Joint debts

Ben75

Sorry to jump in on this thread, I have 2 debts both still owned by the original creditors but managed by DCA's. Both were defaulted over 5 years ago and neither is interested in settling at this time If I stop paying in order to get a settlement will the debt be sold on and a settlement offered before a ccj is issued? I am willing to follow this tactic, as long as I am confident its unlikely the original creditor will go for a ccj.

sourcrates

Ben75 wrote: »

Sorry to jump in on this thread, I have 2 debts both still owned by the original creditors but managed by DCA's. Both were defaulted over 5 years ago and neither is interested in settling at this time If I stop paying in order to get a settlement will the debt be sold on and a settlement offered before a ccj is issued? I am willing to follow this tactic, as long as I am confident its unlikely the original creditor will go for a ccj.

Normal procedure is to sell bad debts on to specific buyers such as Lowell or Cabot, of course there will always be an exception, so if you choose to go down this path, keep an eye on the post for potential threats of legal action.

I would say 99.9% of debts are sold on first before legal action gets concidered.

somuchindebt

Sourcrates, I will check Experian and Noodle later this evening as Equifax have definitely not got them listed. I am 100%sure about joint responsibility for the two debts I listed plus there are other two debts which are just my responsibility and they are business overdraft with Barclays and business credit card with Barclaycard. Maybe with business accounts they don't go on the file?The latter ones were not even for a limited company though...

somuchindebt

I just checked Noodle and Experian. Noodle is not showing any of these, plus is not showing Lowell one even not showing it with original creditor. My credit score is very bad there though. Experian for some reason is showing my credit score as excellent but I have option to upgrade to credit expert. Don't think it would give me different score though? I changed my name in 2015 due to marriage but it should trace my history going by address? In noodle it wouldn't let me use old surname, probably because you need to add card details. I did Experian in new surname too.

MrsTinks

somuchindebt wrote: »

I just checked Noodle and Experian. Noodle is not showing any of these, plus is not showing Lowell one even not showing it with original creditor. My credit score is very bad there though. Experian for some reason is showing my credit score as excellent but I have option to upgrade to credit expert. Don't think it would give me different score though? I changed my name in 2015 due to marriage but it should trace my history going by address? In noodle it wouldn't let me use old surname, probably because you need to add card details. I did Experian in new surname too.

No It won't trace you just by your address. I think most have the option of adding your previous names so make sure you have included all of this information. Credit files are not linked to addresses as such so if it only shows you by name X and you also had debts under name Y then you will need to potentially help it along here and update it. If you can't then all of the credit agencies have help teams you can contact

I would strongly suggest you really check out if these debts are joint debts as Sourcrates has mentioned. Please remember these people don't care who pays them so long as someone does - and they'll take payment from someone who isn't the debtor just as happily...

Will any of them sniff around the money from the house sale? Quite probable... Make absolutely certain the money from that is in a financial institution to which you do NOT have any debts in ANY form. Make sure they're not linked in any way to your creditors. Otherwise they can apply the off set clause and simply pay the full debt off with the money in another of your accounts.

Ultimately I appreciate that the money was spent by your ex, and it sucks and is unfair, but you are potentially jointly liable if you're right, and that means there is a possibility any of these could end up going for a CCj, especially if they think you have a lump sum that you are withholding from them. I would think very carefully about how you deal with this going forward. It's a shame that you didn't get solicitors involved in the divorce and get it included that any debts from the house sale should be used to pay for the debts before he was released any funds... as a sole trader he has no incentive to pay anyone as they can't even do an attachment of earnings on him

somuchindebt

Thank you Mrs Tinks. I don't know if this is good idea to speak to these credit ref agencies. I would like to get a mortgage at some point, so maybe better keep my head down. I don't want them suddenly updating the files. I would like to find out if these other debts have been defaulted though. I have tonnes of letters in a file so maybe I will find anything there. I am very certain that I am responsible for these debts though. I never really noticed and cared that at least business overdraft and credit card which were solely in my name were never mentioned in Equifax. But this is very strange.
Do you guys know what is the process with business loan and guarantor process. I.e, if business loan in ltd company name it would be defaulted for the company, then they go after guarantors. Say if guarantors don't pay it, does it default again but in their name?

Mrs Tinks you made me stressed now about the lump sum. I have got it separated from any of the creditors and I was going to wait with offers until I am settled. My second marriage is under a massive question mark and I have 3 kids. I am very tempted to buy property in my home country and leave little bit here to offer the rest as full and final settlements. I would find it very difficult to move abroad though as my kids fathers are english... I just want to have security for us....

MrsTinks

It wasn't my intention to worry you, but to make sure you are pre-warned.

Banks can only off set to debts that you owe THEM, not what you owe others. Ultimately if you agree you owe these debts then it doesn't matter greatly if the real culprit is your ex husband sadly.

You really do need to work out how much you owe or are liable for in total before you make any big decisions.

I can't advise you on taking money abroad, my personal advice would be to pay the debts if you can and then save up going forward.

Obtaining a mortgage would also depend on affordability and if you have debts of thousands of pounds then that could realistically affect your chances of being approved for a mortgage. Also any accounts defaulted less than 6 years ago will continue to have a negative effect on your rating...

This really isn't a black and white question to be honest - you're in a situation where you have debt and you have the money to clear it but you don't want to because morally you probably shouldn't be. However legally from what you say so far then you are responsible. My advice would be to clear them (post up the details on here and we can advise on how best to negotiate with creditors) and then move forward with a clean slate and a lot less stress.

somuchindebt

With the mortgage my idea was to wait until these defaults come off my file which I thought would be in 4 years - but now I am not sure how the business debts work. I wanted to hang on with settlement offers, so that I am in better negotiating position as they are getting older, possibly might get sold on. Keep the money until I can get better discount. But that of course can't work if creditors find out about house sale and have money in the account. They may be easier to accept if I say, I sold the house, bought property abroad with intention to move there and here is what I have left, I would like to settle... What do you think?

somuchindebt

Do you guys know if in my situation where there is joint responsibility for debt, if I was to offer full and final settlement, if it was accepted - would it then clear the whole debt or just my responsibility for it? Thanks

[Deleted User]

Whichever the bank choose.