not sure what to do creditor taking me to court.

janes__addiction

i received the papers yesterday about an old loan debt that i unfortunately defaulted on the repayments and now their taking me to small claims court.
i filled out the N9A form and have offered to pay them by monthly installments of the full amount that's left every month after living expenses and other priority debts i called them this morning and asked that they consider these repayments and to stop it going to court but i got the usual response they said due to my income they'd much rather go to court and apply for a balif to remove my goods then went on to say that i should send them the first payment that i offered today with the form.
im really unsure and scared that they could win and get the courts to issue the balifs i barely have anything as it is and i have three young children i cant help but think my life is cursed even tho i know it was my own stupid fault as to why i got this far into debt if anyone can advise me on what to do or what to expect i would b soooo grateful. this is effecting everything and im finding it hard to hide my despair from my kids

rog2

Hi j_a - Things are rarely as bad as they seem, and I'm sure there is a solution to your problem. We just need to know a few more details:
1. Who is chasing you - is it the Original Creditor, or a Debt Collection Agency?
2. Has a CCJ (County Court Judgement) been obtained?
3. How old, exactly, is the debt - and when did you last make a payment?
4. How much is the 'debt'?

Many Debt Collection Agencies 'use' the threat of bailiffs as a scare tactic. This is against the OFT Debt Collection Guidelines, to which they should adhere, but they 'assume' that debtors are unaware of these guidelines:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

Give us some more information and we will be able to advise on how best to deal with these thugs.

CCCS_Matthew

Hi there JA,

Try not to worry. If you have filled out the N9A form and made a realistic offer of payment based on your income and expenditure along with ensuring your offer is based on a pro-rated amount taking into account other creditors, then it's unlikely your offer will be rejected.

If the creditor is still unhappy with the offer then it will be up to judge to decide, who act as an impartial 3rd party. Please do not worry about bailiffs, as the creditor can only action bailiff action if either you don't fill out the paperwork (which you have) or alternatively you don't keep up with the payment arrangement once the CCJ has been set.

Hope this helps
CCCS

janes__addiction

original creditor was paragon but has now changed hands to colonial finance uk limited which from the looks of the address is basically located in the same place as paragon.
the forms were sent out from my local courts but have no date of court action set .
the debt is now 6 years old i made a payment plan with them last year but defaulted due to money problems and the debt is now 1184.95. the last payment made was october .
i have offered payments of 30 pounds per month by standing order from my bank account and have also sent a postal order for 30 pounds with the form n9a as the lady requested i do over the phone and have sent the paperwork by recorded delivery.
if this does go to court will the judge see this in my favour due to the fact i have already sent a payment?
to be honest i was gutted that the lady was saying they wanted my goods rather than payment can they still go for goods if they reject the courts decision of a payment method?
thanks for spending ur time helping me with this problem I'm grateful for your responses.
thanks
janes.

fermi

janes__addiction wrote: »

to be honest i was gutted that the lady was saying they wanted my goods rather than payment can they still go for goods if they reject the courts decision of a payment method?

If the court decided to set a reasonable monthly payment then the creditor is just as bound by that decision as you are. They CAN'T reject the courts decision.

The only way bailiffs ever become involved is if you don't keep to the courts decision. Otherwise the creditor would just have to "lump" it.

Creditors are very good at threatening court in order try and scare you into paying more than you can afford, but in reality the court has a duty to see that you have enough money to live and will only set payments accordingly.
That means that while creditors threaten court a lot, most of the time they don't want it to go there either. They know they can probably get more money with threats.:rolleyes:

janes__addiction

fermi wrote: »

If the court decided to set a reasonable monthly payment then the creditor is just as bound by that decision as you are. They CAN'T reject the courts decision.

The only way bailiffs ever become involved is if you don't keep to the courts decision. Otherwise the creditor would just have to "lump" it.

Creditors are very good at threatening court in order try and scare you into paying more than you can afford, but in reality the court has a duty to see that you have enough money to live and will only set payments accordingly.
That means that while creditors threaten court a lot, most of the time they don't want it to go there either. They know they can probably get more money with threats.:rolleyes:

thanks for that fermi that was exactly what i was hoping i guess now i just have to sit and wait to see if they will except the offer i made . Hopefully if they do go ahead with court action the judge will see i made a resonable offer for repayment and that i show willing for sending a payment. fingers crossed and a big thanks to everyone that replied will update as soon as i hear something.

janes__addiction

jus a quick up date its been 2 months and i havent heard a dicky bird from these people i made sure i sent all documents and cheques by recorded delivery and so far they havent contacted me im starting to think this was their way to try n scare me into paying up the full amount i dunno eh i've decided to give them till the beginning of may to contact me before i contact them back or do u think i should just leave it untill they decide they want to get in touch ?

LilacPixie

I would say you offered £30 a month so jus keep sending payments monthly for tha amount and there is nothing they can do. Also ifit does reah court you can show that you offered £30 nd have paid £30 so a judge is more likely to agree tha tha is an appropriate amount.

janes__addiction

wow its been ages since i posted just to let u all know it went to court 3 months ago and the judge ruled that i should make payments of 40 a month which wasnt too bad ive kept up with all payments and was sending them recorded delivery with requests of easier payment options which third time lucky they granted me (phew) but recieved a letter from them last week asking me if i wanted to settle my debt at a smaller amount which for some reason was more than was ruled in court (robbing gits) couldnt believe the cheek of them
so after a quick phone call which went along the lines of "r u avin a giraffe?" they have decided to leave me in peace with my agreed monthly payments

just want to say a huge thank you to all that gave me advice was very helpfull thanks