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A friend of mine bought replacement windows 4 yrs ago for around £4000. She funded it through a loan at an interest rate of around 24%. She has since become unemployed and was diagnosed with incurable cancer so opportunities for work are limited. She failed to make the agreed payments at it went to court and was registered as a CCJ, in addition to this the finance company put a charge on her house and the debt is accruing at £104 per month in interest alone. The debt is currently in excess of £8000. She is worried about this debt escalating to the point where she may be forced to sell the house (there is currently negative equity. She does not know what to do, she is on welfare benefits. What do you advise? Can she go back to court to get the interest frozen so at least if she paid £5 per month, it would take forever but the debt owe would reduce gradually over time. Please help, I don't know what to advise her.

Many Thanks

if she has no equity in the home is it not better for her to go bankrupt, & then she will only need to pay into a bankrupcy for 3 year. I am not an expert but i am sure one will be along soon to give there advice.

Good luck to you friend

If the debt has been converted to a secured loan through a charging order this will not be written off in Bankruptcy or similar unless the house is sold and the overflow then converted back to a unsecured basis. Has she contacted the court in an attempt to lower / stop the interest and reduce the payment?