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Eversheds LLP/Max Recovery

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 WBN
(@wbn)
Eminent Member
Joined: 13 years ago
Posts: 22
Topic starter  

I'm currently 18 months into a TD but have one outstanding debt in the form of a joint loan with my wife that was not included in my TD on account of it being a joint liability. I came to an arrangement with Tesco Bank the lender but this slipped and now they have assigned the debt to Max Recovery /Eversheds to recover. Has anyone any experience of this collection company and their methods? Should I contact them to agree a payment plan? This would be miniscule compared to the full amount outstanding (21k). I have notified my advisers who will deal with the payment from the trust in 18 months time but I'm a bit worried about this current situation and how it affects my wife. Any thoughts would be appreciated.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
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Joined: 16 years ago
Posts: 13594
 

Hi WBN.

You cannot leave debts out of a trust deed normally. If this money was owed on the day you signed your trust deed it's almost certainly legally included. Was your trustee aware of this debt at the start?

Are you in a trust deed and your wife not?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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 WBN
(@wbn)
Eminent Member
Joined: 13 years ago
Posts: 22
Topic starter  

Hi, Yes the money was owed on the day and included in the TD. I am in the TD and my wife is not but this loan is a joint loan so jointly liable I believe. That means that they can pursue my wife for the total amount I've been told.


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

That's correct WBN.

Max Recovery are a large and well known debt purchaser and are likely to use the same methods as any other creditor. Has your wife received advice on her options too?

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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 WBN
(@wbn)
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Joined: 13 years ago
Posts: 22
Topic starter  

Hi, no she hasn't. What options are available? Bottom line is that we/she cannot afford to pay this. How far can Max Recovery go in terms of recovery? Does the fact that the debt is included in my TD mean anything? Not looking to get out of it, thats never been the case, just want to manage the likely hassle and stress. My wife frankly cant take any more.


   
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 WBN
(@wbn)
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Joined: 13 years ago
Posts: 22
Topic starter  

Kevin, say 'same methods' as other creditors. What are those methods and how far down the line would they go until they realise we cant give them what we dont have?


   
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Mark McFadyen
(@mark-mcfadyen)
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Posts: 4798
 

Hi WBN

It is absolutely key that the loan is included as the Trust Deed will pay a dividend to the creditor, thereby reducing the balance.

The normal process if agreement is not reached for repayment would be to pursue legally, go to court and get decree for the debt and then serve a Charge for Payment. On expiry of the charge, they could look at wage arrestment or worst case scenario bankruptcy.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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 WBN
(@wbn)
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Joined: 13 years ago
Posts: 22
Topic starter  

Thanks Mark, that pretty much answers my question and informs next steps.


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 16 years ago
Posts: 4253
 

You have a plan WBN?

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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David Tannock
(@david-tannock)
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Posts: 2581
 

Hi WBN,

What's your wife's current financial situation like at the moment? Does she own any assets and is she in employment?

Like you, your wife could consider a Trust Deed to deal with this debt. If it's the case that your wife isn't in employment and does not have any assets then Sequestration could be another option to deal with the debt.

As Mark said the creditor could start to take some form of action against your wife for the recovery of the debt.

What was the reason that only you entered into a Trust Deed when you had a joint loan of that scale with your wife?

David is not currently posting in the Trust-Deed.co.uk forum


   
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 WBN
(@wbn)
Eminent Member
Joined: 13 years ago
Posts: 22
Topic starter  

Hi, no we dont have a plan. My wife works part time, has no assets and one credit card with a few hundred pounds owed on it. Her salary covers pretty much all the domestics and any emergencies (car, kids etc) theres not much left after that but we get by. I didnt include my wife in the TD thinking I could manage all of that and this outstanding debt which to be fair I did until payments to Tesco slipped. This puts her in the spotlight for the first time in respect of our debt. There are health issues too so its not something she could handle if I'm honest.


   
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David Tannock
(@david-tannock)
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Joined: 12 years ago
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Hi WBN,

If the debt to Max Recovery is around the £21,000 mark then the most suitable option for your wife would be Sequestration if your finances are stretched and she is working part time.

As you know already a Trust Deed would require the creditors to accept the proposal and therefore a suitable payment would need to be paid. I suspect that your wife would not be able to afford a payment around this level.

You could consider a DAS but in my opinion this isn't suitable as you would need to pay £175 x 10 years.

In Sequestration it could be the case that your wife isn't required to make a monthly payment or she may be asked to contribute a small monthly payment for 3 years. Your wife could nominate a trustee to deal with her Sequestration in which they would pre agree what level of monthly payment she could pay for them to deal with it.

The other option is for your wife to apply for her own Sequestration and not nominate an IP/Trustee to deal with her case. The Accountant in Bankruptcy would then be appointed and they would either administer the case themselves or pass it to one of their approved agents to deal with. We are one of those approved agents and currently receive 60% of the Sequestrations from the Accountant in Bankruptcy to administer on their behalf. We work through a very thorough income and expenditure to determine if a person can afford a payment to the Sequestration or not. From dealing with this, I do know that if someone is in employment then we do look for some monthly payment to be paid. This can be as low as £10 per week / £40 per month so that a good majority of people in employment can afford to make some sort of payment. If following a thorough review of the income and expenditure it's clear that your wife is unable to support any kind of payment to the Sequestration then she would not be required to make one and she would be automatically discharged from the Sequestration and her debts after 1 year.

Don't be put off by Sequestration. It really can be quite a simply and straight forward process.

Hopefully this helps a little in what must be a pretty stressful time for you juggling everything.

David is not currently posting in the Trust-Deed.co.uk forum


   
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 WBN
(@wbn)
Eminent Member
Joined: 13 years ago
Posts: 22
Topic starter  

Hi David, thanks for the advice. You asked about assets, we have a joint mortgage that is currently subject to the arrangements in the TD. How would that affect matetrs. Also, in terms of assets, what exactly is quantified as an asset? household items like TV's etc. The car is not worth anything of note. Lastly, would me wife have to attend court?


   
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David Tannock
(@david-tannock)
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Joined: 12 years ago
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I assume that you both jointly own the property that you live in when you speak about a joint mortgage?

As your wife jointly owns the property then in a Sequestration the equity would need to be established before proceeding down this route. If it is established that there is no equity in the property then this would not be at risk. If there is equity then an agreement would need to be reached with regards to how this would be dealt with.

Do you think there could be equity in your property WBN?

Household items are not assets that are taken into consideration so you don't need to worry about that.

No, you would not be required to attend court. It's a pretty simple form that's completed and sent away to the Accountant in Bankruptcy. As your wife owns assets (the house) then you would need a ÔÇ£Certificate for SequestrationÔÇØ which would then enable your wife to ÔÇ£qualifyÔÇØ for Sequestration. This can be provided by an Insolvency Practitioner or local CAB or Money Advice Team.

Before going into Sequestration you really need to confirm how much equity is in your property.

David is not currently posting in the Trust-Deed.co.uk forum


   
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 WBN
(@wbn)
Eminent Member
Joined: 13 years ago
Posts: 22
Topic starter  

Hi David yes we jointly own the property. There's possibly 25k in equity which is factored into my TD payments. How does this affect sequestration?


   
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