Author Topic: What to do  (Read 674 times)

lisa173jones

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What to do
« on: Dec 02, 2010, 08:56:48 PM »
Hi,
Hope there is someone that can give me some advice.
I am a single mum on income support.  I Keep getting letters from HFO Financial services in relation to a £8175 (original loan £3000 for my ex who promised to pay then left me) debt from 2005.
I have been ignoring these as i cant possibly afford to pay it all i get per week from isuppt is £38.70 as debts are being taken from this £53 tax Credits and £20 child benefit.  After paying everything and food etc i am left with around £5 p/w.
 
 now they are threatening to take me to court saying they will get access to my financial situation and then either take goods from my home or take money from my income. I am more worried about goods being taken from my home as it has took a while to get back on my feet.  What is the best course of action let it go to court or contact them.  In my experience they wont accept what i will be able to pay as it will be next to nothing.
 
Any advice will be apreciated
 
thanks

James Falla

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Re: What to do
« Reply #1 on: Dec 03, 2010, 10:22:52 AM »
Hi Lisa173jones
 
If a creditor is threatening to take you to court, this sounds very scary. However, what they really mean is that they are going to apply for a county court judgement (CCJ) against you. If they do this, you will receive an offical looking letter which is blue and white in colour saying that an application for a judgement is being made against you. You need to complete the admission part of this form which lets you list all of your income and expenditures. If you show that you legitimately can not afford to pay the debt and can offer only a token payment of £1 a month, the court is likely to agree the judgement based on this amount.
 
This would really work in your favor as if you pay the CCJ as ordered, the creditor can no longer hassle you to pay more. As such, in your position you should not worry about your creditor taking court action against you. However, if you do receive the forms, you must make sure you complete and return them.
 
A real solution to your debt which you should consider is a debt relief order. This is a legal way for people with very little money to have their debts taken away from them once and for all. If you owe less than £15,000, have little or no assets and have less than £50 a month disposable income, this solution could well be a very good option for you. Definitely worth investigating.
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