Very large debt help

sourcrates

Debt Camel covers the pre-action process in fatbellys link above.

You now need to make a decision on how you are going to handle this, either by disputing the matter, by defending the claim, or by admission (doesn't cost you anything either way).

You can ask for evidence of their claim against you, although what form that would take I don`t know.

You have 30 days response time to complete and return this document, please make sure you do, or a claim form will be next.


In a previous post you said £100 per month would be affordable, if that is still the case, can you provide a budget sheet to back that up ?

Should you choose to admit liability, they may say that £100 per month would take nearly 100 years to pay off the debt, which is unrealistic, you may have to conjure up more, but the court won`t normally make you pay more than you can afford, you may want to get legal advice on this.


Ideally you would want this matter resolved at the pre-action stage, as with no county court judgement, a charging order, or a restriction as would be the case now, cannot be applied for.

FYI only in bankruptcy could the change of ownership be reversed by the OR, and that route, although often used as a threat, is unlikely but not impossible.

Hariba

I’ve been on to national debt line. It is 30 days but they didn’t seem to think this was an issue as they said a court would probably accept it anyway. They thought there should be some kind of response form included which isn’t so I’m not sure how I’m supposed to reply. The letter mentions mediation so I guess that’s the only way as national debt line advise against disputing in court in case court fees also get added on. They also said that holding unequal shares in the house probably won’t make a difference but that I could object to a charging order and try but might not have any impact. 

Feels like I’m getting nowhere! 

Hariba

Also said I’ve no other options because I’ve no other debts. 

sourcrates

Normally a pre-action letter contains a questionnaire type document, which section you fill in, depends on whether you defend the claim or admit it, you then have a return window of 30 days.

This is designed so that you reach agreement, thus avoiding the matter progressing further.

Sounds to me like they want this to progress to court, as they appear to have omitted the reply form.

You could write, (remember, everything in writing from now on as you are dealing with a legal issue) informing them the LBA they have sent is defective, alternatively you can write back with your offer of payment, which is what I would do.

My gut instinct is they will reject your offer, no matter what it is, and go on to seek there day in court.

fatbelly

I agree with sourcrates.

Actually the court is the place to argue against their fees and charges.

It seems likely you will end up with a ccj, followed by a charging order. But with a bit of effort, a sympathetic judge and a fair wind, it might be for less than they are claiming.

Now that the house is jointly owned it will get recorded at the Land Registry as a restriction

Do you have a law centre near you?

https://www.lawworks.org.uk/legal-advice-individuals/find-legal-advice-clinic-near-you

Suseka97

Hariba... you really need to be taking the advice of Sourcrates and Fatbelly.  These guys know their stuff and are really trying to help.  Above all you also need to be seeking legal advice as has been said.  From what I've read, this is going to end up in a legal forum and you need to be prepared for that.  I cannot imagine any court in this land who would see a family ousted from their home, but the more you can prepare on your side then the better chance you stand.

I wish you well and hope for a positive outcome.

Hariba

My gut instinct is they will reject your offer, no matter what it is, and go on to seek there day in court.

They say in the letter their preferred way is ADR. Do they have to say this even if it’s not what they intend?

fatbelly

I'll just emphasise Suseka's point - a judge would not agree to an order for sale when a property is that person's sole residence AND it is occupied by a joint owner. If the end point here is a restriction at the Land registry, that in truth carries very little weight.

By all means try ADR - but you do need to be disputing some points (I think there are three criteria) and that's where you need some external help to know which figures to challenge. 

It is going to be difficult to avoid a hearing on this one as the claimed debt is very large and what you are able to offer is very small.

Someone may suggest a voluntary charge on the property. I wouldn't be looking at that at this stage. Let the court process play through

Hariba

fatbelly said:

I agree with sourcrates.

Actually the court is the place to argue against their fees and charges.

It seems likely you will end up with a ccj, followed by a charging order. But with a bit of effort, a sympathetic judge and a fair wind, it might be for less than they are claiming.

Now that the house is jointly owned it will get recorded at the Land Registry as a restriction

Do you have a law centre near you?

https://www.lawworks.org.uk/legal-advice-individuals/find-legal-advice-clinic-near-you

Yes I’ve sent an email through to the law centre - there was only 1 law centre so I’m waiting for a reply. But the website did say within 4 days. 

I can evidence paying £100 a month. But this would be from my partners salary and the debt is in my name. So I’m not sure whether that is acceptable. 

Thank you to everyone that has taken the time to reply. It really is appreciated. I have never dealt with solicitors or courts before and I’m finding it all overwhelming as I don’t understand a lot of the language used.

National debt line suggested that I can ask for 30 or 60 days break whilst I find out what my legal position is. I think there’s a template letter to do this. Is this a good idea? And if so, obviously I’d leave it until nearing the 28 days they have given me to request the extra time?

The issue is that I do not wish to go to court if possible so I’d prefer to mediate. It’s really had an impact on my mental health and I just don’t know that I can take any more if it. But I cannot accept the sum they say I owe which I would be paying forever more. The whole thing is appalling. For some of the costs, I think a court would see my view on it but I just can’t take the chance of ending up with even more debt. 

fatbelly

I'm not clear whether National Debtline were suggesting an informal break, which I don't think would be accepted, or formal Breathing Space, which they would have to apply for.

As the court process grinds so slowly anyway I'm not sure what would be achieved by the latter, except for a lot more paperwork. It's just the one issue.

I think the law Centre is your best bet. Hope they reply soon.

What you need to bear in mind is that they can't get blood out of a stone.