Shared Debt

[Moradin]

I have recently not been able to make payements to 5 credit cards. (approx 27k debt), one of them has recently given me a CCJ.
filled in all the paperwork, showing my outgoings were way above my income, and the paperwork came back to pay the solicitor handling the case, 1 pound per month. (only 286 years to payback)

now, i have recently spilt from my wife, and we have a joint loan, with payments just over 300 per month, i cannot really afford to pay this, but have done so, so my wife doesn't get a bad credit history.

the loan is due to end in 2015, but i cannot continue to pay it. its a normal unsecured loan.

Can i get the loan company (santander), to get half of the loan from her, or are we jointly liable for all of it ? - i dont understand which applies.

[MrsD]

Re: Shared Debt

First of all

if you and your wife had a joint current account, her credit history will already be affected

It very much depends on what you signed for the loan


can you give us more information?

[Pixie]

Re: Shared Debt

Have you thought about whether or not your credit card debts may unenforceable ...too late for the one with the ccj...but have a look at Help with Unenforceability - allaboutFORUMS

[Moradin]

Re: Shared Debt

Hiya..

All the credit cards, i believe are since april 2007.. i will double check. but i think so.

We have a joint current account, but i don't see how her credit file would already be affected?
She has 3 credit cards which she is paying, and we have this join loan, where we have both signed.

[Riz]

Re: Shared Debt

If you both signed for the loan then you would likely be jointly and severally liable for it.

Which means you can both be chased for the full amount/payments if they cannot get the other signatory to pay.

The loan company will not agree to let you/her off 50% of the payments. They will come after whichever they think they can get to pay for the lot.

[Moradin]

Re: Shared Debt

ahh thats what i thought.. Thank You for the Clarification !

I have written to each of the others, and asked them to freeze interest etc. only MBNA have said that they will.

Should i write to these 3 again, and ask for removal of interest and penalties?

The other debts are to:-
Barclays (9.7k)
Halifax (3.5k)
Post Office (3.7k)

MBNA (6k) - interest frozen
Creation (3.4k Sygma bank), - CCJ - must pay £1 per month for the next 286 years.

[Undercover Elsa]

Re: Shared Debt

Hi Moradin,
Welcome to AAD
As your credit file is already shot because of the CCJ then the best thing you could do is get the rest of your creditors to default you as soon as possible. The sooner they do the sooner it will drop off your credit file (6 years) whereas an arrangement to pay (AP) will drag on forever. This should stop interest and charges too so that you can get on with actually reducing the debt.

In your situation I would initially send off a CCA request to each one, even if post 2007, and cease paying. Let them default you. Then once they are desperate for payment you can come to a token arrangement without an AP marker to prolong your poor credit for eons. Even better if you can squirrel away some of what you save each month to offer in Full and Final settlement further down the line.

If however you want to continue as you are, did you send a recognised Common Financial Statement with your requests to freeze interest?

Re the loan, as above, your ex wife is jointly liable, can you not speak to her about sharing the payments? She's already associated with you via the two joint accounts which will show up on credit checks. If she can't or won't help with payments then if you can't pay it either she too will have a default for 6 years, sadly.

[SXGuy]

Re: Shared Debt

And just to clarify what Elsa has said, most credit card companies wont freeze interest until you actually default, so may as well go for the unenforceablity route first, then if you really do wish to pay £1 per month or freeze interest they are likely to agree.

[Moradin]

Re: Shared Debt

Elsa, thanks for the advice..

yes, the other creditors i have paid nothing (can't afford to lol)..

When i wrote to them last year, i included a statement of all my incoming and outgoings. including amounts for food , fuel, etc.

On my credit file, only the 1 account shows as default, all the rest just show as ''late pay''. even though i haven't made a payment for 8 months nearly.

When you talk about a final settlement, what % do people offer? *(there is a possibility down the line my father will bail us out some)

[Undercover Elsa]

Re: Shared Debt

Depends on how desperate the DCA is to get paid (hence stopping paying for as long as possible and explore any avenues of dispute, eg unenforceability, harrassment, charges, PPI etc)).
Bearing in mind that DCA's buy debts for anything from 5% upwards, 20% is a good start point in my view. The original company is less likely to deal.

Have a look here for more about F&F's:
UPDATED - Full Final Settlements Explained - allaboutFORUMS

Should you need to send your financial details again at any stage, the NEDCAB online version is highly regarded and has built in trigger figures.(How much you are reasonably allowed for various expenses)
North East Derbyshire Citizens Advice Bureau

[Undercover Elsa]

Re: Shared Debt

It's probably because you've been ongoing with negotiating that they've not defaulted you yet. I'd send a CCA request to each and stop discussing paying with them

[Moradin]

Re: Shared Debt

Northampton court ordered me to pay £1 per month to sygma bank.

today, i've recievedd a ''Notice of Transfer of Proceedings'. where they are advising me that the claim has been transferred to my local court for REDETERMINATION.

i thought the decision had been made. what happens now?

[Riz]

Re: Shared Debt

When was the CCJ awarded? Before Oct 1st 2012? And do you have a property they might seek a charging order against.

In general a redetermination could be them wanting to see if they can get the £1 per month increased, or it could be them wanting to get a forthwith judgement in order to go for a charging order if you have property.

[Moradin]

Re: Shared Debt

The CCJ is recent - yes, i have a house that is mortgaged, very little collateral in it.

Are they really going down the charging order route for 3k... wow.

[Riz]

Re: Shared Debt

They could just be chancing their arm at getting the £1 per month payments increased. It is hard to say.

If the CCJ was awarded after October 1st 2012, then technically they wouldn't need to go for a redetermination for a charging order. Which is why I asked the date.