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  • FIRST POST
    • PippaGirl
    • By PippaGirl 12th Sep 17, 7:34 PM
    • 2,165Posts
    • 1,787Thanks
    PippaGirl
    Ashamed to be back again
    • #1
    • 12th Sep 17, 7:34 PM
    Ashamed to be back again 12th Sep 17 at 7:34 PM
    I'm ashamed to have to come back here again. I went bankrupt in May 2012 and was discharged January 2013. All that debt was through no fault of my own, having left a DV relationship with little more than the clothes on my back I moved into a small empty flat. I had no idea I was entitled to benefits except child benefit so having had a nervous breakdown gained debts and hid under the duvet crying.

    This time I have to take responsibility for it, I made a stupid decision. The garden had been 6ft-10ft brambles since I moved to this LA property and the wooden fences surrounding it had collapsed. So after 6 years of having nowhere for children to play or hang the washing out I stupidly paid for replacement fencing and the brambles to be cut, all on a credit card of 39.9% for which I thought I'd manage the repayments and more and would pay it off quickly. Things went from bad to worse and in trying to keep up repayments other debt appeared, I couldn't afford to eat etc and I've finally phoned stepchange for advice. The only feasible option is bankruptcy again. Stepchange say that as I've been bankrupt less than 6 years ago I will be treated in a harsher way, be bankrupt for longer, have a payment plan in place for 3-6 years and be constantly monitored.

    I'm still just as ill. Been detained under the Mental health act twice in the last 2 years, I'm living on income related employment support allowance and PIP and that's very unlikely to change. I feel so low I'm fighting off 'way out' thoughts but I've got to try and take this one day at a time. I'm paying my 4 creditors £1 a month as the stepchange calculator says I have £5 a month spare however they said that the insolvency service are unlikely to allow me the allowances I've got on their form. That's help with my disability and specialist food for my eating disorder.

    Apparently I have to open an account with the insolvency service and start paying installments and when I've paid £680 I can file for bankruptcy. That could actually take me ages. So I'm here for the long haul, paying £1 a month to 4 companies and saving in dribbles for the bankruptcy. I'm unsure how my mental health will hold up if the 4 companies don't agree that figure, give the debt to debt agencies or threaten court action. I am in pieces right now. And this time it's all my fault.
    "Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama
Page 3
    • Pobby
    • By Pobby 15th Sep 17, 7:48 PM
    • 5,174 Posts
    • 11,329 Thanks
    Pobby
    Pippa, no advice here but thinking about you. I have had mental health problems and it is no fun. Just keep posting and I am very sure that you will get this sorted. My very best wishes.
    • debt doctor
    • By debt doctor 15th Sep 17, 8:06 PM
    • 4,111 Posts
    • 5,770 Thanks
    debt doctor
    Hello Pippa,


    Your HB would have to be deducted from your rent which will put you in too much surplus for a DRO. You do have some spare room in 'communications and leisure' but not enough to get a DRO.
    However, I wonder, on average, how often your daughter stays with you?
    Can you average that out and let me know?


    Just think that (if) a DRO is not possible, bankruptcy still is (with no repayments from your income) or by controlling the debt by a payment plan.


    EDIT - SEE BELOW
    DD
    Last edited by debt doctor; 15-09-2017 at 8:29 PM.
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • debt doctor
    • By debt doctor 15th Sep 17, 8:29 PM
    • 4,111 Posts
    • 5,770 Thanks
    debt doctor
    At the bottom of your SOA you say that you have not included HB as income - but when I look at your total income you HAVE included it.


    This changes things completely - and you would qualify for a DRO. Can you re- clarify your income that £1220 is ESA plus HB?
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • Autumnella
    • By Autumnella 15th Sep 17, 8:38 PM
    • 410 Posts
    • 1,434 Thanks
    Autumnella
    I don't know what it is about step change discouraging DRO's They told me I wouldn't qualify too when I called a few years ago in desperate need of help, when everything else I read online said I did. When I called them it was 2 hours of my life wasted and I was in exactly the same position I was beforehand.
    • debt doctor
    • By debt doctor 15th Sep 17, 8:45 PM
    • 4,111 Posts
    • 5,770 Thanks
    debt doctor
    I don't know what it is about step change discouraging DRO's They told me I wouldn't qualify too when I called a few years ago in desperate need of help, when everything else I read online said I did. When I called them it was 2 hours of my life wasted and I was in exactly the same position I was beforehand.
    Originally posted by Autumnella
    Hi, The funding model of Step Change relies upon a commission return (or fair share agreement) from payments to creditors through DMPs and IVAs. The more collected, the higher the return payment from creditors.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • PippaGirl
    • By PippaGirl 16th Sep 17, 8:09 AM
    • 2,165 Posts
    • 1,787 Thanks
    PippaGirl
    At the bottom of your SOA you say that you have not included HB as income - but when I look at your total income you HAVE included it.


    This changes things completely - and you would qualify for a DRO. Can you re- clarify your income that £1220 is ESA plus HB?
    DD
    Originally posted by debt doctor
    .

    Yes sorry for the confusion. The income is ESA and HB, HB being less than my rent due to under occupancy reduction. What that figure doesn't include is my PIP as people said that's not counted as income. Apologies for my mistake, so yes that income amount is ESA and housing benefit.

    Thanks.
    "Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama
    • debt doctor
    • By debt doctor 16th Sep 17, 3:59 PM
    • 4,111 Posts
    • 5,770 Thanks
    debt doctor
    Great! That means you qualify for a DRO on income grounds.
    I never worry about negative statements - in your case as you said, you are going to put in your PIP as income, then whatever balance is left when you have covered the deficit, put that balance down as 'adult care needs'. That's to spend how you wish for dog walking or whatever you wish.
    The standard thing debt advisers do is put PIP or DLA in as income and then take exactly the same amount out as 'care needs' - which effectively means it doesn't count as income.
    Also I want you to reduce your vet bills down from £21 to £10. Not saying you can't actually spend it, just show as £10 - trust me!
    Hope it goes well for you with National Debt-line, but in any event, keep us informed.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • luvchocolate
    • By luvchocolate 16th Sep 17, 5:43 PM
    • 1,426 Posts
    • 1,272 Thanks
    luvchocolate
    Great advice as always D.D.
    Good luck Pippa let us know how you get on. x
    • PippaGirl
    • By PippaGirl 16th Sep 17, 6:23 PM
    • 2,165 Posts
    • 1,787 Thanks
    PippaGirl
    Great! That means you qualify for a DRO on income grounds.
    I never worry about negative statements - in your case as you said, you are going to put in your PIP as income, then whatever balance is left when you have covered the deficit, put that balance down as 'adult care needs'. That's to spend how you wish for dog walking or whatever you wish.
    The standard thing debt advisers do is put PIP or DLA in as income and then take exactly the same amount out as 'care needs' - which effectively means it doesn't count as income.
    Also I want you to reduce your vet bills down from £21 to £10. Not saying you can't actually spend it, just show as £10 - trust me!
    Hope it goes well for you with National Debt-line, but in any event, keep us informed.
    DD
    Originally posted by debt doctor
    Oh that's such good news. Good advice I will make those changes. I doubt National debtline are open Sundays so I will phone them Monday.

    Ive had an email from wonga saying theyre freezing my loan with them and won't be adding any interest or charges or make attempts to withdraw money from the bank.
    "Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama
    • PippaGirl
    • By PippaGirl 18th Sep 17, 12:45 PM
    • 2,165 Posts
    • 1,787 Thanks
    PippaGirl
    Long talk with National debtline this morning. I'm eligible for a DRO and they're sending me out the application pack. I'm told to stop the £1 payments to creditors which I've done. I've got to go to court to get an order from the court forbidding my current address being on public records to protect me from my violent ex who doesn't know where I'm living. I already have a letter from my GP verifying that fact and I'm hoping an EX160 ? will waive the court fee on income grounds. When I went BR I went on the register with my previous address. I'm sure it will be the same. The lady on the phone said the official receiver may question me about my debt because I've previously been BR before but at that was almost 6 years ago and my sole income is benefits she doubts very much I will be given any extra restrictions. Very helpful people. I just wish the process didn't take 10-12 weeks. The lady said almost all creditors back right off once they know you're applying for a DRO as they won't spend court money knowing they'd not get a return from it.

    Hopefully all will go smoothly from now on. I wish I'd phoned National debtline first, I was in such a state after talking to stepchange.

    Thank you everyone who's offered helpful advice and support.
    "Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama
    • debt doctor
    • By debt doctor 18th Sep 17, 1:15 PM
    • 4,111 Posts
    • 5,770 Thanks
    debt doctor
    Hi Pippa,
    That is good news from National Debt line.
    The EX160 will exempt you from the court fee on the 'automatic exemption' of being on Income based Employment Support Allowance. No need for a calculation, just need to provide proof of your ESA.
    If you are on contributions based ESA then you will need to do the calculation - but will still be exempt. Neither PIP or HB count as income when filling out an EX160.
    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • fay66
    • By fay66 18th Sep 17, 4:55 PM
    • 579 Posts
    • 1,309 Thanks
    fay66
    my elec/gas for one person 2 bed house , is £56 a month and still under with iressa, pay monthly direct debit,
    my food shopping is only £200 at maximum, aldi is the best value and you can do it for less, and thats cooking from scratch, they have alot of meals that are prepped but fresh, I have 2 cats and 2 dogs, pay full rent and only earn £1456 per month rent is £425 per month , I buy my own flea stuff it works cheaper but vaccine them , prescriptions should be free unless painkillers. or pre paid prescription is £10 per month. my car is £160 per month for diesal . have you tried ubber or liftshare if your going to a regular place or have a bus pass?
    Debts: 118118 loan £1900,
    CC Marbles, 4500, Aqua £850. Ocean 350, Cap 1, £95
    Payday loans, Sunny £200 x 5 months, Sterling £135, Wage adv £135 x 2 months
    Ex bancruptcy, 6 years up Dec 17
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