Q1: What is the difference between secured and unsecured debts?
A1: When you borrow money
the loan can be secured against an asset that you own, such as your home. Which means if you fail to keep up with the
repayments the secured creditor can take steps to recover the asset on which the loan is secured. Any loan you take out that
is not secured against one of your assets is an unsecured debt.
Q2: What are priority
debts?
A2: Some debts are more important than others. Not paying priority debts could result in serious
consequences like repossession of your home, disconnection of utilities, deductions from wages or even fines. A list of priority
debts and the consequences are given below.
a) Mortgage arrears - Repossession of your home.
b) Secured loan - Repossession of your home.
c) Rent arrears - Eviction.
d) Council tax - Deduction
from wage or benefits, imprisonment.
e) Gas, electricity - Disconnection.
f) Income tax, national insurance
- Distraint or bankrupcy.
G) TV licence - Fine, distraint, imprisonment.
Q3:
What happens if I go on a Debt Management Plan?
A3: A Debt Management Plan will allow you to regain
control of your finances and debt repayments. This plan is normally welcomed by creditors as your debts are being repaid on
a regular basis. This normally stops the lenders sending you intimidating letters and making demanding phone calls, it also
should stop escalating interest charges and fees.
Q4: What is an Individual Voluntary
Arrangement (IVA)?
A4: Under new Goverment Legislation an IVA is a legal agreement between you and your
creditors in which you pay an agreed monthly sum for upto 5 years. The total ammount paid by you is divided up between all
of your creditors and they accept this ammount as full and final settlement of all the money that is owed to them, once
you have made the final payment into the arrangement. Your creditors will then write off any ammount that is not paid off
in this way. This will regularly result in creditors writing off upto 75% of what they are owed. When the IVA is complete
you are then normally debt free and have a fresh start.
Q5: Can I include secured debts
into an IVA?
A5: No.
Q6: Is it really worth me challenging any of
my credit agreements to see if they are unenforceable and to see if the debt can be wiped off?
A6: Yes
most definitely, the reason being is you would be suprised how many lenders make mistakes on their credit agreements, that
is if they have still got a copy of the original agreement you signed, a lot of the time they dont.
Q7: How much rent would I have to pay if I sell my house to you?
A8: The rent is calculated based on other local rental costs in the area of your property. Sometimes tho we will offer
you a rent free period.
Q8: Can you raise me finance if my credit history is not very
good?
A9: It is possible but it will depend on your particular circumstances.
Q9: Can Automatic Number Plate Recognition (ANPR) cameras be used to identify CCJ's?
A10:
Yes. County Court Judgements for civil debts can be enforced easily via ANPR because debtors number plates can be stored in
a CCJ Debt Database. If not stopped by patrols or roadblocks your whereabouts and movements will be supplied back to bailiffs.
