Some Urgent Help & Advice Please

RedSpider

Hi
I have just signed up because I urgently need some help and advice. I guess I am just one of 1,000's having debt problems but I have got myself in a pickle.

I have been able to manage reasonably well during the recession – all things considered – I have a small business that has taken its toll but still surviving and a big mortgage.

I have a number of loans and cards which I took out to set up the business when I started back in 2002 and was doing very well paying them back until last year and only had about 18months to go before they would have been paid off. The total debt comes to £23000.

Last year I got talking to a family friend who worked for a company called Credit Issues. They specialised in taking cases to court on the evidence that the loan companies could not prove eligibility of the agreements etc. I paid them their fees and they were by all accounts successful in some cases but I was in a queue so to speak, and before the cases were presented they went bust.

Anyway, enough about that, I know I cant do anything about that now, but the problem is that I stopped paying the loan and credit card payments because I could no longer afford them and my mortgage was my priority.

All the debts have since been passed onto debt collectors and whilst I have not had huge pressure from them – just letters mainly, the biggest debt £7200 (Sainsbury) has now gone to court. The claim form is dated 25 Jun 2010 and I should have responded within 14 days but I didn’t. Although I did ring them up and ask how long I had before it would go to court and they could only tell me ‘early august’.

I have been talking to a company called debt help line ‘DHL’ who have been very helpful and have offered to take on all my debts. They have said that I could pay £100 per month until I can afford to increase my payments and was confident that he could talk to the court regarding the Sainsbury Debt. They charge £35.00 per month for the service.

I am concerned that if I go with them I could be doing the wrong thing and I am also worried that the court may or could force me to sell my house if I don’t do something quick.

Can anyone give me some advice please?

PurpleFairy26

Some one with lots more experience will be along soon, but two thing I would say... DON'T pay for a debt plan service, there are charities that do it for free and secondly if you post your SOA (or statement of affairs) there is a link in one of the *stickies* at the top of the forum, people will be able to help you with your budgeting.

Welcome to DFW, stick with us, you'll get loads of useful help and advice.

dancingfairy

Hi - well you have 2 issues - one the ongoing debt problems - which you really need to contact one of the free debt charities about - National Debtline, CCCS or your local CAB amongst others.
The other issue is the court thing. We need to know what stage it has got to. Have you got a CCJ against you? Are they official court documents or are they letters saying we will take you to court or we may take further action etc.
Oh and there is no reason why you should be paying for debt services- at best they take money that could be going towards you debt and at worse they leave you in a worse mess and have taken your money. Please cancel this company soon as possible.
Also I'm guessing the Sainsburys debt is a credit card and not a loan? if it's a loan can you say whether it's secured or unsecured as this makes a big difference.
Thanks
df

RedSpider

Thank you so much for your quick responses.

I have not signed anything with DHL but he rings me twice a day ....i have not told him to go away because i was frightened that i might be doing the wrong thing. But i will definatley look at the charity help lines today.

The sainsbury's debt that has gone to court is for a credit card - it is unsecured as are all my debts (thank fully).

The document that i have received is a Claim Form from NORTHAMPTON (ccbc) County Court. Their address is to the County Court Bulk Centre!

dancingfairy

O.K - hmm. Well I'm not sure about the court procedures given that the 14 days is up. It might be worth getting in touch with the court and finding out if a CCJ has been granted/when the hearing is/was. Also check out National Debtline's website as they have lots of useful factsheets and they may have one regarding the court process. I presume it was a ccj hearing and not combined with a charging order hearing?
If you get a judgement I think they can decide how they want it paid -ie forthwith means now - if you can't pay it all in one go then you can apply to have the order varied so you can pay in installments (there is a form for this) . They can't take your house as they would have to apply for a charging order (which you would defend) which would be an interim one, then a final one, then they would have to apply for a forced sale which for 7,000 pounds is highly highly highly unlikely - people don't get chucked out of their homes for no good reason - I've not heard of it at all on here so please don't worry about that - but obviously you need to find out what is happening with court proceedings and keep on top of things.
df

dancingfairy

It might be worth starting a new thread called CCJ help please - or something like that so the people with more specialised knowledge can help with that.
Also regardless of which debt company you go with you will need to do an SOA (statement of affairs) - there is one on the website makesense of cards which I will find the link for in a moment. If you wish to post it up here people will be able to comment on whether a dmp, IVA or bankruptcy is looking like your best solution.
df
Edit:SOA calculator here:
http://www.makesenseofcards.com/soacalc.html
Also this factsheet here is what you need from National Debtline regarding the county court issue:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=20_replying_to_a_county_court_claim_form

Pott5y

Red Spider,

definately do not pay for a DMP. I am with Payplan have been for 6 years and am very happy with them.

I have no experience with CCJs but thought this link might interest you.

There is a bit more info on Northampton Bulk Centre here. Interesting reading:

https://forums.moneysavingexpert.com/discussion/2631441

Hannah_10

You're talking to all the wrong people. First up call a charity, that means National Debtline, CCCS (Consumer Credit Counselling Service), CAB (Citizens Advice Beureaux- check spelling) or CAP Christians Against Poverty.

Again as Dancing Fairy says your options are wide open with a DMP (debt management plan), IVA (individual volontary agreement) and bankruptcy still all on the table. Much will depend on what your SOA (statement of affairs) looks like.

Your SOA's going to need to be done whatever you do so you might as well make a start, it's here http://www.makesenseofcards.com/soacalc.html It'll give you something to do while you're on hold too, be patient, they are charities after all and sometimes you really have to hang on the line. Use the loo and make a brew before you start and you wont find it so stressy.

This may feel urgent, as you've just had your LBM (lightbulb moment) and realised the trouble you're in but in reality you're not going to die if it takes until tomorrow or Monday to get through to one of the charities so calm down and take the pressure off yourself. Pressure wont help. They WILL help you (unlike these fee paying companies- as you and others have found to your detriment). They WONT charge you for the privilidge.

As regards anything unenforcible which we can get off your record or get a challenge going for, well that's a tomorrow problem, consider it a bonus rather than a direction to head in and you'll be on the right lines. There is a wealth of knowledge here about unenforcibility and an incredible resource of template letters, however it's far from a done deal and your first priority is still making a start with that phone call.

Let's try to avoid you getting into any more trouble than is strictly neccessary eh. That includes getting ripped off twice.

RedSpider

Gosh...I am so overwhelmed by all your positive feedback. I have NEVER posted on a forum before so didn't expect such a response.

I now know that there is a positive direction to go and i have a lot of work to do.

Thank you all so much for your help
RedSpider

RAS

And please note that in some cases the documentation regarding loans and cards is inaccurate and you can prevent the creditor taking court action but...

1. Never stop paying unless you already have a default.
2. Never pay anyone else to do this, people here know a lot more about it that the claims firms and we can help you do it for next to nothing.
3. if any of the legally required documents were faulty, you could have prevented this CCJ.
4. You probably had PPI on thses accounts and should have reclaimed that first.