couldnt pay for only 3 months

I know its stupid of me to ask about this coz maybe i may gain a lot of criticism from someone but hoping someone can give me better advice on this. I'm un employed few months ago due to economic reason my company broke down and I am one of unlucky one who been laid off. Now i owed money from the financing company and could'nt paid for few months. I called them if they could allow me fix my loan and explain about my situation but i was so surprise that they passed my case to solicitors office.I tried to fix with them but they insist that I will fix it with the solicitors office. I called the solisitors office and I was so shock that my debt been doubled and doesnt allow me to settle monthly as they said I dont have proper job yet. I explain that i really want to fix it otherwise I wont have guts to call them.If it is really they want me to settle it monthly like before. I was a good client to the financing company before I lost my job, it really made me feel annoyed that my debt doubled and didnt give a chance to fix with them instead they want to make me down by paying to much with the solicitors office. sometimes it comes to my mind not to pay them anymore as they doesnt want to cooperate and give me chance to settle it slowly. I knew some people doesnt pay their debt and still continue life . If I will not pay my debt is there any case that the solicitor or financing company file case against me?What if they doesnt know my whereabouts? my loan is about $30k and could not pay for 3 months now they ask me to pay 70k they said that the rest is penalty and solisitors fee and interest . which is too much. The financing company doesnt want to help me to settle with them anymore which give me bad feelings and let the solisitors handle my case.

check your contract. if it doesnt stipulate the solicitor fee, etc. i dont think this is legal to charge so much on top

Definately get a breakdown of the new debt amount to see how it has doubled and good idea to check the contract terms BUT I am sure the terms will say that if you don't pay they can:


- bring recovery proceedings against you and you will be liable for their costs to do so (including legal fees (maybe "reasonable" legal fees or maybe silent)); AND


- charge you a default interest rate (could be considerably higher than your ordinary interest rate) from the moment that you stopped paying.


Agree that it is harsh when you have been unfortunate enough to lose your job and are wanting to make the payments you can afford but expect that they are only acting in accordance with the terms you signed up to.


You could try contacting the Community Advice Bureau on 2815 5444.


The Duty Lawyer service also offers free legal advice. See attached link http://www.dutylawyer.org.hk/en/free/free.asp. You can make an appointment to meet the volunteer lawyer at one of the legal advice centres.


Good luck.


SB2

Dear Universe,


I sympathize with you. 10 years ago my father tried to negotiate a repayment schedule with one of the leading banks but was turned down so he moved and now after 10 years, they found him... Due to computerized system, it is now easy to check whereabouts even if you move houses... they give rewards to those who can find you. And if you open a account with a bank, the more they easily find you. So dont believe about about this privacy law in the banks, they share personal date with one another. What I suggest is go thru IVA if you dont want to apply for bankruptcy. But IVA takes 3-4 months and during these 4 months you will be disturb by debt collectors. Bankruptcy takes 1 month... I also hate it when you want to pay but they dont want to compromise on your situation. So they are actually pushing the debtors into unwanted bankruptcy.

But make sure that you know the implications of becoming bankrupt.


As alot of things that you apply for in the future may be affected like loans, job, etc.


They ask if you have been bankrupt before.

Oh did not see exactly the amount you owe just now.. $30,000... which means if they put it for Debts Collector to collect, they usually put 35% to 40% on top which means you should owe $40,500 to $42,000.. But if they use Solicitor's then that's another question. Haii.. if you owe only $30,000 then its not a good idea to be bankrupt because you have to pay $12000-15000 upfront and true its hard to be bankrupt as your monthly money are monitored by the Trustee and some jobs you cannot apply etc... For IVA it maybe cheaper... but since you have no job.. maybe its better to hide first...

Hi sampaguita thank you for your advise. Just want to clarify is't financing company consider as a bank?I'm worried that If I wont settle , they will sue me. I knew some people who owed a lot and more than mine but still can skip with those situation. In case i find a job is't advisable that i will give them my job detail like address etc etc.i mean when i settle with solicitor as they ask me if I already find job I will give them the details so they can arrange the payment schedule and etc.

From my experience Finance Company is not a bank. And what I suffered from them is unbearable because when I applied for IVA, for the 4 months, I dont have to pay the bank until my IVA is approved but for Finance companies, no they chase me and chase me... that I really have to pay until my IVA was approved.

I dont quite know the difference between being chased by a Debt Collection Company and a Law Firm, I only tried being chased after by a Debt Company.


During the SARS alot of people suffered financially and banks would not understand. Like my brother who also owed cards.. he moved too like my father. He started paying when he found a job but couldnt risk letting banks know where he is in case he lose his job again.. So what I did was I called them up, told them my brother has gone abroad to work and that I will pay, I gave them my secondary Mobile number (which I bought a sim card and can throw away) so every month... I pay on his behalf without showing my face or letting them know where i live.. it work..and I hope it maybe the solution for you...I hate them really for not trying to compromise... Well, money is reality Universe, I didnt pay my daughter's school fee for 1 month only and she was cast away and not allowed to go up the school bus in front of other parents and children...

If you intend to move out... dont even let your land-lord where you are moving, say you are flying back to somewhere or perhaps you are going to Macau or China to work......