Please help!!! - CCJ claim form for Nationwide debt on DMP

pinkslide

I just received a county court claim form today for £3838.37 inc court fee.

The account is a credit card with nationwide, it was passed to Shoosmiths LLP and despite me telling them we have a DMP (and paying it) they have gone ahead with legal action.

I am so scared, what do I do? There is no way I can pay that amount!!!!

The claim form is in husband's name, as is our house, I am scared we will end up homeless!

We owe Nationwide almost 10k in total, but this is the only account they have tried to get a CCJ on?

I am so scared, what shall I do? Do I have to attend court?

fermi

Don't panic...

- Whose credit card was it?

- When was this card first taken out?

- Whose and what type of ownership is the house, and is there any equity in it?

- Is there any dispute on the account? PPI? Interest/charges that should not have been applied?

You won't be made homeless. Worst outcome would likely be a change on the property that they have to wait until it next gets sold under normal circumstances to collect on.

pinkslide

thanks for replying,

it's in my husband's name, taken out in 2013. No PPI or disputes. The house is also in my husband's name only, there is approx 12k equity (we bought at 118k, mortgage outstanding is 106k)

We have a 4 yr old and one on the way, I am terrified the bailiffs will come, or that the court will order us to repay the whole lot which we can't afford. Husband is terrified he will have to go to court

fermi

In that case, seriously do not panic or stress.

Bailiffs will not be coming.

Please read all of this: https://www.nationaldebtline.org/EW/factsheets/Pages/20%20EW%20County%20court%20-%20replying%20to%20a%20claim%20form/Page-02.aspx (see links on left hand side)

I would also give National Debtline a call on freephone 0808 808 4000. Really helps for reassurance to talk this through with a trained debt advisor over the phone.

I imagine the whole point of this is to protect their interest by eventfully going for a charge on the property. Not to get bailiffs calling, or to have it sold out from under you. Just to protect their interests with a charge.

Most likely he will not even have to go to court if he doesn't want to, but even if he did it's honestly not scary.

pinkslide

I spoke to stepchange who do our dmp, and we can only offer £18 per month, will the court accept this?

also, will they get a copy of his credit report or do I need to send one?

fatbelly

pinkslide wrote: »

I spoke to stepchange who do our dmp, and we can only offer £18 per month, will the court accept this?

also, will they get a copy of his credit report or do I need to send one?

He can get a copy of his report at any time for £2. Why are you thinking about this particularly now?

This is quite usual for Nationwide - I've seen this before - it is just about securing their position.

Please follow the guidance on the factsheet Fermi linked to, and respond to the court claim within the timescales.

Will they accept £18? Probably not, but make it anyway as it gives them something to chew on. Even if they did, it would not stop them getting a charging order under the new rules.

I agree that you are not going to lose your house for a £4k debt. Even the most stupid judge would not be that stupid!

sourcrates

pinkslide wrote: »

I spoke to stepchange who do our dmp, and we can only offer £18 per month, will the court accept this?

also, will they get a copy of his credit report or do I need to send one?

I assume if that's all you can afford, they will have to accept it, as long as your income/expenditure shows that's all that's available, the judge cant magic more out of thin air.
As advised above, make sure the time scales are adhered too, as otherwise you risk a CCJ by default.

pinkslide

thank you for your replies.

with nationwide its 10k overall (over 4 accounts) - would I lose my house for that?

Stepchange said they think nationwide will secure a CCJ and charging order just to secure the debt, not to sell the house.

Will hubby have to go to court if nationwide dont accept the offer? or will the court write to us and tell us what to pay?

fatbelly

pinkslide wrote: »

thank you for your replies.

with nationwide its 10k overall (over 4 accounts) - would I lose my house for that?

No, it's your only property, children live there and I don't think Nationwide would ever attempt an Order for Sale.

pinkslide wrote: »

Stepchange said they think nationwide will secure a CCJ and charging order just to secure the debt, not to sell the house.

Will hubby have to go to court if nationwide dont accept the offer? or will the court write to us and tell us what to pay?

You're not disputing the debt so the court will probably just respond with a judgement to pay in instalments either at the level you suggest or a higher one or they may issue a 'forthwith' order (pay all at once). It doesn't really matter which version they issue as in all cases Nationwide will continue to receive your dmp payments and secure the debt by a legal charge on your house.

There should be a final hearing in relation to the charging order but that's a few months away.

County Court - charging orders

dancingfairy

As Fatbelly says they may ask you to pay forthwtith (ie straight away in one go) or in installments. As you are on a dmp they may make the installments the same as what you are offering on the dmp. Even if they make the order forthwith then you can fill in a form and submit an application and ask to pay in installments and then they will look at your income and expenses and make a decision.
It seems it is more about them formalising their position (don't forget a creditor only has 6 years to take action over a debt so they can't leave it forever and this way means they can have a charging order and when you decide to sell then they will get their money). It basically means they will get their money in the future.
The chances of them forcing a sale are infinitesimally small. I have to confess of being on here for years (over 7) and seeing hundreds of people in debt I have never heard of anyone having a sale forced upon them but many people do have charging orders (in fact charging orders actually seem really common nowadays).
Oh, and no you don't have to actually go to court. I suggest you respond to the court papers and you can submit papers to the court if you want to (maybe a budget sheet) but especially if you admit the debt I can't see you particularly needing to attend. Most likely the judge will just have 5 minutes set aside to read the papers and decide what to do. I can't see the need for there to be a hearing to be honest unless you wish to dispute the debt or have a problem with the way they have taken it to court (ie if they haven't followed proper procedures or something).
df
Edit: I think the easiest thing to do is to formally admit the debt (assuming you acknowledge you owe the money) and write a polite letter to the judge, explaining that you admit you owe the debt but you are very sorry but you are not in a position to pay all in one go. Please could he/she consider making an order for x amount per month where x is the amount you have shown on your budget sheet is what you can afford. If they make the order forthwith then apply to pay in installments. Obviously it's up to you whether to admit the debt or not but that is what I would do.