a retired 70 year would like some advice

[ianmillington]

There is a new procedure on its way. ladyc, called a debt relief order, which will become available in April 2009, it's envisaged. Similar to a bankruptcy, but with a softer landing and far easier entry, it will apply to those whose debts are less than £15k and whose surplus income is less than £50 per month. As Babs owes £30k don't know of any permanent fix that would be entirely pain-free I'm afraid.

[Skippy]

I don't know of any way that companies will just write off debts. I don't think the stigma of bankruptcy is as bad as it was - the notice in the paper is tiny (no-one saw mine as far as I know) and there is no other reason for anyone else to know.

The bankruptcy order would last for 1 year (maximum) and Babs would be free of her debts. I very much doubt that she would get an IPA and may get an early discharge, although that cannot be guaranteed.

[ladyc]

I think it's more the fear of Bankruptcy than the actual reality.
Plus, a lady of Babs age it probably feels more of a stigma than what it actually is these days.
Babs, contact one of the experts on here and I am sure they can put your mind at rest. Or read Skippy's blog first.
Don't struggle on.

[Skippy]

I can understand that Ladyc. Before I made the decision to go BR I was terrified, but I was treated with respect and dignity throughout the whole process. Once I had the court bit out of the way I felt a bit better, but once I had my OR interview as well I felt I cuold move on. I've had my moments of panic throughout the year, but thanks to the forum I'm almost there.

[ladyc]

I'm glad it's getting better for you and I hope Babs reads your posts as it will certainly give her encouragement.

[stressed out]

Hi Babs,
My father died over a year ago and my mother was left with a £10,000 debt. She was 76 at the time. She was advised to go BR. The court and the OR were very understanding and it was the best thing she could have done. She like you did not want to go BR but sometimes it is the best option and it will resolve all your worries.

[MelanieGiles]

How hideous that your Mum had to go through all of that when the creditor could simply have shown some compassion.

[babs]

Again i have to say a big thank you to all of you are interested enough in my worries to respond. I really appreciate the advice and encouragement i am receiving. i have learned so much from this forum.

To answer some of the questions - i live in Cornwall in a pretty rural village where the local paper is scoured in all the tiny print so bankruptcy fills me with dread.

My income is state pension (reduced as i didn't work for ten years while having my children but did pay full contributions when working at all times), and pension credit, housing benefit, council tax benefit. I have a certificate for vouchers for spectacles and dental care, and which means i can reclaim travel expenses for hospital visits.

I know i've been foolish because i've lived on credit while i've struggled to maintain minimum payments. mbna are the first creditor so far i've failed to meet the payment on and they are hassling me on the phone. yesterday i got a phone call from someone who was insistent she could take a payment over the phone and wouldn't accept that i couldn't do this. she passed me to a supervisor who tried asking loads of questions but as it was first thing in the morning and the phone had got me out of the shower i wasn't able to talk to him at that time. no doubt they'll phone again and i'm not sure if i should tell them what the situation is. i did send a token payment last week by postal order (as advised by CCCS who now don't think i qualify for a DMP) but they seem to have ignored it.

Also i now understand that a DMP has no legal standing and the creditors can continue to put on interest and also to harass me. The more i learn the more i realise that bankruptcy may be the only way out, but i think i may have to try the quietly unreasonable offers first.

And yes, the 35 year estimate means that i probably do only have around £80 per month available. CCCS when i spoke to them worked out i had £206 available but that was so unworkable as to be laughable. My daughter has helped me work out a budget but everyone i've spoken to has estimated my needs as being extremely low and i don't want to spend the rest of my life living on a carrot and a lettuce leaf in order to pay my debts.

Also, i asked the question as what CCCS is and how it is funded. I was told it is a charity and funded entirely by donations (I thought it may have been government money). When i asked who made the donations i was told that the creditors were the ones who paid them. This has made me question whose interests they are working for. Any answers?

Again, thanks so much. I'm reading as much of your stories as i can and hope that you are all as encouraged as i feel by the fact that we are not alone.

[MelanieGiles]

CCCS are most certainly funded by the creditors and are working under rules set by the banks - but then so are IPs to a certain extent given the new protocol and modification imposed at creditors meetings.

But £80 per month will not be sufficient to propose an IVA, so if your debts are less than £15,000 I would enter into a short-term DMP with a firm who is prepared to accept such low payments - and then apply for a Debt Relief Order in April 2009 which are similar to bankrutpcy but are not going to be advertised. To make an application you will have to demonstrate that you only have disposable income of £50 or less.

As an alternate, and notwithstanding your position on advertising, you really would be much better off financially by declaring yourself bankrupt now.

[ladyc]

CCCS can surely set out an Income and Expenditure for you. Give then a ring again and advise them of what you've worked out.
Maybe they could approach the companies ,explaining your situation, then make them a proportionate offer of payment.
If they won't accept and you really don't want to go bankrupt then let them take out CCJ's. I'm sure the judge will understand your predicament and won't make you pay more than you can afford.
At least that way you'll just be paying out what extra you have.
Have you checked you're getting all the benefit's that you can? You may well be entitled to Attendance allowance if you're not already receiving it. Plus Pension Credits. If you receive those the get awarded Attendance Allowance the Pension Credit would also go up significantly.

[stressed out]

Hi Melanie,

It's nearly a year since you posted a message to me about my mother. Sorry!! i have just read it!!. Yes I agree with what you say. She went through a terrible time with Halifax. They were anything but... compassionate! It all worked out in the end for her though!

[kallis3]

That's good news then stressed out.

[MelanieGiles]

Glad to hear it is all sorted - with the help of this forum of course!