in need of your advice

sira_2

Hi there, I have been reading the threads on this site with interest for the past few months & would be grateful for anyone advice on the following. We have just started a DMP with the CCCS & have debts for about £43,000 none of them being secured.We own a property and have approx £55,000 equity in it. My biggest fear, as i dare say is everyones, is losing my home or being made bankrupt. (Just wondered if having 2 children makes a difference to this?) I currently pay a very pitiful £92 to my DMP therefore will take years to clear my debts. I have a £6,000 loan with Northern Rock, who ring and ring at all hours of the day. I answer every call and tell them the same everytime, i cant afford any more. The current situation is that they say they will apply for a charge against our property which i dare say they will do after reading other postings. I have heard virtually nothing from our other creditors only to say that most of them do not accept our DMP so i dare say more charging orders or CCJ's are on there way. My questions are, am i better off selling my property before this happens then carrying on with the DMP and rent, as the amount i am paying towards the DMP is so small is it more likely they will force a sale or bankruptcy, is it a bad idea to offer to secure the loans before it gets taken to court and negotiate a payment i can afford? Would really appreciate anyones comments on this as i am really bricking it here even started looking at consolidating again which i know is really an absolute no no. Please help!!

raq

i got no answers but just wanted to say,i do hope it all works out and someone with much more advise will be along shortly.

keith_lard

I would certainly look into a IVA,
Ask CAB or CCCS about them, you would have to maintain a 5 year payment (which you would be able to afford)

after 5 years all your debt is wiped out.

BUT you are placing your house as secruity on the 5 year plan of the IVA.

With reading your thread, I would contact CAB or CCCS and get some advice on your best route out of Debt.

k.

Rafter

Sira,

It does sound like you need to contact the CCCS or Payplan again.

It may be that a more formal IVA arrangement might be better for you, particularly as you will then be debt free in 5 years time.

Then at least your creditors will be bound to an agreement. However, if you can really only afford £92 per month then you will only be repaying about 12.5% of your debt which would be too low for most creditors to accept.

You need to take advice, and not from a forum like this. Good luck. I hope you find a way of keeping your home and remember the system is designed so that you and your children still keep enough to meet your basic needs.

R.

Crown

Hi Sira,

If you were to sell up would you have somewhere to live and also would you intend on paying back the debts at the same time?

If you are being chased by the creditors and they took you to court for a charging order to be placed on your home then this doesnt mean that you would have to sell the place. It is in very rare circumstances that this happens.

If a charging order is put in place by the court then normally all the interest charges are stopped and you then pay the agreed monthly payment. This is normally decided by the Judge looking at your income/expenditure.

In a lot of cases the although all interest is frozen now why you make the payment they could add statutory interest of 8% onto the balance of the debt. Its rare the creditor can actually force a sale of property unless you break the CCJ.

With regards if its a bad idea securing debts before going to court I would say it would be madness to secure them if you know that things are heading that way.

If you take aout a secured loan then you will definitley lose the property as they would then have a legal right to it. I would try and avoid this at all costs!

As for the Children I dont think they would have much bearing. You may be rehoused quicker by the Local authority although I have no experience in that way.

Best of luck

SWS_2

Hi Sira you have expressed exactly how I have been feeling about Northern Rock lately. Thinking really stupid things like remortgaging etc. The thing that gets me is the constant calls from Northern Rock saying that they don't consider us to be in financial difficulty because we own a property! We have had the CCJ papers and I am preparing to go to Court re the Charging Order which will be coming next. They seem to be automatically going down this route as they are in financial difficulty themselves. I am not sure whether the Courts will appreciate this overloading of cases where under the Civil Procedure Rules they could and should be dealt with without the need for Court Action. However, they seem to be getting away with it and getting the Charging Order put on, having spoken with the CAB, they seem to be using legislation from a Bill that is not in fact Law yet to automatically go to the Charging Order rather than waiting for someone to default on a CCJ. There is action being taken by CAB but how long and how successful this will be is anyones guess. I myself when it gets to a hearing will ask the judge on what basis/law are they granting the Orders and post back. If its under current law, then they shouldn't be able to do this - there must be some loophole that I have yet to find out about. Please do not worry any longer, if you are not getting very far with CCCS, speak with CAB who really know their stuff and will help.

sira_2

Thanks guys, hink i wil look into the IVA route can anyone tell me a bit about it and the ups and downs to this and how much roughly i will be expected to pay? Looks like we're really in the s**t doesn't it? What i can't understand though is why have CCCS suggested a DMP if the didnt think it would be accepted? I've gone from being optimisic and happy that finally i was doing something about our debts to really panicking again 'cus i just can't see a way out of this mess without being made to go bankrupt of losing our home!!

tigerfeet2006

To be honest I don't think you will get an IVA as you don't have enough disposable income, but I'm sure someone will correct me if I'm wrong