Halifax - Enforceable Loan & CC?

[tags]

Hello,

I have recently found out that my boyfriend is in debt by £28,000 and struggling to pay off even the minimum monthly amounts, he is extremely stressed and i'm trying to help him, but know so very little about debt.

all pre 2007

Halifax loan - £15k
Halifax credit card -£10k
Halifax overdraft - £1.5k
another credit card £1.5k

He is currently looking into getting an IVA agreement but from what i read, i think it could be declined as the overall debt is from only two lenders, the majority of debt is from only 1. I have read that Iva's generally require 3+ lenders.

I have read that some agreements are unenforceable and was wondering if he should proceed to see if he might be exempt from paying some of them.

Will this effect his IVA agreement if he proceeds to send letters to them?
Can he still apply for exemption if the IVA agreement is in place?
So far nothing has been signed or agreed to.

Is there any issue that he no longer falls into the consumer credit act 1974 as his debts to halifax alone exceed £25k

From your website i have read that halifax generally just send out a standard letter when you request a signed copy of the agreement.

Is there any way to force them through the data protection act to give you a signed copy of the agreement? Is there a standard letter we could use?
I guess i am hoping that they no longer can produce the paperwork.

I am trying to do anything to stop him going into bankruptcy as i believe this would destroy him, he currently lives at his parents and says if they were to find out about his situation they would disown him, i am worried that if it goes to the DCA's then this might happen.

Please help!!!

many Thanks
Sarah

[Curlyben]

Re: Halifax - Enforceable Loan & CC?

Hello,

I have recently found out that my boyfriend is in debt by £28,000 and struggling to pay off even the minimum monthly amounts, he is extremely stressed and i'm trying to help him, but know so very little about debt. Take a deep breath and calm down. It's not as bad as it all seems.

all pre 2007

Halifax loan - £15k
Halifax credit card -£10k
Halifax overdraft - £1.5k
another credit card £1.5k

He is currently looking into getting an IVA agreement but from what i read, i think it could be declined as the overall debt is from only two lenders, the majority of debt is from only 1. I have read that Iva's generally require 3+ lenders. You are unlikely to get a IVA as the vast bulk is with one creditor.

I have read that some agreements are unenforceable and was wondering if he should proceed to see if he might be exempt from paying some of them. Have you considered talking with payplan or similar FREE debt agencies ?

Will this effect his IVA agreement if he proceeds to send letters to them?
Can he still apply for exemption if the IVA agreement is in place?
So far nothing has been signed or agreed to.See comment above re IVA

Is there any issue that he no longer falls into the consumer credit act 1974 as his debts to halifax alone exceed £25k. The limit that you are referring to is PER AGREEMENT, not in total, so these fall squarely within CCA 74.

From your website i have read that halifax generally just send out a standard letter when you request a signed copy of the agreement. It really depends and it's not a good idea to generalise.

Is there any way to force them through the data protection act to give you a signed copy of the agreement? Data Protection Act would be used for a Subject Access Request when you request ALL the information that they hold on you. Is there a standard letter we could use? For a SAR, yes, right here along with other important information : MANAGING YOUR FINANCES - Legal Beagles
I guess i am hoping that they no longer can produce the paperwork. Don't get your hopes up, best to take things as they come.

I am trying to do anything to stop him going into bankruptcy as i believe this would destroy him, he currently lives at his parents and says if they were to find out about his situation they would disown him, i am worried that if it goes to the DCA's then this might happen. Bankruptcy is the LAST option. Even if these debts are passed to a DCA, this is not the end of the world, in fact some times it's a blessing in disguise.

Please help!!!

many Thanks
Sarah

Comments in Blue

Ps Welcome to LB.

[tags]

Re: Halifax - Enforceable Loan & CC?

Hi Curlyben

Thank you so much for your reply!

We originally spoke to the National Debt Helpline who are insisting our best bet is an IVA, but as already stated, it doesn't look like that option will be available.

If it is the Lender that is a problem do you think it is possible to transfer some debt to other credit card users, or will it become a worse mess?

If it goes to a DCA could they come knocking on his door, in which case his parents would find out...i really dread to think what would happen then with the state he is in already (they are not very reasonable) and he could not afford rent else where.

What approach do you think we should take next?
Is it worth sending a letter to the halifax asking for the signed contract
or should we await the outcome of the IVA and then get back in contact with the national debt helpline?

Should he still pay the little bit that he can or should he stop paying and wait for the DCA? ...I just dont know what's best but i feel the more we sit & wait for the (probably negative) IVA result the worse it possibly could get

Thanks again for all your help
Sarah

[Curlyben]

Re: Halifax - Enforceable Loan & CC?

Don't worry about DCA threats as they are generally just that, THREATS.
They wont be sending some one round, or employing bailiffs, or telling your employer, or cancelling xmas. Their letters and calls are all designed to cause terror and harassment.

Have you actually talked to Halifax about setting up a payment plan, hence my mention of Payplan earlier ?
Certainly worth a call to see what they have to say.

In all honesty the IVA idea, while good, is a non-starter.

[Paule]

Re: Halifax - Enforceable Loan & CC?

Have you actually talked to Halifax about setting up a payment plan, hence my mention of Payplan earlier ?
Certainly worth a call to see what they have to say..

Just to emphasize CBs point, HBoS are one of Payplans main backers, so will generally go along with them with no fuss.

I have a loan, 2nr Credit Cards & a bank account with HBoS, and they are all being managed by Payplan, with no fuss from HBoS whatsoever.

It maybe a good idea to fill out the Income Expenditure sheet and list everything, that way you will have a clear overall picture of your finances
Here is the link to the IE Sheet --> Legal Beagles

PKea

Thread moved to Debt forum