# Totally ignoring debts - what's the worst that can happen



## Deb___ (30 Sep 2012)

If someone had debts to the tune of 22,000 euro in total made up of:

MBNA credit card (2,000)
MBNA Personal Loan (8,000)
TSB Personal Loan (6,000)
Halifax Credit Card (5,000)
Debenhams Store Card (1,000)

And those debts are going on for a long time - regular payments were stopped in 2010, after which reduced payments were made, meetings with solicitors were had, efforts to re-structure were done etc. But income kept dropping and dropping until eventually, in recent months, no payments have been made to any of them. What's the very worst that could happen to the debtor in this scenario if debtor simply chooses to never pay a cent again to any of them? Credit rating would be screwed up, yes, but what else?

Please don't judge - this isn't all factual! But I'm very curious.


----------



## Time (30 Sep 2012)

If you can't pay utimately nothing will happen.


----------



## itsallwrong (30 Sep 2012)

If you own a house - a judgement against the house title for 12 years.
If you own nothing and have nothing... well nothing!

Dragged to court?
Sorry Judge but I tried to pay when I had work - now I can't.

As you said, credit rating is marked.
But it shouldn't bother you.  If you have nothing and will not have anything for a while to come, you won't be looking to borrow more will you?


----------



## Bronte (1 Oct 2012)

What can happen is that in a couple of years you need to borrow but will not be able to.  Also if one easily get's off scott free on debt once, they may not learn a lesson to never do so again, and could end up repeating the same mistakes later in life when it may matter more.


----------



## Time (1 Oct 2012)

After 12 years the slate is pretty much wiped clean. Any judgements and Judgement Mortgages will be unenforceable. Your ICB is wiped clean also at that stage. 

If you have nothing to pay them no one can make you pay. They can waste everyones time taking you to court but they will get nothing.


----------



## Deb___ (1 Oct 2012)

Thank you for the replies. I appreciate them. I had a long reply written but it was removed. I've recently been widowed so things are drastic with three kids to raise on my own on a widow's pension (until I can find more work). I have a mortgage too.

Thanks again. There is no way I can continue to pay them.


----------



## Kerrigan (1 Oct 2012)

Hi Deb, I am sorry for your loss.  Your children and your mortgage are your main priority.  Any unsecured debt can wait.  Go to your nearest MABS office and ask them for help or contact a reputable debt management company who will arrange a repayment plan for you that is affordable.  

Best of luck.


----------



## Perplexed (1 Oct 2012)

Was there not a Mortgage Protection Policy on your home?  The mortgage should have been paid off on your husbands death.  Did you check this out?
I imagine it would be a big help if you didn't have a mortgage to pay.


----------



## Deb___ (1 Oct 2012)

The mortgage protection policy lapsed in 2010 Perplexed.


----------



## Bronte (2 Oct 2012)

Deb___ said:


> Thank you for the replies. I appreciate them. I had a long reply written but it was removed. I have a mortgage too.
> 
> .


 
Hi Deb, your post was probably removed as maybe you put in too many personal details and you could be identified.  

What is the value of your home and what is the mortgage amount.  Other than widow's pension have you any other income or assets?

If you have no income other than social welfare and no equity then it is probable that you will end up not paying these debts, but you have to give the details so that you can get better advice.  I realise it's difficult to post on here in your tragic circumstances but do your best.


----------



## Deb___ (2 Oct 2012)

Thanks Bronte.



> What is the value of your home and what is the mortgage amount. Other than widow's pension have you any other income or assets?



Home value: 120,000 approx.
Mortgage amount: 135,000
No other income or assets at present. Hoping to build up my freelance business in the future but even then I don't expect a huge leap in income.

Thanks again


----------



## Bronte (3 Oct 2012)

Now you've posted that, then to answer your original question there are serious repercussions for you if you stop paying off your other debt.

Your are very close to having equity in your house, another couple of years and you will, therefore if you default on your debt those companies may decide to pursue with a judgement mortgage on your home. You seem to be on social welfare, so for them seeking an instalment order would be pointless. 

Would you mind filling out the money makeover thread, you really must post all details, repayment amounts, interest rates etc.

I think your best bet is to talk to Mabs, they will then talk to all your creditors, they can it seems do a budget for you, get your creditors to stop charging interest and come to an amount that it is possible to pay. Maybe you can not pay, certainly a widow with 3 kids - well I don't see how you can pay. Then hopefully you'll come under the new insolvency regime, though I'm not at all happy that the banks/credit instituitons won't be very clever and get in their judgement mortgages now.  In your particular circumstances I personally would find that disgusting behaviour.  But credit institutions have an obligation to collect, and they certainly have no feeling.  

Yes and urgent appointment with Mabs, you have to tackle this now before the 22K spirals out of control.


----------

