CSSS? Debt Plans??

alunp

Hi

My friend is in debt. The debt involves a loan, parking fines which have escalated, a car lease that the company won't let her get out of, and a mortgage she can no longer pay.

She has already contacted the mortgage poeple and is paying interest only at the moment, and has put her house up for sale.

CSSS has advised that she contact the loan company to arrange a £1 a week payment to them.

The car lease is an absolute nightmare as it costs 400 a month and they won't release her, let her do a lease swap or anything.

And I don't know what will happen about the car parking issue, but thats a complex one and may hopefully get written off as the council had given permission for her to park there (theres a yellow line outside her house).

Anyhoo.....

......I advised her to contact CSSS and they were the ones who told her to get in touch with the loan thing. But they wouldn't help on the other stuff, including the mortgage.

Reading Martin's book I'm seeing that many people get Debt Plans from them. My friend hasn't had this. Should she have? Would that help someone in her situation?

Xbigman

A DMP only works with unsecured debt. The mortgage and the car lease are secured and there is nothing they can do. The parking fine cannot be evaded and needs to be paid ASAP as it will only go up (or any appeal needs sorting out immediately). The loan on its own probably isn't worth a formal DMP.

I dont know the exact details of the car lease but if it was me I would tell them I could no longer afford to pay and invite them to pick up the car and stop all payments today. There would almost certainly be an outstanding debt of some sort but you can deal with that as an unsecured debt.
Tell your friend to check the paperwork of the lease carefully to see what the options are. If you want more advice post the exact details of the lease. IE HP, business lease, term lease, etc.
Regards



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alunp

Xbigman,

That's really interesting. So if she were to refuse to pay and they repossessed the lease car, and then tried to get their money off her, this debt would now be an unsecured debt and so she would be able to come up with a £1 a week style arrangement?

I'm seeing her tomorrow so I'll grab the full lease details from her. What is it that you'd need to know?

Thanks

Al

Mr._OCaz

Needs to also sort out the parking fines as well.

They have been de-crimalised (so to speak as no longer dealt with in the magistrates court) in certain regions of the uk, but what this actually means is they can fast track it to it a private bailiff, who will be difficult to deal with especially if she has little money to offer to them.

Remind your friend if it does go to the bailiffs for these fines, not to let hem inside her home, tell her to talk through a window or go outside and lock the door behind her and talk outside.

Even if they refuse what she offers, tell her to put the money aside anyway and give to them in a lump sum once possible. As for parking fines they want it one go as that is their instructions.

I would agree too with surrendering the car and handing it back, she may be left with a shortfall (basically once the car is sold whatever is left on the agreement) but this is now unsecured and can offer them token payment as they only have the same powers as other unsecured creditors.

alunp

This is all great advice! I'll get back to you both tomorrow once I've spoke with her

Xbigman

alunp wrote:

Xbigman,

That's really interesting. So if she were to refuse to pay and they repossessed the lease car, and then tried to get their money off her, this debt would now be an unsecured debt and so she would be able to come up with a £1 a week style arrangement?

I'm seeing her tomorrow so I'll grab the full lease details from her. What is it that you'd need to know?

Thanks

Al

Yes this is right, the debt is secured on the car. Exactly how it will be handled is down the the exact agreement and company involved. Some companies don't want to take the car back whilst others will take it back within hours.
Regards



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