Secured loan - Going to court

Jimbocrackers · 25th June 2007, 17:25

Hi,

I have got behind on a secured loan to the sum of around £2000. The loan amount is £60000, and its been running around 6 months.

I contacted the loan company today, after getting a letter from them on Saturday, trying to sort out the arrears. But they have informed me that they have submitted the matter to the court, and i will have to attend. This is fine, as i have nothing to hide, and i know that i will be able to clear the arrears within 2 months, however as its a secured loan, i am worried they they will want the full amount of £65000, and that would be a disaster.

Can anyone let me know whats likly to happen, will the judge just grant that the arrears should be paid, or what else should i expect??

Thanks

monopoly23 · 25th June 2007, 18:37

Have you only received one letter from them? The one on Saturday?
They should have given you more time than that before taking you to court.
What did the letter say?

Jimbocrackers · 25th June 2007, 18:55

Hi,

Had a default notice around 4 weeks ago, made a token payment of £200 a week ago, then the letter i got saturday was dated 16th, and asked for full arrears with 7 days which have now passed.

They said today that if the arrears are paid in full before any court date ( not yet set ) then that would be ok, but i am concerned that they will ask for the entire loan repaymet of 65000, which i could only do by re-mortaging with an adverse company, as i have equity in the property, but poor credit history over the last 18 months.

any advice is appreciated

thank you

jaxads · 29th June 2007, 07:42

Hi - I had something similar last year - dreaded GE Money - I was behind and they issued court proceedings. I brought the account up to date well before the court date and the proceedings were dropped. So if you can pay the arrears before the court date you should be fine.

monopoly23 · 29th June 2007, 08:12

Your court date will probably be longer than 2 months away. Have you told them that you can clear the arrears within 2 months, and asked if it's ok by them?

sequenci · 29th June 2007, 10:38

Hello there,

Firstly, i'm sorry to hear about the situation, did the lender send you any information with regards to being in financial difficulties and their code o practice to help people?

If you can clear the arrears within 2 months that is really good, however, please ensure that you have enough to live on; if realistically it will take longer than 2 months don't panic.

If you can show the judge at the hearing that you can pay the current ongoing montly payment + a bit towards the arrears they are likely to issue a Suspended Possession order, this means that there will be no repossession so long as you keep to the term. A realistic time to clear the arrears could be over the space of 6 months. It would be important to attend the hearing, they are not actually that scary and it will be held in a small room known as the judge's chambers.

it would be important to fill in a financial statement and take it along with you as well as any supporting evidence such as wage slips etc.

If you need any further details advice you know where I am

Jimbocrackers · 10th July 2007, 08:39

Hi and thanks for the reply.

We have now recieved a court date which gives us around 5 weeks. Blemain have told me on the phone that if i clear the arreas before this date, all action will be stopped, and we can continue to pay as normal. This is exactly what i want to do, and am now trying to borrow the arrears, but can i trust them this is correct, will they withdraw the action, or just take the arrears and keep it going?

Any help please

sequenci · 10th July 2007, 08:55

Quote:

Originally Posted by Jimbocrackers

Hi and thanks for the reply.

We have now recieved a court date which gives us around 5 weeks. Blemain have told me on the phone that if i clear the arreas before this date, all action will be stopped, and we can continue to pay as normal. This is exactly what i want to do, and am now trying to borrow the arrears, but can i trust them this is correct, will they withdraw the action, or just take the arrears and keep it going?

Any help please

if you clear the arrears still go to the hearing unless you'e been instructed from the cour that it has been cancelled.

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