debt management worries

[gwendolenemae]

I owe forty thousand to Lloyds, Capital one and the money shop which is being dealt with by a management company, i pay £300.00 per month to keep these people happy.

I have now in addition, incurred debts of eight thousand with barclaycard and barclays bank.

I own my own house which has £120.000.00 collateral.

PLease be honest with me, as i have had so many differing stories, how long can i hope to keep my house before the firms in the debt management scheme come after my house.

PLease just advise me what is likely to happen

[stuartm75]

Re: debt management worries

Its impossible to say without looking at your circumstances and it could vary hugely on how long you get to keep your home for. E.g has anybody applied for a CCJ or charging order as this will need to be done first and I am assuming that you are up to date with any mortgage or secured loan.

There are people that have been in long term debt management plans for a number of years and creditors have not gone for a charging order but most debt management plans don't afford any protection and the creditors are legally entitled to go for a charging order on your property. If you are working and have a secure job you could consider an IVA and check whether you can get part of the agreement that you will not be forced to sell the property. HOWEVER be very careful who you get an IVA with as there are a lot of dodgey debt management companies around. An IVA would get you debt free within 5-6 years and protects you from creditor enforcement so if you could ensure its an option and you would be allowed to protect the property as part of this then it would be a great option.

I suggest that you should go to one of the free advice agencies such as a Citizens Advice Bureau, Payplan(ensure its the free Payplan and not a profit making company) or the CCCS and ask about the risks to your property and also the options that you have. They are not for profit so will advise the best option whereas many debt management companies are there just to profit from you. If you do go for an IVA you will always have to pay.

Again it is impossible to advise how long you will be able to keep the property for but you can apply for something called a Time order to delay this but again you should get professional advice on this from one of the above agencies.

Hope this is helpful and makes sense!

[The Debt Star]

Re: debt management worries

good advice from stuart