Debt and marked judgement

L

Liamod

Registered User
Messages
7
Hi everyone,

I really need some advice on my situation. I looked over old posts but didn’t see anything that would giude me really.

I have unsecured debt of just over €10000 with BOI. Repayments were €260 p/m and the loan dates from 2010. Last year my hours at work were cut and I then lost my job. I defaulted on payments and my file was sent to a solicitors. I reached agreement with the solicitors last July to repay €100 p/m. Last month I received a letter to reassess means regarding repayments. I’m still on €188 social welfare. Received a letter back the other day saying that they would agree to keeping payments at €100 p/m for next 6 months when I would be reassessed with the aim of increasing payments (the letter says this). The letter also says that they are also going to get a judgement marked against me (for which I imagine I’ll be liable for legal fees) but will not enforce it as long as I maintain the payments.

I don’t know why this is happening. I rang the MABs helpline and they don’t understand why they’re proceeding with a judgement for this amount. I spoke to FLAC who recommended I contact the bank directly and also apply for legal aid in case I need it. I contacted the legal department in the bank who were basically clueless about what was going on. They acknowledged I agreed to the €100 p/m and the payments were in and told me I could tell the solicitors they said so.

I really want to avoid courts at all costs. I have no other debts or judgements against me and I own my own home outright. The solicitors informed me on the phone that they wouldn’t enforce the judgement and wouldn’t increase the repayments if my circumstances hadn’t changed but I cant rely on that. I get the feeling the solicitors just want to be finished with my file. I asked the solicitors if there was any way I could avoid the judgement and was told only if I could agree to repay the full amount in the next 12 months. I don’t know what to do. It feels as though the bank doesn’t care how my file is dealt with and the solicitors aren’t giving me any options – except for paying the whole thing off. Even though I've kept in touch with the parties and have made agreed repayments I'm still ending up havig the courts deal with my file.
 
Hi Cremeegg,
Thanks for the reply. I'm going through that thread now. I don't want to go to court because firstly it's embarrassing that I cant pay the debt and I'd rather people didn't know. I don't mind the 100 per month and would willing pay more if I could. I really want to get rid of this debt as quickly as possible. At 100 p/m i'll be paying it for over 9 years! and have a bad credit rating for years more after that! I suppose I just want to stay clear of the courts if at all possible.
 
If the bank are determined to take you to court to seek a judgment, based on the facts you have given, the judge will probably grant them the judgment. However, having said this, the Judge will most likely put a stay of execution on the judgment as long as you keep up the repayment amount as agreed with the bank, there will be regular reviews, to see if your circumstances have improved.
 
Thanks for the reply Rebuttal. I do understand the process. I'm not contesting the debt and never have done in any correspondence with either bank or legal firm. I suppose when I say I don't understand this what I mean is I don't know why they're pursuing this in this manner - in that nothing has changed so why take the court route now? All that will happen is that I'll probably owe more due to legal fees and I'll have a judgement marked against me which is really bad since I'm planning on starting my own business in the new year and it would have a seriously negative effect on that. An agreement was made in order to avoid pursuing the debt through the courts. I kept to that agreement but that obviously means nothing.
The reason I'm asking about this on the forums is because I'm just wondering if anyone out there has been in a similar situation and has managed to avoid having a judgement marked through dealing with the lender and/or law firm.
 
I agreed to the payments over the phone and then sent in a letter stating same which was accepted. It didn't specifically state anywhere that it would not be pursued through the courts but it was the point of the entire exercise.
 
Liamod.
.
.................
1. You have verbal from Bank to accept 100.
2. Your means at present are so low , 100 is too much.
Write to Boi ,and their legal firm(keep copy) outline that you have
A. Agreement on 100.
B. Understood that 100 is acceptable.
C. You wish to repay all due from your present poor circumstances.
D. You understood all legal type threats/action would not commence.
E. Request that they not proceed with a judgment.

Request in writing their withdrawal of legal action.
.............................................................................................
Comment;
From what you post BOI are being a little (bolshie)?
If they do post judgment against you ,review your circumstances since 100 mth whilst on dole is too hard and they should factor that in.
A judgment won,t help in setting up a new business but is NOT that bad.(you are not the first to have judgment) it should only effect you if you need credit lines ,and for everyone credit lines are hard to get in any event.
Make your own business plans.
Should that mean reducing the 100 , then reduce and get on your feet.
It would take BOI more time/hassle in getting you sorted and by then I hope business works.
Do not worry about Irish Credit Bureau(ICB)etc since your credit rating with Banks is shot for now.

If your business works , everyone gets sorted, if not then BOI will not get the money!
Bad things happen , all you can do is keep trying.

Good luck.
 
Agreeing with Gerry Canning here, BOI are being way too "bolshie". BOI are doing extremely well here, they are getting €100 per month from somebody on social welfare who has an unsecured €10,000 facility. Maybe be bolshie back? Let their solicitors know that if they take you to court then you will cease the €100 per month and ask the judge, when the time comes, to fix the monthly repayment. The judge will set it at a lot less than €100 per month because your income is so low. Chances are that their solicitors will advise the bank to continue taking the €100 and park the legal action.


Don't worry about the having a judgement made against you, loads of us have them. It's a sign that you were willing to "give things a go". You should never be afraid of legal action, most successful business people have been involved in legal action at one point in time or another. Deal with it, but don't be afraid of it.
 
Thanks Gerry and TLO. It's good to hear that I'm not crazy or being unreasonable. I'll definitely write that letter.
 
On the embarrassment issue of court, don't worry about this, there are so many people in court you'll be amazed at the amount of people you know. I also read two weeks ago that the insolvency service of Ireland will from now on have people in court to help people. Have a look at their website to see - I haven't looked. I also heard on the radio that the UK Mabs equivilent will help people like you to deal with certain banks. It's all by phone and is free.

I think Mabs are less than useless if they don't help you. Why don't you call into them.
 
Hi Liamod. Another angle to think of if you haven't already thought of it. Are you paying interest on this loan?
You should request that no more interest be charged on this loan in an effort to make it more sustainable for you to pay it back.
 
Thanks Bronte and RichInSpirit.
I will be going to see MABS. Spoke to them on the phone and have to make an appintment to call into to see them. The person on the phone suggested they might communicate with the bank on my behalf. I will also look into suspending interest on the principle. Thanks
 
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