RESTONS - Help Please!

Marthasdad

Hi - I could do with some help here....

I had 2 loans with HFC (changed to Household Bank) and I cleared 1 of them off when we sold our house - stupidly I buried my head in the sand about the other one and they quite quickly caught up with me.

They immediately sent me a Satutory Demand (by post) and this scared me into contacting them -I spoke to them and they agreed to withold the demand if I agreed to pay £150 per month (the debt was around £9k) - I have been paying this religiously since October 2006.

My problem is that I also have a load of other debts I'm paying off (with DCAs cos I was stupid and tried to ignore the problems) - I pay all of them on time every month, but I'm now feeling the pinch as we have a 15-month old and another on the way in 3 weeks, so my wife is not working.

What I need to do is reduce my payments to Restons (and to other creditors) but I'm frightened that they will proceed with the SD if I propose lower payments.

I've got over the "bury my head in the sand" bit and am taking responsibility for my debts, but my priority is to my family.

Can anyone help? How should I approach te creditors?

Thanks in anticipation.....

Broken_hearted

You need to do a full SOA to work out what you can afford to pay. Then you send copies to your creditors to show why you need to reduce payments.

Marthasdad

Thanks - is it best to do this via a DMP, or to write to all the creditors individually?

LilacPixie

There is no 'best' way. Some people would rather do it themselves to feel more in control. Other are happier to use a free charity such as CCCS as they feel it eases their own stress levels. Its totally your choice.

Just remember if you go the company DMP route use a free one and not a fee paying company.

Marthasdad

Thanks for the advice - do you know, are they obliged to accept reduced payments if my SOA backs them up?

I'm worried about this statutory demand and Restons coming back to me and saying "if you can't afford £150 per month, then we'll proceed with the SD"?

LilacPixie

They are under no obligation to accept lower payments however if your SOA shows you don't have it they simply cannot have it.

2.6f of the OFT debt collection guidance does however state that it is unfair to;

pressurising debtors to pay in full, in unreasonably large instalments,

or to increase payments when they are unable to do so

If you don't have it then restons would be silly to go the SD route and then petition for your bankruptcy as the may get nothing.

I don't know the full circumstances surrounding your debt and the amounts ETC but you have to put your family first and for some circumstances petitioning BR is the best way forward for that individual.

I am not saying you shouldn't take responsibility for your debts because you obviously are but do not be fooled into thinking going BR is shirking your responsibilities because it isn't. In many cases it is the only viable way forward.

fermi

Marthasdad wrote: »

I'm worried about this statutory demand and Restons coming back to me and saying "if you can't afford £150 per month, then we'll proceed with the SD"?

Do you have significant equity or assets?

Most of the time an SD is used as a scare tactic. It's pretty rare that a creditor will carry with that through to bankruptcy. That costs them often over £1,000 in fees to do, and unless you have substantial assets that would cover all your debts and Official Receiver/trustee fees then creditors have no guarantee of getting anything back.

I'm not saying that it shouldn't be treated seriously, but most creditors wont pay out £1,000's to make you bankrupt if it is unsure whether they would get the debt or fees repaid by doing that.

Marthasdad

Thanks everyone - that's a great help - I don't have any assets, so looks like that may not be an option for them.

I'll do an SOA and see what I can afford to pay, then write to them all and see what I can do.

Thanks again for the advice - you're all fab on here!!