unsecured debt - is my home safe?

Newdirections

Hi,

I recently posted on here about my debt issues, and quite a few people told me to consider a DMP. Having looked into this more, I found a couple of articles online that state that lenders can force you to sell your home (even in the case of unsecured debts) if you default, or they don't accept your request to lower repayments etc. I only have unsecured debts (but to the tune of 35k between my husband and I) I own my home outright.

I was just wondering, does anyone have any experience of this? Could it happen? Are any lenders more likely than others to push a sale through? Please let me know if you have any experience of this.

Cheers

National_Debtline

Hi

The only ways your home could be at risk from not paying unsecured credit debts is if the creditor took you to court and got a CCJ, and then applied for a charging order to secure the debt against your equity. If you didn’t pay the instalments set by the court the creditor could apply for an order for sale, but the court would still have to deem this reasonable and a forced sale doesn’t happen very often.

A creditor could also apply for bankruptcy if you owe them £5,000 or more which would most likely mean your home would be sold. Bankruptcy is only normally used as a last resort if someone isn’t paying their debts and other methods of enforcement have been attempted.

Neither of these scenarios are something you should be overly concerned about, especially if you were making affordable payments through a DMP.

James
@natdebtline

sourcrates

Newdirections wrote: »

Hi,

I recently posted on here about my debt issues, and quite a few people told me to consider a DMP. Having looked into this more, I found a couple of articles online that state that lenders can force you to sell your home (even in the case of unsecured debts) if you default, or they don't accept your request to lower repayments etc. I only have unsecured debts (but to the tune of 35k between my husband and I) I own my home outright.

I was just wondering, does anyone have any experience of this? Could it happen? Are any lenders more likely than others to push a sale through? Please let me know if you have any experience of this.

Cheers

Hi,

Theres all kinds of misinformation about debt, on the Internet, most of it questionable.
If you want the facts, National Debtline, or stepchange are the places to look, or, as you have done, ask on here.

fatbelly

This is a really good well-informed article. It doesn't sound like it was one you read.

http://debtcamel.co.uk/charging-order-sale/

I've been involved in debt advice with the CAB for over 10 years. Seen 2 applications for an order for sale. Both chucked out by the judge.

Newdirections

Thank you, that is a relief