Help sorting a friends debt plus dect collector advice
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investme
Posts: 106 Forumite
Hi all,
Just wanted to open this thread to seek advice on helping a friend. I will likely come across a few questions i don't know the answer too (and have some already) as things progress.
In short, for reasons i won't go into (personal / ex-related) he is behind on pretty much everything. Myself and another friend made him get all the paperwork out he'd been ignoring and are going get it all sorted.
Frustratingly, he has the money - he earns a good amount, but has just buried his head in the sand with it all.
Unresolved issues
- Motorbike finance - passed to debt collectors, no option for payment plan, full settlement only. Defaults since November 17
- Bank account in arrears - He's lost login and account details, but this should easily be fixed by paying the money owed in once we contact Barclays
- Debt collection for EE, see below, EE bill paid but still need to ring debt collectors to ensure they know and close a CCJ that had been raised plus cover any additional fees they have incurred sending letters and raising the CCJ etc.
- Tax return - He is self employed and didn't do this years, he now owes a penalty. I know nothing about this, however we have friends who do there own who are going to help him file it (his ex used to do it for him). He can afford the penalty, but unsure what it will be until the tax return is complete as it is a percentage of the tax owed.
Resolved issues
- MID insurance penalty of £100 - paid, bike re-insured and taxed
- EE Bill - Defaults reported and CCJ raised as mentioned above, but now paid
The question i have at the moment is around the bike. He has more than enough money to make payments or do a new plan, but Suzuki have passed this onto a debt collector. I spoke with them this morning on his behalf, but they will not go into details with me until my friend speaks to them and agrees for me to deal with it for him. They however are refusing to negotiate (which is valid i know) or make alternative arrangements. Frustratingly he is due to receive enough money to clear the bike from his Dad moving house and helping him financially, but won't receive this until that's done (probably 1-2 months). Does anyone have any tips on negotiating with debt collectors? The collector has agreed not to pursue until Tuesday as he's on leave and will discuss with me / us before anything progresses.
Just wanted to open this thread to seek advice on helping a friend. I will likely come across a few questions i don't know the answer too (and have some already) as things progress.
In short, for reasons i won't go into (personal / ex-related) he is behind on pretty much everything. Myself and another friend made him get all the paperwork out he'd been ignoring and are going get it all sorted.
Frustratingly, he has the money - he earns a good amount, but has just buried his head in the sand with it all.
Unresolved issues
- Motorbike finance - passed to debt collectors, no option for payment plan, full settlement only. Defaults since November 17
- Bank account in arrears - He's lost login and account details, but this should easily be fixed by paying the money owed in once we contact Barclays
- Debt collection for EE, see below, EE bill paid but still need to ring debt collectors to ensure they know and close a CCJ that had been raised plus cover any additional fees they have incurred sending letters and raising the CCJ etc.
- Tax return - He is self employed and didn't do this years, he now owes a penalty. I know nothing about this, however we have friends who do there own who are going to help him file it (his ex used to do it for him). He can afford the penalty, but unsure what it will be until the tax return is complete as it is a percentage of the tax owed.
Resolved issues
- MID insurance penalty of £100 - paid, bike re-insured and taxed
- EE Bill - Defaults reported and CCJ raised as mentioned above, but now paid
The question i have at the moment is around the bike. He has more than enough money to make payments or do a new plan, but Suzuki have passed this onto a debt collector. I spoke with them this morning on his behalf, but they will not go into details with me until my friend speaks to them and agrees for me to deal with it for him. They however are refusing to negotiate (which is valid i know) or make alternative arrangements. Frustratingly he is due to receive enough money to clear the bike from his Dad moving house and helping him financially, but won't receive this until that's done (probably 1-2 months). Does anyone have any tips on negotiating with debt collectors? The collector has agreed not to pursue until Tuesday as he's on leave and will discuss with me / us before anything progresses.
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Comments
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Hi there,
First of all, we need to split your friends debts into being either a priority or non priority before he makes any payments (large or small) - this will help him focus his money on the right debts. The tax and HMRC is a definite priority and he needs to get his returns in ASAP, otherwise he will incur more penalties. HMRC can chase with debt collectors or through the county court, but can also use bailiffs without a court order (among other things depending on how much is owed) - so this needs to be prioritised.
With regard to the bike we ideally need to know what sort of finance it is on (hire purchase or a bank loan - fixed sum loan agreement) and whether or not he still has the bike. If it is hire purchase and they have repossessed the bike, then the shortfall is a non priority debt in the same way EE and his overdraft. Similarly, if the finance is a fixed sum loan agreement then the bike is already owned outright and it is a non priority as they cannot repossess the bike. The issue because if it is hire purchase and he has defaulted on the finance but still has the bike.
Finally, with regard to the CCJ, I am afraid that can only be removed if the judgement was paid in full within 30 days of the judgement date. Otherwise, I am afraid the judgement will remain on his file for 6 years. He may be able to challenge this in court, but the fact that you mentioned it was paid, would imply that he accepted the debt was owed and a set aside application is unlikely to be suitable. Hope that helps you get started.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
The question i have at the moment is around the bike. He has more than enough money to make payments or do a new plan, but Suzuki have passed this onto a debt collector. I spoke with them this morning on his behalf, but they will not go into details with me until my friend speaks to them and agrees for me to deal with it for him. .
To quote Laura above, we need to know what type of finance it is/was before we can advise you on the matter of the bike, as different arrangements can have different enforcement methods.
Tax issue is a priority.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Thanks all
understand about the priority and non-priority debt. That being said, he should be able to pay for everything (with the exception of the full bike settlement) easily enough. So there shouldn't be any need to prioritise one thing over another, it will all get done as soon as we can physically sort it out.
The bike was a hire purchase, ~£9000 left on the settlement before going over to the debt collectors. He still has the bike. The collector has agreed not to pursue until we discuss again Tuesday
My mistake on the CCJ, i know it can't be 'removed' per se, I have a letter saying they would take one out - i am hoping we got there first. Regardless, it will be sorted and resolved, he will just have to accept he might / will have a CCJ and a bit of a life lesson unfortunately.0 -
On the hire purchase, if he has paid more than a third of the credit agreement, they cannot repossess without a court order
https://www.nationaldebtline.org/EW/factsheets/Pages/hire-purchase-debt/hire-purchase-and-conditional-sale.aspx
On the ccj, if all he ever had was a threatening letter then there would have been no ccj. There would have had to have been a court claim, sent in the post, which he would have ignored. They then would have requested judgement in default. If he has a court claim reference, you can ask the court about the date of judgement to see if you are still within the 30 days.
If you're paying of an older ccj, then get it marked satisfied on the credit record.
https://www.trustonline.org.uk/understand-judgments-fines/ccjs-and-county-courts/certificate-of-satisfaction-satisfied-vs-unsatisfied-ccjs0
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