What to do if your lender takes you to court


If you have received a notice that you are being taken to court for the debt you owe (such as a summons, statement of claim or liquidated claim), you must act quickly

Decide if you agree you owe the debt
The first thing to do is to decide whether you agree that you
owe the debt or dispute it. Legally, you may not have to pay the debt if it is
an old one.
Apply to pay by installments
If you agree that you owe the debt but can't pay the full
amount, ask your lender or credit provider whether you can pay off the debt by installments.
Or you can go to court and make an application to pay the debt 
by installments.
Request a postponement of enforcement
You have the right to request a postponement of enforcement from
your credit provider to stop the repossession of your goods or home. Use our
sample letter request for postponement of enforcement
postponement of enforcement to draft your letter or you can go to court and request a postponement of enforcement.
court and request a postponement of enforcement.
Get help from a dispute resolution service
You can talk to the Australian Financial Complaints Authority
(AFCA) on 1800 931 678 about whether they can help you. This won't cost you
anything. You will generally only be able to lodge a complaint with AFCA after
you have tried to negotiate with the lender.

Keep making repayments on your home loan
If you go to AFCA and your debt involves outstanding repayments
on your home loan, do your best to keep making repayments (even if they are
small or less frequent). This will help you avoid getting into a worse
financial position while your dispute is being handled.
If a hardship variation will not assist you or the value of your
home is falling, then you may be better off dealing with your lender in court
as quickly as possible, rather than risking further delay by going to AFCA.
Just remember that a lender must take a number of steps before
it can repossess your home, so don't panic. See problems paying your mortgage for details.

Need a property loan?
Contact us @ propertyloans@realrenta.com and we will arrange for a lending specialist to call you for a no obligation discussion



Source: https://www.moneysmart.gov.au/managing-your-money/managing-debts/trouble-with-debt#talk


Marlene Liontis
Saturday, 4 May 2019

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