HFC!!!

[MelanieGiles]

If HFC charge against your share of the property, how much unsecured debt does that leave you with? Assuming you would then enter into a direct paying arrangement with HFC against their secured charge, you may have sufficient money to propose another IVA. I have had to do this for a couple of clients recently, because of the actions of one or two greedy creditors.

[snowy]

Hi Melanie

Going on the basis that HFC can only get a CO following obtaining a CCJ against me then they would have a CO for 2 of the accounts amounting to £15,334.27, this would leave unsecured debt of £11,318.20 which I don't believe is sufficient to propose an IVA. What I am further puzzled by is why HFC haven'g got CCJs on all 3 accounts with them just the 2!

[MelanieGiles]

That does seem strange, and as you say an IVA for such low debts would probably not be viable. Assuming that you pay HFC a sum in proportion to their debt from your disposable income, a DMP seems the most logical step forward.

[snowy]

Hi

That is my problem, the court has ordered me to pay £150 each on each CCJ a total of £300 each month, when my total surplus money is only £150, although I am hoping a pay rise in March may enable to increase this. I have written to the court asking they reduce the instalments but have been refused, It is now my intention to apply for a variation order but if the judge refused my first time I am very worried that they won't allow it tis time either. I have the added worry that if I don't meet the instalments ordered by the court which I can't do then the knocks on the door from the bailiff is terrifying me especially being at home alone a lot as my husband works nights, I would crack if that happened!

[snowy]

Could I please just ask, in your opinion are we in a better position now with one of us being approved for the IVA or does this not really help at all? Just your opinion would be much appreciated - thank you

[MelanieGiles]

It is difficult to say, Snowy, with only limited information to hand. Can you briefly remind me of the number of debts you and your partner have and what the original IVAs were based on please. And was your partner's IVA accepted?

[snowy]

Hi

Between us we had debts totalling approx £80k, £29 of which was in my name, my husband's IVA was approved with the main debt owed to RBOS who thankfully voted yes, he offered 24p in the pound including payments of £200 for 5 years and equity release of £7k in the 4/5 year.

I put forward the same offer based on payments of £150 over five years and then equiry release of £7k in the 4/5 year

Creditors include

husband
RBOS - main debt
Goldfish
MBNA
Littlewoods
Barclaycard
Capital One
Clode Retail

Mine

Egg
Llloyds TSB
HFC - 3 accounts, beneficial, marbles and GM Card
store cards with GE money
Next
Citi Financial
Capital One

Out of the above HFC was the only one that voted no

[MelanieGiles]

I suspect that your husband is probably better of with his IVA, and that you are better with a DMP. You will need to demonstrate to the Court that you only have £150 disposable income and other creditors to service. It is not fair to the other creditors for HFC to be getting the lion's share.

[snowy]

I would be happy to go along with a DMP as I had always wanted to pay back every penny I had borrowed, which is why i took on a second job, which I subsequently had to finish as it was just too much for me to handle. Sorry for so many questions but can I ask another one, do you know of any cases where HFC have rejected first time for an IVA but then on re-applying a second time so long as the 40p hurdle is met they have approved, that is on the assumption that they don't get the CO in the interim?

Thank you so much for taking the time to answer my questions - you have been more helpful than my IP was!

[MelanieGiles]

It is not HFC who have the 40p in the £ hurdle rate but HSBC. Although HFC are owned by HSBC, they follow different voting criteria.

[snowy]

I didn't realise that I thought that as HFC is owned by HSBC that an increase to 40p in the pound which is 10p more than I offered might help. I am just trying to decide whether or not to re-apply for an IVA in a few months, thats if HFC don't carry out their threat to get COs. In that event then my first concern will be to do my very best to make sure they don't try and force us to sell - especially now my husband is in his IVA!

Thank you

[J-DOUBLEYA]

Hi, HFC can not get a charge on the property unless you default on the CCJ instalments/ You need to get these set at an affordable rate. Get your self a N245 application form and submit this to the court (both CCJ's) with a pro rata offer. Include a realistic I&E. This is all done at your local CC. There is a fee payable for the N245 !!

Then - I suggest you get some proper advice from a reputable organisation or company !

[J-DOUBLEYA]

Forgot to add !! putting a property into negative equity is a good defence to a charging order application but as long as you have the installment CCJ it is not possible for them to apply for an interim order anyway !

[snowy]

Hi

Thanks for that, yes PP were supposed to be organising an application for a variation order over a week ago, but I am still waiting for the forms together with advice on how to complete, although am so hacked off with how unco-operative HFC are being with me I have to my own conclusions as to what I am going to put in my application to the Judge!

The amazing thing is, HFC wrote to me a few months saying that a DMP was unacceptable to them and they wanted me to put together alternative proposals for repaying the debt, which I did in applying for an IVA and they turned me down! I really don't know what else I can do I have other creditors to consider and not just them! Thank you very much for your reply.

[J-DOUBLEYA]

http://www.hmcourts-service.gov.uk/ Go to this website and download a N245. Its quite easy to complete, just wants details on I&E. Make sure that you complete box 11 with your pro rata offer of payment. If you wait for PP you just might grow a beard !

I think HFC were wanting you to re-motgage, borrow elsewhere or even sell your home to clear their debt rather than go down the IVA or indeed DMP route. Its the way that they are these days.