flm loans and my guarantor

vickiesum

please can somebody give me any advice. four years ago me and my partner got a loan with flm. my mother in law went as the guarntor. we topped the loan up last december. since then me and my partner have got into financial difficulty aswel as our guarntor. as a solution our guarntor and ourselves went in to an iva. at the moment it is being processed and we have been advised to stop our payments to flm and our other debtors until the iva goes through. we have contacted flm and told them this. flm have told us that they are going to take our guarntor to court to take possesion of her house, or they may send the bailiffs out. as far as we are aware we did not take out a secured loan. they are contacting my guarantor everyday and are practically harassing her over the phone to pay. plaese has anyone got any advice for us?

Tixy

Might be best asking this on the IVA board.

Has MILs IVA started? has yours? have they both been agreed by your creditors etc?
Do you have the same IP as Mother in law?
Was the flm loan included in your IVA or in her IVA?

I think you'll need to discuss this with your IP to see whether it was covered by either IVA.

AMILLIONDOLLARS

Who is handling your IVA. You must contact them and let them know what is happening. Have you contacted the recommended Charities below, they will be able to give you advice.


http://www.nationaldebtline.co.uk/
http://www.citizensadvice.org.uk/
http://www.cccs.co.uk/

AMD

vickiesum

oh sorry im new on here an this was the first one i came across that fitted in with my question. we are both with different iva companys and they dont seem to know whose iva it should go on. my mother in laws iva is further on then ours is, shes payed her first payment, ours is still being processed at the minuite.
i havent contacted anyone but the iva company so ill get right on them websites. thank you both very much.

pippitypip_2

As far as I am aware, the FLM loan is stil an UNSECURED LOAN. Even though your MIL is guarantor, I don't think they actually can take possession of her house as I think that would only be possible in a secured loan scenario.

They use the usual scare tactics, but I am in a payment plan with them and having paid for ages every month, their collections team end up very reasonable in the end. Horrible (just as all the others are) in the interim though.

I think post above is the right call - speak to whoever is handling your IVA, and MIL should speak to whoever is handling hers and let them know the sitution, ask for advice.

The debt is yours, so think it should be in your IVA, not MIL's, but again speak to your IVA handler.

There are also letter templates to send recorded delivery on the DFW board (Debt Free Wannabe) - both you and MIL should send off the one that requests no phone calls, only to deal with by letter. That will help.

hth,
pippitypip

AMILLIONDOLLARS

What a lot of people don't know is that an unsecured loan CAN become a secured loan. FLM could take the MIL to court to request that a Charging Order be placed against the property, as she is now deemed to be responsible for the loan because of the OP default.

See the below link:
http://www.insolvencyhelpline.co.uk/debt_factsheets/charging_orders_in_the_county_court.php

A lot of lending institutions are using this method to secure, unsecured lending and they are succeeding.


AMD

pippitypip_2

AMILLIONDOLLARS wrote: »

What a lot of people don't know is that an unsecured loan CAN become a secured loan. FLM could take the MIL to court to request that a Charging Order be placed against the property, as she is now deemed to be responsible for the loan because of the OP default.

See the below link:
http://www.insolvencyhelpline.co.uk/debt_factsheets/charging_orders_in_the_county_court.php

A lot of lending institutions are using this method to secure, unsecured lending and they are succeeding.


AMD

True, but I think the crux of the matter is they don't ever go that far if you have a reasonable payment plan in place - which is in effect an IVA anyway.

This is a standard scare tactic, and courts will never put a charging order in place unless other methods of payback have been exhausted.

Quote from the same site:
What is a charging order?

• If a creditor has a county court judgment against you ordering you to repay a debt, they may be able to apply to the court for a charging order to enforce the judgment if you do not pay.

So, FLM would first have to obtain a CCJ, which would be a court ordered reasonable payment based on a budget and therefore an affordable payment. If then, those CCJ payments are not made, only then would a charging order be considered.

As a I said, this is a scare tactic and doesn't even apply in most situations.

pippitypip

AMILLIONDOLLARS

"reasonable payment plan" This will indeed be the key. If FLM do not consider the payment plan to be reasonable they can still take their chances in court. At present we do not know how much money was susequently borrowed and added too. So at this time we cannot reassure the OP until we have the full facts. I would not knock a charging order out of the ball park until we know. The fact that the MIL is also in an IVA is very worrying.

AMD

Tixy

Problem is if FLM reject your IVA because they have a guarantor and then go after MIL the debt will already not be covered by her IVA, as that has already started, and then they could take court action against MIL.
You really do need to speak to your IP about this to try to resolve it and fully understand the implications.

pippitypip_2

AMILLIONDOLLARS wrote: »

"reasonable payment plan" This will indeed be the key. If FLM do not consider the payment plan to be reasonable they can still take their chances in court. At present we do not know how much money was susequently borrowed and added too. So at this time we cannot reassure the OP until we have the full facts. I would not knock a charging order out of the ball park until we know. The fact that the MIL is also in an IVA is very worrying.

AMD

Bear in mind that it's not what FLM thinks is a reasonable payment, but the court and even then, only if they took it to court. Only IF they then got a CCJ and then the OP failed to meet the CCJ payments, would the court consider a charging order.

A charging order is only ever used in extreme circumstances when people don't pay anything, even when a court has already ordered them to.

Seriously, the IVA will most likely cover it. FLM are very reasonable, like most when it comes down to it. They only use the scare tactics to get people to pay money. Once they realise you really are experiencing financial difficulty and have demonstrated you do actually want to pay them back as much as you can afford to a month, i.e. you're paying something - they're usually happy and don't even go to court for a CCJ.

Bear in mind they lose out if they get a CCJ. If your earnings go up, they're not entitled to any more money.. it's a fixed payment till the debt is paid back.

OP all of this advice and more is on the DFW board.

pippitypip.

pippitypip_2

Tixy wrote: »

Problem is if FLM reject your IVA because they have a guarantor and then go after MIL the debt will already not be covered by her IVA, as that has already started, and then they could take court action against MIL.
You really do need to speak to your IP about this to try to resolve it and fully understand the implications.

Good advice - def need the IP's advice in both cases MIL and OP.

In fact, you do also need to explain the situation to FLM. Don't ignore them, see what they say too. Make sure you're speaking to Collections that understand the implications of your financial difficulty (not the usual phone bods who haven't a clue and will read from their menacing script lol).

Try asking for Dean in collections (Harvey Stert, in house) - 01202464573 - he will be able to tell you who is handling your case and pass you over I would think.

They only get heavy when you avoid them so explain everything and ask for their advice.

DO NOT give card details or agree to any payment plan - esp not when IVA is in progress.

hth,
pippitypip