Initial Writ Received

[TwitHead]

Hi all,

 

On a DMP which has been ticking along OK but today have just received an Initital Writ (Scottish Court Summons) from Northern Rock. I'm devastated.

 

Going to fill out the application for time to pay order (for the same amount per month as CCCS give them - it's all I have after all). It's only £34 a month of a 14K loan, so I bet they will say no. After they do I really don't know what our options will be. If they go ahead and arrest wages or whatever we'll have no choice but to go BR, which would be a disaster because we own our house (neg equity). I'm officially freaking out.

 

Anyone know what the chances are that they will accept the payment through court? I guess slim as they clearly aren't accepting it now. But will the court accept it even if NR say no? I will include a copy of our CCCS budget and the list of creditors, total debt and monthly payment. That way they should see they are getting the same as everyone else. What choice do I have as I can't offer more without screwing the DMP?!

 

Can anyone help??

[IdaInFife]

the court will only order you to pay what you can reasonable afford.

 

how old is the loan ?

 

have you received default notice/termination letters?

 

ida x

[TwitHead]

the court will only order you to pay what you can reasonable afford.

 

how old is the loan ?

 

have you received default notice/termination letters?

 

ida x

 

Thank you so much. I thought the court would say no chance to £32 a month. But, with the DMP it's all I have. I have put my CCCS budget sheet in with the application for time to pay.

 

The loan was taken in 2007. I've had a default notice, no termination that I can recall.

 

There is no ppi on it either, just to add!

 

Thanks again.

[Joemcm35]

The reality is that sheriffs at the sheriff courts are unlikely to grant Time to Pay Directions or Time to Pay Orders for periods of more than 5 years when it is opposed by the creditor. Even when a financial statement clearly shows that a debtor is unable to pay any more.

 

Your payment offer of £34 per month for a £14,000 would take in excess of 34 years to pay.

 

You stated that they were getting the same as everyone else - check your DMP to see if the payments are offered on a pro-rata basis - that means the larger debts get a larger proportion of the available money for payment. If you are paying the same amount to lesser creditors then you should consider resetting the payments.

 

All is not lost as you state that you have negative equity and there could be other options available.

 

I would get a 'second opinion' from another money advisor at your local CAB or local council. Check the following link to find a local money advisor:

http://www.moneyadvicescotland.org.u...ind_agency.php

[TwitHead]

The reality is that sheriffs at the sheriff courts are unlikely to grant Time to Pay Directions or Time to Pay Orders for periods of more than 5 years when it is opposed by the creditor. Even when a financial statement clearly shows that a debtor is unable to pay any more.

 

Your payment offer of £34 per month for a £14,000 would take in excess of 34 years to pay.

 

You stated that they were getting the same as everyone else - check your DMP to see if the payments are offered on a pro-rata basis - that means the larger debts get a larger proportion of the available money for payment. If you are paying the same amount to lesser creditors then you should consider resetting the payments.

 

All is not lost as you state that you have negative equity and there could be other options available.

 

I would get a 'second opinion' from another money advisor at your local CAB or local council. Check the following link to find a local money advisor:

http://www.moneyadvicescotland.org.u...ind_agency.php

 

I was hoping they'd accept on the basis the DMP payment will increase over time, so £34 is not all they will ever get. It's just all we have just now, in 2 months time some of our others arrears will be cleared and we'll have some extra to throw at it.

 

My only other option is to let them refuse the time to pay (which you think they will) let them grant the charge for payment then apply again for time to pay at a higher rate and somehow find the extra to fund it. I have done this already with Tesco, it's just very drawn out and they won't necessarily say yes.... Tesco took us to court we applied for time to pay they said no, it went to court and they said no too. Then 2 months later we got a charge for payment. At that point I wrote to the solicitor saying if they go ahead and arrest wages then we'd have to go BR and they'd get nothing, they accepted the payment offer. The problem I have with doing this again is I don't know where I will find the extra money to increase the offer to them. My budget is already cut right back.

 

My pyaments are def pro rata, Coventry accept £34 a month on a loan the same size just now.

 

What would be a reasonable offer for them to take?!

[Joemcm35]

As you have already experienced with Tesco, all creditors do not automatically enforce a sheriff court decree but use it as a threat when negotiating a payment plan.

 

What is a reasonable offer? A reasonable offer is one that you can realistically afford and an accurate financial statement will confirm what is realistic.

 

It is pointless promising the earth when there are insufficient funds to follow through.

 

When dealing with Northern Rock ensure that you are dealing with their financial hardship team and not their standard collections team. Many creditors have financial hardship teams who have the remit to be more flexible in cases were clients are experiencing severe financial plight.

 

All the best!

Edited December 19, 2009 by Joemcm35
Spelling mistake.

[IdaInFife]

thats why they can request variations -

 

if you use the budget sheet on the template letters they will see that you may be paying off other creditors doen the line and making them aware that you can increase payments at that time

[TwitHead]

Quick update on this:

 

I sent Northern Rock a letter saying they had commenced legal proceedings against me despite my DMP and that because of this if they refused the payments I was now offering I was filing for BR and they'd get nowt. All went quiet....This morning I got a letter from them saying Legal Proceedings against me have been stopped and they are accepting my DMP payments for 12 months

[rory32]

Something you may wish to look into is alternatives to your current DMP. There are a number of other alternatives which do not require you to go bankrupt. These include such alternatives as a Protected Trust Deed or a Debt Arrangement Scheme both of which would prevent any creditor threatening you with court action in the future.

 

Further information on these options can be found at the accountant in bankruptcy website:

 

Scottish Executive: Web site currently unavailable.

 

Scottish Executive: Web site currently unavailable.

 

When considering such options you must speak to a qualified approved money advisor. A local one can be found through the moneyadvicescotland website.

[IdaInFife]

well done twit

[PCPFORMULA3000]

Hi,

 

What is your situation, are you married, kids etc? What other debts do you have, My guess is northern rock are going for the decree so they can put a charging order on your house, house prices can only improve over the next few years.

 

You need to seek professional advice ASAP, it sounds as if you have a few more creditors out there, the time to pay order will be rejected, it buys you some time though to get advice, You will have to appear in person at your local sherriff court, 9 times out of 10 the sherriff will grant in your favour, if you have all the evidence and paperwork to show you can only pay £30. The ball is still in your court, they have rattled you with this landing on your doorstep, your.ve not ignored it and want to fight, knowledge is power in this game, please get onto cccs, money matters, citizens advice to begin with, most of all don,t worry! you will get it sorted!

[TwitHead]

Hi,

 

Thanks. I'm living with my partner, 3 kids and we are in a DMP which we want to keep going.

 

We can't get a Charging Order because we are in Scotland (I'm sure you don't get COs here?) worst they could do is slap an inhibition on us which I don't care about asd I have no intention of moving. They are not pursuing the decree - they have stopped the legal action completely.