flm loans and my guarantor

AMILLIONDOLLARS

pippitypip wrote: »

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. Not true a person can offer to pay their debt and make a reasonble offer to the company they owe money. The company can choose whether to accept the offer or not, if not, the person is taken to court by the company who make their case on how much they want that person to pay, the Judge decides on the outcome (CCJ). At the same time the company can request a charging order, the judge can decided whether an interim should be put in place, (this is like a warning to the person that if they do not keep up the court order payments then the company has the right to apply to the courts again for a full charging order.

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.

Speaking from experience!

AMD

vickiesum

Thanks to all for the advice have organised a small token payment on paypoint so not to give bank details and reassured MIL that there is a process to obtain a charging order in which time the IVA should be aproved and also have included the loan in both IVA applications...Thanks again all have been a very big help

pippitypip_2

AMILLIONDOLLARS wrote: »

Speaking from experience!

AMD

AMD, you're missing the point I'm trying to make. That even if they got an interim charging order, (even if simultaneously obtained at the same time as the CCJ), that charging order would ONLY apply if the CCJ payments were missed.

Therefore the ONLY way the OP's MIL could lose her house, is if:

1) FLM do take her to court (not the OP) and request a CCJ
2) CCJ applied AND interim charging order given by the court
3) CCJ payments missed.

If this is speaking from experience then surely you realise the key point is not paying the CCJ payments?

These are people entering into an IVA who are trying to pay money back to their creditors, not avoid them and pay nothing. So what I'm trying to say is, yes this is certainly possible, but extremely unlikely.

pippitypip

AMILLIONDOLLARS

What I'm saying that a charging order can still be applied even if a person has offered a reasonable repayment plan.

A member of my family made a reasonable offer of repayment which was turned down by the creditor. The creditor took them to court where the same offer was accepted by the judge. But the creditor's representative in court immediately requested that a charging order be made against their property. After legal arguments for and against this the judge (thank god) decided that on this occasion he would not grant the interim order, some people are not so lucky and it always depends on the judge. So it is, not if they do not keep up their payments, it can be granted sometimes at the point where the CCJ becomes binding.

In fact they took me to court to speak on their behalf and I managed to argue the case against this order being applied.

AMD

pippitypip_2

but the important thing that the OP can impart to their MIL is that if they keep up payments (and v unlikely the court, even if issuing a CCJ, will request more money a month than is offered in the IVA), even if they do get a charging order, FLM will not be able to take possession of the house unless the CCJ payments are missed.

vickiesum wrote: »

FLM have told us that they are going to take our guarntor to court to take possesion of her house, . plaese has anyone got any advice for us?

Anyhoo - OP I hope you do consider discussing with FLM, as if they're aware of the situation and that you're not avoiding them without intent to pay - I would think it would help and make it more likely they will accept the IVA.

It can't hurt.

pippitypip

Tixy

Vickie

It might also be worth looking at the IVA board as none of us who have answered have actually been in an IVA (as far as I can tell) - so you could possibly ask on there as well or have a look through to see if any similar questions have been asked involving IVAs and guarantors - http://forums.moneysavingexpert.com/forumdisplay.php?f=159 Its not the busiest of boards so you may not get an answer tonight but might be worth going for extra opinions.:)

Here are some other threads mentioning IVAs and guarantors -
https://forums.moneysavingexpert.com/discussion/comment/31379303#Comment_31379303
https://forums.moneysavingexpert.com/discussion/comment/19817329#Comment_19817329
https://forums.moneysavingexpert.com/discussion/comment/19934293#Comment_19934293

ILW

OP
Can you not sell whatever you bought with the loan and get your mother off the hook?

vickiesum

no i wish i could. it was used to fix my partners taxi and to pay other bills off.