Being sued - how to proceed?

[Mr Poor]

Just looking for some general advice if someone would be so kind please......

Myself and my wife have significant unsecured debt and some equity in our property - with this in mind it is our intention to sell our house next year and clear most of this debt with the proceeds. Most of debt is currently on a self-managed DMP and although most creditors are accepting we do get regular stroppy letters etc which I try and appease. A couple are also being challenged on unenforcable grounds etc and I'm coping with this ok.

So, we have one large creditor with an unsecured loan of £25K+ who has just issued a County court claim. Now there are a couple of small issues on the DN etc and I'm sure I can drag things out for a few months but I think ultimately they will win, I also suspect they will then move on to try an obtain a CO.

On that basis, would there be any sense in offering a Tomlin Order to the solicitors? Failing that I could offer a voluntary second charge on the basis that they would get paid when the sale went through and in the meantime they would accept a token payment?

Part of me thinks this is a good idea to try and avoid the stress and hassle (and CCJ of course), but then again, this is all they could achieve anyway if things went their way in court?

Would very much appreciate some feedback....

I need to acknowledge the claim online in the next day or so (had it not quite a week) and then isuue CPR 31 requests etc etc.......

[Amethyst]

Re: Being sued - how to proceed?

The problem with using small technicalities in order to 'drag things out' is that you will inevitably be adding to the debt with costs.

I think, as you wish to repay the debt, and you have your property on the market with the intention of using the equity to settle your debts, and you can evidence the property is on the market, that a tomlin order for monthly installments until the house is sold then the balance paid off in a lump sum is a jolly good idea to avoid all the hassle of court and a ccj.

Who is the creditor and the sols bringing the claim ? Might give us an idea whether they are likely to want a voluntary CO to back the tomlin up. I wouldnt offer it unless they bring it up though, Restons probably would.

Acknowledge the claim anyway, you can put intend to defend in full, its not binding, then hopefully if the tomlins agreed proceedings will just be stayed until everythings sorted out then withdrawn.

[Amethyst]

Re: Being sued - how to proceed?

And if you are challenging a couple on UEA grounds, then keep up your DMP payments, else you will just end up in this position with more creditors before your house sells and you'll have tomlins coming out your ears. Best thing is to just keep them happy until you are in a position to offer Full and finals on everything x

[Caspar]

Re: Being sued - how to proceed?

Myself and my wife have significant unsecured debt and some equity in our property - with this in mind it is our intention to sell our house next year and clear most of this debt with the proceeds.

Hi Mr Poor,

Just a word of caution, and I may well be wrong, but it is worth your finding out. We sold our property with the same aim a couple of years ago. We went to see the local council and I remember there being a problem as we would have made ourselves voluntarily homeless.

In the end we contacted a reputable Housing Association and sold it to them via their Mortgage Rescue Scheme. It meant we only got 85% of the value of the house, but has meant we continue to live in "our house" for a relatively low rent (£200-300 less than private renting per month), they do all repairs AND it can be passed on for one generation so our daughter is also secure should she want to live here.

It meant we couldn't pay all the debts, but it also meant that no matter what, we still had our house.

Just thought it worth mentioning!

[Mr Poor]

Re: Being sued - how to proceed?

Hi guys - thanks for the comments.

The lender is Santander and the solicitors are Chafes.

I've had a quick look at the mortgage rescue scheme but not sure we qualify as our earnings are relatively high and we do not have any mortgage arrears. It is out intention to rent after the sale for a couple of years to sort ourselves out and to try and get some savings behind us. I know we may have issues with credit checks etc from landlords but I'm confident if we offer to pay rent up front for a number of months then someone will accept. Failing that, I suspect I could ask a family member to guarantor for us.

[Caspar]

Re: Being sued - how to proceed?

Hi guys - thanks for the comments.



I've had a quick look at the mortgage rescue scheme but not sure we qualify as our earnings are relatively high and we do not have any mortgage arrears.

It may not be the right avenue for you anyway. When we did ours we had mortgage arrears, but they never formally checked these, we just had to send settlement figures to ensure that the price they were paying was sufficient to mean the property was theirs.

Best of luck with whatever you decide!

David

[Mr Poor]

Re: Being sued - how to proceed?

thanks for the support - it is appreciated. I'll keep you posted!