Still can't see an end.

Becky77

Hello everyone

Hope someone can help me/give me some advice. After a very traumatic 18 months which completely scuppered our finances, myself and hb contacted CCCS who have advised that after day to day living costs, (mortgage etc) - we have £357 to offer our creditors per month (we have £86,000 unsecured debt). We don't qualify for an IVA, and bankruptcy is not an option as we have some equity in our property. We don't qualify for a DMP either - as CCCS have worked out it would take 20 years to re-pay, and DMP's don't last that long!!
So they've advised us to offer reduced payments to our creditors (totalling the £357.00), and try and downsize to a smaller property with a smaller mortgage - they could then look at a DMP.
They were great the CCCS, but I don't feel any better. As nothing concrete is in place until we downsize, what's the worst that can happen to us? CCJ's debt collectors, balliff's - I just keep having nightmares about people turning up at the door.
We tried to sell up last year, but got zero interest - we have just slashed the price but as the market is dire I'm really panicking.
It's affecting my work, and the precious time I have with my son is spent with me on the phone or frantically trying to sort out letters to creditors etc.
Please help!!

Many thanks

SuzySu

Oh Becky....I feel for you. We are in exactly the same situation as you - trying to sell our house to reduce our debts and need to shift it soon. Don't give up - the people on here give terrific advice and, most of all, support. I have found it a great help over the past couple of days.

You have your husband and son - they come first no matter what. We can get through this - it will just take time and we will be better people at the end.

Please keep in touch on here or PM me if you need anything else.

Try to post your SOA (statement of affairs) up here so we can try to see whether you can make some more savings and have even more to throw at your debt.

kel123_2

cccs says that 20 years is too long. Mine is 22 years with payplan so why don't you give them a ring. It may give you another option?

Becky77

Thanks so much for your words of support suzysu, will get round to posting my SOA soon, but as CCCS have only allowed £50 per week for food, and £15 per month for 'entertainment' - I think we are already at our limit. Will just keep riding it own - glad to know I'm not alone.

Thanks KEl - will try payplan - not heard of them before but will give it a go!

chez000

Theres no limit on the length of a DMP, only problem with a particulary long one is the possibility of losing motivation to carry on paying for that length of time, and of course keepong to a strict budget for that length.

If the debt is unsecured the worst that could happen is the creditors obtain a CCJ on you.

If they apply for a CCJ then you would recieve a defense pack which would allow you to make an offer of repayment, similar amount to what youd offer as paymnet to 1 creditor as part of a DMP would probably be accepted.

If and only if you default on the terms of the CCJ i.e miss a payment can the creditor then look to enforce the CCJ through, for example, bailiffs, attactment to earnings charging order.

If you did miss a payment it and they did apply for warrant of execution ( bailiffs) you can apply to the court to have the bailiff warrant suspended on terms such as making regular payments.

As you own a property a charging order is an enforcement option for the creditors and in brief this basically secures the debt against your property and they get paid when the house gets sold.

Hope this helps, if you want more detail, pm me

sugarpants_2

Chin up Becky.. Maybe downsizing will help though. I havent even got a mortgage so you have much more than we do. We rent and have no chanc ein hell in getting a mortgage now. Good luck with everything x

Becky77

Thanks Chez, and sugarpants.
Chez - re the CCJ - I thought that meant that a creditor could take you to court for the whole amount there and then! (£86k!) Now that you have told me you can offer a payment based on your budget, then I think I'll sleep better at night tonight - for the first time in ages so thank you.
Sugarpants - I suppose everyone's bases their situation on what they consider to be severe - yes we have a mortgage, but also a lot of debt, but thanks so much again for the chin up msg.
bec
x

churchrat

hi, and welcome.
I am surprised that you were told that you couldn't have a DMP. We owed £61k at the start of our dmp and at the time (6yrs ago) we thought it would take about 15+yrs to pay it of. We have been lucky, different jobs etc and are now only £5k away from the end. In a couple of yrs your situation could be very different. Take a look at the Long Haulers thread on here. (would post alink but don't know how:rolleyes: )
I would think very carefully before you downsize in todays housing market. Prices are dropping daily and you might not have as much equity as you think, plus how will you get a new mortgage?? or do you plan to rent??? If you rent you must be able to have a good checkable credit history (renting can be a nightmare otherwise)-- do you have that?? Also, if you have children there will be the problem of moving schools etc, and you may not be able to find a long lease in the area you want.
Are any of the debts secured on your property?? if yes then you could be forced to sell, if not, you will not be forced to sell providing you keep to your payment plans, and even then it is a long road before you are forced to sell, this is true even if CCJs etc are awarded to your creditors.
You MUST continue to pay your living expenses, ie, mortgage, council tax, and utilities. For all the other debts, communicate only in writing and take copies of everything!!!
Please rethink the selling option, and only do it if it is the ONLY way out. A DMP is not a quick route out of debt, and I know how much you must be looking for an end to the worry and stress of it all right now, but selling may not give that.
Believe me, there is light at the end of that tunnel and it does get better--just keep posting!!!!!!!!!!!!!!!

chez000

theres 2 kinds of judgement that can be made with CCJ.
A forthwith judgement that means that they want all the money owed with in 14 days, or judgment by installments

Forthwith are usually only made when the defense pack is not returned and judgement is entered in default in the creditors favour, providing that you return the defense pack it should result in a judgenment by installments.

Even when the judgement is made forthwith you can still apply to have the judgment varied to affordable installments using court forms either an N244 or a N245 - doesnt matter which.

any order made can be varied at any pont if the application above are used, say for example your circumstances change you can change vary the amount you pay.

That said it is still very unlikely that creditors will try and obtain a CCJ if you are keeping them informed of your circumstances, pre court protocol states that court action should only be used as a last resort, and also the british bankers assosiation guidelines state that creditors should treat people sympathetically and positivley and help to try and resolve difficulties.

To summarise so you dont worry,
AS long as you keep creditors informed they shouldnt (and probably wont)even try and get a CCJ .

If they apply for a CCJ and you respond it would be so you could pay by intsallments

It is possible to vary the terms of a CCJ

chevalier

Have the circumstances that allowed the debt to arise, now been recovered? I only ask because if you do go on a DMP say with Payplan, then you are not allowed to get any more credit. (though I think remortgaging is ok).

Here are some ideas for you
1) Have you asked your current mortgage lender for either a payment break, or to extend the term of your mortgage, so that your monthly payments are less, or asked to go interest only. All of these will lessen your outgoings. Then when things are better you can change back

2) Council tax can be paid over 12 months rather than 10 to spread the load

3) Have a look at all your outgoings, eg insurances and see if you are with the cheapest insurer, if you are not change via a cashback site, like www.quidco.com, or www.topcashback.co.uk to save in that area.

4) Ditto the utilities. Now that all the price hikes are in, it is a good time to see if you can get a cheaper provider.

5) Before you go on a DMP, do you have any chance of getting a 0% credit card or low life of balance (LOB) card that you could transfer some higher APR debt onto. Would save you a bit of interest.

6) Are you getting all the benefits you are entitled to? Have a look on www.entitledto.co.uk to find out.

7) If you have a look at www.whatsthecost.com, there is a tool there called a snowball calculator which can help you see what is the best way to minimise interest accrued.

8) Can either of you get a second job, even for 6 months, to throw money at some of the smaller debts? Or do mystery shopping, online surveys, daily clicks, do competitions, sell everything not use in 6 months on ebay, carboot etc. Anything to get a bit of extra cash flow.

9) The final thing is the toughest, it is about challenging your assumptions. So look at all of your outgoings, sky, mobile phones, food shopping, and really see if you NEED them rather than WANT them.

best of luck and look forward to the SOA
CHEV

Becky77

Just to say another quick thank you to everyone who has replied to my threads. I'm heading off home soon, and will post my statement of affairs asap tomorrow.

Re; selling up. No churchrat - I really don't want to. I've some good friends around and my son is happy at nursery. Also as I mentioned in a previous post I doubt if I will achieve a sale - some houses nearby have been on the market 12 months plus. It;s just that the CCCS advised me to so I thought it was the only option.
My dad mentioned to me the other day that if we moved we may risk getting another mortgage if we continue to offer reduced payments. CCCS say this will not be a problem though it would probably be with a sub prime lender.
Goodness just don't know what to think really!!

At least I can have good nights sleep tonight, and come back here tomorrow.

Thanks again
Bex