Default notices

[TeaAnd2Sugars]

Can anyone tell me what happens if you ignore default notices from a debt collection agency? How long before they take further action (and what action do they take?)

They are DHs debts, he has no income and isn't entitled to benefits because I earn too much and we own a house (although not for much longer at this rate).

Hi, I work for one of the large banks and have spent a large amount of my career working in collection services.

A lot of damage has already been done, the default will remain for 6 years, basically meaning him and you as you are married are impacted. You've stated you can't break the financial links, i.e. mortgage in your own name, no joint accounts etc.

In terms of further action - depends on size of debt for the bank - it has to be worth the effort of collection however if your debt is sold the criteria used by collection agents means it might be worth them going for CCJ's or charging orders. The charge would be applied against the house so when and if you ever sell, any profit will pay these creditors before you see anything.

If you are looking at remortgage you will really struggle especially if any of his debts are with the bank that you have a mortgage with. Affordability checks plus credit history will make any remortgage very difficult.

As others have said you can go to CAB or Stepchange however you can do the same process yourself - fill in a Income and expenditure and make a nominal payment offer. As soon as you have a arrangement in place that will reflect on your credit files even a 1 a month looks better on a file as it shows as arrangement to pay regardless of the amount. No arrangement is the worse thing you can do.

If his accounts have been defaulted then all interest and charges will be suspend so then at least you are paying the final balance. Of course the defaults stay for 6 years once they 'drop off' then you have a couple of years at least to build your credit back up.

Hope you get this sorted

Thank you everyone, Gizmo especially that's very helpful and unfortunately what I feared. I am so pissed off with him i can't even speak. I'm absolutely stuffed. Bollocks, bollocks, bollocks. How can he keep saying it will be ok when the money comes in. He's deluded. I can't even talk to him today because the kids are around.

Where can I go to get some advice (legal and financial)? For me that is. I need to work out a plan (aside from getting DH to start paying something). I'm a higher rate tax payer and have other assets so I don't feel it's fair for me to be using up CAB's time.

Go to noddle and look at your financial record and his if he will let you.

Go the CAB it is for everyone.

You may be a higher rate taxpayer but currently you are in the shit so really shouldn't be spending money that you don't have

I work somewhere that deals with priority debts so I don't know if it is the same across all debts, but if the debt exceeds £5k we can force bankruptcy on behalf of the debtor. That will liquidate his assets and stop him from being a director of a company.

I wouldn’t put off talking to him about it just because the kids are around. He’s minimising it so now you are. Get the telly on so you can talk to him.

I hope it goes well for you.