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  • FIRST POST
    • Eve2928
    • By Eve2928 20th Sep 17, 10:14 PM
    • 10Posts
    • 28Thanks
    Eve2928
    Boyfriend went to CAB and was told he wouldn't get a DRO
    • #1
    • 20th Sep 17, 10:14 PM
    Boyfriend went to CAB and was told he wouldn't get a DRO 20th Sep 17 at 10:14 PM
    Boyfriend was made redundant, when I come off maternity leave he's becoming a stay at home dad.

    He's currently got temporary work and is paying off what he can for his credit card debt.

    I offered to pay what I can out of my wages when he is no longer employed, because I work he's not entitled to any benefits while looking after our baby. So he will be on a NIL income.

    Boyfriend has contacted credit card companies (this was debt before he met me) but they've said they will not accept what I will pay because it won't be the minimum amount and will go to debt collectors.

    Everything of value I own, and I can prove this. My car, my iMac and my iPad are the only things worth anything. Boyfriend was a single man living on a low wage before meeting me, so could barely afford to live hence getting into debt..

    Anyways, when the debt collectors turn up and can't take the only items worth seizing as they're mine, what happens?! He literally owns nothing worth taking, the TV he has is not even a branded male, it's a supermarkets own?! So I can't think of anything they could take.

    Boyfriend will have no income at all.. and i don't have to pay his debt?

    CAB said he won't get a DRO because he used his 1k redudancy to buy essential items for our baby.. such as a cot, clothes, sterilisers and paid some of his credit cards off with the reaming money. We also had no carpet in our living room, and with a baby we wanted a carpet down.. so what was left went on the debts. CAB said this shoes an affiliation?? Affiliation to who I'm not sure? Our baby??!

    He still owes £1700 on one and £900 on another.

    So just wondering what happens next? I can't be made to pay his debts?

    The CAB looked at my salary and agreed what I offered to pay was reasonable, but since they won't accept it I am now not going to bother to pay anything as they said it will go to a debt collectors anyways! So why should I bother paying anything towards boyfriends debt if it isn't going to make a difference? And I'm going to be worse off each month..

    My mum told me not to pay anything as then I become repsonible for the debt? Is this true?
Page 1
    • sourcrates
    • By sourcrates 20th Sep 17, 10:53 PM
    • 12,694 Posts
    • 12,033 Thanks
    sourcrates
    • #2
    • 20th Sep 17, 10:53 PM
    • #2
    • 20th Sep 17, 10:53 PM
    Boyfriend was made redundant, when I come off maternity leave he's becoming a stay at home dad.

    He's currently got temporary work and is paying off what he can for his credit card debt.

    My mum told me not to pay anything as then I become repsonible for the debt? Is this true?
    Originally posted by Eve2928
    Hi,

    His debt remains his debt, no one else can be made liable for it.

    Debt does not transfer between people, neither you or anyone else can be made responsible for it.

    You should not pay it, unless you want to that is.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 21st Sep 17, 7:19 AM
    • 11,646 Posts
    • 8,779 Thanks
    fatbelly
    • #3
    • 21st Sep 17, 7:19 AM
    • #3
    • 21st Sep 17, 7:19 AM
    To add to the above...

    Debt Collectors do not usually attend in person - they prefer letters and phone calls.

    They would have no right to remove anything if they did attend, which is why they don't.

    These are non-priority debts so don't stress.

    Debt Collection Agencies are usually better to deal with than original lenders, some of whom (Lloyds, HSBC) take stupidity to an art form.

    The CAB are wrong to say he does not qualify for a DRO. The reason they gave is not even a question on the application. I would be a little reluctant to do one but not for he reason given (which is complete nonsense and you should probably complain) but because £2600 is a very low amount for a DRO and you can only have one every 6 years. If you (plural) get into trouble in a year or two we have blown our 'get out of jail free' card on two tiny non-priority debts.

    I work for the CAB as a DRO intermediary BTW.

    Suggestion - pay them nothing, let it go (preferably be sold to) to a DCA. Try to budget to save in to a savings account, maybe one of those giving a bit of interest and linked to your bank account*. Next year, offer what you have as full & final settlement. As a third party to the debt, an accepted offer from you is legally binding.

    https://nedcab.cabmoney.org.uk/fullfinal.asp

    *For example the HSBC Advance account is offering £150 upfront, 5% on regular savings and £50 as a bonus after 12 months. If you saved £100 per month I reckon you would have a fighting fund of 150 +1200 + 60 +50 = 1460. More than enough for a 50% settlement, and some credit card providers will settle for less.
    Last edited by fatbelly; 21-09-2017 at 6:17 PM.
    • The Swerve
    • By The Swerve 12th Oct 17, 1:50 PM
    • 78 Posts
    • 21 Thanks
    The Swerve
    • #4
    • 12th Oct 17, 1:50 PM
    • #4
    • 12th Oct 17, 1:50 PM
    The CAB are wrong to say he does not qualify for a DRO. The reason they gave is not even a question on the application.
    Originally posted by fatbelly

    Could it not be seen that by paying one particular creditor some money with the redundancy money, Eves boyfriend showed preference to that one creditor? Does that not stop a DRO going through?
    • StopIt
    • By StopIt 12th Oct 17, 2:32 PM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    • #5
    • 12th Oct 17, 2:32 PM
    • #5
    • 12th Oct 17, 2:32 PM
    Could it not be seen that by paying one particular creditor some money with the redundancy money, Eves boyfriend showed preference to that one creditor? Does that not stop a DRO going through?
    Originally posted by The Swerve

    Officially yes, reality, no, so long as it can be shown the payment was not made while a DRO was in process of applying.


    If he CAB wont help, speak to Stepchange, or a different CAB branch. So long as your partner meets the criteria, less than £20k of debt, less than £50 surplus before debt payments on an SOA, it'll be fine.
    • debt doctor
    • By debt doctor 21st Oct 17, 11:59 AM
    • 4,177 Posts
    • 5,844 Thanks
    debt doctor
    • #6
    • 21st Oct 17, 11:59 AM
    • #6
    • 21st Oct 17, 11:59 AM
    A preference can be looked at up to 2 years prior to a DRO application. The Insolvency Act defines a preference as : "A payment other than in the ordinary course of business with a view to improving that creditors position if you became insolvent".
    So a contractual payment can never be a preference - and in any event - there has to be an INTENT to improve the creditors position in insolvency.
    I doubt whether the debtor was paying with the intention of making the credit card company better off in insolvency.
    The law of preference is all about paying back friends and family when you know you are planning on becoming insolvent.


    Also, the position your local CAB took on the DRO situation is ridiculous.
    DD
    Last edited by debt doctor; 21-10-2017 at 12:51 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 ***
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