AIB, Debt Collectors now Solicitors Letter

[Elliesausage]

Hi All,

I am wondering if i can ask for your advice.

In 2007 I purchased a car on HP through AIB €8000. I paid the loan until early 2009 then ran into terrible financial difficulty. I was living overseas at the time- I tried selling the car and was offered €6500 for it which AIB refused as i didn't have the remaing balance to give them.

Long story short the car was repossessed. I come home to Irl to live in 2010 and there was a stack of letters from them waiting for me requesting €3500- apparently they sold the car for €2500. I cannot pay. I do not respond to them. (i know wrong decision)

Just before Christmas last, i received a letter stating they'd send my a/c to a debt collector, i ignored (i know, i know)
March of this year i received a letter from Debt Collector. I e-mailed them, giving them my new address and stated i did not want correspondance to my mothers address, told them that i am unemployed, at the time not receiving any social welfare, no assets to sell, that i was/ am completely broke. Which is the truth.

Received a reply stating that they had received my e-mail and were happy to put the matter on hold until the end of may and they would be in touch with me. I didn't hear a word from them until last week when a Debt Collector arrived at my mothers house looking for me, she told them that she wasn't in touch with me and she had no idea where i was living. They left a notice for me asking me to contact them. Which i didn't do...i felt if i responded they would know my mother was in contact with me and return to her house again.

Today i received a letter(posted to my mothers address) from their solicitors stating they intend to issue legal proceedings if i don't pay the €3500 within 7 days.

I dont have €3500 to give them. I have barely enough to survive.
The loan was not guaranteed by anyone, my Credit Union Loan was guaranteed by my mother, therefore i have prioritised to pay them, even though paying this debt has left me scraping the barrel to survive. I have no idea what to do..respond?..not respond?

I understand i am liable to pay the debt, and if it did go to court I'm not sure there is much that can be done...I'm totally confused and not sure what to do?..any advice or suggestions greatly appreciated.

 

[itsallwrong]

Odds are high that AIB will seek a Judgement against you for the debt.
I have to say Ellie, your head in the sand way of dealing with things has really brought a lot of this on your head.
I know you are broke but if you came clean with these people quicker, you will get more than most people think.
Your probably going to be told they ar eseeking a Judgement soon.
Other threads and posts are on the board detailing the impact and implications of a court Judgement.
Get on the phone now.
Your only making it worse by not contacting them.
Nobody will give you any leeway or sympathy for ignoring the problem.

 

[elcato]

You are still OK so don't keep worrying too much. Firstly get in touch and explain you still cannot pay but that you want to discharge the debt but will contact them when you are in a position to do so. Put this in writing and also tell them to stop calling to your mother's address. (This is the oldest trick in the book for DCs, trying to embarrass your mother into paying off your debt). If they persue you further make sure you appear in court wirth the letters you sent and explain to the judge that you cannot pay. He will not force anything unreasonable on you.

 

[Elliesausage]

Thanks for the replies.

Agreed my head in the sand approach hasn't done me any good. I e-mailed them todday- told them my financial position..(no exact details kept it very general with no figures), gave them the address they can find me at, requested that they absolutely do not contact my family again, asked what they would like me to do given my current circumstances.

No reply as of yet, am reluctant to telephone them as i would prefer all correspondance in writing so if it does go to court they'll be no 'he said, she said' situations.

I get my dole of €168 each week, €50 goes to the credit union,the remainder goes towards, ESB, food, & a token amount to my partners mortgage as i live with him and do not pay rent...i have no idea where i could find money to go towards this AIB mess...we are skint and really finding it difficult to keep our heads above water at the moment...

 

[Elliesausage]

Hi all,

Was just thinking about offering the Debt COllectors a token amount of payment per month until such time i am in a postition to make a more generous monthly payment towards the debt, eg. €10-€15 a month.

I figure this may help ward off their threat of legal proceedings. ie send them a letter stating i am willing to discharge the debt when i am financially in a position to, offer token amount per month. I wonder though if i were to hold tight i might be able to cut a deal with them?...i am certain the amount they are looking for includes a large proportion of fees/interest etc..have i left it too late for this kind of deal?...

 

[elcato]

i am certain the amount they are looking for includes a large proportion of fees/interest etc..have i left it too late for this kind of deal?...

Nope. They factored this in when they bought the debt OR they just charge a % of any return you make. They pay for the solicitors by a fixed rate so an extra letter here or there costs very little in comparison.