Struggling with debt? Ask a stepchange debt adviser a question

tifo

Hi, the solicitors cancelled the eviction due to the Breathing Space but may ask for a review (to cancel it). So the whole 60 days of the Breathing Space will probably be used fighting with the bank and solicitors. I'm halfway into it now. But the bailiff says they asked him to issue eviction notice again after the Breathing Space so why are they going to ask for a review to cancel it before then.

StepChange_Sylwia

Hello,

Thank you for your messages, below.

https://forums.moneysavingexpert.com/discussion/comment/82061173#Comment_82061173

I'm pleased to hear that you have contacted the debt advisor (Shelter) again and they have updated your application so that the bank, as well as the solicitors, have now been notified. When applying for breathing space, the bank should be listed as the creditor to be notified and it is their responsibility to notify solicitors or bailiffs working on their behalf.

It sounds like there has been some confusion at their end as well, in understanding whether the full amount of the mortgage should be included in breathing space or not. As per our previous messages, there has been a High Court Ruling to say it is not a qualifying debt and would not be included but perhaps, in the end, they have decided and agreed to stop the proceedings as a courtesy.

https://forums.moneysavingexpert.com/discussion/comment/82063030#Comment_82063030

This is correct. As we have mentioned earlier, breathing space is only a temporary pause in proceedings and they can resume as soon as breathing space ends. In this case, the eviction proceedings can resume as soon as your breathing space ends.

Please note, it is still not guaranteed that you will get the full 60 days' protection as the breathing space can be cancelled at the mid-point review or when the creditor asks for a review. This is probably why the bank and solicitors have asked for a review, to be able to resume proceedings as soon as possible.

Please could you let us know what your plan is for when the eviction proceedings resume? We'd now strongly recommend that if there is no plan in place to pay the mortgage, you start preparing to leave the property (find alternative accommodation and pack your belongings). Unfortunately, when the bailiff comes next time (after the breathing space has ended) they will be able to just change the locks to the property and you would only be given a short time to gather your belongings.

If you do not have alternative accommodation waiting for you, please contact your local council or Shelter and make them aware you will be evicted from your property shortly.

Regards,

Sylwia

tifo

Thanks all for the replies …. it's all very confusing (and stressful) for me as i don't know what they're doing day by day … it could be that they'll let the breathing space run (like they've told the bailiff) or ask for a review (like they've told the debt advisor that they've passed it internally for review) or the solicitors have cancelled the eviction but the bank is not happy and may ask for a review. I'm midway now and any review might lessen it by a few weeks (if cancelled) but I read somewhere that after 45 days they don't tend to cancel them so maybe the bank wants to get a review before this.

StepChange_Sylwia

https://forums.moneysavingexpert.com/discussion/comment/82065398#Comment_82065398

Thank you for your message.

We understand this must be a difficult time for you. Please make sure you reach out to your GP or let us know if you would like information or contact details for organisations that can offer you support with your mental health while you are dealing with this, please contact us. Alternatively, please visit our website www.stepchange.org.

Unfortunately, we cannot say whether the creditor will wait for the end of the Breathing Space or ask for an early review, but both your debt advisor (Shelter) and the mortgage company/ solicitor should inform you if there is an early review request.

We would still recommend that you get some advice and support with preparing yourself for what happens next, when the Breathing Space protections end.

Best wishes.
Sylwia

stylishriotkid

Hi everyone,

Hoping for some advice and maybe success stories if possible. I'm really struggling mentally with debt.

My partner and I have around £112,000 of unsecured debt across loans and credit cards. Our current repayments are approximately £2,500 per month, which is becoming unsustainable alongside normal household expenses. We rent and have a four-year-old daughter.

The debt built up over several years, partly following IVF, reduced income during maternity leave, refinancing and general overspending. We accept responsibility, but we now need a realistic long-term solution.

An IVA may not be suitable because my partner works for an insurance broker and is concerned about the impact on her job. We have also considered a DMP, but before committing to anything formal, I’m thinking of writing to each creditor with our budget and asking them to accept reduced payments and freeze interest.

Has anyone successfully arranged long-term help directly with creditors? Are they likely to freeze interest, or would we be better using StepChange for a DMP? I’m also worried that reduced payments could leave us repaying the debt for decades.

Any honest advice would be appreciated.

StepChange_Aidan

https://forums.moneysavingexpert.com/discussion/comment/82137762#Comment_82137762

Hi,

Thanks for your post.

You can set up payment arrangements with their creditors directly, but as we don’t have any involvement with these, I can’t say for certain how likely it is that your creditors would accept your offer or agree to freeze interest and charges.

There’s a guide to setting up direct payment arrangements here.

In any case, a DMP is also an informal agreement that you can amend or cancel at any point. If you haven’t already, I’d recommend getting full debt advice to understand your options. You can get help from StepChange using our online tool.

I hope this helps,

Aidan

tifo

https://forums.moneysavingexpert.com/discussion/comment/82067796#Comment_82067796

Hi. Update.

Our home was repossessed. I made an urgent application and offered to significantly increase the monthly payment due to a new job (which was to start months ago but the company were reorganising). The judge didn't accept it.

Then managed to pay the full outstanding balance and over the estimated costs.

Waiting for the redemption statement as they're waiting for legal costs. But they wouldn't give the keys even though we paid over the full balance to cover costs. Initially they said No, then Yes, then No. Different people giving different statements.

Any advice? Thanks

StepChange_Aidan

https://forums.moneysavingexpert.com/discussion/comment/82142258#Comment_82142258

Hi,

Thanks for the update.

I’d suggest asking your mortgage lender to clarify at what point they are able to hand the keys back to you. It may be that they can’t until all debts, including the legal costs have been finalised.

You could also contact Shelter for specialist advice.

Regards,

Aidan

tifo

We're back home today. They gave keys when they had costs from every other party. The solicitors took 2 days and then there was the weekend.

As I paid over the full balance, there's a refund due to me which, I was told, will take 6-8 weeks but also told 2 weeks. So either or in between.

No redemption statement as payment made before it's needed.

No breakdown of costs unless I ask, which I have. There's a few costs I need to query, such as conveyancing solicitors charging approx £250 to open file (which was recalled next day) and bank charging £178 insurance premium for 1 day (as balance then paid). They said it's a one off charge regardless of time. So 1 day or 3 years to sell house (if they had to do it) is same cost.

The contractors changing locks have damaged some doors, esp the door to my home office which I'd locked, it's a steel fireproof external door, not knowing they would be coming after we were evicted to change all locks and take photos of all rooms and contents.

They also damaged the letterbox from the inside as they screwed it shut. How were we going to get letters? I've taken the screws out but there's sharp edges all around.

They also damaged the outside shed which was locked. Broke the lock and put their own on but broke the handles too.

Can I raise a claim for the damaged as above?

The 'asset management' company charged £750.

StepChange_Aidan

https://forums.moneysavingexpert.com/discussion/comment/82144244#Comment_82144244

Hi,

It’s not clear if you would be able to raise a claim, as the property was in the possession of the lender when the damage occurred. However, this is a subject that StepChange are unable to advise on. I’d suggest seeking specialist legal advice.

Regards,

Aidan