I have very large credit card debts and two loans - all unsecured.

I am unable to pay them and soon will have to write to all companies to ask them to accept a nominal amount an (hopefully), suspend adding interest.

Can they get awkward enough to force me to sell my (mortgaged) house? The equity is approx 15% but that will hardly touch what I owe.

I really want to keep my house if possible as my 3-year old son stays with me 1 week out of 4.

-- Howard Coakley (howard.coakley@bigfoot.com), January 13, 1999

Answers

They can't repossess your house unless they have secured a loan on it and I have not seen credit card terms that "secure" the loan on your house. A creditor can, however, apply for a charge against your assets, including your home, so that you have to pay them off when you sell. I don't know of this happening with credit card companies but I do know of it happening on other unsecured loans.

Even though they do not repossess, they can make your life pretty unpleasant.

Hope this helps. Good luck Lee

-- Lee (repossession@bigfoot.com), January 13, 1999.

OK, well at leas that means I can keep my house until things improve or I CHOOSE to sell it...

unless....

Can they make me bankrupt causing me to sell the house anyway?

-- howard coakley (howard.coakley@bigfoot.com), January 15, 1999.

Rather than you write go to your local council welfare rights officer or if not one go to CAb they have debt advisors. They will work out what you can afford and ensure it is shared out on percentage basis ie from what you have left over ,after main bills water council tax electric mortgage or rent clothing and food etc what they call priority debts the amounts you should offer and they will write to them with the proposals

so dont worry it can be sorted out as re charging order doing this first will help against that as you are showing that you are willing to pay and not run away from your debts ,which may be only due to a temp problem

regards

Charles

-- Charles Twford (Charles.twford@btinternet.com), January 16, 1999.