How long before they take me to court?

[cashdesk]

Hi,

 

My wife and I couldn't pay our non-priority debts since last August and my wife left me for a few months, with me paying her reduced payments for her.

 

I have since gone bankrupt and therefore have bnot been able to make her payments.

 

Does anyone know how long it is likely to be before her creditors start taking court action, and is there a way to prevent it? Should she start making reduced payments again?

[alfwithhair]

What kind of debts does your wife have.

ie creditcards, loans, catalogues ?

Who are the creditors?

how old are thes accounts

When did you last make any payments towards them.

Are these debt still with the original creditor or managed by collection agency?

[cashdesk]

The debts are 4 credit cards and one Loan.

 

She owes Halifax, HSBC, A & L, Co-op and Amex.

 

The loan is about 2 years old, the credit cards from between 2004 and last year.

 

The last proper payment was last August and reduced payments from September to November, nothing since.

 

All of the letters are coming from the companies themselves except the Halifax, which is sending Albion after us, and Amex which has Newmans on the case.

Edited February 4, 2010 by cashdesk

[loobyloo85]

The first action they may take is to send a claim form to your wife, which she can complete and return to them, offering a payment. If this is accepted, she can maintain this payment, and the court action should not go any further.

If she cannot make this paymnt, she may need to represent herself in court to stop further CCJ action, but she can then just propose a payment that she feels more comfortable with.

[Undercover-Elsa]

Hi Cashdesk,

Your wife is a long way from claim forms yet!!!

It's very early days, she will get a succession of template debt letters trying various means to induce her to pay, from threats of court action (which rarely happens) to offers of reduced payments or Full and Final settlements.

If the loan was taken out after April 2007 the bank have more power to enforce it through the Courts, but it doesn't necessarily mean they will immediately do so.

Important question: Does the loan include Payment Protection Insurance? If so, it may be possible to claim this back on the grounds of mis-selling, reducing the amount owed. Check out this link for more info.

 

The Credit Cards are easier to deal with. Are there any unfair charges on them? (Over limit fees, failed DD etc) These could be claimed back.

It depends how your wife wants to proceed on this, but she could go the route of sending a Consumer Credit Agreement request to start on the road to establishing whether they hold a valid credit agreement. It's not always an easy route but can be effective in some cases.

If she prefers an easy life and wants to or is able to come to some payment arrangement, then a free Debt Management Company such as Payplan can help her prepare an Income & Expenses sheet and negotiate with her creditors on her behalf for an affordable payment plan.

Once you inform a creditor that you are negotiating with a debt management company they have to give you 30 days grace to sort things out.

 

Remember the golden rules:

NEVER discuss the debt on the phone with Debt Collectors - they will bully and cheat to get more money - then deny the conversation. Refuse to go through security questions and tell them you will only communicate IN WRITING.

If they threaten a doorstep visit - we'll give you a template letter to see them off.

Be assured that they have no powers of entry to your property. Never let them in.

If you do agree payments, insist on STANDING ORDER rather that Direct Debits - that way they cannot take what they want, when they want - you're in control.

 

That should be enough for now - shout if there's anything else you / your wife needs to know when you've decided which way to go, and you'll get lots of help and support on here

 

Elsa x