20th Nov 16, 12:16 PM
    • #7
    • 20th Nov 16, 12:16 PM
    Hi, I require some desperate help please.....this is what has happened:

    1) Received county claim form for Stature barred debt over 10 years now. The date on the claim form was 3 weeks later to when I received.

    2) By the time I could respond, I received judgement against me.

    3) I have applied for set aside, quoting that debt is statue barred and I did not have time to respond to claim form. I also selected on the set aside application that I want "No hearing"

    4) Now my set aside application has been moved from Northampton to Croydon where I live and I have received correspondence from Northampton that I will be invited for hearing at county court.

    The value of debt claimed is 12 k and with all addl interests charged. the loan is statue barred and I have not responded to anyone in the last 8-9 years, made no payment or acknowledged in any shape or form. What do I do in the hearing please? and what do I do from now?

    Please help, my credit rating is good and this judgement has destroyed everything.

    Thanks
    Vin
    • CIS
    • By CIS 20th Nov 16, 12:31 PM
    • 10,029 Posts
    • 5,720 Thanks
    CIS
    • #8
    • 20th Nov 16, 12:31 PM
    • #8
    • 20th Nov 16, 12:31 PM
    Hi

    Welcome to the forum and thanks for your post.

    Iím sorry to hear about whatís happened and that youíve been having difficulties with your council tax.

    Unfortunately, anyone liable to pay council tax loses the right to pay by instalments if they miss a payment and are then unable bring their payments up to date within 14 days of receiving a reminder notice.

    Iím assuming you missed this deadline, as you werenít aware of the reminder notice which means your council can demand that the council tax be paid in full even if itís not the end of the tax year.

    If you feel this wasnít explained to you when you called your council in August you could make a complaint. Your councilís complaints procedure should be available on their website.

    At the hearing in August the council will have applied for a liability order. This allows them to take further action to recover the debt and application costs are usually applied to the outstanding council tax.

    Equita are also allowed to add fees once theyíre instructed to recover a debt. This will likely account for the £127 still outstanding. Equita may not be aware that youíve paid your council tax, so it would be a good idea to let them know so they can update their records. This may be why they're still asking you to repay £426.

    If youíre unable to repay the remaining balance owed to Equita in one go, we can help you to work out what is affordable, here are our contact details.

    In the meantime you can find information about what enforcement agents can and canít do on our website, hereís the link.

    I hope this helps.

    Linsi
    Originally posted by StepChange_Linsi
    Slight correction to this regarding reminder notices:

    You lose the right to instalments if you fail to pay within the initial 7 day period from the date the reminder is issued. If you fail to pay within the initial 7 days then it is at this point that you lose the right to pay by instalments and the full outstanding balance becomes due within a further 7 days.

    If you fail to clear the full balance within that second 7 day period than a court summons can be issued at the end of that period (i.e. 14 days after the reminder is issued).

    Regulation 23(3) of the Council Tax (administration & enforcement) regs 1992

    If it was a final notice, for a third payment default, then you would lose the right to pay by instalments as soon as the notice was issued. You then have 14 days to pay the full balance or a court summons could be issued at the end of the 14 day period.

    Craig
    I no longer work in Council Tax Recovery as I'm now a self employed Council Tax advisor and consultant with my own Council Tax consultancy business. My views are my own reading of the law and you should always check with the local authority in question.
  • StepChange_Rachael
    • #9
    • 21st Nov 16, 8:42 AM
    • #9
    • 21st Nov 16, 8:42 AM
    Hi

    Thanks for your post and welcome to the forum.

    I can understand your frustration when you feel youíre not making progress paying off the debt because of the interest added.

    When youíre able to make the minimum payments and this isnít causing you to struggle with your household bills and priority expenses itís a positive thing as the creditors canít take any further action.

    Consolidating debt doesnít always solve the debt problem as interest or payments can be high as well.

    Where the minimum payments can be met and extra paid towards the debt this will bring down the debt quicker, but only if you have the funds available to do this. This might mean working out a realistic budget and sticking to it on a monthly basis and cutting back on unnecessary areas of spending where possible.

    You could also try to find ways of reducing the interest by seeing if there are any cheaper options. I don't generally advise on further borrowing but if the only issue is the interest then it might be worth seeing if the balance's could be transferred, reducing the debt total and time for it to be paid back.

    This would depend on your financial situation and credit file to see if you're eligible but itís worth considering.

    Here is a link to find out more about this as an option from the moneysavingexpert.com.

    Best of luck,
    Rachael




    Hi,


    I currently have 2 credit cards, one with Lloyds and one with Barclaycard. I never miss a payment however the interest on the Barclaycard is tedious and it is as though I am not making any payments and cant see any light at the end of the tunnel!! I owe £2,700 on each card. I pay £60 on the Lloyds and £80 on the Barclaycard.


    I approached my bank for a consolidation loan but they couldn't offer me one at the moment as I had a student account but I want to get this sorted sooner rather than later as I'm 22 and need to start saving for a mortgage.


    Can anyone offer me advice on what to do? I can afford to make the minimum payments but the interest is killing me!
    Originally posted by danielle_turner
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Rachael
    Hi

    Thanks for posting.

    Not a problem, weíll take a look into the private message facility, thanks for letting us know.

    You can certainly contact us with your client reference number and weíll be able to discuss with you your old plan.

    If youíre struggling with a few of your creditors and have any concerns or questions weíll be able to discuss this with you further when you call.

    Here are our contact details.

    Thanks,

    Rachael




    Hi sorry too gate crash your post but linsi does not have a direct/pm message thing set up.

    I just have a quick step change question, i did had a step change debt management plan but i decided too take everything on my self.

    If i still have my client reference number for stepchange would they be able too provide me with all the sort codes and account numbers of my creditors if i rang them? Or post something out.

    I have something like 10-15 creditors but 2-3 i am having issues with ie Vodafone and Pounds too pocket.
    Originally posted by Huskyrunner
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Rachael
    Hi Vin

    Thanks for your post.

    Iím sorry to hear youíve had difficulties with this debt.

    What youíll need to do is provide as much information and evidence that you believe the debt is statute barred when you attend the hearing. Itís very important that you do attend.

    If youíve any evidence of the last time a payment was made or the last time you acknowledged the debt then Iíd suggest taking this with you.

    It would then be up to the creditor to provide evidence that the debt isnít statute barred.

    The court will then decide from this information how to proceed and whether theyíll agree the debt is statute barred and set the debt aside.

    If the court agrees this would stop any enforcement action for the debt and remove the note on your credit file.

    The creditor shouldnít be in contact with you until the hearing where the dispute will be settled.

    Take care,
    Rachael



    Hi, I require some desperate help please.....this is what has happened:

    1) Received county claim form for Stature barred debt over 10 years now. The date on the claim form was 3 weeks later to when I received.

    2) By the time I could respond, I received judgement against me.

    3) I have applied for set aside, quoting that debt is statue barred and I did not have time to respond to claim form. I also selected on the set aside application that I want "No hearing"

    4) Now my set aside application has been moved from Northampton to Croydon where I live and I have received correspondence from Northampton that I will be invited for hearing at county court.

    The value of debt claimed is 12 k and with all addl interests charged. the loan is statue barred and I have not responded to anyone in the last 8-9 years, made no payment or acknowledged in any shape or form. What do I do in the hearing please? and what do I do from now?

    Please help, my credit rating is good and this judgement has destroyed everything.

    Thanks
    Vin
    Originally posted by vinghj
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • tojv
    • By tojv 21st Nov 16, 10:26 AM
    • 2 Posts
    • 0 Thanks
    tojv
    First post but I need some help / advice on a debt issue with a family member. It's a long post and a tricky one as she isn't being transparent about the issue / her finances so apologies that i can't give absolute details but I'm trying to find out some generalities. Families, eh!

    It started ages ago when my BiL who has a decent job got himself 'into trouble' with a girl and ended up having to pay child support. As a result he got into debt. He came to me and asked me to be a guarantor for a loan with one of the 'can't get credit elsewhere' agencies and naturally I told him to get stretched - there's no way I was going to tie my rating to his!

    Instead, I took out a bank loan and gave him the money with him repaying me the repayments. May even have been against advice at the time - but there you are. It went well for a few months, with money coming in on the nail and then it started being a bit short and I'll pay you extra next month and ...... and then stopped. He still owes me £7.7K and I don't think I'll ever see it although his Mum (my MiL) has apparently made that provision in her will.

    But he then asked his Mum the same question and against my advice she agreed. You can imagine the rest - loan defaulted, and they are both jointly liable. But because he hasn't a bean and she has a house and a car and things, they are pursuing her for the money. Yes, I know that's what a guarantor's for. Loan is ca £4.5K

    Right, scene set - she came to me with the 'they won't pursue a 73 year old widow will they?' and I told her absolutely, they'll hound you. But she won't communicate with me properly about it, so I'm trying to help her without any facts or paperwork about what they're actually asking for. She (supposedly) went to the CAB and they gave advice on how to deal with them, but her offer to pay the loan company instalments was rejected because the son had already agreed that and defaulted on them - so according to her that is now off the table. So in the end it resulted in court papers. Which she (apparently) filled in and sent back to them. I say apparently because I haven't seen either of the CAB advice or the court papers because (facepalm) she didn't keep a copy. And now the court has issued judgement and a chance to pay promptly and have judgement set aside. I have seen this judgement (although she then took it off me again) and it says that it is issued against her +1 (which is obviously the son) but the order to pay and document is all then in her name and sent to her address, etc. She says she wrote to the court along with the papers explaining the situation and giving full contact details for him but again get this - no copy kept, and even better she sent it just via regular mail and the court says they received nothing. No Proof of Posting, certainly not signed for. Facepalm again - but I'm suspicious.

    Right - here's the issue.

    1/ Owing £4.5K to the loans people via the court. I know the loan company rejected that offer but is it too late to ask for a repayment schedule now or do the court still give that alternative?

    2/ If no alternative, what can the court allow to be done? eg: bailiffs, and if that happens what are her rights about access / what can and can't be taken. Example - car? She lives in a remote hamlet 120 miles from us so I can neither get there when the bailiffs come knocking nor can she really do without a car.

    3/ Do they have any financial rights to her house - in the grand scheme it's a small debt so forcing the sale of a house is probably impractical but could they. It's been equity released so she doesn't own it all anyway.

    4/ She claims to have no savings and lives off state and a widow's pension month to month. I don't know if this is true or not. She says she can get some more equity from the house to pay the debt but that then eats into her monthly money.

    5/ What would happen if she declares bankruptcy - from what i read I don't think it's an option while she clearly has property and assets?

    6/ Bottom line is that I could very easily get another loan and pay it off. Whether she pays it back slowly, or makes another will provision or what, I don't know. And while every sinew says 'once bitten' - as I said at the start it's family stuff and hence I can't just wash my hands of it.

    Like i said - it's sketchy on details, some bits don't stack up quite, hence not looking for judgement just practical advice on the technicalities.
  • StepChange_Allen
    Hi,

    Due to a combination of gambling addition and losing my job I am in a financial mess and have a couple of questions about setting up a DMP. In brief, my income (JSA) is less than my priority outgoings (mortgage, council tax etc), I have considerable credit card debt but do have some equity in my house. Up until now I was looking to get a new job and then re-mortgage to consolidate all debts. With this target in mind my family had been giving (gifting) me money to keep the mortgage up to date and up until last month I had also been up to date with credit card payments but have subsequently failed to make the minimum on two of them. Unfortunately my circumstances have now changed and with little likelihood of me getting and keeping a (well paid) job in the near future I have to reconsider my position. As of now I will not be able to afford the minimum payments to all the cc debt and my family will not be able to help me out with the mortgage indefinitely.

    My new plan is to prepare and market my house for sale which would (in theory) release enough money to pay all current debt (mortgage and credit cards) but it will probably be a couple of months before I am in a position to market the house and therefore a minimum of four months before any sale completes.

    Having used the online Stepway assessment tool it seems to me that all I can currently offer the unsecured creditors is a token payment.

    My question is what should I tell my creditors? I intend to set up a self regulated DMP and obviously will send them a copy of my income/expenditure statement to prove I cannot currently pay anything other than a token but:

    1) Should I let them that I am intending to sell the house in order to honour the full outstanding balances or should I simply say that I intend to resume normal payments when my circumstances improve?

    2) If I do tell them I am planning to sell the house will it make them less likely to suspend interest and other charges?

    Any thoughts on these two points would be most welcome.

    Izboo
    Originally posted by izboo

    Hi Izboo

    Thanks for your post.

    I'm sorry to hear that things have been tough for you recently. If you're looking to offer token payments to your creditors until your property sells, you could let them know it's on the market, it's really up to you. I can't say whether they'll be more or less likely to freeze interest and charges, in fact it may make no difference at all. Different creditors may act slightly different hence it's difficult to predict.

    Your credit agreements will be broken once you're around three months in arrears, so if this happens before you can pay them off, it won't be possible to go back to paying the original repayments - at least not as a formal agreement. The fact your house is on the market (by the time they default) won't change this and so telling them this is unlikely to change anything.

    If you do let them know you're selling your house, it might lead to more frequent contact wanting updates on the sale (at least when the original agreement has been terminated), hence one could argue it's best not to say anything. No-one can guarantee for certain that the house will sell either, so you can't promise to pay them off in a certain timeframe.

    I hope everything works out for you. Please get in touch if we can assist you in any other way.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
  • StepChange_Allen
    First post but I need some help / advice on a debt issue with a family member. It's a long post and a tricky one as she isn't being transparent about the issue / her finances so apologies that i can't give absolute details but I'm trying to find out some generalities. Families, eh!

    It started ages ago when my BiL who has a decent job got himself 'into trouble' with a girl and ended up having to pay child support. As a result he got into debt. He came to me and asked me to be a guarantor for a loan with one of the 'can't get credit elsewhere' agencies and naturally I told him to get stretched - there's no way I was going to tie my rating to his!

    Instead, I took out a bank loan and gave him the money with him repaying me the repayments. May even have been against advice at the time - but there you are. It went well for a few months, with money coming in on the nail and then it started being a bit short and I'll pay you extra next month and ...... and then stopped. He still owes me £7.7K and I don't think I'll ever see it although his Mum (my MiL) has apparently made that provision in her will.

    But he then asked his Mum the same question and against my advice she agreed. You can imagine the rest - loan defaulted, and they are both jointly liable. But because he hasn't a bean and she has a house and a car and things, they are pursuing her for the money. Yes, I know that's what a guarantor's for. Loan is ca £4.5K

    Right, scene set - she came to me with the 'they won't pursue a 73 year old widow will they?' and I told her absolutely, they'll hound you. But she won't communicate with me properly about it, so I'm trying to help her without any facts or paperwork about what they're actually asking for. She (supposedly) went to the CAB and they gave advice on how to deal with them, but her offer to pay the loan company instalments was rejected because the son had already agreed that and defaulted on them - so according to her that is now off the table. So in the end it resulted in court papers. Which she (apparently) filled in and sent back to them. I say apparently because I haven't seen either of the CAB advice or the court papers because (facepalm) she didn't keep a copy. And now the court has issued judgement and a chance to pay promptly and have judgement set aside. I have seen this judgement (although she then took it off me again) and it says that it is issued against her +1 (which is obviously the son) but the order to pay and document is all then in her name and sent to her address, etc. She says she wrote to the court along with the papers explaining the situation and giving full contact details for him but again get this - no copy kept, and even better she sent it just via regular mail and the court says they received nothing. No Proof of Posting, certainly not signed for. Facepalm again - but I'm suspicious.

    Right - here's the issue.

    1/ Owing £4.5K to the loans people via the court. I know the loan company rejected that offer but is it too late to ask for a repayment schedule now or do the court still give that alternative?

    2/ If no alternative, what can the court allow to be done? eg: bailiffs, and if that happens what are her rights about access / what can and can't be taken. Example - car? She lives in a remote hamlet 120 miles from us so I can neither get there when the bailiffs come knocking nor can she really do without a car.

    3/ Do they have any financial rights to her house - in the grand scheme it's a small debt so forcing the sale of a house is probably impractical but could they. It's been equity released so she doesn't own it all anyway.

    4/ She claims to have no savings and lives off state and a widow's pension month to month. I don't know if this is true or not. She says she can get some more equity from the house to pay the debt but that then eats into her monthly money.

    5/ What would happen if she declares bankruptcy - from what i read I don't think it's an option while she clearly has property and assets?

    6/ Bottom line is that I could very easily get another loan and pay it off. Whether she pays it back slowly, or makes another will provision or what, I don't know. And while every sinew says 'once bitten' - as I said at the start it's family stuff and hence I can't just wash my hands of it.

    Like i said - it's sketchy on details, some bits don't stack up quite, hence not looking for judgement just practical advice on the technicalities.
    Originally posted by tojv
    Hello

    Welcome to the forum and thanks for posting.

    I appreciate all the information youíve given and Iíll try and simplify the answers as much as possible, and also refer you to certain pages on our website for further in depth information.

    A key point to make is that with a guarantor debt like this, itís now as if your mother-in-law borrowed the debt, so any action taken can be the same as that scenario.

    To answer your points in order:

    1. When a creditor is going for a county court judgment (CCJ) a claim pack is sent out to the debtor (person liable for the debt) and includes a form (N9a) to show a copy of your budget and make an affordable offer of payment. Iím not sure whether this was filled in or not, and what judgment was made. A court will either set an instalment order (x amount/month due by x date) or judgment forthwith which means the full balance is due by a certain date).

    If whatever has been set is not affordable, your mother-in-law would need to fill in an N245 form to try and vary the judgment, meaning to set an affordable instalment up. If she doesnít, and the original order is broken, this is when the creditor can use further enforcement options like using enforcement agents (previously called bailiffs). The creditor could already put a charging order on her property, but this is extremely unlikely to result in an order for sale application.

    Thereís more details on dealing with CCJs on this article on our website, including a copy of an N245 form.

    2. The article highlighted above talks about possible enforcement action. It is quite possible that a vehicle could end up being taken if an enforcement agent visits. However, getting an affordable judgment in place using the N245 form would prevent enforcement agents being instructed assuming the payments are stuck to.

    Thereís more information on dealing with enforcement agents (bailiffs) here.

    3. As mentioned, a charging order is a possibility, but for this type of debt, the fact the house is partly owned by someone else, and her age means itís highly unlikely to result in an order for sale.

    4. When she completes a budget, or the N245 form in this case, she must fill it in truthfully and accurately, so that will be up to her to do.

    5. I canít advise on whether she should go bankrupt. However it could mean she loses her home, and if thereís more equity in it than the debt, itís unlikely to be necessary or the right thing to do.

    6. Thatís completely up to you Ė I canít say whether you should do that or not.

    I hope this information is helpful. When you click on any of the links Iíve added on here for you, youíll see a search function on our website. Should you need more information on anything mentioned there are more specific pages on there, simply type in ĎCCJsí, Ďbailiffsí etc.

    Allen
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
    • tojv
    • By tojv 22nd Nov 16, 10:25 AM
    • 2 Posts
    • 0 Thanks
    tojv
    Thanks Allen. In answer to your points (as i understand them to be)

    1. When a creditor is going for a county court judgment (CCJ) a claim pack is sent out to the debtor (person liable for the debt) and includes a form (N9a) to show a copy of your budget and make an affordable offer of payment. Iím not sure whether this was filled in or not, and what judgment was made. A court will either set an instalment order (x amount/month due by x date) or judgment forthwith which means the full balance is due by a certain date).

    she says that she took this to the CAB who helped her to fill them out and sent them back, but this is the tricky bit, she didn't keep copies (would the CAB routinely?) and didn't send them back registered / recorded. And the court says they didn't receive anything hence the judgement was forthwith

    2. If whatever has been set is not affordable, your mother-in-law would need to fill in an N245 form to try and vary the judgment, meaning to set an affordable instalment up. If she doesnít, and the original order is broken, this is when the creditor can use further enforcement options like using enforcement agents (previously called bailiffs). The creditor could already put a charging order on her property, but this is extremely unlikely to result in an order for sale application.

    I don't think this is an option now because she didn't return the forms on time acc. to the court - the lost in the post matter above. Hence she doesn't meet criteria 1 in your 'as long as' requirements on the website.

    There might be an option to ask for a variation? But can you ask for a variation against a forthwith judgement?


    Option 2. Setting aside for £255

    again not sure if this is even an option; as per your point 1. on the link, she was aware of the CCJ but hadn't expected it to be in the form it was because she'd sent her forms back and expected to be offered a repayment schedule. Would 'lost in the post' be a suitable reason for a setting aside and rehearing when she has no proof she sent forms back (if I'm honest I wouldn't allow it!) and even then it only increases the bill by £255

    Advice on the other points is very useful, thanks!
    • CIS
    • By CIS 22nd Nov 16, 10:49 AM
    • 10,029 Posts
    • 5,720 Thanks
    CIS
    she says that she took this to the CAB who helped her to fill them out and sent them back, but this is the tricky bit, she didn't keep copies (would the CAB routinely?) and didn't send them back registered / recorded. And the court says they didn't receive anything hence the judgement was forthwith
    Worth pointing out to them that under the civil procedure rules, part 6, that service of documents can be effected by posting documents by first class post. (date of postage is the date of service).


    again not sure if this is even an option; as per your point 1. on the link, she was aware of the CCJ but hadn't expected it to be in the form it was because she'd sent her forms back and expected to be offered a repayment schedule. Would 'lost in the post' be a suitable reason for a setting aside and rehearing when she has no proof she sent forms back (if I'm honest I wouldn't allow it!) and even then it only increases the bill by £255
    A set-aside is an option under part 13 of the Civil Procedure Rules - effectively the judge decides whether or not the reason is appropriate so in some ways it's down to their individual discretion as to whether or not it's reasonable to do so.

    Craig
    I no longer work in Council Tax Recovery as I'm now a self employed Council Tax advisor and consultant with my own Council Tax consultancy business. My views are my own reading of the law and you should always check with the local authority in question.
    • lulublulub
    • By lulublulub 22nd Nov 16, 2:28 PM
    • 2 Posts
    • 0 Thanks
    lulublulub
    Lindsi re: reply 20.11.16
    I have read that bailiffs are not allowed to harass you for their own fee, which is all that I now apparently owe. I will contact and complain to the council but would like to know if this is true.
    thank you
    • CIS
    • By CIS 22nd Nov 16, 2:47 PM
    • 10,029 Posts
    • 5,720 Thanks
    CIS
    I have read that bailiffs are not allowed to harass you for their own fee, which is all that I now apparently owe. I will contact and complain to the council but would like to know if this is true.
    thank you
    Originally posted by lulublulub
    Who has confirmed to you that there's only the fee outstanding ?

    Craig
    I no longer work in Council Tax Recovery as I'm now a self employed Council Tax advisor and consultant with my own Council Tax consultancy business. My views are my own reading of the law and you should always check with the local authority in question.
    • himynameisaaron
    • By himynameisaaron 22nd Nov 16, 7:59 PM
    • 177 Posts
    • 54 Thanks
    himynameisaaron
    Hello

    I hope you can give me some advice.

    A debt linking to EE has surpassed at £319 since my contract account was suspended in January of this year, am making regular payment of £40 a week to help settle the debt for a brighter future ahead, to obtain credit from other lenders. I should be debt free by December - I am currently on £159!!

    The debt has been passed forward to debt collection agencies and then back to my mobile phone provider, EE again. What's going to happen on my credit report, will this shown up as XX amount of missed payments after many promises of wanting to make payment previously when it was with the debt collection agency and therefore be defaulted from the date the debt had been settled for six years?
    Last edited by himynameisaaron; 22-11-2016 at 8:15 PM.
  • StepChange_Linsi
    Hi

    Thanks for your post.

    Iím not too sure if CAB do keep copies of any forms they post on someone elseís behalf, the best thing to do is get in touch and ask them directly.

    Our website explains the two different ways a CCJ can be varied. This first way is called redetermination. This option isnít available to your mother-in-law because the court didnít receive the initial claim form in time and because the judgement was forthwith.

    However, your mother-in-law can still use the N245 to vary the judgement. The N245 form can be used even if the judgement was forthwith.

    If your mother-in-law agrees she owes the debt and because she doesn't have proof she returned the claim form I don't think applying to set the judgement aside would be the best option. It's unlikely the court would feel that the paperwork getting lost in the post would be an acceptable reason on its own, even though this was out of your mother-in-lawís control.

    Setting a judgement aside is usually used if you plan to defend a claim or if the debt was paid in full before the creditor entered the judgment.

    If your mother-in-law agrees she owes the debt but can't afford to repay it in one go, the better and cheaper option is to use the N245 form to set up a new and affordable payment arrangement.

    If you or your mother-in-law needs help filling in the N245 form or working out what is an affordable amount to offer each month then please get in touch, here are our contact details.

    Hope this helps,

    Linsi

    Thanks Allen. In answer to your points (as i understand them to be)

    1. When a creditor is going for a county court judgment (CCJ) a claim pack is sent out to the debtor (person liable for the debt) and includes a form (N9a) to show a copy of your budget and make an affordable offer of payment. Iím not sure whether this was filled in or not, and what judgment was made. A court will either set an instalment order (x amount/month due by x date) or judgment forthwith which means the full balance is due by a certain date).

    she says that she took this to the CAB who helped her to fill them out and sent them back, but this is the tricky bit, she didn't keep copies (would the CAB routinely?) and didn't send them back registered / recorded. And the court says they didn't receive anything hence the judgement was forthwith

    2. If whatever has been set is not affordable, your mother-in-law would need to fill in an N245 form to try and vary the judgment, meaning to set an affordable instalment up. If she doesnít, and the original order is broken, this is when the creditor can use further enforcement options like using enforcement agents (previously called bailiffs). The creditor could already put a charging order on her property, but this is extremely unlikely to result in an order for sale application.

    I don't think this is an option now because she didn't return the forms on time acc. to the court - the lost in the post matter above. Hence she doesn't meet criteria 1 in your 'as long as' requirements on the website.

    There might be an option to ask for a variation? But can you ask for a variation against a forthwith judgement?

    Option 2. Setting aside for £255

    again not sure if this is even an option; as per your point 1. on the link, she was aware of the CCJ but hadn't expected it to be in the form it was because she'd sent her forms back and expected to be offered a repayment schedule. Would 'lost in the post' be a suitable reason for a setting aside and rehearing when she has no proof she sent forms back (if I'm honest I wouldn't allow it!) and even then it only increases the bill by £255

    Advice on the other points is very useful, thanks!
    Originally posted by tojv
    I work as a debt advisor for StepChange Debt Charity and have specific permission from Martin to post on these boards to try and help those in debt. Read more information on StepChange Debt Charity in the Debt Problems: What to do and where to get help article. If you find you're struggling with debt and you need further help try our online advice facility Debt Remedy.

    Don't be afraid of getting debt advice. We'll help you take one more step towards getting help with your debt.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,922Posts Today

6,027Users online

Martin's Twitter