What's the worst that could happen.....?

rogers1892

I currently owe appx £30,000. It's an unsecured loan, as I have no assets. The £30,000 I owe is from additional borrowing I took when I purchased house. I took the additional to pay off debts i had. When the house was sold, after all payments were taken out etc, I was left owing the £30,000. I pay appx 330 pm, for the next 24 years.

I have to borrow from Credit card to get by every month, I've considered bankruptcy, IVA's etc, but before I do anything, I was wondering what the implications were of just not paying? The reason I ask is this. I was quite happy to go down the road of seeking financial help (IVA's whatever) but 2 people have told me to just stop paying, they can't do anything about it. I'm slightly dubious about this though.

Any advice greatly appreciated.

petermb_2

The advice does sound dubious. It just depends if you want another mortgage or loan in the next six years.

Any sensible advice would require more information from you.
Who did you borrow the money from?
Did you take out ppi with the loan?
Did you use a broker to arrange it?
When did you take it out?

This info may give an idea as to assistance available, if any.

rogers1892

I borrowed the Money from Northern Rock, it was originally a "together mortgage", but when we sold house, we still had a shortfall due to extra borrowing originally. The house we purchase was £107,000, and we borrowed £137,000 to pay other debts.
There is no ppi with the loan.
Mortgage was arranged by independant mortgage adviser. After we sold house, Northern Rock advised us of what we owed and over how long.
Original mortgage was taken out about 2.5 yrs ago. We sold house appx 1 year ago.
I am not with partner anymore, and we have a little baby together. She now only wiorks 2 days per week, and the baby costs a fortune. This is why we find ourselves taking form an Egg card to get by each month.

Thnx Petermb!

Alias_Omega

Your in the poo, and big time.

£30k is going to take along time to pay it all back.

If you want for bankrupt, you would be refreshed in 6 years, as this loan will take 15 or more years to pay off.

CLAPTON

Debt is not a criminal offence so unless you owe Council Tax then you can't go to prison.

So the worst that can happen if you simply dont pay:

CCJs
Attachment of earnings
Bankruptcy and a 3 year payment order
Credit record trashed for 6 years
No credit so
No credit cards, debit cards or cheque book and only a basic bank account


However if you want a constructive discussion of the alternatives and pros and cons of the options then go over to the debt free wanabee board and post up full details of your SOA (read the stickie there but basically details of income, spending and debt details plus the back ground)

rogers1892

Alias_Omega wrote: »

Your in the poo, and big time.

£30k is going to take along time to pay it all back.

If you want for bankrupt, you would be refreshed in 6 years, as this loan will take 15 or more years to pay off.

If I make a petition for bankruptcy, and i have no doubt I can prove to a judge that we can't afford to pay at that rate due to our change in circumstances, but can the judge/court refuse the petition on the grounds of I should spend less on toiletries, or shop at Netto not ASDA.
I don't want to just stop paying, but I just can't see a way out.
Thanks

CCCS_Emily

Hi Rogers 1892,

You need explore all options available to you and their various consequences. I would suggest you have a look at our online debt advice facility Debt Remedy available on our website www.cccs.co.uk it helps put together a budget for you and offers solutions based on your specific circumstances.

Not paying is not going to do you any favours. There are measures creditors can take towards collecting the money back and the debt would still exist.

Take a look at Debt Remedy, see what you think and let us know how you get on.

Regards

CCCS

rogers1892

CCCS_Emily wrote: »

Hi Rogers 1892,

You need explore all options available to you and their various consequences. I would suggest you have a look at our online debt advice facility Debt Remedy available on our website www.cccs.co.uk it helps put together a budget for you and offers solutions based on your specific circumstances.

Not paying is not going to do you any favours. There are measures creditors can take towards collecting the money back and the debt would still exist.

Take a look at Debt Remedy, see what you think and let us know how you get on.

Regards

CCCS

Sorry I checked your website and didn't find it helpful, thanks.

Butlers1982

Sorry I checked your website and didn't find it helpful, thanks.

Nothing like trying to help people eh CCCS_Emily?!

rogers1892

Butlers1982 wrote: »

Nothing like trying to help people eh CCCS_Emily?!

I checked website, didn't find it helpful, what's the problem?