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Find financial and money saving discussions including debt and pension chat on our Money forum.

Money matters

Advice needed....please!

12 replies

snowboo · 16/05/2008 09:39

Hi,
My sister has just called in a real flap. She has had a letter from a solicitor about an unpaid credit card. That part is fine. They wrote to her a while ago and said as she couldn't pay up (she'd lost her job) they would put a charge on her property. She agreed as she has no other option.
They are now saying they will put the charge on and start propceedings to repossess the house.
I have told her not to panic as i thought because the credit card was an unsecured loan they can't legally do this. Also the property is jointly owned with her partner.
Am i correct or can they now come for the house for a small debt???
Any advice will be greatly appreciated.

TIA xx

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snowboo · 16/05/2008 09:57

bump

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snowboo · 16/05/2008 11:40

Anyone? Or any advice on where i can get help for her? She is close to tears with the worry of it all.

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TheBlonde · 16/05/2008 11:42

If she agreed to the charge on the property then it sounds like they can attempt to repossess it
Did she agree anything in writing?

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snowboo · 16/05/2008 11:46

She didn't sign anything, no. She not too sure if she was supposed to sign to say she didn't agree or what.
The sum they are asking for is worth peanuts but they'll make a huge amount if they get her house.
Doesn't make sense to me.

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Confidentialnamechanger · 16/05/2008 11:51

they can't do that if she didn't sign and she should not have agreed. They have to go to court to do anything - she should hang up on them, communicate only in writing, offer to pay £1 a week (in writing only)

When they take her to court for a ccj the judge will only let her pay what she can afford.

pop over to www.debtquestions.co.uk and ask this question and they will set yourmind at rest.

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1dilemma · 16/05/2008 22:54

snowboo they don't get her house they potentially could get it sold to get their money back.

Agree with others get online for advice and get thinking about how she can get the money if it is so small and start agreeing to pay it back.

They just want their money

oh and cut up the card

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stickybun · 17/05/2008 01:08

Get to CAB for a financial statement and help with negotiating. In theory an unsecured loan is just that, but increasing numbers of credit companies are getting orders made thru' going to courrt. Northampton Court are particularly busy - get CAB to help her negotiate. It's always possible to change your phone number - this usually stops the calls!

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snowboo · 20/05/2008 10:05

Hi,
Thanks for the advice. She has taken the letter to a solicitor as he thinks they have sent her the wrong charge to enable them to steal her house!!!!
(If that makes sense....)
She is struggling as it is so hopefully they'll be able to sort it out.
Thanks again

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wannaBe · 20/05/2008 10:09

no they won't steal her house, but they can get it sold to get their money back if they have put a charge on it. They can't keep any money over and above what she owes on the credit card.

How much does she owe?

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snowboo · 20/05/2008 13:23

She owes £4000, her house was valued at 250k.
Its a B136(CO) Notice. She has offered to pay what she can but they aren't willing to listen. They want to drag her, her partner (who has nothing to do with the debt) and her small children through hell.
Just doesn't seem fair. Up til she lost her job she always paid on time and was very good but they won't take this into account.
Bloody credit cards, made by the devil IMHO....

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RibenaBerry · 20/05/2008 15:02

If the house is jointly owned by the partner, I think he needs to sign too for a legal charge to be placed on the property. I presume he hasn't signed anything?

Her solicitor will be able to help more.

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iheartdusty · 20/05/2008 18:28

it sounds as though they applied to the court for a charging order to be made. This would charge her beneficial share with the amount she owes (plus costs and interest). So it doesn't need her partner to sign anything.

In order to get the money, the person holding the charging order makes a further application to the court for an order for sale. If this is approved, the house is sold (legitimately, with proper valuations, but possibly at auction) and the money for the debt is taken out of her share. Any other creditors (such as a mortgage company) are paid off as well. Anything left at the end goes back to her, and what's left of the partner's share goes back to him.

she should try AT ONCE to get an order that she must repay the debt by instalments, then the order for sale can't be made, but she has to apply to the court for this to be done.