Breathing Space

furniturewinches

You can get temporary protection from your creditors while you get debt advice and make a plan. This scheme is called 'Breathing Space'.

sourcrates

furniturewinches said:

You can get temporary protection from your creditors while you get debt advice and make a plan. This scheme is called 'Breathing Space'.

Yes you can apply for Breathing space, but in reality its not worth the bother, lenders still want you to pay, which most people can`t do, and its only available for two months, hardly worth it really when you consider the normal collection process can take 6 months or longer.

If you can put up with a few calls (which can be blocked) and a few letters (which can be binned) then you can create your own breathing space by just not paying anything.

The collection process is pretty much universal with every lender, all follow a similar routine over a period of time, sending standard letters and computer generated calls, during which time, nothing else happens, so why not take advantage of that?

Pumpkinmad

We don’t have any joint accounts and the house is solely in my name. Yes I do have my personal loan with who I bank with 

Pumpkinmad

I know there are non priority debts but what is a charging order? I read it can change debt into a secured debt against my home. Thank you 

Grumpelstiltskin

Very long thread here about charging orders.

Charging Order? The myth — MoneySavingExpert Forum

sourcrates

Pumpkinmad said:

I know there are non priority debts but what is a charging order? I read it can change debt into a secured debt against my home. Thank you 

Unsecured debts are just that, unsecured, the only way a creditor can obtain a charging order against you, other than a voluntary charge, is if they first obtain a CCJ, they can apply for a CO even if you maintain payments to this judgement, however, this does not mean your house will be sold to pay the debt, far from it.

Orders for sale are now so rare, they stopped recording official figures in 2019, only a handful a year are now granted, that`s out of something like 20,000 charging orders.

What usually happens is the CO will sit on the Land registry file until your house is sold, if at all, courts act on the principle that if a payment arrangement is in place for the debt, then that is sufficient and the CO will not be enforced.

If you own your home jointly, and the debt is just in your name, then only a restriction will be recorded.

So no need to worry about charging orders for consumer debt.