secured and unsecured debt

moneybuster

can an unsecured debt be turned into a secured debt i have a loan with NR and about to embarke on a DMP with payplan and this loan with be included when i took the loan out some 6 years ago i asked them for a unsecured loan which they said it was as i did not want anything aganst my home but remember reading on here it was one post that if you miss a payment they turn it into a secured loan is this right.

regards Moneybuster

kimdegsidash

As far as I'm aware moneybuster, no creditor can change an unsecured debt into a secured debt without first obtaining a charging order through the courts. A secured debt is a legal charge over your property, so if the loan is unsecured at the moment it is a non-priority debt and will form part of the DMP.

moneybuster

So if you are on a DMP can they go for a charging order on your home as well ????? and if so what are the chances of them winning it :eek:


Regards Moneybuster

RAS

hi

There is a long process which leads to a charging order. If you keep your eye on things, there is a good chance of avoiding it.

The difficulty with them is that there were major changes in the law written into the Tribunals and Courts Act last year. The Government did not action those changes but the creditors and the courts have been behaving as if they have taken effect. This week the Government announced that those changes have been put on hold indefinitely.

Hopefully this will be picked up by the courts but it will be incumbent on everyone fighting charging orders to remind judges of this.

As the absolute basics,

1. When you get the termination letter and default letter, come here and pm 10past6.
2. If they send CCJ papers, you must NOT send them to CCCS who will file and admission. You must come here and we will guide you. It iss essential that you get the case moved from Northampton to you local court. This should result in a payment agreement roughly inn line with your DMP payment.
3. If they then go for a forthwith judgement, you must fight it. This requires you to pay the whole sum within a few days.
4. Mercantile v Ellis is the most important case on this and as long as you keep paying your CCJ regularly they cannot get a charging order.

However we have seen cases where people did not understand the forthwith judgement and then feel foul of Mercantile v Ellis.

others have successfully fought the cases on the basis of Mercantile v Ellis and technicalities.

moneybuster

Hi and thanks for that if they got a charging order over my home would they sell it from under us or just place the order against it in effect would i become homless as a result of this charging order

regards Moneybuster

RAS

orders for sale are almost unheard of as long as you keep up the payments.

The big incentive for the creditor is they can charge 8% interest whereas interest is halted on CCJs. And having secured the debt, means they meet their Government targets to recapitalise the bank.

I would be inclined to give you MP a lesson in the impact of Government targets for bank staff on the electorate.

moneybuster

RAS wrote: »

orders for sale are almost unheard of as long as you keep up the payments.

The big incentive for the creditor is they can charge 8% interest whereas interest is halted on CCJs. And having secured the debt, means they meet their Government targets to recapitalise the bank.

I would be inclined to give you MP a lesson in the impact of Government targets for bank staff on the electorate.

This is a bit early for us and we are not very good at understanding sorry for that....... what is the 8% intrest on. and can all our creditors go for a charging order not just NR as we have another 4 CC and one loan for about 250 quid, whats the chances of them just excepting the DMP

Regards Moneybuster

RAS

Hi

You really do need to talk more to Payplan as you need to understand a lot more.

Most people most of the time find that their creditors come round to the DMP, even if some kick and scream initially.

How individual creditors behave cannot be predicted and the legal situation is fluid.

What you really have to get into your head is that if any start legal action, you must fight it, not send the documents to Payplan to file and admission. At least one OP this week has a case adjourned because the solicitor for the major bank was badly prepared and had not complied with the law.

Banks go for the low lying fruit and if you make things hard, they may well leave you alone.

remember the TV programme where Tony Blair realised that his 48 hour appointment target was preventing people advance booking so they could organise work and childcare?

Well the Government has not yet woken up to the consequences of their actions on the banks. When they do, tthings will change.

moneybuster

there must be hundreds of people on here with DMP'S and there creditors have accepted, so there is a good chance we will not be any different (here's hoping). we have our mortgage with NR as well so it would be in there best intrest we keep paying it, so isuppose it gose for anyone on a DMP that creditors could start charging orders.


Regards Moneybuster

RAS

read here and join in http://forums.moneysavingexpert.com/showthread.html?t=977633

moneybuster

hi and thanks reading my way through


i think the important thing here is our income is mainly made up of benefits

DLA
IIDB
IB
CA
TC
FA
and a small wage from my wife so they can only get out of us what we give to pay plan.

Regards Moneybuster