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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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How to defend bankruptcy petition - going to court for a debt

Resolved Question:

How to defend bankruptcy petition - going to court for a debt do £3,400. Credit card with a bank . Cab have tried to negotiate on my behalf but first credit have been difficult .they declined offer. I have another debt of 16,000 with natwest they applied for charging order. Which was granted so need help with both debts
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Is there a ccj for the £3400 debt please?
Customer: Yes
Customer: What do you mean ccj?
Customer: I s
Alex Watts : County court judgment for the £3400?
Customer: We'll possibly what happened is I have a failed iva
Alex Watts : Why did the IVA fail?
Customer: It's a long story . I thought we agreed with my iva company to have a break for a year from payments they said they never agreed failed it because of of non payment for a year.
Alex Watts : Do you have much equity in the property?
Customer: In fact they wanted the 2400 for the year I didn't pay I didn't have it they failed it.
Customer: We'll not enough to cover all debts . I have 10.000 secured on property . Have 16000 for natwest following charging order . Then this debt.
Alex Watts : Have you asked them if they would accept a charge in the property?
Customer: I have about £ 11 000 equity.
Customer: Well that's what they said to cab during negotiation given that I been trying to get natwest charging order off my house I could not agree to it.
Alex Watts : But would they accept a charge on your property? If so this is the on,y way to stop the bankruptcy.
Alex Watts : If they won't accept this then they can press for you to be bankrupt,
Alex Watts : At a heating a judge will want to make sure that you owe the debt and you have the petition.
Alex Watts : If the answer is yes and you can't pay it off within around 28 days the court has no choice, it must make you bankrupt.
Alex Watts : The judge will have no choice.
Alex Watts : So your best bet is to get the creditor to accept a chagre.
Alex Watts : Even if it is behind the current ones
Alex Watts : Can I clarify anything for you?
Customer: What s the interest on these debts whilst secured on my property ?
Alex Watts : You can negotiate that be currently a court would not award more then 2-3%
Alex Watts : Does that clarify?
Customer: Do you mean on both debts the interest rate will be no more that 3% per year?
Customer: What happens to my credit score- whilst they are secured? Can I continue to pay them by instalment ?
Customer: Can I have conditions attached to the charging order?
Customer: What's the point of agreeing a charging order if a few months later they apply for me to sell my house?
Customer: I'm still waiting for answer?
Customer: Send me an mail when expect is back.
Alex Watts :

1) The debts are subject to a charge are allowed to charge interest only set by the Court. If the Court did not allow interest then it cant be charged

Alex Watts :

2) Your credit score only goes down if there is a valid CCJ

Alex Watts :

3) Yes you can pay by installment

Alex Watts :

4) No you can't have conditions attached, you either owe the amount or you dont

Alex Watts :

5) You can agree to a charge but they can;t enforce whilst you are making agreed repayments

Alex Watts :

Does that clarify?

Customer: Thank you one last question - I have no agreed payments with them at this stage how do set agreed payments?
Alex Watts :

You need to write and make an agreement, it is as simple as that

Customer: And I proposed to increase my payments to natwest loans to £150 .00 but they went aheard wand made charging order final I was £2.00 a month should I pay the £150 anyway?! Or it makes no difference ?
Alex Watts :

You need to make payments as per the charging order, unless you apply to vary that.

Alex Watts :

The £3400 debt then you need to come to an arrangement.

Alex Watts :

Does that help?

Customer: When I attend court ? Or later?
Customer: Sorry I'm a bit thick
Alex Watts :

When you attend Court or you can ask for it to be varied later.

Customer: Ok thanks
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