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: If I want to sell my house and rent it back, how much will you buy it for?
A7: We will open negotiations with you and try to come to a price that will suit you and suits us. If you are selling
for financial reasons then we have other services that might help you with your debt problems as well as us buying your property
from you.
Q8: 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.
Q9: 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.
Q10: 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.
