Struggling with debt? Ask a debt advisor a question

*Twizzle*

Hi...hoping you can answer a couple of questions

I have been on a DMP for a couple of years with my partner, we have recently separated. I have left the family home with 2 children, i am working 16hrs a week with no support from my xOH. I am wanting to clear the debts that are in my name.

I would like some clarification on the joint debt, it is the largest loan out of the DMP @ £24,500! I am not 100% certain whether this is secured against his property! At the time of taking this loan out, we recieved poor financial advice and my financial budgeting skills were zero! I didn't have my LBM until it was too late!

If he stops paying towards this debt am i responsible for it?

At the moment our DMP is joint, but we are n the process of seperating it.

Hope you understand all that.

Thanks Spike x

qolwillclearmydebts

question for you guys. This weekend have just had my real lbm. On the surface have a successful business which has kept my payments going. Have about £40k in personal debts, cards etc and 40k in business debts (self employed sole trader, not limited company. Can I seaprate them and pay debts as normal on my business account to remain on good terms with business bank or do i need to include them all on my dmp.

andypr1976

Good advice, thanks for posting

StepChange_Pavan

one2escape wrote: »

We paid of our debts when they gave us settlement figures. For example if the debt was £2000 they said we could pay it off for £1800. Now they are coming back and asking for the rest can they do this. Also people are asking for money from debts over 6 - 8 years old can they do this. These are also from the settlement figures.

Hi one2escape and thanks for your post.

If you received confirmation that they would no longer chase you for the remaining debts after you paid the settlement figure, they can’t continue to pursue you. However, if you don’t have anything in writing, they are within their rights to do this.

With regards to the debts that are over six years old; they will only be enforceable if, in the last six years,

• the creditor has not already obtained a county court judgment (CCJ),

• you or any one else owing the money (on a debt in joint names) have not made a payment, or

• you have not written to the creditor admitting you owe the debt

This is known as statute barred and refers to the Limitation Act.

Although any of the above would mean that they are timed out to collect the debt, you would still be liable to pay.

I hope this answers your questions.

Kind regards,
Pavan

JeffMinter

An updated query...

A few months ago I made this post

https://forums.moneysavingexpert.com/discussion/comment/38701902#Comment_38701902

I setup the new basic bank account, then wrote a letter to them indicating the possible payments I could afford. As I'm still on JBSA it was a nominal amount, a few quid. I got no reply after a month so I wrote to the Financial Ombudsman 2 weeks ago asking if they could freeze my account/stop the daily overdraft fees mounting up until I was in a position to start paying off the debt sufficiently (ie. more than the debt added every day).

The answer I got from the bank? A letter detailing the Default Notice. It says I have to pay the full amount (which has now gone up to barmy levels, especially as I have ZERO money after living expenses, let alone savings) before the end of the month.

After the date they said they will terminate the account and demand payment immediately through a debt collection agency. They also said I can apply to the court to allow me more time... what action should I take next?

StepChange_Pavan

minus28 wrote: »

Hi Pavan,

Thanks very much for the reply, it helps rather a lot.

Re the CCA...that clears up my misunderstanding nicely. I do know the debt is mine (unfortunately). I did wonder however would it be ok to request a cca anyway in order to obtain the full history of charges etc? or would I write a specific letter requesting a list of charges/interest?

I am hoping MBNA do accept. I wasnt sure if I was offering too much? I had palpitations reading of others having 30% accepted
every case is different I suppose. One of the conditions I requested was that my credit file be marked as satisfied however my fear is, if they were to accept it would state partial settlement. how likely/unlikely do you think they are to agree to this?

I am awaiting a full response (after they acknowledged receipt) which is apparently due within 2 weeks. Should I get an offer I will likely request your kind help again re offer, language used, etc.

Thanks again for your help (and the link. Will have a good read through).

Hi minus 28,

I’d recommend that you ask for a Subject access report which will detail this information for you. The link gives you more information on how to do this.

With regards to the settlement, it’s important to consider the following:

• Don’t pay the money until the creditors have accepted in writing. Keep the creditors’ letters.

• Ask the creditor to send a statement showing that the balance has been cleared in full e.g. a nil balance outstanding

• Make sure the creditor agrees to mark the credit reference file as ‘satisfied’. This can be checked by asking the credit reference agencies (Call Credit, Experian and Equifax) for a copy of your credit file.

If they mark your file as ‘partially satisfied’, they could chase you for the debt at a later date which would defeat the object of settling the debt for less.

I’m afraid I can’t say how likely it is whether they will accept your offer or not – like you say, each case can differ from one to the next.

You could send us a private message with your email address and I can send you a more thorough advice sheet about making full and final settlements. Alternatively, you can contact our Helpline (0800 138 1111) or use Debt Remedy for more tailored advice if you decide to formalise your offer.

I hope MBNA agree to your offer.

Kind regards,
Pavan

StepChange_Pavan

mboro wrote: »

Hi there, I am a client with you guys (CCCS) and I have a question.

How does a DRO affect things if I wish to marry my other half in the next 6 years?

Will the DRO affect him if he wants to set up a business or get a mortgage?


Not sure if this is the right place to ask such questions:D but thanks.

Hi mboro and thanks for your post.

In short, a DRO shouldn’t affect your marriage and it would only affect your partner’s business or mortgage if you are financially associated (your credit rating would affect him if you have any joint debts or joint accounts).

As you are already a client with us, I’d recommend that you contact our support team and they will be able to discuss this with you in more detail.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

sjwilliams wrote: »

Hi I really hope you can help me
I have a few debts against my maiden name I cant track every so often I get a letter in my old maiden name saying I owe this and that but how do I find out what they are? on the debt collectors letter they have a reference and I am scared to death to phone them please help me I have dug myself into a hole I cant get out of and now Im a mummy of 2 I really want the best for them but I am unhappy and so miserable knowing these debts are there and I cant seem to get anywhere

Hi sjwilliams and welcome to the forum


If you’re unsure about who you owe money to, I’d recommend that you get a copy of your credit reference file.

This article gives you information about how they work and how to obtain yours: http://www.moneysavingexpert.com/loans/credit-rating-credit-score.

Once you know how much you owe and who to, you can contact us for further advice on how to repay the debts.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

*Spike* wrote: »

Hi...hoping you can answer a couple of questions

I have been on a DMP for a couple of years with my partner, we have recently separated. I have left the family home with 2 children, i am working 16hrs a week with no support from my xOH. I am wanting to clear the debts that are in my name.

I would like some clarification on the joint debt, it is the largest loan out of the DMP @ £24,500! I am not 100% certain whether this is secured against his property! At the time of taking this loan out, we recieved poor financial advice and my financial budgeting skills were zero! I didn't have my LBM until it was too late!

If he stops paying towards this debt am i responsible for it?

At the moment our DMP is joint, but we are n the process of seperating it.

Hope you understand all that.

Thanks Spike x

Hi Spike and thanks for your post.

If the loan is in joint names, you are both jointly and severally liable to repay it. This means that if he doesn’t pay, they can chase you for the full amount.

If it is it’s secured on his property and they’re not happy with the repayments they could apply for repossession.

I hope this answers your question, but if you are on a DMP with us you can call our support team to discuss your situation in more detail.

Kind regards,
Pavan

mboro

Spoke to a CCCS Advisor (lovely chap) this morning, was on the phone for an hour sorting through things. To summerise...

I am not eligable for a DRO, Bankruptcy is to harsh and I am not really eligable so to speak, I am in control of my debts but a DMP is an option should I wish to go down that route.

All the above is good news, and I am happy with the outcome. Basically just keep doing what I am doing and in the end I will get there. But if I need any help/advice then CCCS is just a phone call away.

He did request that I keep him upto date with another matter I am dealing with, regarding Marlin Financial Services, and a 10 year old debt they have bought from Car Craft/Yes car credit.

https://forums.moneysavingexpert.com/discussion/3149208

Hope that link works ok, it is an intresting case imo.