# Help please!! Escalating problem here.



## BrokeGuy (19 Jun 2015)

Hi there,

I have posted a few times about my financials but for convenience here again are the numbers:

<> married
<> public sector worker on €30,000
<> wife used to work part-time but acually is commencing with public sector soon for the same money (prior to this she earned €20,000 but worked half-days, now she will work full-time but our net (after child-care) is the same
<> we have three children
<> we have two cars and these are needed; they are both 2003 so worthless really
<> neither of us drink, smoke or really do anything at this stage. Even had to stop Sky Sports and Sky Movies recently  [work is really paying off for me!]

<> we have 4 properties, our home is worth maybe €175,000 and the debt is €280,000 on aa tracker originally with BOS but now with LoneStar and dealth with via Start mortgages. We pay €700 per month on this which is marginally over interest only
<> another property is with AIB and this is rented and the debt is €196,000 or thereabouts. The place is worth €100,000 and we have agreed to put this on the market and make a deal on residual debt. AIB have been great to deal with. This is a tracker too.
<> another property is a flat worth €50,000 maybe with debt of €135,000. This is another tracker with BOS and I have an arrears on this as the place isn't rented and I have to pay management fees too. 
<> finally a place in Bulgaria and the debt is €35,000, again a tracker with BOS. This is actually charged to the flat so is unencumbered. I am trying to sell this and will get €20,000 maybe I am told. The plan is try and use these monies towards settling the residual debt on the flat and Bulgarian place when the latter sells. BOS haven't been easily to deal with.

<> I also owe €7k with AIB credit card and that is the source of my post/concern.

This debt was escalating so I told AIB to cancel the card and we agreed €10 per month for a while. I missed 1 payment and it was sent to Intrum Justitia and they have been horrible to deal with. I have continually made contact with them and they ignore the letters and imply I am not co-operating. This came to a head when I wrote to them on 1st May 2015 and include all my emails to them thus far which always said that I had no excess cash as everything goes to Start and in some cases I made an offer of €500 (subject to getting this) in full and final settlement. 

They never really acknowledge this and in late May they wrote saying "due to your failure to amicably resolve the matter of the outstanding balance you have left us no alternative....to proceed with further recovery action". I rang them on 25th May and said "what the hell" and they said it was just a generic letter and they would send me a statement of means to prepare. I got this and had 14 days to respond but did so on 1st June and instead of the bare minimum i included a copy of the Standard Financial Statement I prepare re MARP and even Start's last letter to me confirming they have assessed our case and all we have is the €700 which we are paying. In that response I proposed paying €10 per month or €400 in full settlement and, like always, provided my phone number to contact me on same.

Next thing I know I today get a letter from Browne Legal (same address as Intrum Justitia) threatinging legal action, the Sheriff seizing goods and being summoned to court, etc (see attached).


*I am trying to deal with all this myself but geez it is taking its toll. I was with MABS but they were absolutely useless, all over me for two meetings and then did a runer. I contacted 3 PIPs and they said I didn't have enough money to enter a PIA.

What does someone do here?

'All' I want is to keep the family home but doing so will require the other debts to fall away. I can possibly pay the €286k on a long term basis but nothing else.

HELP!*


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## BrokeGuy (19 Jun 2015)

Is there any merit in complaining to financial ombudsman about the treatment here? Granted I owe money but I have always engaged with them and been transparent.


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## demoivre (19 Jun 2015)

They know from your SFS that you have nothing left to pay unsecured debt. However they would be happy for you to go hungry and give them the money instead which is why you got the letter. Call their bluff - I'll bet they will do nothing ! Getting a judgement would be pointless as enforcing it isn't going to happen as no net assets to attach , no possibility of an installment order given current earnings  and sheriff can only take unencumbered assets in your sole name. Don't stress it's only money.  #Berkeley.


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## Andy836 (19 Jun 2015)

Agree with the above. It's an unsecured debt. 

What's a sheriff going to take from you to cover 10k? Nothing I imagine. Court will see your money's going toward secured debt with little excess. 

Keep all your correspondence. Show to judge. Judge will see you were being cooperative.


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## vandriver (20 Jun 2015)

The debt collection agency uses a method of escalating letters to panic you into agreeing to pay them money you can't afford .

https://en.m.wikipedia.org/wiki/Dunning_(process)


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## Bronte (20 Jun 2015)

I find that letter odd.  Do an entity such as Brown solicitors exist.  Sounds like an escalation of IJ's debt collection., and it's working as you are worried.  You don't have any money, they know this, but it does not stop them.

I agree with The advice from the other posters.  The sooner you sell the properties the better.


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## vandriver (20 Jun 2015)

Browne Legal are a bona fide legal company



http://brownelegal.ie/

However,it's still just the next escalation in the Dunning Process.


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## everythingon (24 Jun 2015)

How on earth did you get yourself into so much debt!!

Perhaps you need to get a better paid job.


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## vandriver (24 Jun 2015)

everythingon said:


> How on earth did you get yourself into so much debt!!
> 
> Perhaps you need to get a better paid job.



Not the most helpful reply


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## Stuboy (24 Jun 2015)

vandriver said:


> Not the most helpful reply


 I agree, not the most helpful comment.
However, how on earth did you get so many loans?
If they were given to you on your current income it is incredibly reckless lending.
I presume your financial situation was significantly different.


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## Meme80 (24 Jun 2015)

Everythingon why bother posting something like that how is that going to help? Hindsight won't do him or anyone else much good at the minute and he was asking for genuine advice.


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## everythingon (24 Jun 2015)

Hindsight will do him no good but it will certainly deter others from reckless borrowing in the future.


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## Setanta12 (24 Jun 2015)

.


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## Gerry Canning (24 Jun 2015)

Broke Guy,

From your post you are patently insolvent. Trying to piecemeal pay off Tom a bit and Mickey a bit will not work.
Some  rules
1. pay mortgage 1st.  
2. Stop making/taking phone calls , keep everything in writing.
3. Keep copies of everything. 

From short look @ your post you may need to go Bankrupt.
Now do not PANIC on the word bankrupt .
If you send me a private post I will get a Bankruptcy expert to phone you and put you through your realistic options.
You may not see options but you DO have them and they will enable you to get back to (living)


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## Meme80 (24 Jun 2015)

Yes everythingon that it may but again, this is no good to OP.


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