Struggling with debt? Ask a debt advisor a question

boogiequeenie

Thanks for all your advice. CCCS Pevan. My husband contcated CCCS and is now on a DMP for £1pm. I know (being an ex-debt collector) that this will only be valid for 6months max. I cannot see the financial position changing in the near future.

My Q is this: What will happen after the 6months? He won't be able to up the payments and so I think that he may be looking at bankrupcy or IVA at the very least. I am very reluctant to have my finances involved in this (I was declared bankrupt in Dec 2008 and it's since been discharged). Whilst my credit rating is diabolical I am steadily increasing it now with an overdaft and a credit card.

So... What will happen after 6months?
Will my finances be included? (my finances are already spoken for)

Many thanks!!!

boogiequeenie

GravesySpurs: I read your post with interest. I dont thinK i can offer the qualified advise that CCCS Pevan can but being an ex-debt collector felt I wanted to offer this...

It is always the same with joint and several liabilities. The moral and legal status with is totally differ. Legally she should be paying towards the joint loan. In reality though you're the easiest person to get hold of and any attempt to "chase" your ex-wife normally involves costs that will be added to your account that you should have to pay. Technically the money should go on your loan... to reduce liability. As you're not allowed to have any credit right now then the loan application should be in your ex-wife's name. I would let her take this on. You would have been assigned an insolvency practioner when you did your IVA. I would contact them, tell them of the situation and see if they agree with this to resolve the situation. It may be that they write to First Plus advising them that this would be the best action to take.

I don't know if CCCS Pevan wil agree/disagree with me??

gemmacots

CCCS_Pavan wrote: »

Hi gemmacots and thanks for your question.

It sounds as though you’re doing everything you can to try and repay your creditors. It’s unlikely that they would force you to sell your house, as they would have to apply for a CCJ and then apply for a Charging Order which would secure the debt against your property. You can read more about the court process on our website: http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Courtaction.aspx

If it did go to this stage, you could put your case forward that you are making regular payments and the house has been up for sale to help your situation too.

When you do get a job, I’d recommend that you get back in touch with us so that we can change your budget and give you some updated advice.

If at any stage you receive any paperwork that you’re unsure about or you need any more detailed advice, please don’t hesitate to get in touch.

Kind regards,
Pavan

Thank you for your kind response. I have now sent off the £1 per creditor. I would rather have a payment plan setup, but have been told as I have no money left after my expenses, that they cannot set one up. I am trying to increase sales in my business so I can have funds left over to arrange a payment plan. Do you know how long I can pay the £1 per month without it causing a problem?
Also, my morgage have now agreed to let me have interest only for 12 months. Do I put this new amount in my form even though it is only for 12 months, as this will change my outgoings by quite a lot? What happens after the 12 months if I am put back on a repayments mortgage and my situation changes? Sorry for all the questions, but I think that is the last one for now.
thank you.

StepChange_Pavan

GravesySpurs wrote: »

First post and don't know where to start as it's complicated. Wife left me in Sept 2009. Left me with 25k credit card debts and also the kids stayed with me. I have a mortgage in my name only with a secured joint named loan. I had no choice at the time but to sign up to an IVA to take care of the unsecured debts. Since Sept 09 my now ex wife has not paid a penny towards the joint loan. I tried claiming from First Plus who mis sold me a PPI but they were having none of it.Since I got solicitors to do the claim they have accepted liability and owe me nearly £30,000. They propose to drop the balance of the loan by £22,000 and pay a cheque of £8'000 (Yes it was a big loan :-(
The problem I have is that my ex wants half the cheque despite the fact that she has not contributed to the loan in any way. I will not accept this as i would rather have the cheque also go onto the balance of the loan. First Plus will not process the claim until this issue is resolved. I still owe my solicitors money for the divorce and cannot afford more solicitors fees.
I have put the house up for sale and there is equity in the house enough to clear the mortgage and also enough to clear at least 50% of the loan once the ppi claim is processed. First Plus are basically not happy with that and are making it difficult for me to sell the house as they want me to complete a shortfall loan application pack but because im in an IVA as far as im aware i cannot have any credit.
Im at my witts end and just want to hand the keys back to the mortgage company and walk away but am terrified of the consequences.

Any help and advice would be greatly appreciated.

Hi GravesySpurs and thanks for your post.

Your situation certainly sounds complex and because you’re already in an IVA which is legally binding, you would need to discuss all the possible scenarios with your IP.

I’m not sure whether selling your house was in the terms of your original IVA or it has been varied to include this. Either way, it’s worth double checking what the consequences of this or handing the keys back are - only our IP will be able to answer this.

It’s also possible that the 4 or 8K cheque that you receive will have to be paid into your IVA and the solicitor’s fees may also be included as another creditor.

Again, you really need to discuss all of this with your IP. Depending on the outcome, you may decide just to let your ex wife have the 4K to speed up the process. It’s likely that she’ll be chased for the shortfall anyway.

I’m sorry I can’t be any more specific in my answers; please let us know how you get on.

Kind regards,
Pavan

StepChange_Pavan

boogiequeenie wrote: »

Thanks for all your advice. CCCS Pevan. My husband contcated CCCS and is now on a DMP for £1pm. I know (being an ex-debt collector) that this will only be valid for 6months max. I cannot see the financial position changing in the near future.

My Q is this: What will happen after the 6months? He won't be able to up the payments and so I think that he may be looking at bankrupcy or IVA at the very least. I am very reluctant to have my finances involved in this (I was declared bankrupt in Dec 2008 and it's since been discharged). Whilst my credit rating is diabolical I am steadily increasing it now with an overdaft and a credit card.

So... What will happen after 6months?
Will my finances be included? (my finances are already spoken for)

Many thanks!!!

Hi boogiequeenie and thanks for your post.

You’re right that making token payments isn’t a long term solution. This should have been explained at his appointment and other options may have been discussed.

It could be that bankruptcy is a better option, but it’s difficult to say without looking at his situation in more detail. (If he doesn’t have a surplus available, an IVA won’t be an option.)


Your finances don’t need to be included, but again, this could have been discussed in his appointment.

If it’s unlikely that there will be any changes in his financial situation we could look at his options now rather than waiting a further 6 months. He’d just need to give us a call.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

gemmacots wrote: »

Thank you for your kind response. I have now sent off the £1 per creditor. I would rather have a payment plan setup, but have been told as I have no money left after my expenses, that they cannot set one up. I am trying to increase sales in my business so I can have funds left over to arrange a payment plan. Do you know how long I can pay the £1 per month without it causing a problem?
Also, my morgage have now agreed to let me have interest only for 12 months. Do I put this new amount in my form even though it is only for 12 months, as this will change my outgoings by quite a lot? What happens after the 12 months if I am put back on a repayments mortgage and my situation changes? Sorry for all the questions, but I think that is the last one for now.
thank you.

Hi there,

It’s difficult to say how long you can make token payments for – it’s usually just a short term solution until something changes; in your case until you get a job. But like I mentioned before, as long as you’re doing everything you can (which you are) there’s not much more you can do.

If the change to your mortgage means that your expenditure’s changed quite a bit, it’s worth giving us a call to update your budget - there could be other solutions available to you, which could ease the pressure a bit. I know that it will change again in 12 months but there may be other changes by then too.

And don’t worry about the questions – that’s what we’re here for

Kind regards,
Pavan

michelle45_2

Hi

I have just started a 7 year DMP. However, I have just been informed that I will be receiving some PPI back which will either take a year of my DMP, or could I use it to pay some of the smaller debts off.


Michelle

rubyjam

Hi, I hope you can advise me please?

I'm recently started a DMP with CCCS and I don't know what to do about my CC with Mint. The interest rate they are charging me has gone up and is now higher than it was before i started my DMP - the interest alone is more than twice the monthly payment I am paying on my plan. This is really worrying me as I will never be able to pay this debt off if this continues.

I have written to them several times requesting they reduce interest and the only response I have had is a letter saying they couldn't action my request because I hadn't signed my letter.

They want me to sign my name in a box on the bottom of a letter they've sent me and return it to them. I read somewhere that I shouldn't sign my letters. Is this right? What should I do?

Many thanks!

porkpie1981

I was advised to go bankrupt but since i was at uni i was allowed a dmp. Ive been on it for a few yrs now and this year ive missed 3 payments but made 2 of them up. The thing is im sooooo ashamed of myself as I didnt tell the cccs that I had a very account as i thought if i had i would have no option but to go bankrupt and i really didnt want to! I think i had 2 grand on it at the time but now i owe 4 grand as I really couldnt afford the dmp and the heating and electric was killing me (as increasing) so i used very to get clothes for the 4 of us (partner and 2 kids).

Im really thinking that its time to go bankrupt but will they turn me down as i didnt meantion very account.

Also i use the competition forum on here and have won around £3500 in competitions. Will i have to show letters of money coming into my bank?

so ashamed but i think i need to get this done asap

jay106

Hi,
I was a customer of DCM who where dealing with all my debt, as you know they went in to administration and left me just as bad as I was in 2002.

Cleardebt who have took control of DCM customer list has advised me to try for a IVA, but am not sure if this is the right way to go. Have just started getting the usual threatening letters and from what I can see my debts would only be about 8K 9k at a push.

From what I can see there is a lot more people worse of than me and manage. I just need help in trying to find out what the best way to go is, do I go for the IVA or do I go it alone and pay of small amounts and then when I can ask for a settlement figure from these collection agencies.

Could also somebody please tell me if its worth trying to get any of my debt statute barred as it was loans took out from 1999 - 2001. As it was a company acting on my behalf am not sure if it still counts as me paying the debt. If it's of any help I just checked my credit file with Experian and Equifax and it doesn't show any unpaid debts against my file. The only thing it shows is searches by Apex and Cabot Financial and the search reason shows Unclassified for apex and Outstanding Debt by Cabot. Which I think is a CCJ.

Thanks in advance for any help