What Makes a Secured Loan a Secured Loan?

imoneyop

michael1983l wrote: »

Because I can't pay all of my debts and my parents can't afford to cover the loan they took for me. So by making it secure I could preference them to unsecured debts. But looking like it is not possible, was just a thought.

Time to start looking at where you and your parents can cut outgoings then - perhaps sell whatever it is that you used all these debts to buy.

Unfortunately, your parents now have a loan that they can't afford to repay, so it looks like you've messed up their credit history, as well as your own.

michael1983l

imoneyop, I already know all of that which is why I was trying to find a solution, it has been discussed extensively in other areas of the forum and we came to the conclusion that I was stuck between a rock and a hard place. I will just have to continue to ignore the creditors until my parents are paid off and that the 2 years have since passed to take retrospective action. A very difficult and stressful scenario but I have no choice given my allegiances to my parents.

imoneyop

michael1983l wrote: »

2 years have since passed to take retrospective action.

What 2 years? Your creditors have 6 years from the date of your last payment to take action - and if they get a CCJ during that period, then the CCJs will be on your credit history for another 6 years and they could go back to court at any time to ask for the CCJ to be renewed.

Time to stop burying your head in the sand and face up to your problems, rather than hoping they will just go away in a couple of years - THEY WON'T.

michael1983l

imoneyop wrote: »

What 2 years? Your creditors have 6 years from the date of your last payment to take action - and if they get a CCJ during that period, then the CCJs will be on your credit history for another 6 years and they could go back to court at any time to ask for the CCJ to be renewed.

Time to stop burying your head in the sand and face up to your problems, rather than hoping they will just go away in a couple of years - THEY WON'T.

I understand that you have not been privvy to the previous discussions on the circumstances surrounding this so I understand why you are giving this advice. However I am talking about retrospective action by a judge to recover payments made to a preferred creditor (i.e. my parents) which they can enforce up to 2 years after the last payment.

I cannot formally deal with my debt problem currently because I would not be able to pay my parents their full amount of which they can't afford to cover and I would not be willing to put them into that position.

When a time comes that I can formally deal with my debts without putting my parents into a difficult situation I will but until then I will just have to continue as I am as under no circumstances will I put my parents into a financial nightmare because of my actions.

imoneyop

Hopefully your creditors will take you to court and force you to pay what you agreed to pay them - they may not be able to force your parents to repay the money you have paid them, but they will be able to ensure a fair playing field going forwards.

Unfortunately, you appear to have shafted your parents.

michael1983l

imoneyop wrote: »

Hopefully your creditors will take you to court and force you to pay what you agreed to pay them - they may not be able to force your parents to repay the money you have paid them, but they will be able to ensure a fair playing field going forwards.

Unfortunately, you appear to have shafted your parents.

They have got no chance because the moment they did I would go self employed Freelance.

I am afraid you have no idea of the whole circumstances surrounding the debt and no empathy. However I will not shaft my parents like you said, because the creditors won't get me up in court anyway, not until I am ready to at least.

imoneyop

michael1983l wrote: »

I am afraid you have no idea of the whole circumstances surrounding the debt and no empathy. However I will not shaft my parents like you said, because the creditors won't get me up in court anyway, not until I am ready to at least.

Nope, I have no empathy for people who borrow so much that not even the bottom feeding lenders will touch them and then persuade their parents to borrow money that they can't afford. Your creditors and the Judge will have exactly the same level of empathy.

Don't think that you can hide for your creditors for ever - they will find you eventually and when they do, your parents will stop receiving the "preferential creditor" status that you have given them and just be one of the many creditors who will get their fair share of what you can afford to pay.

michael1983l

imoneyop wrote: »

Nope, I have no empathy for people who borrow so much that not even the bottom feeding lenders will touch them and then persuade their parents to borrow money that they can't afford. Your creditors and the Judge will have exactly the same level of empathy.

Don't think that you can hide for your creditors for ever - they will find you eventually and when they do, your parents will stop receiving the "preferential creditor" status that you have given them and just be one of the many creditors who will get their fair share of what you can afford to pay.

Actually I owed the money to my parents previous to ANY of the debt I owe to financial institutions now. Like I say you have no idea of the circumstances. You keep judging, won't make an iota of a difference to me.

As for your other comment about preferential creditor. Even if they did manage to haul me up in court they only way they can force me to repay is by an attachment of earnings order. They day they do that will be the day I walk out of my job and go freelance. You can't have an AoE on a self employed person. The only thing they could do is send the bailiffs round, of which I don't care also as I own absolutely nothing of any value.

If the creditors want any chance of their money back they will be better off leaving me to repay my parents and then letting me deal with them afterwards.

imoneyop

michael1983l wrote: »

Actually I owed the money to my parents previous to ANY of the debt I owe to financial institutions now. Like I say you have no idea of the circumstances. You keep judging, won't make an iota of a difference to me.

As for your other comment about preferential creditor. Even if they did manage to haul me up in court they only way they can force me to repay is by an attachment of earnings order. They day they do that will be the day I walk out of my job and go freelance. You can't have an AoE on a self employed person. The only thing they could do is send the bailiffs round, of which I don't care also as I own absolutely nothing of any value.

If the creditors want any chance of their money back they will be better off leaving me to repay my parents and then letting me deal with them afterwards.

I'd take a look at garnishing bank accounts if I was you - then you'll see what they can do when they work out what you are up to.

Regardless of which order you took the loans in and why you took them, your parents are only preferred creditors in your own mind.

Looks like you got told similar in your bankruptcy thread as well.

27col

Op, you sound like a real financial charmer.