Struggling with debt? Ask a debt adviser a question

Former_StepChange_Patience · 27 June 2018 at 4:23PM

Hi Jo

Thanks for getting in touch, it sounds like there are a few things we need to consider here so I’ll try to break it down as much as I can.

Firstly I’ll explain the N56 and the attachment of earnings, it’s really important to fill this in as accurately as possible and send it back within the 8 day deadline.

They may ask for the details of your partner’s income, not to ask them to pay for this, but to make sure you’re paying your fair share towards the household costs compared to your income.

If your circumstances are going to change, it might be worthwhile attaching an additional letter to explain when this will happen and what your income is going to change to, this will help the court to understand your situation.

With the HMRC balance, I know it’s difficult when you’re waiting for the balance. You could try calling them to see if they’d be willing to give you the balance over the phone and pop it down on the form as ‘other’ expenditure, depending on whether they’re taking any deductions.

When asking for a suspension, this may be considered if the attachment of earnings is going to affect your employment, but it may not be accepted if you already have an attachment in place.

If they accept the suspension, you’d be sent the court form ‘N64 suspended attachment of earnings order’ and instructed to pay the creditor directly.

However if those payments are missed, the creditor can ask for the attachment to be started again.

What I’m going to cover now is the other concerns that you had.

I understand how out of the blue this debt must feel, if you have moved it may be that the creditor didn’t have your most up to date address and the paperwork may have been sent to a previous address, which explains why you may not have received the original judgement.

If you think the debt was over 6 years old, with no payment or acknowledgement when they entered the judgement in 2014, it may be statute barred, you can find out further information here: https://www.stepchange.org/debt-info/can-i-write-off-debt/statute-barred-debt.aspx

If you would like advice to deal with the N56 in more detail, we offer that help over the phone on 0800 138 1111.

I hope this helps.

Patience

MRSJT wrote: »

All

I am looking for some advice please - hope I have posted in correct place.

I have received an N56 form with regards to a credit card debt for approx £5000. With was an abbey national credit card, the DCA is arrow global and the solicitors acting on behalf of arrow is restons. This debt is over ten years old and in this time I have neither acknowledged or paid anything off the debt.
In the last ten years I have moved home 6/7 times and wasn!!!8217;t aware that this debt had gone to CCJ, having not received any letters from arrow or restons.
I have had a look at my credit history and can see that the CCJ was applied in 2014. There is a chance that this debt may have been statute barred when the CCJ was applied but I cannot be 100% sure as I do not have financial paperwork dating back that far. I have a number of questions:
This debt was accrued as a single mum working part time - since then I have married and have gone on to have more children and working full time. Do I have to include my husbands income/debt on the N56? Seems unfair that a debt he had nothing to do with becomes his responsibility too.
As I mentioned earlier I haven!!!8217;t received any communication from arrow or restons before the N56 so have I gone past the point of being able to agree a payment plan with them? Ideally I would like to avoid an attachment of earnings as this will be frowned upon in my work place and likely to affect my employment going forward. I know I can tick for a suspension of attachment but you have to give a good reason - what counts as a good reason?
To add a complication. We are looking at a substantial tax credits overpayment for last year we are waiting for the final total from HMRC. How do I include this on a N56?
Lastly, I am returning to university in sept part time which means I will see a decrease in my wages. How do I include this in an N56?
With regards to the debt being statute barred - please can somebody give me any info on going about finding out this information and how I can get the judgement overturned?
Any information would be very much appreciated!
Thank you so much
Jo

Former_StepChange_Patience · 27 June 2018 at 4:56PM

Hi there

Thanks for getting in touch.

I’m sorry to hear what you’ve been through as a family. I understand how difficult it must be, to be trying to get your lives together and worrying about your brother’s situation.

I'll help as much as I can and just to reassure you, you will not be held responsible for your brother’s debt. You can find out more information here on our website: https://www.stepchange.org/debt-info/your-rights/debts-not-in-my-name.aspx

I know it might seem like your brother is going to get into trouble, but when it comes to the collections process, this is very set and there are positive steps they can take to resolve it. For example he could use an N245 form to vary the judgement and set up a payment plan.

It’s not a crime and your brother isn’t going to be arrested for credit debt.

If it's about 5 years old, it may not be statute barred so continuing to not acknowledge the debt, may lead the creditor to take further steps to collect it.

Our website explains what a statute barred debt is: https://www.stepchange.org/debt-info/can-i-write-off-debt/statute-barred-debt.aspx

If your brother would like help with his situation, we’d happily have a look at his circumstances, when he’s ready he can call us on: 0800 138 1111.

I hope this helps ease your mind a little.

Patience

kie101 wrote: »

I hope this is the right place to post this sorry if not! but i really need some advice on my brothers situation, Long story told short.

My brother has received a second CCJ notice Arrears a month ago from Lowell solicitors from the company Shop Direct, this debt goes back to around 5 years ago my brother cannot remember what it originally came from and has racked up a ton of interest on top which concerns me. Basically he has ignored these letters as he is in no position to be able to pay this off almost 4k, he lives with myself unemployed i am the owner of the house and as a family for the past few years we have struggled greatly with personal family matters, i.e Deaths in the family and for the past few years been getting our lives together.

My question is Will i be held responsible for this CCJ of his? or any baliffs that could come? how much trouble is my brother in? and as it is my home are my possessions safe? and is my brother who has not acknowledge the debt or given any responses safe to keep ignoring these letters? what will he expect?

Thank you.

StepChange_Kirsty · 28 June 2018 at 1:28PM

Hello,

Thanks for your post and welcome to the forum.

I’m afraid I can’t advise you on whether taking a credit card would be a good idea for your circumstances as we don’t advise on further credit.

If you decide this is the option for you there are a few important considerations:

First of all make sure you do a comparison of the interest charged on the overdraft versus the amount you will be charged on the credit card, you don't want to end up paying more back.

Do make sure before taking out the credit card that they can pay off the balance on the overdraft as not all credit cards would allow you do to this.

I would also recommend that you put together a budget to work out how much you can pay towards the credit card and make sure you pay this rather than just the minimum amount as otherwise you could end up in further debt. If you stick to the budget it’s also unlikely that you would need to use the credit card for any other purchases.

If you decide not to take out a credit card, you could consider opening a basic bank account with a bank you don’t have any credit with. You may find this easier to manage your money and you can transfer money each month to the overdrawn account without feeling that you’re living in it.

We’re also happy to provide you debt help and advice completely free of charge. To give you the best advice we need you to complete a budget with us so we can better understand your circumstances. The easiest and quickest way to do this is by using our online Debt Remedy tool which takes you through the steps of putting together a budget and will then provide advice in the form of a personal action plan.

I hope this helps.

Kirsty

moneyrae wrote: »

Hello all, not sure if this is the best place to post this as I am new to the forum and trying my best to understand where everything lives, so apologies if not and please point me in the right direction!

I currently have been in my overdraft for at least 6 years, mostly at the very limit of it which is £1500. I probably have been in this position for the majority of the last 15 years if I'm honest, starting from when I first went to university. I managed to get out on a number of occasion when I was in high paid jobs but for one reason or another ended up creeping back in to it eventually.

I've received a letter from the bank recently where they have finally caught up with the fact I've had a student/graduate overdraft for probably longer than I should have, although I have attended university on a number of different occasions over the years. So I now will be moved to a regular current account overdraft which charges.

I came to the realization last Christmas that for the majority of my adult life I've actually not been living off my own money, but in debt, so I started to try and pay it off. So far I have paid off £500 of the overdraft. I work part time and I am struggling to find full time work, so I only earn £600 a month or thereabouts and it is a struggle to pay anything into my debt as even when budgeting and spending absolutely as little as possible, the wages I get just aren't enough.

At most I can put £100 a month towards paying off my overdraft, which will leave me £700 in to it when September comes around. I believe I will be charged 0.75p a day for use of it. I have heard of people paying off an overdraft using a balance transfer on a credit card - I've never had any credit cards so I am not massively familiar with the whole system.

My question is, is having the debt on a credit card something that would benefit me? The average fee I'll have to pay off Barclays for every month I use it seems like it will be £22.50.

Any advice anyone can give me on how best to manage this would be much appreciated. Thank you!

Jane66S · 29 June 2018 at 7:16PM

Hi, just joined so sorry if this isn't in the right place. In 2010 my home was sold by the mortgage company and there was a shortfall of £30k. I have been paying regularly since 2011 when their agents contacted me. Every year I complete an income and expenditure form and offer a monthly payment. This time they have said I can do a limited liability, pay a set amount each month until I have paid a reduced figure. For example £100 per month until I have repaid another £2000. It sounds like a really good option but I want to make sure that I can't be chased again for the same debt. Would this be the end of it?

StepChange_Rachael · 2 July 2018 at 1:33PM

Hi

Welcome to the forum.

Sometimes creditors will accept a partial payment to settle the debt. This is normally a lump sum to pay back part of the debt with the agreement they won’t chase for the remaining balance.

Before going forward with any agreement I’d suggest making sure they send you written confirmation of this first. With written confirmation it’s unlikely they’d try and chase for the debt in the future and if they did it’s much less likely a court would agree to further action because you’ve got written confirmation that they’d agreed to a reduced payment to settle the debt.

On your credit file it would show that the debt has been paid as a partial settlement.

Hope this helps,
Rachael

Jane66S wrote: »

Hi, just joined so sorry if this isn't in the right place. In 2010 my home was sold by the mortgage company and there was a shortfall of £30k. I have been paying regularly since 2011 when their agents contacted me. Every year I complete an income and expenditure form and offer a monthly payment. This time they have said I can do a limited liability, pay a set amount each month until I have paid a reduced figure. For example £100 per month until I have repaid another £2000. It sounds like a really good option but I want to make sure that I can't be chased again for the same debt. Would this be the end of it?

Jenerys · 4 July 2018 at 3:49PM

Hi I am hoping this thread is still active?

I own my house out right
I run my own business
I have lots of clients and turnover around £3K to £3.5K pcm

But
My clients are often not paying me on time
So I put things on cc's thinking/promising I'll pay them off when the money comes in
And I dont
I do have a minimum payment plan set up with the two cc companies

I also took out a loan for £20K for house improvements and pay this off over 10 years at £503 pcm

I am constantly worrying about money

I am a single parent with a young child to feed

What is the best way to reduce my monthly outgoings on debt? I was wondering about getting equity out of the house?

I am 49

Please advise

amyjane6788 · 5 July 2018 at 6:56AM

hi,
i have revived a letter of Notice of issue of warrant control, that need to be paid by 6th july other bailiffs will be called.
I sent off a N245 form what i have only just got back saying that i dont get help paying the fee and that i should pay by card or cheque.
If i do his today will i still get the bailifs round or will this stop that?
thanks
amy

Former_StepChange_Patience · 5 July 2018 at 4:50PM

Hi there

Thanks for getting in touch, please rest assured this thread is still active.

I’m sorry to hear about the difficulties you’re having with the business and I understand how difficult it must be to manage the debts when you’re not being paid on time.

If you are considering something like equity release, it would be worthwhile seeking impartial advice and consider whether it would be affordable for you to do this, without putting your home at risk. The Money Advice Service has further information about this: https://www.moneyadviceservice.org.uk/en/articles/equity-release

Whilst StepChange may not be the best place to give you support, there is another organisation that will be able to help called Business Debt Line.

Like us, they are a free and impartial organisation who support anyone who is self-employed and you don’t need to have business debts to speak to them.

What they will look to do is give you the best support and advice with the personal side of things, whilst taking into consideration your business. Their number is: 0800 197 6026 and are open Monday to Friday 9am to 8pm.

I hope this helps

Patience

Jenerys wrote: »

Hi I am hoping this thread is still active?

I own my house out right
I run my own business
I have lots of clients and turnover around £3K to £3.5K pcm

But
My clients are often not paying me on time
So I put things on cc's thinking/promising I'll pay them off when the money comes in
And I dont
I do have a minimum payment plan set up with the two cc companies

I also took out a loan for £20K for house improvements and pay this off over 10 years at £503 pcm

I am constantly worrying about money

I am a single parent with a young child to feed

What is the best way to reduce my monthly outgoings on debt? I was wondering about getting equity out of the house?

I am 49

Please advise

Former_StepChange_Patience · 5 July 2018 at 4:59PM

Hi Amy Jane

Thanks for getting in touch.

It’s great to hear you’ve used the N245, but as you mentioned the fee would need to be paid before the court are able to consider your alternative offer of payment.

The process of using an N245 may hopefully prevent a bailiff (enforcement agent) coming out to you but even if the bailiff does visit, you don’t have to let them in the property and you can find out further information here: https://www.stepchange.org/debt-info/debt-collection/bailiff-help-and-advice.aspx

I hope this helps and if you need any further advice on how to deal with debts, we will happily have a look at your situation. You can call us on: 0800 138 1111 and we’re here Monday to Friday 8am to 8pm and Saturday 9am to 2pm.

Patience

amyjane6788 wrote: »

hi,
i have revived a letter of Notice of issue of warrant control, that need to be paid by 6th july other bailiffs will be called.
I sent off a N245 form what i have only just got back saying that i dont get help paying the fee and that i should pay by card or cheque.
If i do his today will i still get the bailifs round or will this stop that?
thanks
amy

lecy2503 · 8 July 2018 at 10:37AM

Advice please

I have approx £25k credit card debt

I have tried to re-mortgage with out success through L&C

Current Mortgage is £80k outstanding, house value is £175,000

any advice would be appreciated

Struggling with debt? Ask a debt adviser a question

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