Payment Arrangement

sourcrates

tksnota said:

Noted. This exercise will be done after the default. Is that right?

Waiting for defaults is preferable, for reasons you have been given previously, yes.

Rob5342

I manage mine myself. You just decide what you'll be paying and make those payments each month, simple. I'd suggest paying by standing order rather than debit card or direct debit so you are in complete control and can change the payments easily in your banking app (so you won't get any "adminisration errors" etc)

tksnota

@sourcrates & @Rob5342 - I’m a bit scared because 2 of my loans still not defaulted are above £30k so doing self managed then offering small amount might trigger CCJ then charge on my property. Any thoughts…

sourcrates

tksnota said:

@sourcrates & @Rob5342 - I’m a bit scared because 2 of my loans still not defaulted are above £30k so doing self managed then offering small amount might trigger CCJ then charge on my property. Any thoughts…

You appear to have accrued quite a large amount of debt compared to your income, I assume your wife`s earnings are significantly higher than yours.

I`m just trying to understand how you ended up in this position, and hope that you are aware you cannot afford to repeat the previous bad financial mismanagement again.

Charging orders can be obtained at the same time a CCJ is granted, and with two of your accounts over 20k, those creditors may choose to do just that, your only saving grace is that you have very little equity in your property, so they may not think it worthwhile.

Note, that charging orders will usually just sit there until you sell your house, courts much prefer payment arrangements as an alternative to an order for sale.

You could, if its affordable, maintain contractual repayments on these two loans to avoid any potential legal action, anything goes in self management. 

tksnota

@sourcrates - I was scam and prior to that I’m earning decent salary so managed to secure high amounts of loans. After realising it was a scam I attempted suicide a few times and recently recovered. But I managed to get a very low paying job atm

Now I want to deal with my debts. Again being new in this country I don’t know what to do so this forum is a good resource

1. what do you mean maintain contractual payments with the loan? Are you referring loan above £25k? Will I do it after the default?

2. is the contractual payments dictated by the large creditors or should be agreed? how do I negotiate with the contractual payments 

3. do you think with my situation a charging order will benefit me? Can I pay the charging order after I fully recover from suicide and regain my old form and get the high paying job? What will be the amount of the charging order if we sell the property because I read there will be 8% per annum interest?

4. is it better to engage stepchange or deal with this problem via self managed DMP?

5. if you have a ccj will I still get a new fix rate with my current lender?

6. is this how the equity being computed in anticipation of the ccj. 85% Assess value of the property less existing loan less 20% of HTB based on the assess property value then the amount will be divided into 2 because the loan is split between my wife

your advise on individual items will be of great help

sourcrates

To avoid default and possible legal action/CCJ/CO on the two loans you have over 20k, it would be beneficial to you if you could maintain your contractual payments as per your original agreement.

If you cannot afford to do so, then you will have to risk it, but if it was affordable, it may ease your worries a little.

I`m not saying your lenders will consider going down that path, but its always a possibility with loans of that value.

That was the only point I was making.

tksnota

@sourcrates - I can’t possibly pay the contracted monthly payment so I’m preparing myself for potential ccj then probably restrictions if my self managed DMP is rejected not co because the mortgage is between my wife. Is this possible?

sourcrates

tksnota said:

@sourcrates - I can’t possibly pay the contracted monthly payment so I’m preparing myself for potential ccj then probably restrictions if my self managed DMP is rejected not co because the mortgage is between my wife. Is this possible?

Its not certain that they will take legal action, only a possibility.

If your home is jointly owned and the loan is in your name only, its only a restriction that can be applied, so nothing to worry about.

I was just offering you alternative options that was all.

tksnota

@sourcrates - my plan is get these debts defaulted and proposed self managed DMP. Demonstrate I’d other debts and maybe show those who accepted the DMP plus those who are still waiting to be defaulted 

my understanding if these huge creditors had seen my loads of payments to creditors, mortgage increased and starting to pay htb then ccj will only result to the same amount of what I’m paying

unless they just want to be secured however they are facing restrictions just like you confirm

Can I mention all of the above statements to all my creditors before starting the self managed dmp maybe act as a deterrent that ccj might not result co

your thoughts….

sourcrates

You have a good plan, do what you think is right for you.