halifax card £23k debt - dro or what to do?

[HaroldLloyd]

Hello Consumer Action Group, I really need some advice here please.

I've had a read around all the debt forums here but the advice seems very patchy when it comes to pre-empting problems.

Some posters seem so sure in their ways that it's always better to just default asap rather than coming to an arrangement with the original creditor to pay £1 a month and running the debt to infinity. Also, the assertion that original creditors "never do court" is not true. 

A bit of backstory:

I have about £23k unsecured debt on a Halifax credit card. In my opinion they should never have extended my credit facility to this level based on my income. However, I'm not going to be winey about it, I am where I am, and I enjoyed spending the money too! Suck it up matey, is what I tell myself.

I know certain posters here say "throw the morality card out the window", but I did have a lot of fun with their free money, I feel mildly obligated to pay it back.

I was doing alright with that, until hours cut at work. A parent had medical issues abroad which I had to be there for, blah, blah.

I know find myself for the first time in my life unable to service my minimum payment come mid-August. Things are not likely to change. In fact if anything they're about to get a helluva lot worse! ( MH stuff, I don't want to go into details with this).

What is the groupthink here please?

Is it better to write to Halifax now and say please reduce me to token payments and freeze interest indefinitely, until such time as I die.

Or default me now, so I can go for a DRO 

Or default and wait until it's sold to a DCA and then just ignore because a "DCA is not a bailiff and has zero power".

I'm truly out of ideas here based on reading around your forum. However, I know that burying my head in the sand isn't an option, and I've not missed a monthly payment yet, so want to get my head in the game before it all falls down.

TIA. 

[HaroldLloyd]

anyone?

[honeybee13]

Hello, welcome to CAG.

I'm sure people will be along to advise you, but please bear with us until the right people are able to get here. We're all volunteers here so people are possibly having an evening meal or living their normal lives. Once they've sorted life out, I expect they'll be here later this evening.

Best, HB

[HaroldLloyd]

Sorry, I didn't mean to sound needy. I was recommended this site by someone. I'm sure you can appreciate how it's weighing heavy on me.

I'm grateful for any responses! 

As you're site team, what's your opinion please?

 

[dx100uk]

halifax or their parent as things change so often, don't do court.

if things aint gonna improve then get it defaulted ASAP then it goes from your CRA file 6yrs.

then pro rata or Breathing space but that only 6mts so pro.rata...

dont go down IVA/BK/DRO for a consumer debt.

 

[HaroldLloyd]

OK, thanks for the advice. I was thinking along the same lines. 

[HaroldLloyd]

Hey guys, I'm after a little more clarification please. It's more a general point, so I can start a new thread if more appropriate?

Appreciate your thoughts on this because I've been reading online and I can't just get my head around it.

Massive amounts of unsecured debt with one lender. (My situation).

How do the dice fall with the following courses of action:

1. I just stop paying. I get into arrears, a deforestation of paper arrives threatening all sorts. They default me. Immediately the clock starts ticking down to 6 year statute barred so long as I don't move and defend any letter of claim which may or may not arrive.

2. I phone them up and say I need breathing space, freeze the interest. Yet in reality I'm only kicking it down the road because I still won't be able to resume payments even after the break.

3. I phone them up and come to a payment arrangement of £1 a month, and can send I&E forms to prove this is reasonable. However, in doing so, I won't ever be defaulted and am running the debt to infinity.

4. Pay £99 and go for a DRO and then have it all done in 6 years, since I can't get any more credit anyway, it's not such a problem.

5. I've read enough to know I should never just bury head and run from debt, lest a backdoor CCJ gets issued, or worse, "bob the bailiff" turns up at my front door in his size 12's kicking my car, etc.

What is the definitive best action for me, please? Obviously not, number 5! I'm reading such conflicting advice here - no one ever seems to come back to say how following the advice here worked out, so I'm concerned that it's all social media keyboard warriors with no come-back. Since I've also read by site teams' admission none of you are legally qualified so it's all "Bar Stool Preacher" online tip.

I''ve got about 8 days breathing space left before I will have to choose a course of action, so any definitive response would really be appreciated. 

TIA. 

[dx100uk]

6 hours ago, HaroldLloyd said:

1. I just stop paying. I get into arrears, a deforestation of paper arrives threatening all sorts. They default me. Immediately the clock starts ticking down to 6 year statute barred so long as I don't move and defend any letter of claim which may or may not arrive.

it starts the clock to it being removed from you credit file, regardless to what you do after its registered defaulted on your file. if you pay after, then that NOT the SB date.....

there is no reason why you cant make pro rata or token payments to keep them sweet. thats down to you. there is NO hard and fast rule that you dont resume some form of payment once defaulted and we dont advocate debt avoidance other than get you in the best future position first.

the rest of your questions are pure crap from not here.

 

7 hours ago, HaroldLloyd said:

5. I've read enough to know I should never just bury head and run from debt, lest a backdoor CCJ gets issued, or worse, "bob the bailiff" turns up at my front door in his size 12's kicking my car, etc.

you cant get a backdoor CCJ if halifax and if they sell it on have your present and correct already.....?

no bailiff on consumer credit debt CCJ or otherwise can EVER do that either. its a consumer credit Act Debt....no right of forced entry 

advise is not confusing, just where you get it from.....

 

dx

 

[HaroldLloyd]

"Pure Crap!" I see you never completed your charm school course then!

They may be crap to you, but I'm trying to learn, so would appreciate a less arrogant and dismissive tone please.

Could someone answer this question for me please, If I simply go "radio silent", then I guess I will eventually receive a letter of claim. I would not have any grounds to defend it. I owe the money fair & square.

When it goes to court and Halifax win judgement because there's no errors in paperwork, debt is duly owed, etc. What happens then?

Do I have to enter a payment plan based on my realistic I&E, do I get a CCJ? What happens if I then refuse to pay? Would bailiffs eventually become involved?

I'm just trying to look ahead at the potential endgame of all this options.

Thanks.

[Andyorch]

There are various scenarios which can play out when your in this position as one size does not fit all. Firstly Halifax do not issue claims they sell bad/defaulted debts to DCAs in the main.

Which ever option you decide from your list (1/2/3 ) you will be defaulted or at the least have an AP marker placed (arrangement to pay) which is as bad as a Default.(6 years)

Then its crystal ball time would a DCA issue a claim (possibly as your debt is considerable) and you continue to not pay

They get judgment you get a CCJ (6 years) and a Restriction on your property if a home owner which can be paid in monthly affordable payments or again you still don't pay.

The judgment claimant has 6 years to execute the judgment by various options if you still fail to make offer of payment. They could be content with the restriction on property (homeowner) not if renting,  they could use Bailiff's or an Attachment to Earnings order or even a Third Party Debt Order (Personal account frozen) or ultimately they could go for Bankruptcy (Statutory Demand) 

If you are a renter the DRO as you state does seem simplistic and the less stress free without the need of a crystal ball.

[HaroldLloyd]

Thanks @Andyorch - that's the perfect explanation I was after!

I'm a renter, so the home-owner stuff won't apply. However it's good to see an overview of all the options.

I feel more confident now to decide which option is best for me going forward.

Thanks again.

(Feel free to close thread now I've got all the info I asked for) 

[dx100uk]

we dont close threads

we expect people to come back here and tell everyone how they did get on..

if everyone did that, they'd be no threads for you or people here to read....

 

dx