Neck deep in debts

Emmia

tylery said:

Emmia said:

How much equity is in your home? How have these debts arisen?

Perhaps you could post a Statement of Affairs to help forumites see if there are ways of you paying off your debts rather than bankruptcy or needing to sell your home.

 https://www.lemonfool.co.uk/financecalculators/soa.php 

Fill it out, then format for MSE before pasting here. 

Not planning on selling the house i have family. Will post an SOA. Thx

And you may or may not have enough equity to clear the debt anyway (which is what I was trying to get at). 

However you tackle the situation, you also need to address the cause of that debt - otherwise you'll end up in debt again. 

tylery

fatbelly said:

I don' t know what Beat my Debt is but that's very skewed advice. More wrong than right

You will get better advice on here and if anyone does post something odd other will correct it quickly

Edit: they are IVA pushers.

Let me say that if an IVA turns out to be your best option we would signpost you to Stepchange and not one of the myriad scammers out there

I am not keen on an IVA. I am keen on defaulting then put some money aside and then pay off after negotiating:

Edit

Is it safe to go with the above route

tylery

fatbelly said:

Were you thinking of a low payment dmp and saving on the side to make full & final settlement offers down the line? That would make sense.

I am keen on that route you mentioned above

sourcrates

Although there is always the potential for a creditor to go down the legal route, it rarely happens once a DMP is in place, out of the 1000`s of DMP`s that people post about on here, I can only re-call a creditor ever doing this twice, that`s an extremely low percentage.

There are only two choices for the average homeowner when it comes to bad debt, and that`s between the informal DMP or the more formal IVA, if a creditor chooses to go down the legal route, you will get plenty of notice, this should give you time to arrange an IVA, once approved, any CCJ is overturned, and would prevent any CO being granted.

If a CO has already been granted, unfortunately you would be stuck with it.

tylery

sourcrates said:

Although there is always the potential for a creditor to go down the legal route, it rarely happens once a DMP is in place, out of the 1000`s of DMP`s that people post about on here, I can only re-call a creditor ever doing this twice, that`s an extremely low percentage.

There are only two choices for the average homeowner when it comes to bad debt, and that`s between the informal DMP or the more formal IVA, if a creditor chooses to go down the legal route, you will get plenty of notice, this should give you time to arrange an IVA, once approved, any CCJ is overturned, and would prevent any CO being granted.

If a CO has already been granted, unfortunately you would be stuck with it.

Few questions

(1) If the creditor(s) is to go the legal route do they all do it or it will be just 1 or 2 creditors..do they team up kind of?

(2) if they are to go the legal route when do they usually apply for the CO after you have defaulted. How long do they take to go this route

fatbelly

tylery said:

fatbelly said:

Were you thinking of a low payment dmp and saving on the side to make full & final settlement offers down the line? That would make sense.

I am keen on that route you mentioned above

It's the safer option so definitely start with that. We don't know the detail but broadly speaking

If you have no surplus income or <£100 per month then on 70k debt you are never going to pay it off. We can talk about other strategies but they are not ideal

If you have over £500 per month then 60 months, £30000, good chance of getting results from F&F

Between those figures, say £250, a dmp would take a long time but an IVA may be possible even if that means payments for 72 months

tylery

fatbelly said:

tylery said:

fatbelly said:

Were you thinking of a low payment dmp and saving on the side to make full & final settlement offers down the line? That would make sense.

I am keen on that route you mentioned above

It's the safer option so definitely start with that. We don't know the detail but broadly speaking

If you have no surplus income or <£100 per month then on 70k debt you are never going to pay it off. We can talk about other strategies but they are not ideal

If you have over £500 per month then 60 months, £30000, good chance of getting results from F&F

Between those figures, say £250, a dmp would take a long time but an IVA may be possible even if that means payments for 72 months

£500 per month is possible..

MFWannabe

Think you need to post an soa first so you and the advisors here can better see incomings and expenses 

sourcrates

tylery said:

sourcrates said:

Although there is always the potential for a creditor to go down the legal route, it rarely happens once a DMP is in place, out of the 1000`s of DMP`s that people post about on here, I can only re-call a creditor ever doing this twice, that`s an extremely low percentage.

There are only two choices for the average homeowner when it comes to bad debt, and that`s between the informal DMP or the more formal IVA, if a creditor chooses to go down the legal route, you will get plenty of notice, this should give you time to arrange an IVA, once approved, any CCJ is overturned, and would prevent any CO being granted.

If a CO has already been granted, unfortunately you would be stuck with it.

Few questions

(1) If the creditor(s) is to go the legal route do they all do it or it will be just 1 or 2 creditors..do they team up kind of?

(2) if they are to go the legal route when do they usually apply for the CO after you have defaulted. How long do they take to go this route

If any individual creditor were to take legal action, it would likely be one of the less mainstream lenders, and the debt would have to be over about 10k, no they do not team up, and legal action is rare, don`t overthink things.

After default, a CO can be applied for at the same time as a CCJ, not before.
Asking how long they take to come to this decision is like asking how long is a piece of string, its impossible to guess what actions a creditor will take 99% of the time they are happy to get any regular repayment, those who are not happy, or don`t want to deal with your bad debt, just send the account to debt collectors or sell it.

Legal action is mainly used by the debt purchasing companies, and then only if you ignore all contact from them for some length of time.

Rob5342

The thing to remember is that debts usually get sold to DCAs like Cabot. DCAs buy debts as an investment for a small fraction of their value with the intention of making a return over a few years. From your point of view you might be making small repayments towards a £10,000.debt. From their point of view they have paid £1000 for a debt and have made £1000 out of it after a year, and £9000.aftet 5 years, with only effort required being sending a few letters. They are perfectly entitled to take legal action should they wish, but they are far more likely to take it against a debt that isn't being paid than one where they are getting money for nothing. Courts are.likely.to set repayments at the same level as the DMP payments were, so DCAs are unlikely to get their any quicker by taking legal action and they know that.