Creditor Hassle

nikorami

Question: Lost job and income a few months ago, and although I have tried to get something that can cover bills i can;t keep up. Now the bank and another creditor are on me for payments which have been missed. I have asked for help and patience from them to no avail. The only choice I have now is to accept a job in Germany. Does anyone know what the laws on debt collection or a good link to help me figure this out. One creditor said that if they have to write off my debt(they said in the next 2 weeks) that I will have to pay 3x as much due to court, legal and the debt. Any help would be appreciated.

Gillo

Contact MABS.

They'll give you the advice you need, banks will normally come to an agreement with MABS and I'd say most creditors also will. Either way they are in teh best position to advise you.

Sponge Bob

MABS can negotiate standstil agreements and then negotiate a payback schedule .

If you have no money you have no money.

davidoco

nikorami wrote:

Does anyone know what the laws on debt collection or a good link to help me figure this out.

Write to them, tell them that your going to Germany and will be able to pay x per month. If they don’t accept that send back what you can afford anyway. You don’t know the grief that a bad debt will give you in years to come with mortgages and loans. Sending back some money may or may not help you to avoid court proceedings.

Here is some legal stuff you should take note of but you should really try your best not to let matters get this far.

You are guilty of an offence, namely stupidity, if you sign, or have any member of your family sign on your behalf, for any registered letters. They can look to serve you by ordinary post but only if they can prove that you actually live there.

Also read the MABS leaflets

Baby4

This post has been deleted.

mcaul

davidoco wrote:

Write to them, tell them that your going to Germany and will be able to pay x per month. If they don’t accept that send back what you can afford anyway. You don’t know the grief that a bad debt will give you in years to come with mortgages and loans. Sending back some money may or may not help you to avoid court proceedings.

Here is some legal stuff you should take note of but you should really try your best not to let matters get this far.

You are guilty of an offence, namely stupidity, if you sign, or have any member of your family sign on your behalf, for any registered letters. They can look to serve you by ordinary post but only if they can prove that you actually live there.

Also read the MABS leaflets

I agree - write to both of them with a payment proposal. Commence this payment proposal whether they accept it or not. If they attempt to take it to court (this can take up to 8 months) you can show that you wrote to them and made a reasonable effort to ensure they were paid back in full in a reasonable timeframe. The court will look very poorly on any company or bank that does not give reasonable consideration to any proposal especially if you can show that you have kept to your payment promises.

If you do ignore it and move to Germany, it can affect your credit rating for up to 6 years after any court judgement. If you pay off in full any poor rating will be consumed within 12 months of the final payment.

leeroybrown

Banks are generally amenable to restructuring or deferring payment if they think they'll get the money back. The lending manager dealing with your loan is probably trying to reduce their bad-debt ratio to hit targets and is saber rattling to do it. Ultimately if they think the money will come back they'll deal.

As pointed out above contacting MABS is probably the best course of action.

darragh o meara

If you offer to repay the bank and have they acknowledge your offer They cannot take you to court for non payment. If they try all you need do is stand up and say " At the time I could not afford the repayments, but I did however offer to repay the bank at .... which they declined. I can not afford to make paymens of any greater amount at this time" By you offering to repay them they dont have a leg to stand on.