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| Rocky Road |
Posted - 02 September 2008 : 21:59:28
Hi,
I wonder if you could help me. I am under great stress at the moment as I am offering support & help to my Mum who cannot cope with being in debt and we fear is close to a breakdown.
Following the end of her marriage my Mum found herself trying to keep the mortgage going alone on her home, consequently she relied on credit cards - when the balance on the cards got high she would go to the bank for help who would increase her mortgage, give her a loan or increase her creit card limit - even though she could not afford this - and so eventually the situation would repeat itself. Over 2 years ago my Mum decided to sell the house and pay off what she could to the banks, all mortgages were paid off but she was left with 2 credit card debts and 2 bank loans (with the same bank). She had £25,000 left after the sale of her home and had to decide whether to pay off what debts should could (not all of them) and have nothing or whether to put the money into a new life. She decided to purchase a 'holiday' caravan to live in which is estimated in value at and costs less than £500 a month to keep running. Although these are not built for everyday life she is managing just fine.
At the same time we contacted CCCS for advice and she set a debt management plan with them whereby she pays what she can each month off her debts. We continously recieve mail from the people that she pwes money to making various threats and frequently the debts seem to change companies.
I feel we are now at the end of the line and would desperatley like some advice as to how we can move forward with this, she is petrified that she is going to end up with the bailiffs going to her caravan/home and taking what she has got and that she will be left with nothing. We have toyed with the idea of her making herself bankrupt but we cannot bear the thought of her losing the only home that she now has and also she would struggle to find anywhere cheaper to live. The debts that started off at £30,000 2 years ago have now soared to over £60,000 with the interst and charges that is being applied to them.
Any advice would be most gratefully recieved as this is starting to feel like a very heavy weight. Thank you
P.s - sorry if I have posted this twice x |
| 11 L A T E S T R E P L I E S (Newest First) |
| Rocky Road |
Posted - 04 September 2008 : 19:55:37
Thanks for all of your help, it is much appreciated and I will let you know how it pans out. |
| John |
Posted - 04 September 2008 : 00:03:18
Hi
any creditor owed more than £750 is legally able to push for BR. The reality is however that there would be little point a creditor doing this unless the debt was considerably more as it will cost the creditor in the region of £2K to see the process through.
Another reason that it is unlikely is caravans are not registered, as bricks & mortar are at Land Registry, therefore I doubt any of the creditors know your Mum owns it.
If they did I would have thought one of them with a large amount outstanding would have made some form of claim of it.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Rocky Road |
Posted - 03 September 2008 : 22:16:14
Thank you for your advice and I will most certainly talk to my Mum, I am certain that she cannot bear to leave her caravan as she sees it as her 'home' and she feels more than slightly aggrieved that she has lost her 'proper' home due to her banks willingness and efforts to increase her lending.
I have spoken to one of the people who she owes money to tonight and although they have recently sent a letter making various threats they have assured me that they do not plan to take further action 'for the time being'! Although this is slightly reassuring as I said earlier the itnerest that is being added on is astronomical and I feel as though despite making nominal payments that we are on borrowed time.
Unless she feels ready to make the big jump to give everything up I guess I will just have to keep offering support and fingers crossed.
I am going to end this post with another question (sorry!) could anyone tell me how likely it is that a company could force her into bankruptcy (even though she doesnt own an actual home with equity, as CCCS have previously told us that it is unlikely)
Thanks so much x
quote:
Originally posted by John
Hi
yes that's certainly worth considering RR.
If Mum is willing to sell the caravan, and whilst it is up for sale, Mum could try and start a DMP to keep the wolves from the door until it's sold. Use some of the capital realised for a rental deposit and advance payment plus any basic household furniture or appliances she needs.
Then either, as m and v suggests, try full & final settlements with the creditors, or use the surplus to service the minimum payments each month until the funds are exhausted , saving the necessary fees to eventually go BR.
I know this doesn't avoid the sale of her home or the trauma of BR but it does put you, rather than the creditors, in control of how and when BR happens and wipes out the remainder of the debt.
www.Bankruptcyhelp.org.uk
0800 078 9367
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| John |
Posted - 03 September 2008 : 08:18:01
Hi
yes that's certainly worth considering RR.
If Mum is willing to sell the caravan, and whilst it is up for sale, Mum could try and start a DMP to keep the wolves from the door until it's sold. Use some of the capital realised for a rental deposit and advance payment plus any basic household furniture or appliances she needs.
Then either, as m and v suggests, try full & final settlements with the creditors, or use the surplus to service the minimum payments each month until the funds are exhausted , saving the necessary fees to eventually go BR.
I know this doesn't avoid the sale of her home or the trauma of BR but it does put you, rather than the creditors, in control of how and when BR happens and wipes out the remainder of the debt.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| m and v |
Posted - 03 September 2008 : 07:36:47
Hi Rocky Road
Is it worth Mum considering going into rented accomodation and making "one time only" payment offers to the creditors with any monies made from selling the caravan?
I am guessing this is something you have already considered.
We have done this in the past and been very surprised at the amount the creditor would accept - afterall they don't want you to go BR as they get much less or nothing!
Hope you work something out for your Mum
Take care
Vicki x |
| Rocky Road |
Posted - 02 September 2008 : 22:49:33
I dont think that there is any way that she could manage a monthly repayment of tht amount (even with our help). Thanks for your help and I will call the helpline so that you may put me in contact with a some DMP companies.
I would be interested if anyone has any advice as to how to deal with the companies that keep sending correspondance and making various threats (bankruptcy, bailiffs etc.). As far as CCCS has advised us it is unlikely that any other company would make my Mum bankrupt or send the bailiffs, they said that they are mmore likely to go for a CCJ but everytime that my Mum recieves these letters it throws her (and then me) into a total spin. |
| John |
Posted - 02 September 2008 : 22:44:26
Hi
there are a number of DMP companies out there, I would be happy to recommend one if you would like to give the helpline a call and leave me a message with your contact number and the best day / time to call.
An IVA usually lasts for 5 years but 6 or 7 year plans appear to be on the increase.
The approx monthly cost over 5 years would be around £520. Over 7 years approx £430.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Rocky Road |
Posted - 02 September 2008 : 22:32:45
I did worry that it would be the case that she would lose the caravan, I am desperate to protect her from this as after having to lose her home I feel that it may push her over the edge, especially as she seems so fragile at the moment.
I was under the impression that she had a debt management plan set up with CCCS but obviously not, is it possible that you could provide me with any more info about this and how she can go about sorting it out. It is the constent communication from the banks/debt collectors that is adding additional stress.
Also sorry to keep asking questions but how much disposable income would she need to qualify for an IVA? I take it that I would not be able to help her with payments???
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| John |
Posted - 02 September 2008 : 22:27:42
Hi
as Mum's only real asset and due to the caravan's value she should avoid bankruptcy if at all possible as I feel she is very likely to lose it.
The problem being she has insufficient monthly disposable income to qualify for an IVA, which leaves a Debt Management Plan If Mum successfully applied for one of these most DMP companies would insist on a) she pays every penny of her monthly disposable income into the plan, and b) at a minimum monthly payment of around £200.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Rocky Road |
Posted - 02 September 2008 : 22:12:17
It is a little difficult to gauge the value of the caravan as it can only stay on the site for another 10 years and so I am a little unsure of how much it would depreciate, I believe it is currently worth around £20,000 although it is officially a holiday caravan and although other people on the site do live in these units they all have to move out for 2 months of the year. I'm sure this may seem an odd way for her to live but the shock have having to sell her home after accruring so much debt left her desperate to try to have some kind of home.
My mums wage is approx £850 - £900 a month.
Many Thanks
quote:
Originally posted by John
Hi
I'm sorry but either I'm not reading your post correctly or you missed out the current value of the caravan.
What is Mum's monthly income?
www.Bankruptcyhelp.org.uk
0800 078 9367
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| John |
Posted - 02 September 2008 : 22:07:16
Hi
I'm sorry but either I'm not reading your post correctly or you missed out the current value of the caravan.
What is Mum's monthly income?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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