I really need some advice please!

unhappytinkerbell

I really hope someone can give me some guidance, I appreciate you can't "tell" me what to do but just some information would be really useful. Apologies for the long post but I wanted to clarify the whole situation.

Situation is this, some time ago a family member "loaned" me 20k, there was no end date on this debt and the agreement was that I would pay back an amount per month which was agreed between him and I. This amount I hasten to add was only interest as he took the 20k by increasing his own mortgage. So, yes, I do understand that on one hand he never had the money in the first place but at the same he now had an increased debt. BUT he did indicate that at some point the money would be mine anyway via inheritance etc All of the above was done with NOTHING in writing just done on a trust basis I guess.

We then had a massive fall out (will spare details) and out of the blue I receive a letter from a Company saying they had called to my home to collect the 20k back from me. I contacted the family member who said they had decided they got fed up of waiting for me to give them the whole amount back and as they were now in a poor financial state they had sold the debt on to another family member who in turn sold it on to a debt collection agency!!

I contacted the debt company who said they would not negotiate on the amount (i offered to pay monthly/do a budget planner) and they refused.

Long story short.. nothing then happened for another 6 months but in this time another family member sent me threatening emails/messages and blackmailed me over this debt to the point i went to a solicitor who wrote and advised them that they were breaking the law by threatening me over a debt. Next arrival at my house is a court summons!

I went to court with a Solicitor not to dispute that I owed the money - ive never disputed this but to dispute who I owed it to. The judge was very unsympathetic and asked my family member if they still owned the debt who in turn advised yes that they had made it all up about being sold on and had just sent the debt letters to scare me!!

They have now gone for a CCJ despite me still offering a payment each month and my solicitor has advised that the judge "should" accept my offers but I have one question that I need clarification on: Even if the judge says yes to the instalments, can they still go for bankruptcy anyway? I cant see why they would do this as chances they would end up with nothing but I have a strong feeling that they no longer care and want to ruin my family and I. What would be the benefit to them refusing the payments? All help gratefully received!

alastairq

Hi....They can apply to make you Insolvent, however, whether the Insolvency would be granted is entirely another matter, if a CCJ is in place, and you have not defaulted on payment as laid down in the CCJ.

If you default, then there are other ways of securing the debt open to them....

Why do you think Bankruptcy would ruin yourself and your family?

Is this due to a perception [possibly held by your family creditor as well?] of exactly what Bankruptcy is and means?

I contacted the debt company who said they would not negotiate on the amount (i offered to pay monthly/do a budget planner) and they refused.

If you actually contacted a DCA...as stated, in what respect did your family admit making up the fact they 'sold the debt on?'

Were lies actually told in Court regarding this aspect? [not by you, but by family member?}


If a CCJ is granted, to suit your income, then you ought to make safe arrangements regarding payments......so that you could prove, beyond doubt, you have maintained payments as required....[paying to a trustworthy third party, for example, a solicitor?}

unhappytinkerbell

Thanks for your quick reply - I will try and answer your questions in order!

1. When we went to court they said that they lied selling it on a dca to scare me and make me do something. Despite my solicitor providing letters/emails from them saying they had sold it on and that they didnt want my monthly payments and I was to deal with the DCA! The judge said nothing about this and just asked them if they still owned the debt to which they said yes!

Obviously this isnt hugely clear as I had letters from them saying they no longer wanted my monthly payments and to deal with the DCA and the DCA has now been asked to provide a letter saying they have no interest in the debt. The judge seemed completely unfazed by the whole situation. I wanted clarity of to whom I owed the money as didnt want two parties chasing me!

2. after court i was given 14 days to come up with the 20k, my Solicitor requested a tomlins order which the other side refused and went straight to judgement. Ive now been asked to do a SOA for the court to decide if payments are acceptable.

3. My concern is that they will push for bankruptcy, they threatened it in the past and yes i do have other debt so I guess they would be doing me a favour but to me this is a huge end result, i cant understand why they would do this other than to try and cause me further problems (unless they think I have lots of hidden cash/assets- which i dont!!)

4. I understand BR, I know someone who went through it but I feel at the moment Im in control of everything and managing my payments - does that make sense?

unhappytinkerbell

I should add, my solicitor yesterday recommended bankruptcy as the best option due to my financial situ, his words were "they are out for your blood".. i guess you cant choose your family eh?

Penelope_Penguin

unhappytinkerbell wrote: »

2. after court i was given 14 days to come up with the 20k, my Solicitor requested a tomlins order which the other side refused and went straight to judgement. Ive now been asked to do a SOA for the court to decide if payments are acceptable.

That's known as a "forthwith judgement". You need to apply to the court to vary this, making offers of payment that you can afford. the judge may or may not allow the variation.

I'd get yourself off to CAB and ask for their help

unhappytinkerbell wrote: »

I should add, my solicitor yesterday recommended bankruptcy as the best option due to my financial situ, his words were "they are out for your blood".. i guess you cant choose your family eh?

With the greatest of respect, is your solicitor a money adviser, who ubnderstands all the options open to you? If not, he can't possibly recommend BR as "the best option". I'd suggest that you take professional advice from one of the free debt advice agencies.

unhappytinkerbell

Thanks PP I have taken some alternative advice from the various debt charities.

But yes my solicitor wrote and told me to go bankrupt which I refused to do and said I wanted to make payments.

Ineedaname

I wonder if the family member realises how much it would cost them to make you BR and the fact that they would be unlikely to see their £20k in full if they did this to you?

unhappytinkerbell

My Solicitor seems to think that they would have been advised. I wondered if initially this was all scare tactics and that they were hoping at the last minute I would magic up the money.

The fact that they have refused the offer of payments each month and the Tomlins Order makes me more nervous