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Topic starter
01/02/2010 11:12 pm
Hi Experts,
ItÔÇÖs been a while since I have posted anything but would welcome some advice from you. Since my last posting I have been protected for around 6 months now. Once creditor in particular I am very disappointed with is NORTHEN ROCK.
We had a joint unsecured loan with the mgt with them and when I entered in the TD, I could no longer to afford to pay my wives debts and they sought to pursue my wife for the debt, which off course she could not pay (3 small kids and returning to work was not viable). I tried in Vain to talk to Northern Rock about this, but they refused to talk to me, in fact they would not transfer my call to unsecure lending, telling me "they do not accept incoming calls"... all I wanted was some advice and to discuss options, like..... add the loan to the Mgt and keep the payments the same for 3 years..... sensible I thought ( and no one goes bankrupt) and everyone gets paid and when IÔÇÖm out the TD IÔÇÖll pay a higher rate on the mgt which we will be able to afford.
To cut a long story short... they sought an Decree on my wife, then we just got served by the court for an inhibition order and a Charge for payment (double whammy)..... understand we owe them the money and it should be paid back, not disputing that.... but to not even to discuss the situation is disgraceful and given Northern Rocks history recently with their finances I would have hoped for some sensitivity to our plight.... and given the fact I am paying a considerable amount to a TD which will see a significant amount back for them.
Anyway.... babbling now..... I read somewhere that if a inhibition order was served and a Charge for Payment was served within 60 days of the inhibition order, the inhibition order is terminated if you file.... is this correct?
Tombthumb.
01/02/2010 11:25 pm
Hello TomThumb and welcome back.
Sorry to hear that such an aggressive stance has been taken by this particular lender. I'm guessing it's connected to a Northern Rock Together mortgage/loan?
I do hope that one of our experts will be able to tackle your technical question soon...
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
01/02/2010 11:28 pm
Hi TomThumb
Sorry to hear about your continuing difficulties.
The inhibition would indeed be "terminated" if your wife applied for sequestration. However, I would strongly advise that she gets some advice from a money adviser before doing so. An inhibition in itself is not necessarily a problem for you - it just means that if you sell the property then they can insist that your wife's remaining unsecured debt to them is settled from the proceeds as well as the mortgage. Therefore it is no worse really than consolidating the loan into the mortgage (except perhaps the rate of interest).
However, the danger would be the charge for payment and the potential action they could take on the back of it. This includes wage arrestment, bank arrestment and attachment of goods (eg a car). However, depending on your wife's circumstances it may be that she has nothing to fear from such actions (eg if she is not working she does not need to worry about wages being arrested).
All I'm saying is, get some advice. Sequestration may not be necessary - though on the other hand she may feel it is desirable in order to move on from the debt within a short timescale (it depends I suppose on whether she has anything to lose from going bankrupt - is there any equity in the house for example?)
Sorry- bit of a rambling answer!
Kevin
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
02/02/2010 6:27 pm
Hi tomthumb
In sequestration an inhibition is cut down within 60 days, however outwith the 60 days the inhibition is still cut down, but bestows (good word!) a certain preferential ranking when paying a dividend to creditors.
It's called a nexus diligence in as much as it does nothing really other than stop you voluntarily transferring or burdening your property with another secured loan etc.
As Kevin says, the charge for payment may be more serious.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
02/02/2010 8:00 pm
Hi Mark/ Kevin,
Many thanks for your replies.
We have talked to many organisations now with regards to my wife situation, some local debt advice such CAB and CCCS and local government support and an independent financial advisor. No stone has been left unturned. Fortunately in this case my wife no longer works and all assets are in my name apart from the house and unsecure loan with NR (which are join) which thanks the lovely state of our economy has been de-valued considerably (fortunately for us). We also have a secured loan on the house, which is substantial so there is no spare cash going around.
The reality is now is that she has the Inhibition and Charge for Payment and we have been advised based on our circumstances that my wife has no alternative than to file as I have no means now to support her other debts. By the sound of letter NR will file anyway, which seems odd that they served the inhibition and charge at the same time, essentially cancelling the inhabitation order. Maybe we got lucky (if you can call this mess luck). I just hope now, something else does not come around and take the house ÔÇô otherwise this has all been a waste of time, stress and at determent to our marriage.
Thanks again ÔÇô Just when you think know one can help, you guys and TDA step in and help with some advice, which I have found to be invaluable as has my wife.
