DMP to CCJ Charging Order Help Appreciated

ChrisDavies5

Good morning, thank you for reading, this is my first post on here, having spent hours and hours reading through the forum and far too much time on google too.

I have managed to get into a debt to the tune of over 100,000, caused by a poor budgeting and an old house that has needed deeper pockets than I have.

I've followed the advice on here to go to default and then sort out a self managed DMP. There's some great success stories on here too on people that have been in a similar boat and managed to clear large amounts with the smaller payments and then taking what appears to be a final settlement that's discounted.

All but one of my lenders are being helpful....but sadly one of them for which I owe over £30k to has gone straight to legal. 

I have proposed a payment plan, albeit that would take 20 years to clear, and they have said they will take me to court for a CCJ. They said once they have that CCJ, they will in turn apply for a charging order over my house. I do have equity in the house, but I can't end up with a CCJ.

I don't know what to do now, all the others seem to be helpful, and I've read all the stories on here over successes in driving balances down but not with CCj's etc, I really don't know what to do to head it off.

Thank you to any advice you may have. 

ManyWays

who is this lender and what sort of debt is it, loan, card, overdraft, and is it personal or business? 
have they sent you a Letter before Action?

ChrisDavies5

Loan, had letter before action, responded in time, with suggestion of DMP. 

I have supplied a list of creditors, and the share, on the advice from posters on here, I havent given a detailed income and expenditure. 

They are asking for that detailed one now, to support by proposed payment, but the state the lender wants to secure a CCJ and Charging Order irrespective...

Sly72

Is the lender Creation by any chance?

ChrisDavies5

Thanks Sly, no, a normal high street bank.

katsu

You say you "can't end up with a CCJ".  Do you mean you do not want this to happen, or that it would affect your job for instance?

That info might help the expert people here give you specific advice. 

Good luck and I'm sure you'll get some experts long very soon. 

ChrisDavies5

I work in finance, whilst it's stable as any job is now, if I was let go, and had to find another job, I would have a substantial issue with a CCJ against me. 

Thanks for pointing out Katsu, probably should have made that point more clear.

ManyWays

Is this a personal loan or a business loan? Or has it been sold to a debt collector?

If it was a personal loan, was it "affordable" at the time, in other words could you manage the repayments and pay all your other debts and the household bills and pay for normal living costs without having to borrow more? It may have been affordable at the time but now isnt if the mortgage has gone up a lot?

What have you proposed as a repayment and is this all you can afford or are you hoping to get a low amount accepted so you can save up for settlement offers. It is unusual for a bank to take a personal customer to court quickly for a CCJ.

ChrisDavies5

This is personal. Not yet sold to a collector.

Manyways, you're spot on, the loan was affordable, then other things went up, lending went up, everything went up and then all snowballed as I was stupid and didn't deal with at the time.

I proposed 20% of the contractual payment on a dmp. I was hoping, as so many threads seem to mention on here, to build up a reserve to get settlements on them.

ManyWays

Well the bank seems to have rumbled your plan. I suggest you get a DMP for all your debts, then this bank will get a statement from Step Change which squares with your credit record and which is credible, as they have already realised your current offer isnt. You need to act fast to try to head off a court claim being started. 

There is an option of getting a Tomlin agreement rather than a CCJ if the bank does go to court but you would need careful advice on that as they are very fixed, it is easier to change payments on a CCJ. 

Also do read up about affordability claims. Starting a claim may give you more time to get a DMP in place and hope the bank wont go for a CCJ, and winning claims will speed up a DMP. 

ChrisDavies5

Will an affordability complaint/claim mean that legal action can not occur until there is a determination on that complaint from the bank or ombudsman?