What's the worst that could happen?

onedaymyfriend

Evening!

I need a bit of advice, a friend of mine took out a loan (30k) in 2008 with Black Horse to purchase a car. All was well until about 15months or so ago when he lost his job. The car was sold to pay Black Horse and other debts, Black Horse are still owed 19k and have been excepting minimal payments for about 9 months. They have since demanded full payment and have sent out a CCJ.

He owns a property, where he lives with his family; the property also has about 70% equity.

What is the worst that could happen? or the least that could happen?

Could the court order him to sell up?

Thanks for your help as always!

BoGoF

!!!!!!!!...they gave a car loan for £30k.....good one....

onedaymyfriend

BoGoF wrote: »

!!!!!!!!...they gave a car loan for £30k.....good one....

It was classed as a 'Personal Loan', I was a little surprised they gave him a loan for that much without even seeing any pay slips etc.

immoral_angeluk

onedaymyfriend wrote: »

Evening!

I need a bit of advice, a friend of mine took out a loan (30k) in 2008 with Black Horse to purchase a car. All was well until about 15months or so ago when he lost his job. The car was sold to pay Black Horse and other debts, Black Horse are still owed 19k and have been excepting minimal payments for about 9 months. They have since demanded full payment and have sent out a CCJ.

He owns a property, where he lives with his family; the property also has about 70% equity.

What is the worst that could happen? or the least that could happen?

Could the court order him to sell up?

Thanks for your help as always!

What do you mean by sent out a CCJ? They don't just send them out, it involves court action and various opportunities for him to negotiate payment or defend it if there's already an arrangement in place...


Worse case scenario? They apply for a charging order, then for an order for sale to force a sale of the property to get their money back. Or they could send in the bailiffs to attempt to seize his goods to repay the debt... or they may choose to make him bankrupt...

onedaymyfriend

immoral_angeluk wrote: »

What do you mean by sent out a CCJ?

Sorry about that, they've sent him claim forms from a County Court; stating the amount they require.

immoral_angeluk

onedaymyfriend wrote: »

immoral_angeluk wrote: »

What do you mean by sent out a CCJ?

Sorry about that, they've sent him claim forms from a County Court; stating the amount they require.

And what was that? Has he responded to the claim form? He only has 14 days from service to do this otherwise they will obtain a judgement in default.

onedaymyfriend

immoral_angeluk wrote: »

And what was that? Has he responded to the claim form? He only has 14 days from service to do this otherwise they will obtain a judgement in default.

The total amount is 19k. The claim form arrived on Tuesday. He is also currently still unemployed.

sharpy2010

It does beg the question, does anyone NEED a £30,000 car on finance?

paddyrg

Then your friend needs to pay attention and reply to the courts honestly and promptly. He can't go to prison for debts, but they can mess his life up somewhat - unless he can find the cash from selling stuff then he can expect bailiffs to do so for him. If he owns a property, it may be sold, so he would be wise to instruct his own estate agent as opposed to letting everything be taken via the courts.

queenofstars

No, they can't take your home or land for a judgment. A County Court Judgment will have a very negative impact on your credit rating and make it near impossible for you to gain any form of regular credit or finance for at least six years. The only forms of credit and finance that you can expect to be accepted for would be those credit facilities designed for the sub-prime credit sector. These include things like Payday Loans.

I'm surprised he was able to sell the car with an outstanding loan, though.

geoffky

paddyrg wrote: »

Then your friend needs to pay attention and reply to the courts honestly and promptly. He can't go to prison for debts, but they can mess his life up somewhat - unless he can find the cash from selling stuff then he can expect bailiffs to do so for him. If he owns a property, it may be sold, so he would be wise to instruct his own estate agent as opposed to letting everything be taken via the courts.

paddyrg..you have jumped the gun big style here....

to the op ..there will be ample opportunity for him to settle this debt or come to a payment agreement before it gets to this.