personal loan which i cannot pay

[mum22]

hi, my mum has a personal loan for over �13000, which she is now out of work and cannot pay, she has offered to pay a lower rate which they have refused, if she was to defult on the loan and it would go to a debt management comapny, which she doesnt mind as she has a few with them any way, but somebody also has a loan with the same bank and they have said they can make you use the equity in your home, which she doesnt want to do as she is juat about manageing to pay the mortgage, by law can the bank make her do this? thanks

[Postdog]

I am no expert, but I believe it's a bit like baliffs, in that they are required by law to leave you with stuff for basic needs, and the roof over your head, and not allowed to take tools of your trade etc etc. So - assuming it isn't a secured loan to start with - they cannot make you sell your house, though they could put a charge on it so that when the house is sold, either willingly or otherwise, they would get their chunk.

[mum22]

hi. its an unsecured personal loan which she has had with hsbc for over 3 yrs, she cannot beleive that they will not reduce the payment just until she can get back on her feet, so if she was to let it go to a debt management company they would accept the reduced payment she has offered, she has spoken to 2 people at hsbc, one said they would use the equity on her home and the other said it would go to s debt management company that would then take the debt over from them. she is so confused. thanks

[robotics]

A collection agency has no greater powers than the creditor, they are not baliffs and have no right to come into your home.

The office of fair trading has issued new debt collection guidance,

I would start paying the amount you have offered anyway as a gesture of goodwill and then write to the creditor again and ask them to reconsider, tell them your offer is resonable and all you can afford, you need to do a personal budget sheet and send it with the letter

[bensmum]

I have just read your post - I was in a similar position with hsbc I actually have a debt management plan with CCCS and all my creditors accepted the offered payments except hsbc. I kept getting phone calls from them asking for more money and in the end they handed my account to a debt collection company. The result is that the collection company have accepted the offer of payment which hsbc rejected!

[debtlawyer]

It depends on many circumstances. You should consult a debt lawyer and ask him. Here, you can read more about debts, cases related to debts and debt lawyers http://debtlawyers.blogspot.com

[ladysurf13]

Hi there mum 22,
have you tried talking to the citizen advice bureau in your area? its free legal advce and they should be able to point her in the right direction. At least your doing something about it. ive been in the same situation an the best thing I ever done was join a company called gregory pennington they are debt advisors and they deal with everything on your behalf, you don't get nophone calls from creditors. ive had a debt plan wit them for nearly 3 years and I owed �20,000 at the age of 22! ive got less then �5,000 to pay now, it's worth speaking to them, there is a fee each month but I would rather pay that than have the hastle or stress. www.gregorypennington.com
I hope thishas been of some help

[DCM-Money]

It sounds like you are talking about a Charging Order which is where an unsecured debt is converted to a secured debt with the security being your property.

This can happen if you do not seek professional help quickly. This can be from a free service such as CAB or one of the debt charities or from people such as ourselves who are independent private companies that specialise in solving debt problems.

At DCM Money Solutions (http://www.dcmmoney.co.uk) we help with situations like this. Yes we do charge a fee but ours in particular are not required to be paid upfront. We also do a lot of work in negotiating on your behalf!

[uh027]

Heyy...try FSDS...they are good at solving these kind of problems...many of my known friends and relative have already been free from this problem...therez a consultant named Umayr...hez gudd...I think his number is 1 647 896 5626...just try it...see if he help you...Best of luck...hope things get better for you...