a company is taking us to court to make us bankrupt, is there any way we can get to keep our home? it started when we gave a car back to a company because we didnt need it anymore. we offered them a cheque for £4,500 but they sent it back saying it not enough because of insurances that where attached to the contract. if we payed the balance off on our car then apparently we would have to still pay for these insurances even though the car was ours and we didnt need them anymore. that is why we gave it back.we didnt hear off this company again till 6-8weeks ago when they said they going to make us bankrupt and we will lose everything including our home. we offered to make monthly payments but they refused saying that they need the full amount of £4000. we are not in a position to do this because my husband has just gone back to work after being on the sick for 7weeks. we are willing to do anything to keep our home... please can anyone help?
2006-09-23 01:44:04 · 10 answers · asked by taryn3piper 3 in Politics & Government ➔ Law & Ethics
we live in the uk
2006-09-23 01:53:42 · update #1
Hallo there
My heart goes out to you, having spent much of the last two years struggling with financial problems through no fault of our own. So many companies are so rigid and inflexible, you have to jump through hoops to get anything done and to cap it all you so often get a different story depending on who you talk to!
My first reaction to your question was a gut feeling that this particular company may well be engaging in sharp practice. At the very least it sounds as though terms and conditions were not properly explained to you at the start.
Your local Citizens' Advice Bureau I would suggest should be your first port of call, either that or a solicitor. Your local library should have a list of solicitors in your area, showing what they specialise in and what they can offer in terms of free or fixed fee advice. You can also ask at your library about Legal Aid.
Another thing you could try is contacting the Financial Ombudsman - go to http://www.financial-ombudsman.org.uk/. I did this a couple of years ago when a creditor was refusing to negotiate with me - and guess what, they changed their tune pretty quickly when they heard from the Ombudsman!
What happens initially is that the Ombudsman sends the company a letter notifying them that a complaint has been made and outlining the subject of the complaint. Then if, after a certain period has elapsed, the company has not responded the complaint is escalated. In my case it never got to the point of having to be escalated, the first letter to them was enough.
All the very best of luck, I do so hope you can get this sorted.
2006-09-23 02:11:11 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Hi Taryn,
I'm sorry to hear of your predicament. I will assume you are in the UK.
First of all you need to consult a solicitor asap.
However, what you need to do is check the contract.
If they have put clauses in the contract that are contrary to the
Unfair Contract Terms Act, the Consumer Protection Act, the Consumer Credit Act and one or two assorted legal niceties that you can use then the contract may be unenforceable.
If an offer of a lump sum payment has been made and they have refused the payment then this will work in your favour.
There is something not quite right here, they should have accepted the payment because it reduces the debt and then provided a way for you to spread the debt over a period of time.
Banckruptcy is always a last resort and they could end up with nothing as people like the official receivers and the mortgage lenders are normally the first to get paid off. Anything left is then paid out in order of preference and they could end up way down the list of creditors.
If the agreement you signed stated that you were using your house as security then you might have a problem. This is a secure agreement, meaning that you used the house as security.
You will need to check your agreement.
You havn't given enough information for me to suggest much more because I would be trawling through my law books all day.
Good luck, I hope it all works out for you.
.
2006-09-23 02:23:05 · answer #2 · answered by LYN W 5 · 1⤊ 0⤋
If your British go to the Citizens Advice Bureau, they are excellent. They have solicitors who you can see free of charge for the first half hour and you really do need one. What the credit agencies do is try to work outside the law, you have made an offer to pay for the balance of the car, which apparently they refused. If the cheque covered the bulk of what was owing the court will take this into account. If they take you to court they are more than likely going to find themselves having to accept a far lesser amount than you offered and they certainly can't take your house! The Consumer Credit Association are very helpful, however, if you really want to get them off your back go to the Daily Mail, their financial writers and experts are the very best and no company will want to take them on. When it is all over file an official complaint against the credit company this could well result in them loosing their license. As they seem to be operating outside official rules this would be a very good outcome!
2006-09-23 02:18:02 · answer #3 · answered by Grannygrump 3 · 0⤊ 0⤋
It seems as though they would have a hard time simply throwing you into bankruptcy without getting a judgment against you first, unless the law in the UK is very different from the US.
I think this is just a long term scare tactic, but you need to take it seriously and see a solicitor. Did they make this threat over the phone? I would be surprised if they would put such words in writing.
I can't tell you much about UK debtors law, because I am a U.S. attorney, so my only real advice for you is to get thee to a solicitor soon.
2006-09-23 06:01:38 · answer #4 · answered by y_nevin 2 · 0⤊ 0⤋
They are trying to scare you and this is illegal. They can't make you bankrupt especially for such a small amount. You have to be in alot more debt for that. Not only that, if you are in alot of debt you declare yourself bankrupt which you have to pay about £300.00 for.
Get intouch with the Citizens Advice Bureau, they are really good with things like this and they will certainly put this company straight on a few things.
If a company threatens you to a certain point you could end up taking them to court.
2006-09-23 01:52:24 · answer #5 · answered by sarah k 4 · 0⤊ 0⤋
Do not worry - they can not make you bankrupt.
You have made a reasonable offer and they turned it down. You are still negotiating. Send them some money stating that it is to show willingness to clear the debt and to sort out a payment plan and see what they come up with.
As long as they are getting some money they are unlikely to take it any further.
2006-09-23 21:20:10 · answer #6 · answered by Amanda K 7 · 0⤊ 0⤋
Go to the Citizens Advice Bureau today.
2006-09-23 01:47:15 · answer #7 · answered by Well, said Alberto 6 · 0⤊ 0⤋
Get a good lawyer fast
2006-09-23 01:53:41 · answer #8 · answered by FLOYD 6 · 0⤊ 0⤋
Check into homestead laws.
2006-09-23 01:47:06 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You are going to need to consult a lawyer.
http://www.freelawyer.co.uk/idx/index.asp
2006-09-23 01:47:44 · answer #10 · answered by jgood 2 · 0⤊ 0⤋