Debt Management Agreement

spoonfed69

Hi, I have been reading this site for a little while now but this is my first post so please be gentle!!
In early 2007 I entered into a Debt Management Agreement with the Citizens Advice Bureau as my debts were completely unmanageable.
My wife wasn’t working due to starting a family and to be honest we didn’t adjust our lifestyle and ran up the following debts:

• Virgin Master Card (passed to Arrow Global plc) £12,628
• MINT £8684
• Sky Master Card (Barclays) £5126
• Lloyds TSB current account 1 £6800
• Lloyds TSB current account 2 £2178
• Lloyds TSB personal loan £1500
• Lloyds TSB AMEX card £2500

The CAB wrote to all my creditors and after a long protracted process I reached agreements with 4 of the 6, to make a reduced monthly payment with the interest frozen.
The remaining 2 took me to court, Barclays succeeded in getting a CCJ against me for the original monthly payment amount I proposed to them after a re-determination hearing. Yesterday at my re-determination hearing for the Virgin debt (Arrow Global plc) the judge ruled that they could apply for a 2nd charge on my property with the proviso that they accepted the proposed monthly payment I had made.

My question is can Arrow Global force the sale of my property? There would be little point in doing so at the moment as there is £0 equity, but im sure that will change in the future.

I have taken every step I can think of to either increase my income and reduce my outgoings:

Wife now has a job
I do mystery shopping with Retail Maxim and Baidata
Checked tax credits
Checked child benefit
Switched Gas provider
Switched Electric provider
Negotiated a better mobile phone deal
Moved to a free broadband package
Reduced car journeys to save on fuel
Reduced grocery shopping budget

Any other suggestions would be very grateful!

kpwll

No suggestions, just wanted to wish you luck.

spoonfed69

thanks kpwll, i really appreciate that... coming on here using it myself and reading other threads really does show that there are good people in this world!

Deep_In_Debt

Hi Welcome.

Post up an SOA and the experts on here will see where you can reduce further.

Can't help on the force of sale issue - I'm curious myself about it.

thriftymomma

Good luck - the hardest step is the first step and you are well on your way here!

spoonfed69

Thanks everyone... ok here is my SOA:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2105
Partners monthly income after tax....... 672
Benefits................................ 165
Other income............................ 0
Total monthly income.................... 2942

Monthly Expense Details
Mortgage................................ 1003
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 47
Gas..................................... 60
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 12
Mobile phone............................ 55
TV Licence.............................. 12
Satellite/Cable TV...................... 29
Internet Services....................... 5
Groceries etc. ......................... 390
Clothing................................ 80
Petrol/diesel........................... 215
Road tax................................ 13
Car Insurance........................... 27
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 130
Other child related expenses............ 15
Medical (prescriptions, dentist etc).... 41
Pet insurance/vet bills................. 20
Buildings insurance..................... 15
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 80
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 25
(Unnamed monthly expense)............... 0
cigarette replacement (gum)............. 40
Total monthly expenses.................. 2614

Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 197000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 190000...(1003).....6.4
Total secured debts........... 190000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB.....................12978.....102.1.....0
Virgin Mastercard..............12628.....99.4......0
Mint...........................8684......68.35.....0
Barclays CCJ...................5126......40.34.....0The APR on my unsecured debts are 0% because I have had the interest frozen on all of themcomments welcome

spoonfed69

evening everyone... does anyone have any info on my original qustion re 2nd charge on my property? can the company force the sale of my house??

Would be very grateful of some advice and/or anyones experience

Thanks

fatbelly

Technically, they can apply for an Order for sale.

I have been doing court work for several years as part of my job with the CAB and I have yet to see a sucessful application.

So it's not something to worry about. Just keep making the monthly payments.

The creditor is just securing the debt so that (in normal circumstances) the whole amount would be paid when you eventaully sell. In fact I've seen several letters from creditors that say in black and white that they wil not be seeking an order for sale.

You were very unlucky to get 2 CCJs on 6 debts. I probably deal with around 600 'debts' per year (100 clients, 6 debts each?) and see four or five CCJs. But most of mine aren't homeowners and there does seem to be a pattern emerging here.

scorpio_biker

Hi,

I found this link in another posting
http://www.payplan.com/debt-library/court-orders-charging-orders.php?WT.srch=1

I'm sure someone with more info will be along soon.

spoonfed69

Thank you Scorpio_biker and fatbelly, advice is much appreciated.

That does make me feel happier about the situation

Do you know what would happen if I decided to move? We are considering down sizing to reduce the mortgage but not sure what happens with the 2nd charge? does it just transfer to the new property? There is zero equity in my current property so I wouldnt make any money from it

fatbelly

When you sell, the charge should be dis-charged (is that the right term?) If there isn't sufficient equity to do that the second charge holder will try to block the sale until some repayment method is in place. It can get a bit complicated at this point. There's a factsheet here