Reeling from the Reality Check

Brogden

Historybuff wrote: »

Well, I'm not happy. One of the predators wants to go legal and slap a charging order on the house! The only way to avoid it is to raise monthly payments to 1.7% of the total owing! I'm feeling really pressured by this development. I've always paid up, contacted them regularly and now they do this! I really want rid of them, but feel they will hold out for an offer of payment close to the total owed, especially as they now know I will do anything to avoid any litigation. I can't really afford the higher payments, but don't think I've got an option, but to pay it. They have very carefully said they are not asking me for that amount, but that if I want them to take away the threat of litigation, I have to pay it going forward. They are the only one not to default the account as well. Fuming.

Sorry to hear this HB......it's not Barklaycard is it? Are you certain this not just a game they are playing?

It is very unusual for this to happen when you are regularly paying them something and in contact with them ie not 'awkward' or 'missing in action!' If this should happen to me I would find the extra payment for the delinquent creditor by reducing payments to others and cobbling together an I&E statement that fitted the bill - chuck in a few costs of emergency misfortunes if you know what I mean .

Don't let it spoil your Karma!

Brogden

Historybuff

It's a building society credit card, Brogden, so don't know whether that's why they've got their eye on the house. Bcard have defaulted the account and sold it onto a DCA. Maybe I'm just unlucky

Bobarella

Sorry to hear this HB. Nothing useful to add I'm afraid but just appreciate how stressful having anyone threaten your home must be. Hugs to you.

Verbatim

Have a lok at the "charging order, the myth" thread on this forum. Very informative.
V

Brogden

Remember HB that if you do increase your payments to this Building Society that whilst everybody else may be getting less you are still contributing the same amount to reduce the 'debt mountain' which is good. Unfortunately we sometimes have to be flexible. Whilst they no doubt have no intention of forcing a sale of the house this is a major faff and could involve a judgement so best to keep it at bay.....even at the other creditors' expense!

I wouldn't tell the other creditors the real reason for reducing. I am sure there's another expense or emergency that can be mentioned. I kept on going on about 'emergency roof repairs!!!' I can still hear myself saying it !!

Also.....don't assume they won't accept a big discount for a P&F......if they are getting this desperate they might !

Brogden x

in_need_of_direction

Why would any court grant a charging order when you have been fully meeting the terms of your agreement?

Eager_Elephant

in_need_of_direction wrote: »

Why would any court grant a charging order when you have been fully meeting the terms of your agreement?

In an ideal world INOD it would work like that but unfortunately the reality is different:(


The court would grant a County Court Judgement first as HB has defaulted on the agreed payments when she took out the credit card.


It does not matter that HB is making agreed reduced payments - a judge might think the building society are being harsh but ultimately in law he has to grant the CCJ.


Then once they have the CCJ they can apply to have a charging order.
The majority of people I deal with who have charging orders on their houses are never forced to sell their homes to pay back the debt as long as they are meeting the payments agreed when the CCJ was given to the creditor.


The problem is that HB has a lot of debt and I expect the building society is getting worried that she might not be able to meet all her debt payments in the future. If they obtain a charging order then they are 2nd or 3rd in the queue (depending if HB has any secured loans) if HB sells her house so they are guaranteed their money.

Eager_Elephant

HB - can you confirm the conversation you had with the building society?


Did they ring you for a discussion about payments or was this in a letter?


Remember a lot of creditors threaten things and never follow through - it's like when they threaten debt collectors. Standard letters often threaten litigation.

Historybuff

Hi, Eager, it was in a letter. Prob a standard thing, but it properly spooked me. I'm paying up, but will try to get an f and f in the near future. My dad is helping, bless him x

Eager_Elephant

Historybuff wrote: »

Hi, Eager, it was in a letter. Prob a standard thing, but it properly spooked me. I'm paying up, but will try to get an f and f in the near future. My dad is helping, bless him x

I think it is probably a standard thing as you say.


The thing is that if you are worried by it then you need to deal with it the way you want and if that means giving them more money than other creditors then so be it.


How lovely that your dad has agreed to help you - hope you get it sorted soon.