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Okay, I'm going to put my head in the lions mouth here as I've got some flack for being a bit blunt.:!: I'm sure this will be deeply unpopular, but I think it needs addressing....:|:sad:

 

I am concerned that personal circumstances can vary drastically in particular if you own property and this changes how debt can affect you, for example (and yes it's simplified).

 

Family 'A' own their home and owe X £15000, their creditor(s) obtain a charging order on their home. This locks them into a property they cannot sell or re-mortgage without repaying the debt, in effect locking them into deep negative equity.

 

Family 'B' own their home and owe X £15000, their creditor(s) make Mr 'B' bankrupt and they are forced to sell their home and make attachments to Mr 'B's earnings, they find it impossible to find private rented accommodation as they fail a credit check and have no deposit, they end up in a council B&B until rehoused months later in council accommodation. This lack of accommodation forces the disposal of what possessions they have left and has a profound effect on their children and their academic progress along with a noticed change to Mr 'B's productivity and interpersonal dealings at work, after a year he is released from Bankruptcy but feel the 'pinch' for some years as they try to recover the belongings etc they had before.

 

Family 'C' is in rented accommodation (council or private) and owe X £15000, their creditors cannot make a charging order but do make Mr 'C' bankrupt. Mr 'C' is forced to sell his car worth £4000 and has his earnings attached but accepts a company car that he had resisted prior. After a year he is released from bankruptcy and finds that not servicing the £15000 debt and other credit cards that went is the best thing ever and takes the Family to Disneyland....

 

I know the examples are extreme but can you see how property can be a millstone when in debt, let alone in negative equity where you own 'less' than the home (Mortgage is for say 110% of current value)?

 

This is also the case when dealing with a DCA etc...

 

CAG member 'A' has a debt that the DCA say they have a viable CCA for, he contests this places the debt in dispute and tells the DCA to 'Foxtrot Oscar'.... He hears nothing and until the debt is Statute barred a year later and declares that he has 'won' against this DCA.....:whoo:

 

CAG member 'B' reads 'A's thread and has a similar debt with the same DCA so follows the process and instead of going away gets taken to court and gets his ass handed to him by a district judge.

 

The problem is that 'A' did not 'win', he just never made (why would you) his whole circumstance clear on CAG, the DCA received the 'Foxtrot Oscar' from 'A' and decided they would love to bend him over and cause great harm to him.............however...........they first carried out a search and found that 'A' lived in a 1 bedroom council flat and their 'agent' who did place a threat'o'gram through the door noted that 'A' drove a rusty LADA. Deciding not to waste money in court as a loss would cost and a win had little chance of seeing any possessions meet the cost of legal action let alone the debt they try unsuccessfully to to sell the debt to another foolhardy DCA and the SB clock runs out.

 

CAG member 'B' however has since redundancy been fighting to keep his mortgage paid and has recently sold his Porsche to buy a more affordable Rusty LADA and keep up repayments on his Riverside flat in Richmond on Thames. The DCA receive his 'Foxtrot Oscar' letter from 'B' and decided they would love to bend him over and cause great harm to him.............however...........they first carried out a search and find that he has a flat overlooking the Thames in Richmond and although he drives a rusty LADA take the view that there is worth in going after the property and getting a charging order.

 

Again property was a millstone, and I think it is as relevant a question when people post as "Have you checked your CRA file" etc that we normally ask.....I am really worried that information needs to be relevant to if the member is a home owner or renting as they are worlds apart.

 

I hope this explains a bit of my bluntness, I'm now going to hide behind the sofa for a while :lol:

 

:peep::peep::peep::peep:

Edited by Nishikigoi

Andrew

 

Escaped the DCA nightmare, now helping others start businesses

www.ukleakdetection.co.uk

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Thank you for clarifying this...

 

I wouldn't bother hiding behind the sofa for giving great advice. That's coming from me who thought you where very harsh on me in the beginning!!!!

 

I think there is a massive difference with everyone's case on here. There are people who (as described) have property and some advice given by a CAG is purely based on themselves living in a rented flat or housing accommodation which is great to tell the DCA to' Foxtrot Oscar ' but, if like me you have property this is one of the worse things I could do....

 

I feel that NISH has highlighted everything perfectly and people should read this before going ahead with anything.

 

Thank you Nish for this... Can you just clarify one thing for me? Whats SB'd?

 

TK

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Really just stating the obvious - DCAs come after your assets or future flow of income not bothered which.

 

So as stated - each must make there own mind up based on the circumstances they find themselves in.

 

Intend

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Really just stating the obvious - DCAs come after your assets or future flow of income not bothered which.

 

So as stated - each must make there own mind up based on the circumstances they find themselves in.

 

Intend

 

But that's just it, it's not treated as obvious, there are lots of 'Ignor them' posts and 'it's low priority' neither helps if the DCA takes a swing at your home!

 

If you rent and have minimal assets you can be blunt and pretty caviller with the DCA or even OC, however once property is involved you must take care not to ignor a process. Take all the time to stretch out the process but bury your head (as I know is easy to do...I did) at your peril.

Andrew

 

Escaped the DCA nightmare, now helping others start businesses

www.ukleakdetection.co.uk

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Agree Nish - problem with common sense is its not that common - DCA's want a flow of income - that can only come from those in debt who have assets or income.

Would encourage posters to state their assets or income when posting so as to make us aware of ultimate background. I'm fighting for my son-in-law from a background of no assets and little income so feel safe in the knowledge they can't take what he ain't got.

 

Intend

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I am sure this is the reason so many companies are racing to get CCJs as quickly as possible, especially if you do have property, I no longer have property and all has gone quiet. When I had property I got chased regularly for varying alleged debts.

 

I know of other people experiencing the same scenario.

 

My current problem creditor is the water board, who are insisting on going to court despite the fact I do not own property so their alleged debt cannot be secured, and I am on JSA as my main source of income so they would actually get a lot less than the £25 a month I've offered. They cannot see beyond 'securing the debt' - with nothing to secure it on or 'enforce via an attachment' they are onto a looser. Getting some help with this now from Thames Water Trust for the sewage part and the local council with the rest.

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Hi Nishikigoi.

Interesting thread and some really valid points.

Please correct me if i am wrong but if a DCA / Creditor tried to get a Charging Order on your property and the property was joint owned you could request a restriction on them as the debt is only in your name and hence they would not be able to get a CO.

Also is the Goverment not considering putting a £20,000 - £25,000 limit in place so a CO can only be given on debts greater than this to a creditor / DCA.

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I think your post highlights the importance of people giving all their information on their threads. Very often advice is given on the information available and posters either don't realise the relevance of giving the full story, or deliberately hold back for fear of being recognised by creditors.

 

Personally I tend to ask a lot of questions on threads. I don't necessarily (usually) know the answers, but if the details are made known it may help others to advise.

 

What would also really help would be if people who had help on cag made sure they came back and told us the outcome to help others decide the best way forward if they are in similar situations.

 

What's Best for You?

 

 

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

 

Alliance & Leicester Moneyclaim issued 20/1/07 £225.50 full settlement received 29 January 2007

Smile £1,075.50 + interest Email request for payment 24/5/06 received £1,000.50 14/7/06 + £20 30/7/06

Yorkshire Bank Moneyclaim issued 21/6/06 £4,489.39 full settlement received 26 January 2007

:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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When I was single and, due to ill health, on benefits I suffered due to DCA harassment but I always knew they couldn't kill me and couldn't make me pregnant. Eventually they went away and my own circumstances and health improved and for the first time in my life I had assets. When things went south again I found myself in the same position I'd been in previously but this time I had something to loose and the pressure was a thousand time worse than it had been. I think the only way to make it a level playing field for those with and without assets would be to make sure unsecured debts remain unsecured. Creditors would still have the option to go to court but could only chase disposable income with priority debts and living expenses being protected.

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Nish,

 

Good morning! I am glad that you have made these points and as I said earlier that there was no need to 'hide behind the sofa'.

 

I have been thinking about my problems all weekend and as you know (Nish does) that I have property that I stand to lose now after my debts spiralled out of control.

 

I have a property that I live in alone now with no children and I have got approx. £60+ debts after trying to live with illnesses and having my 5th back operation recently. Basically, one of the debts I have is with the Yorkshire Bank. I have a credit card debt of £12k and overdraft of £5k (they are just under these amounts). They had just literally agreed a payment plan before selling the debt to CABOT. I stupidly spoke to CABOT on the phone to try and sort out an agreed amount but they declined this and have now decided that they will go for a CO on the property.

 

The next problem is that Besides the other debts I have 2 other properties which I bought just before I became very ill as a long term pension plan (obviously didn't work). The other 2 are rented. One of the properties is definitely in negative equity and the other may just break even, if I am lucky.

 

The property in which I live is also the same.. It may break even. - I have tried to sell these properties without success.

 

What happens when you owe so much debt with all of the properties? Do they go for a CO on the one you live in or do they go for all of the property?

 

TK

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Would they know about your other property though TK? I believe that the way they find out whether you own your home or not is by doing a land registry search on the address that they have for you. I don't think there is any way that they can do a random search on what else you own unless you tell them or they have the other addresses connected to you.

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Hi,

 

I asked someone that very question on whether they would know about any other properties you may have or not have but the one you reside in. If (more like when) I have to go bankrupt you have to declare everything you owe , i.e property, car, etc.. I am a bit confused about the whole bankruptcy thing to be honest. On the forms it asks you for everything you owe, income, etc. Then on some sites where I have been reading it says that they may ask for your bank statements which will show mortgage payments going out.

 

Has anyone gone bankrupt on here and know exactly what they do when you apply? What do they ask for? What do they check? How long does it last when property is involved? It says its cleared after a year BUT you can still be paying creditors up to 3 years and your property is checked (if it does not value more than the mortgage owed) after 2 years and 3 months?

 

Can anyone advise the best way to go bankrupt?

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Might be as well to start a thread in the bankruptcy forum.

 

What's Best for You?

 

 

The Consumer Action Group is a free help site.

Should you be offered help that requires payment please report it to site team.

 

Alliance & Leicester Moneyclaim issued 20/1/07 £225.50 full settlement received 29 January 2007

Smile £1,075.50 + interest Email request for payment 24/5/06 received £1,000.50 14/7/06 + £20 30/7/06

Yorkshire Bank Moneyclaim issued 21/6/06 £4,489.39 full settlement received 26 January 2007

:p

 

Advice & opinions given by Caro are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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