Please help, so very scared

chloe1

Hi

I am worried sick and wanted some help from you if possible.

I had a debt that has been with 1st Credit since 2009. I have been paying towards this debt but have been ill and had some problems some months paying - there has been 11 arrangements on the account or payments missed in that time. However, I have managed to pay 5K off the debt.

The balance is now still 10K. I have lost my job and am going to be living on JSA so can't make payments. I cancelled the direct debit this month and have just spoken to them to explain. They have told me that because I own my house they are sending it to the legal team who will make me bankrupt or go through the courts now. I am absolutely terrified about this and can't risk losing my home (the only thing I have left). But, I can't pay. I have told them I have an appointment with the benefits office next week and will then update them but they said they have to pass it over to the legal team anyway because they have been 'more than fair with me'.

What on earth can I do? What will they do? I have lots of other debts and when working can manage to make payments but now I am out of work it has all come crashing down on me. I just feel like running away from it all. I can't sleep, I have anxiety, I am being sick during the day all because of debt. Oh how I wish I could turn back the clock and never used a credit card.

Tixy

Hi chloe - sorry you are going through a bad time.

Its easy to say try not to panic - but a lot harder to do I know.

What I would do is to write to them, explain that you have lost your job and are only going to be in receipt of benefits - and offer them a £1 a month token payment and say if your finances improve or you find work that you will at that point increase your offer. I would send this letter recorded delivery, because then if they do take court action you can prove you have kept in touch with them and are at least paying something.
Obviously make sure that you do make that token payment each month, standing order is often the best way.

You may find that they don't take further action, or they may try to get a CCJ against you. As they know you own your house they may consider trying to get a charging order against your house (that secures the debt on the house, but would very very rarely mean you'd actually need to sell the house). To do this they'd first send you court papers to obtain a CCJ, if that happens then complete them and offer the £1 token payment again.

Once you have sent that letter, and because you have other debts then I would suggest contacting one of the debt advice charities for a way to tackle them and how to manage top pay your mortgage etc - IMPORTANT - Where to seek professional impartial advice about your debts.

chloe1

Tixy, thank you so much for your reply, you can't imagine how much I am panicking at the moment, I have just been sick again. It's silly over debt but I can't help it, I am so worried.

Do you really think I should offer £1 a month? I was paying £90 and they told me that this wasn't nearly enough so I am sure they won't accept £1. As soon as I am working I can pay them again but at the moment I have no hope at all.

Thank you so much for your reply, I appreciate it so much. I will also get some advise about my debts as soon as I can. As I say, if I am working I can repay them, I am jobhunting like mad, but until I get a job then my benefits won't cover it.

lindann_2

they have to accept £1 against this debt, but l would get in touch with cccs or payplan to help you about your debts.

best of luck

chloe1

Lindann - they 'have' to accept it? Do they really? I am not good with this sort of thing and am so glad to be getting help from people who understand more than me. If they have to accept £1 does that mean they can't make me bankrupt or put a charge against my house?

Jennimcr71106

Hi....There is always a solution to debt. Remember, someone will always help you (its just that you need help quick)! And please remember that there are millions in this position, not just you. As long as you remain in contact with all parties you CAN resolve this matter! I would strongly recommend you seek professional advise go to citizens advise. They will help you. Make it a priority!

chloe1

Thanks Jennimcr, I will get help. I just needed to know what to do about this as I don't have time. I am away from home at the moment (looking after my mum) but will be back tomorrow so can sort out an appointment then.

I have been looking through the forums and you are all so good at dealing with these people. They frighten the life out of me!

Tixy

They don't have to accept only a £1 payment (they can't stop you paying it, but if they are not happy then could take court action), but until they take court action £1 is generally considered to be a reasonable payment when on benefits - benefits are meant to be the minimum people can live on.

If they don't take you to court, but do start harrasing you to pay more then you might want to read the OFT debt collection guidance regarding harrassment of debtors. Best advice is to not speak to them on the phone but to do everything in writing. And not to agree to pay more than you can afford.

chloe1

I doubt they will accept £1 but will certainly try it. Thanks for the tips - really helpful.

fermi

How much equity is in your home?

What are your prospects at getting back into employment and paying all your debts off?

Definitely get in touch with one or more of the organisations in Tixy's link. If you can get token offers of payment made through or with the help of those, then refusal to accpet them without good reason would be frowned upon by the regulators.

chloe1

Hi, there is about 140K equity in the house.

My prospects of getting back in employment I hope are quite good - I think/hope that within at least 2-3 months I will be in employment again and able to start paying them off.

I will definately get in touch with the organisations that Tixy has linked, any help I can get at all at the moment would be useful, I am not coping with this very well and am so angry with myself for getting into this mess.