Unsecured debt

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I have a very serious cash flow problem at present, I'm hoping that this will get sorted out in about six months time.

I owe Egg credit card 20,000, and Dydens solicitors acting for Egg has obtained judgement against me for "Payment Forthwith". How a guy on Income Support, in negitive equity, with total debts of more than 300,000, and with no assets complies with such an order of the court is something I just don't understand.

Pleae understand that I'm not trying to evade paying Egg, or others that I owe money to. I've provided all my creditors with a detailed I&E, details of the funds I hope to receive in six months time, and an assurance that I intend to pay off the debt in full within six months. Most of my creditors have responded positivly to this assurance, and have agreed to either to wait for payment for six months, or have asked for a nominal pound a month payment. Two of my creditors, Capital One and Co-Op Bank, have even agreed to suspend all interest charges while I get things sorted out.

Now, all these debts are UNSECURED debts.

Dydens solicitors acting for Egg have now issued proceedings against me for a charge against my house in respect of this unsecured debt.

The house is firmly into negitive equity, since a relative already has a second charge on the house, and the money I owe the building society & the relative is about 200,000 more than the current value of the house.

And the house is jointly owned (owed) by my ex-wife, who is not connected to my debt at Egg credit card.


Can Egg obtain a charge against a property in respect of an unsecured debt?

Can Egg obtain a charge on a jointly owned property? Where the other joint owner is not connected to the unsecured debt?

Can Egg obtain a charge against a property in negitive equity?

Why are Dydens solicitors wasting their clients money anyway?


-- anon (anon@hotmail.code), January 22, 2005


the answer to your first 3 questions is a definite YES.

Your 4th Question: Solicitors rarely waste time chasing if there is no possibility of any money at the end of the line. They probaly realise that the charge your relative has over the property is bogus, and was conspired to put your assetts out of reach of your creditors, all depends when this charge was initiated.

You have no worries when there charge is placed on the property because as you say, you can pay in 6 mths, it is highly unlikely that a court would agree to forced sale once they are aware of this

-- mike (mike23987@aol.com), January 22, 2005.

I have remained anonymous as what I say may be controversial.

However, I disagree about the comments re solicitors wasting money. I would contend that it depends on how they are being paid. If they are just being told to take any steps necessary and Egg are paying their disbursements and fees without question, then they will throw as much money away as they can, because they can also bill for time spent.

If Egg paid them a commission their collections activity would be very focused. I'm not sure how Egg work, but having worked in finance and used a Milton Keynes based firm of solicitors they sued anybody regardless of their actual ability to pay. When we changed them and their colleagues onto a system whereby they could sue if they felt is was worthwhile, because they paid the fees they became far more focused on worthwhile cases.

-- Anon (anon@anon.com), January 22, 2005.

Thanks for the replies, good to know where its at.

You say the court would not force a sale, but what is the point of forcing a sale and increasing my debt liability?

The charge was given to a relative nearly a year ago when that relative started paying my mortgage payments, all my household bills, and assisting me with other costly financial issues. I'm not working because of helth issues, and I have no income.

On a general debt issue I find it astonishing that some credit cards or banks, such as Capital-1 & Co-Op, can be helpful, relistic, and supportive. Egg & Dydens however are unhelpful, and are being downright stupid.

When this is sorted out I know who I will be avoiding for any financial dealings.

Thanks again.


-- anon (anon@hotmail.code), January 23, 2005.

I note in your last posting that you say you have no income and have health issues. You should therefore be entitled to Incapacity Benefit or Income support. It may also be the case that DWP would pay the interest on your mortgage depending how long you have been ill and out of work.

If your illness affects your mobility and/or how you can care for yourself you should also look at claiming Disability Living Allowance and if this is awarded it will also give you additional premiums to be added on to your Incapacity /Income Support.

If other lenders are not prepared to put a hold on interest etc pop down to your local CAB office and they will write to them on your behalf.

You will have to appreciate too that your credit rating will be impaired and that future lenders may not be so keen to lend to you.

Hope this helps and good luck!


-- mOIRA (Anderston828@aol.com), January 25, 2005.

Thanks Mora but these considerations are all in hand.

I don't care about a future credit rating since I'm confident that everything will be sorted out in six months time. And if not, then so be it.

The bit that concerns me is that if an unsecured lender can put a charging order on your house, then what is the difference between secured and unsecured debt?

And, if this is the case then all loans and credit cards should have the "Your home is risk" warning.

Thanks for the comments, I'm going to back this up with a visit to the CAB tomorrow.


-- anon (anon@hotmail.code), January 26, 2005.

Hope you get this message BEFORE you go to CAB...they will also do a benefit check for you and at the same time ask them if you meet the criteria for claiming DLA...they will help you complete the forms and they are trained on how to answer the questions asked on the forms!!

Good luck and keep us posted!


-- Moira (Anderston828@aol.com), January 26, 2005.

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