Redetermination After Court Agreed Montly Payment

[LJdebtridden]

I wonder if anyone can hel me with a problem I have with a credit card debt. In December 2006 I realised that I was under threat of getting into arrears with my credit cards and bank loans, so I took the decision to go to a debt management company (CCCS), before I got in arrears. Everything has been ticking along quite well, slight glitch in Sept 09 when I was put on a 4 day week at work and had to lower my payments, which obviously lowered payments to my creditors. In July I was back on track and did increase my payments. I received a letter from Arrow Global informing me that they had bought my MBNA credit card debt and I was to now make payments to them, so CCCS made the first payment to them in July. A couple of weeks later I received a County Court Claim regarding this debt. I accepted the claim and agreed an amount I would pay to Arrow Global on a monthly basis. The judgement came back in my favour and the amount I had offered was accepted by the court. However Arrow Global have gone back to court and have issued a Redetermination of this and I am now due in county court on Wednesday 25th August. I have been advised by CCCS to forward expenditure/earnings and creditor information to the court - which I have done, and also to attend on the day, which I intend to. CCCS also mentioned that the court may agree on a attachment to my house for the outstanding amount (£5900), which would not effect me unless I sold the house and would have to pay any outstanding debt to Arrow Global. I need some advice on

- I am not in arrears with Arrow Global so are they able to take this route

- If an attachment is put on my house do my mortgage providers have to made aware of this

 

Hopefully someone can give me some advice and it would be greatfully appreciated

 

Many thanks

[MARTIN3030]

Welcome to the site.

Any decisions wilk be up to the Court,but considerations will be made in relation to your ability to maintain payments.

Have you submitted a revised offer ?

[LJdebtridden]

Thanks Martin3030 for your reply. I have not submitted a revised offer - the first payment was for £48, but the amount agreed with the court was £80.85 of which I have made one payment.

 

Just concerned about the possible attachment on my house, and what effect it would have with my standing with the mortgage company (never been in arrears with them at all)

 

Many thanks

[Ganymede]

Thanks Martin3030 for your reply. I have not submitted a revised offer - the first payment was for £48, but the amount agreed with the court was £80.85 of which I have made one payment.

 

Just concerned about the possible attachment on my house, and what effect it would have with my standing with the mortgage company (never been in arrears with them at all)

 

Many thanks

 

 

The attachment on your house is called a "Charging Order". Try searching on these forums there is plenty of information about them.

 

In relation to your mortgage company, yes they will be notified of the charging order application but it should not affect your mortgage in any way.

[Echodale]

I'm afraid this is quite normal for these guys, the redetermination hearing will likely be a charging order hearing at the same time. As you have admitted the debt then the judge will say that in law you are liable redetermine as forthwith (e.g £5900 due immediately) then go onto hear the charging order. The judge will very likely award the charging order. You must then request that the judge makes direction that the claimant takes no further action providing you make regular monthly payments of £xx. The other side will then ask for their costs to be added to the judgement.

 

Although I say this is normal for these guys usually if the repayment means the debt will be paid off in less than 10 years then MBNA are happy as long as the instalments are regular and for the amount the CCJ ordered.

 

Sometimes if you get the right judge you can argue against the redetermination and charging order, there is plenty of advise on these forums about how to do that.

[LJdebtridden]

Thanks to everyone for the very useful information.....wish me luck tomorrow

[MARTIN3030]

Sequenci has done a good stickie on Charging orders see here;

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?203298-A-guide-to-Charging-Orders-Orders-for-Sale

[AndyOrch]

I wonder if anyone can hel me with a problem I have with a credit card debt. In December 2006 I realised that I was under threat of getting into arrears with my credit cards and bank loans, so I took the decision to go to a debt management company (CCCS), before I got in arrears. Everything has been ticking along quite well, slight glitch in Sept 09 when I was put on a 4 day week at work and had to lower my payments, which obviously lowered payments to my creditors. In July I was back on track and did increase my payments. I received a letter from Arrow Global informing me that they had bought my MBNA credit card debt and I was to now make payments to them, so CCCS made the first payment to them in July. A couple of weeks later I received a County Court Claim regarding this debt. I accepted the claim and agreed an amount I would pay to Arrow Global on a monthly basis. The judgement came back in my favour and the amount I had offered was accepted by the court. However Arrow Global have gone back to court and have issued a Redetermination of this and I am now due in county court on Wednesday 25th August. I have been advised by CCCS to forward expenditure/earnings and creditor information to the court - which I have done, and also to attend on the day, which I intend to. CCCS also mentioned that the court may agree on a attachment to my house for the outstanding amount (£5900), Incorrect if the Judgment was not Forthwith (as it wasnt) which would not effect me unless I sold the house and would have to pay any outstanding debt to Arrow Global. I need some advice on

- I am not in arrears with Arrow Global so are they able to take this route Not usual if you have not defaulted on the agreed payment

- If an attachment is put on my house do my mortgage providers have to made aware of this Not going to happen

 

Hopefully someone can give me some advice and it would be greatfully appreciated

 

Many thanks

 

I would advise that you read up on the Elliot Case

 

If a district judge made the original order without a hearing, then the redetermination of your offer must be decided at a hearing.

If there is a hearing, the case will automatically be transferred to your local county court so that you can attend. The court will give you a hearing date.

If you have at least one CCJ and owe money to more than one creditor, the court can combine your debts and make an 'administration order' - saying you must make a single payment every month to be shared by all your creditors. You have to owe under £5,000 in total.

 

Regards

 

Andy

[LJdebtridden]

Thanks Andy,

unfortunately my debts are more than £5000. but I will have a look at the Elliot case

 

Many Thanks

[sillygirl1]

Don't forget to mention that there are lots of fees etc included in the arrears amount and therefore it is not a TRUE arrears amount.... (that is if there are fees etc added).

 

You can use this to your advantage if you have other creditors and state that they are trying to secure an unsecured loan, therefore any interest they have applied needs to be redetermined at 8%....

 

Lots of arguements to use here if they push further.

[LJdebtridden]

Cheers sillygirl1 - let's hope the judge is in a good mood!!!!

 

Thanks again to everyone for your excellent advice