Domestic Violence and Financial Abuse - left with £000's worth of debt

Grumpelstiltskin

downandoutagain said:

I should point out that i have a Help to Buy mortgage - not sure if that would affect a IVA 

I don't know anything about Help to Buy mortgages but someone who does will be along to advise you.

If Fatbelly advises an IVA then think seriously about it.

fatbelly

I was just thinking that an IVA gives an end point to the whole thing. I'm not 100% sure you'd get one but it's at least worth looking at.

downandoutagain

who can advise me?

Grumpelstiltskin

downandoutagain said:

who can advise me?

Have you read through this from the top of this section?

IMPORTANT - Where to seek professional impartial advice about your debts. — MoneySavingExpert Forum

downandoutagain

i have just clicked, looks like my weekend is going to be a busy one

stymied

Sorry if I’m speaking out of turn but is there any possibility of making complaints to your lenders about irresponsible lending on the basis of lack of affordability checks?

Also do you have any proof about the money he owes you e.g. the money for safekeeping? I assume the chances are too low to be worth it but could you take it to the small claims court?

Im afraid I’m not speaking from a position of knowledge just trying to think what could help.

downandoutagain

stymied said:

Sorry if I’m speaking out of turn but is there any possibility of making complaints to your lenders about irresponsible lending on the basis of lack of affordability checks?

Also do you have any proof about the money he owes you e.g. the money for safekeeping? I assume the chances are too low to be worth it but could you take it to the small claims court?

Im afraid I’m not speaking from a position of knowledge just trying to think what could help.

if i thought it might get me somewhere i would...maybe someone might come along with some advise on that?

sourcrates

downandoutagain said:

stymied said:

Sorry if I’m speaking out of turn but is there any possibility of making complaints to your lenders about irresponsible lending on the basis of lack of affordability checks?

Also do you have any proof about the money he owes you e.g. the money for safekeeping? I assume the chances are too low to be worth it but could you take it to the small claims court?

Im afraid I’m not speaking from a position of knowledge just trying to think what could help.

if i thought it might get me somewhere i would...maybe someone might come along with some advise on that?

It`s certainly something you may want to try, if you were forced to take out borrowing against your will, the law states that -

"Duress and undue influence essentially means that a person or party has been forced into a contract. The contract cannot be considered to be a valid agreement under these circumstances. Under common law, there are two doctrines to consider: duress and undue influence".


You would need to lodge a formal complaint, and detail the circumstances under which these debts were accrued, lenders, especially debt purchasers, have specialist teams that deal with vulnerable people, with accounts that were loaned under duress.

You may have to ask for your complaint to be looked at by such a department, I`m not sure it would automatically be seen by them.

There is no harm is trying this approach, all I would say is don`t expect a swift outcome, it may be a battle at times, as you have discovered with PRA, but certainly worth a letter.

Should this approach fail, then an IVA would be the next best solution, they are designed for homeowners with assets to protect, so your house would be safe, and you would have an end date for this whole sorry affair.

downandoutagain

Sourcrates - whats the chance that i can get an IVA?  i have buried my head in the sand, and only just taken it out.  mentally i am completely shot.  

i am worried they my creditors will say no.  I do have support from Shropshire Domestic Aid, which is one thing that has been a constant since i finally got allocated a case worker. 

i am worried about my pension, i have heard some terrible things about supervisors forcing people to take lump sums from their pensions to pay creditors - is that true? believe me, after raising 4 children for 30 years, i don have much of a pot, and i am 51 now.  with a help to buy mortgage too.  

sourcrates

Try and relax, creditors will approve IVA`s on the basis of amount of return for them, how long other forms of payment would take, and of course the fact you could go bankrupt, and they will receive nothing.

Not that bankruptcy is a viable option for you, but they don`t know that, one thing in your favour.

You need 75% of your creditors, by value of debt, to agree to an IVA, if they do, then its approved, usually any majority shareholders that don`t agree just require a little more negotiation with the amount you will pay back, once that is agreed, they fall into line.

Usually if creditors can see its in both your interests, there shouldn`t be any problems.

@ 51, your pension is quite safe, but you must take steps to make sure it stays that way, as you will become 55 during the term of your IVA, you will need to discuss at the outset what will happen pension wise, once you reach that age, you can include a clause that excludes your pension completely, second best is a clause which specifies clearly under what circumstances how much can be accessed.

You will need to confirm what will happen, before you agree to the IVA.

Debt camel covers this in detail here -

Is your pension safe in an IVA? · Debt Camel