Going for statute barred/write off, but if buy property can that be seized or used??

April84

Hi, im currently 2years into the 6years wait for statute barring for 13k spread between 2 creditcards, and 2 debitcards due to the penalty fees.

Currently i rent, and so wont be taken to court as i have no assets that could be held against me,
and so would simply offer the nominal £1 per month repayment as the maximum i can afford due to me being on benefits currently.
The bank knows this as well as i do though, and so have been at a reasonably quiet stalemate for the last 2years.


However the problem that i have is that i would like to switch from renting to buying a property within the next few years.
(Potentially within the next 4 depending on how low the market drops)

But if i purchase a property before its statute barred, even though the CC was unsecured so had no property attached, could the bank then take me to court to try getting the property off me??
And do the bank actually have any way of knowing if your property ownership status has changed though?


Thanks

Asiacat

If they take you to court and get a CCJ the debts won't ever be statute barred. I can't understand why any lender wouln't take this step 13k is a lot to write off.

If you owe more than 750 pound , which you do, they can apply for a bankruptcy order and take most of your assets including any property you own.

On the one hand you say the maximum you can afford is 1 pound a month and on the other hand you say you want to buy property!

Where is the money for the property coming from?


You should take responsibility for your actions and pay your debts or at least a reasonable amount off them before you even think about buying property.

April84

Asiacat wrote: »

If they take you to court and get a CCJ the debts won't ever be statute barred. I can't understand why any lender wouln't take this step 13k is a lot to write off.

If you owe more than 750 pound , which you do, they can apply for a bankruptcy order and take most of your assets including any property you own.

On the one hand you say the maximum you can afford is 1 pound a month and on the other hand you say you want to buy property!

Where is the money for the property coming from?


You should take responsibility for your actions and pay your debts or at least a reasonable amount off them before you even think about buying property.

13k is alot? lol
If it was 40k+ that would be quite alot, and so i would feel concerned about them taking that to court, but for a small amount like 13k i just dont think that it woyld be cost-effective for them to go to the ccj route.

If they do take it to court though it wouldn't endup as a ccj or bankrupcy as i would offer the nominal amount, and as its a reasonable offer of repayment it cannot be rejected.


The money for the property would mainly be coming from a mortage, as i would need a 95%+ one, as i have less than 8k which i could access and use as a deposit (but would take about 4months),
but have spoken to one lender would offer between 5.75% - 6.5%.

Asiacat

April84 wrote: »

13k is alot? lol ??????????
If it was 40k+ that would be quite alot, and so i would feel concerned about them taking that to court, but for a small amount like 13k i just dont think that it woyld be cost-effective for them to go to the ccj route.

If they do take it to court though it wouldn't endup as a ccj or bankrupcy as i would offer the nominal amount, and as its a reasonable offer of repayment it cannot be rejected.


The money for the property would mainly be coming from a mortage, as i would need a 95%+ one, as i have less than 8k which i could access and use as a deposit (but would take about 4months),
but have spoken to one lender would offer between 5.75% - 6.5%.

I would also point out that if you are currently in contact with your creditors and offering them a pound a month then the six year period for statur barred hasn't even started.

The six years starts at the last time you made payment or acknowledged the debt. Even a pound counts as a payment/acknowledgement.

MPH80

Have you actually got an agreement in principal from the lender or simply a conversation that they offer mortgages and what they offer?

Put simply - how do you intend to get a mortgage when your credit file is shot to hell because everythings in default or arrangement to pay?

MrsTinks

As pointed out - if you are paying £1 a month towards your debts the clock hasn't even started ticking...
£13k is VERY worth their while to pursue for CCJs... and we have seen CCJs sought and granted for a LOT less!
Once a CCJ is granted even if you don't/can't pay they can pursue the debt beyond the 6 year limit provided they go to the judge explain why they haven't pursued it until now and he allows it.
You do not want to know the chances of getting a mortgage with a CCJ on your file...

April84

Asiacat wrote: »

I would also point out that if you are currently in contact with your creditors and offering them a pound a month then the six year period for statur barred hasn't even started.

The six years starts at the last time you made payment or acknowledged the debt. Even a pound counts as a payment/acknowledgement.

Currently i dont have any repayment plan setup.
I did send the letter offering £1 about 9months ago, but they didn't reply so i just gaveup trying.

Would it be better to get that £1 per month plan in place 1st though, then get the mortage?
Or would they still be able to at 1day decide to cancel that and try getting a ccj against me?

PinheadSK

OK, I'm really no expert in these matters but I'm confused!

April84 wrote: »

...a small amount like 13k i just dont think that it woyld be cost-effective for them to go to the ccj route...

You appear to be asking for advice in this thread but when it is given, you seem to have already made your mind up about how this is going to go. Have a browse around these forums - there are people being chased for debts that total under £20... and you think they won't go after £13k in todays climate of financial problems?

April84 wrote: »

...If they do take it to court though it wouldn't endup as a ccj or bankrupcy as i would offer the nominal amount, and as its a reasonable offer of repayment it cannot be rejected...

Again, advice offered but you seem to know better. If it goes to court, almost anything can happen (case precedents are set all the time). The Law isn't always a logical or fair beast.

April84 wrote: »

...The money for the property would mainly be coming from a mortage...

You have £13k of debt by your own admission. You're not meeting your obligations of paying it back by your own admission. What on earth makes you think that anyone will give you a mortgage?

April84 wrote: »

...as i have less than 8k which i could access and use as a deposit

If you have access to this much money, why are you not using it to clear that you owe?

It seems to me that you're deliberately trying to neglect your responsibilities and are not looking for advice as such, more for approval, as you appear to have decided the path this will all take. Whilst I'd usually be the first to say go for it, stick it to the 'man', I can't see that this thread is going to be met with much sympathy or good will.

You took the debt, you need to pay it in full or agree some sort of settlement. Otherwise, the shortfall will eventually find it's way to all the other responsible customers out there. The companies will put up their fees etc. for everyone in order to ensure they at least break even in the long run.

Sorry if this sounds a little harsh but you asked for opinions and this one is mine. Please feel free to ignore it.

Sean

MrsTinks

April84 wrote: »

Currently i dont have any repayment plan setup.
I did send the letter offering £1 about 9months ago, but they didn't reply so i just gaveup trying.

Would it be better to get that £1 per month plan in place 1st though, then get the mortage?
Or would they still be able to at 1day decide to cancel that and try getting a ccj against me?

So you last acknowledged the debt 9 months ago... not 2 years ago.
Let me make this VERY clear. YOU WILL NOT GET A MORTGAGE so long as you have these defaulted debts. Once you have paid them off then they will be marked as settled and you can start looking at sub-prime mortgages. Right now NO mortgage lender will even look at giving you a mortgage!

Theoretically IF you got a mortgage then yes the creditors could get a CCJ, the judge would look at the fact you'd bought a house and ask why you haven't paid your debts... Unless you have a REALLY good excuse he ain't gonna be impressed. If you fail to pay the amount set by the CCJ they CAN and WILL move to get the debt secured on any property you own.

Deal with these debts first - you won't get a mortgage until you do and even on the extreem off chance you did then it would be at such an extortionate rate that I can't see it being sustainable...

Also where will you get the 25% deposit from?

MrsTinks

OP - reading your posts... you come across as VERY naive regarding financial matters... you have no clue about the CCJ process or the severity of CCJs on your likelyhood of getting a mortgage in future...

You've dabbled in something you don't understand and it's going to come and bite you! Grow up, face up to your debts and put away any thoughts of a mortgage for the next 6 years.

MrsTinks

and finally - the court sets the amount you have to pay... if you think you can pay only £1 or whatever think again... the judge could set it at twice the original min payment if he feels like it...