Will they make me sell my house?

StressCity_2

Hi, I have the following debts: all credit cards:

MBNA £9500
MARBLES £4500
BARC CARD £5000
BARC CARD £4500
BARC CARD £1200

TOTAL: £26,200

Lost my job 18months ago, got a full time job straight away but on about 25% of my previous salary. Used my savings to keep up payments until 3 months ago when saving ran out. Also went self employed 3 months ago because the job salary was not going to improve. I have started missing payments in the past 3 months and getting calls/text messages many times a day from creditors.
Have sent them all a letter explaining my circumstances and spoken to them on the phone but they are only interested in trying to get the maximum payment from me each month. They have each sent me a budget sheet to fill out. I have not done that yet but I will this weekend. If worse comes to worse and they make me bankrupt (I know I am jumping too far ahead here but I just need to know) can they make me sell my house which is owned 50/50 by my wife and myself. The cards are not in my wifes name and they are not her debts.

Please don't think I am trying to avoid paying my bills. that is not the case. I borrowed the money and I will find a way to repay it but I just dont want to lose my house.

(Should have negotiated a lump some reduced payment when I had the money but took the wrong advice, my fault)

Thanks

the_hounds

Have you got equity in your property?

catmiaow

You will have association with your wife due to sharing a mortgage,although your debts are not hers it will still show on her credit file as well as yours, making it harder to get future credit.

GeorgeUK

Do you have Payment Protection Insurance on any of these?

If you don't keep up repayments, they will probably default you. This would stay on your credit file for 6 years.
You may be able to set up a repayment plan and hopefully get them to freeze charges and interest.
Even if this happens, they have the option of taking you to court and getting a CCJ.
Usually it is only if you do not keep up the repayments on the CCJ that they can apply for a Charging Order against your house, but some creditors request a CO at the same time as a CCJ.

This is a long way from happening yet, so try not to worry too much about that right now. If any of the accounts were opened before 6th April 2007 you may also be able to contest the enforcability if it came down to a fight.

Have you tried contacting any of the free debt charities to assist with setting up a repayment plan?
CCCS or Payplan are usually recommended here.

fatbelly

The answer to your question is no. Orders for sale are so rare I've never heard of a successful one.

Set up a dmp with a fee-free provider (CCCS, Payplan, CAB, CAP) and make sure your current account is unconnected to your debts

winner12

Hi there
If the debts are in your name they cant chase your wife for what you owe them.
You will need to do SOA if you call one of the free advise agencies they will help you prepare one to send to all your creditors.This will give you a pro rata figure to offer all your creditors. Keep paying them only what you can afford after you have paid your priority debts (mortgage rent,gas electric food etc)and remember they cant have what you have not got
Good Luck

Devils_Avocado

Don't forget too that IF you had to lose your house your wife would be entitled to half of the equity. All the debts in your name would come out of your half.

Mike

DarkConvict

Since you 3 creditors and they all are owed over £1500 between then. Any of the 3 creditors could go for a bankruptcy order. This is very uncommon and is used more of a threat in a letter, but it has happened before.

If you do have PPI and they refuse to pay out, see about reclaiming.

PPI - http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
Credit card - http://www.moneysavingexpert.com/reclaim/credit-card-charges

StressCity_2

fatbelly wrote: »

The answer to your question is no. Orders for sale are so rare I've never heard of a successful one.

Set up a dmp with a fee-free provider (CCCS, Payplan, CAB, CAP) and make sure your current account is unconnected to your debts

Thanks fatbelly, I contacted the CCCS today and they confirmed that it would be a very long road before they went after my house. It seems that it is possible but you would have to be downright obstructive to have things go that far with unsecured loans. In my case, I want to pay off these debts and I just need time and for them to accept reduced payments. The CCCS are going to help me with a repayment proposal (I guess that is a DMP) I feel much better already and I can't wait to get this thing under some sort of control. I do have PPIs on all cards and not one will pay out since I have never registered for unemployment/Job seekers Allowance. I have had the PPIs for 8 - 10 years and must have paid £££££s to them. I would love to have some of this back and credited towards paying by balance. Did not talk to the CCCS about the PPIs but I will when I have my first full appointment next week.
Thanks all for your help, I'm glad I am not alone!!


Regarding claiming back some of the PPI payments I understand that I would need to prove they were inappropriately sold to me.. Not sure I have any original records to prove that but I'll start the process.

winner12

Hi there write to them about being mis sold ppi insurance etc they then have to look into for you I did with Barclays they found in my favour takes a few weeks though did not know I was paying insurance it never showed on my statements only found out when debt got too much and they asked me to try and claim

dancingfairy

Hi - Martin has an article on reclaiming PPI - here:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance
Also the FOS I think has today announced new guidelines in how banks should deal with reclaims as before the banks said no to just about everybody and people had to go to the ombudsman to get it sorted and many people got it sorted at the ombudsman but the ombudsman was getting fed up with the banks not sorting it properly in the first place and admitting they had missold ppi.
df