Why is my home at risk, Why? how can this be?

[lee_m]

i have unsecured loans and credit, why is it then possible for the creditors to register them on my property? surely if i wanted secured loans or credit i would have got a better %rate if i would have secured them in the first place! Why is my home at risk, Why? how can this be?

[scaredkez]

usually lenders secure their loans on your property if you have defaulted with them and they have registered it with county court and you have failed to pay.this is so they can guarentee that they will get their money back but if you are up to date with payments then this shouldn't be a worry please give us more informatiom
kerri

[lee_m]

I thought unsecured ment just that 'unsecured' they take the risk and know out of 100 -maybe 10 or so will not be able to pay! this i thought was th reason why, and they should not be allowed to charge your property as maybe lots of people would not take out higher % rates in the first place.[88] thats why they are allowed to charge so much, arwful arwful situation

usually lenders secure their loans on your property if you have defaulted with them and they have registered it with county court and you have failed to pay.this is so they can guarentee that they will get their money back but if you are up to date with payments then this shouldn't be a worry please give us more informatiom
kerri

[accgroup]

Hi Lee

When you took out your loans it sounds like they were unsecured. But, as commented by Kerri, if you default on your repayments they are entitled to take action to recover that debt, they will follow a strict procedure which may be laid down in the small print of the terms and conditions of your loan, however there is also legislation in place which will assist them in recovering their debt.

They will try to recover the debt by issuing notices to you, then pursuing you through a debt collection agency, then through solicitors threatening legal action. Then, if you still don't pay, they can make a claim against you in a County Court - you would receive notice of this - there will be a hearing and then a County Court Judgement may be obtained, they will try to recover the amount due under the judgement, if they are still unable to recover the money then they may make an application to Court for a charging order against your property, the Court will first make an interim charging order and then a final charging order at a further court hearing.

This process takes quite a long time and you should receive notification at each and every stage. It is your creditor's right to pursue a debt which is not being paid.

Hope this helps


AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[lee_m]

thank you for explaining but i just had judgement set aside today what will happen next? what does that mean, if i can't pay will they kick me into the streets? this is arwfull i wolud never ever borrow money ever off anyone ever, if you cant pay from savings lea[:(]ve it its not worth itt.

Hi Lee

When you took out your loans it sounds like they were unsecured. But, as commented by Kerri, if you default on your repayments they are entitled to take action to recover that debt, they will follow a strict procedure which may be laid down in the small print of the terms and conditions of your loan, however there is also legislation in place which will assist them in recovering their debt.

They will try to recover the debt by issuing notices to you, then pursuing you through a debt collection agency, then through solicitors threatening legal action. Then, if you still don't pay, they can make a claim against you in a County Court - you would receive notice of this - there will be a hearing and then a County Court Judgement may be obtained, they will try to recover the amount due under the judgement, if they are still unable to recover the money then they may make an application to Court for a charging order against your property, the Court will first make an interim charging order and then a final charging order at a further court hearing.

This process takes quite a long time and you should receive notification at each and every stage. It is your creditor's right to pursue a debt which is not being paid.

Hope this helps


AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[MelanieGiles]

Hi again

I have just replied to your other post. You have suggested in that one that you have no assets, but this one indicates that you are a property owner.

Could you clarify the position please, and confirm that value of your property and the amount of your outstanding mortgage.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lee_m]

sorry, its jointly owned and me and my wife we are separated, the property is valued at 80ish we owe 60ish mortgage

Hi again

I have just replied to your other post. You have suggested in that one that you have no assets, but this one indicates that you are a property owner.

Could you clarify the position please, and confirm that value of your property and the amount of your outstanding mortgage.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

OK - so you have equity of £20k which may be at risk if creditors are able to secure charging orders against your property. A charging order basically gives an unsecured creditor proprietory rights over your property, and will expect you to make ongoing repayments to them until the debt is repaid in full. If you fail to make these, the creditor has the right to apply to Court for a possession order against your property - which may make you lose your home.

Do be careful and take specific advice with regard to resolving your current debt problems.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lee_m]

can i sell the house then before it gets repossessed or proceedings start as i'm in arrears? then what do i do then? how much do i give them, will i get anything? could i fly off to spain[88]

OK - so you have equity of £20k which may be at risk if creditors are able to secure charging orders against your property. A charging order basically gives an unsecured creditor proprietory rights over your property, and will expect you to make ongoing repayments to them until the debt is repaid in full. If you fail to make these, the creditor has the right to apply to Court for a possession order against your property - which may make you lose your home.

Do be careful and take specific advice with regard to resolving your current debt problems.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

How much do you owe to unsecured creditors? It may be possible to use the sale proceeds to offer a full and final settlement to creditors. Please confirm whether you owe anything to Northern Rock, HSBC or Black Horse, and if you do how much.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lee_m]

unsecured 60k only hsbc 32k and others 28k not northern rock or black horse

How much do you owe to unsecured creditors? It may be possible to use the sale proceeds to offer a full and final settlement to creditors. Please confirm whether you owe anything to Northern Rock, HSBC or Black Horse, and if you do how much.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

As you owe a substantial amount to HSBC, who have a minimum dividend criteria of 40p in the £, then you would need to introduce approximately £30,000 to meet that dividend, so an equity release on its own would be insufficient to propose an IVA. Do you have any disposable income which you could offer creditors on an ongoing basis?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lee_m]

you guys do a real good job of make folk like me feel human and worth something even if very little monnnnnnnnnnnetry wise, i feel better since i been here, i'm not alone, did you know it's the first
night in nearly a year i actully sleep[;)] as i read from someone elses post i owe money no my life! what will be will be, we will stand together for a life not an existance, i'm treating myself to a jar of hot choclate 'luxury' i would not of bought normal, arrrrrrh why on why did i ever stop buying this thank you and good night [^]

[lee_m]

can i sell my house give the ex half and then the rest to the creditors or do i have to give them all of it

can i sell the house then before it gets repossessed or proceedings start as i'm in arrears? then what do i do then? how much do i give them, will i get anything? could i fly off to spain[88]

OK - so you have equity of £20k which may be at risk if creditors are able to secure charging orders against your property. A charging order basically gives an unsecured creditor proprietory rights over your property, and will expect you to make ongoing repayments to them until the debt is repaid in full. If you fail to make these, the creditor has the right to apply to Court for a possession order against your property - which may make you lose your home.

Do be careful and take specific advice with regard to resolving your current debt problems.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

Your ex is presumably entitled to half the sale proceeds in any case as she is a joint owner. It is only your share which is captured under any insolvency proceedings.

As your share of the equity is only in the region of £10k, before costs of sale, this does not leave enough money to do an IVA, but would be available to creditors within bankruptcy proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk