Here we go again :-(

[bradfordlad]

Hi all, not sure if this is the correct thread, but I need to get it off my chest and see what you guys think. 

 

We went through the mill financially about 8 years ago. Picked up a CCJ and a few defaults, but eventually (as they do) they've all disappeared off the credit files and life has been good.  Until the last 4 months. 

 

My business has been struggling so we're behind with a few things. The mortgage is the scariest - it's 5 months in arrears now, about £6000. There's a loan that's 2 months behind (£260) and 3 credit cards that are similar (total balance about £12k).   Our council tax is £1500 in arrears and yesterday I received a Liability Order through the post giving me until mid Jan to sort it or go to court.  This morning - my wife lost her job. 

 

I am devastated. 

However, my work is picking up and I think I should be able to pay the council tax off in full before the due date. Likewise with the mortgage I am hoping to come to some arrangement with them, although we are actually considering selling the house and moving into a rental, we're both just so sick of being stuck in the rat race, that selling would allow us to pay off the mortgage and the charging order (from the CCJ years ago), and probably have £150k in the bank. 

 

What I'm thinking in the meantime is that we make an arrangement to pay the mortgage + something towards the arrears. I did propose to pay them "what I could" but they rejected that offer. I'm self employed so don't earn a set monthly wage.   What I'm wondering is could I offer the mortgage say £300 a month extra, but basically tell the credit card companies to "do one" and offer them £5 a month.   I accept they'll probably default us, but quite honestly we don't care. We got through it last time, and I'm sure we can get through it again. 

 

My worry is, how has the law changed since last time? 

 

We had a few with no CCA's so they were easy to fob off, but this time, I suspect creditors  got their a*ses into gear and anything in the last few years will be wrapped up nicely so no walking away from them!! 

Anyone have any initial observations?

Thanks for listening
BL

 

 

[dx100uk]

you could put/offer all the unsecured debts a pro rata offer.

see our pro rata letters in the debt collection section of our library.

 

i thought the ccj resulted in a restriction k, (jointly owed home - debt was not joint?) if so you dont need to pay that off.

 

 dx

[bradfordlad]

DX, you have a good memory!!  How are you? 

Thats correct - it was just a restriction and my initial understanding was that it wouldn't nee to be repaid, but since then I've been told it would be very difficult to sell the house if the restriction is on the deeds, as the buyers solicitor would insist on it being repaid so the buyer doesn't inherit the restriction.   Is that wrong?

The pro-rata offer isn't a bad idea actually. 

 

Do you think there's a chance I can get them to freeze interest/charges until the arrears are repaid?

[dx100uk]

with a restriction k all that has to be done is the buyers conveyancing solicitor should write and simply tell them the home is now their property.

 

but in all truth all that happens is as soon as land registry get the new owners docs, it vanishes.

it does not need to be paid if you sell

 

dx

 

[bradfordlad]

I guess the issue then is whether a) the buyers solicitor knows that, and b) if my solicitor understands that it doesn't need to be paid!    I have a decent solicitor who should be ok with it, but I can imagine a buyers solicitor being a bit more wary? 

I saved this but I think he is wrong. Or at least, as he admints mid paragraph, " This is on the assumption that XYZ Limited obtained a Final Charging Order of course." And I assume Bank of Ireland won't have a full charging order given the property is in joint names?

 

Restriction, not to be taken at face value - Harry Peradigou - Brightstone

BRIGHTSTONELAW.CO.UK

---

The Restriction I am referring to is a Form K Restriction normally worded as follows:... View Article

 

 

Another thought on the restriction, I came across this thread which explains it really well - it seems it's the buyers solicitor that could potentially be the stumbling block?

 

 

[dx100uk]

10 hours ago, bradfordlad said:

And I assume Bank of Ireland won't have a full charging order given the property is in joint names?

correct.

 

stop being hoodwinked.

 

dx