Unenforceable Debt and Right to buy

Walker42

Good morning all.

I currently have debt of £2663 with PRA which is unenforceable and £5497 with intruum who are still trying to obtain the original agreement after 4 months of my original request.

Intrum have offered 15% off and PRA 5%. I am thinking about contacting them with lower offers as I have come into some money.

However the money is enough to use right to buy to pur chase my council property. If I use the money to partially clear the debts it may take me another 3 years to save the full amount to buy my property. With my credit rating a mortgage is off the table.

Does anyone know if the debts above would affect an application for right to buy? As I believe I can just ignore them if the PRA one becomes unenforceable.

If I can settle for around 50% I believe it would take around one year to get the money together to buy the property and time would seem if the essence with Right to buy.

Any help, advice and suggestions would be much appreciated

Thanks in advance

tallyhoh

I used to work in "right to buy" & although it's been a while back I can't see how your credit report would affect it? It would affect any loan or mortgage you wanted, is this what you mean?

Walker42

Hi thanks for your reply

Yes I am wanting to buy the property in cash without a mortgage. I just about have enough but if I pay off the debts I will need more time to save the difference. I am concerned that right buy is coming to an end.

Thanks

Walker42

The following is from the right to buy website. I believe none of it applies to me. I don't know if they check anyway.

"You cannot buy your house if you are an un-discharged bankrupt, have a bankruptcy petition pending against you, entered into an Individual Voluntary Arrangement (when you would have made arrangements with people that you owe money to and still owe them money) or have obtained a debt relief order."

Thanks again

tallyhoh

I don't recall checking any of that but it makes sense as the property would be an asset. No, I don't believe it would stop the right to buy.

However take more advice on the debts as a separate issue, it may be that they are unenforceable. Best to start a new thread on those.

Walker42

Many thanks for your reply.

I have had confirmation that one of the debts is unenforceable and have been waiting to hear about the other one for 4 months

Thanks again

John_G_Jones

Remember, unenforceable is not the same as not being owed, you do still have the choice to pay them back.

January2015

Walker42 wrote: »

The following is from the right to buy website. I believe none of it applies to me. I don't know if they check anyway.

"You cannot buy your house if you are an un-discharged bankrupt, have a bankruptcy petition pending against you, entered into an Individual Voluntary Arrangement (when you would have made arrangements with people that you owe money to and still owe them money) or have obtained a debt relief order."

Thanks again

You might owe these debts but :

• you are not an undischarged bankrupt
• you do not have a bankrupty petition pending against you
• you have not entered an IVA
• you have not obtained a debt relief order

Given all that, then it doesn't matter about debts or whether you are behind or in default on your debts. It doesn't matter whether they are enforceable or not. None of this will affect your Right to Buy.

Me, personally, I would buy the house whilst the price is something you are okay with. It's likely to go up if you delay.

The debts are already defaulted and therefore interest free. If you decide to pay them the amount owed is not going to go up. It may go down if you can negotiate reduced settlements, e.g. because of unenforceability etc.

That's my logic anyway :beer:

HampshireH

Just make sure that if you spend ALL your money on a house purchase, whilst having debt, that you can still afford to maintain the house if something goes wrong, I.e. boiler failure, roof repairs etc and repay your debt at the same time.