Bipolar disorder and writing off debts

Zenjen_2

Not sure if this is right place for this. I've done a search but nothing forthcoming.

I am 27 years old and I have been suffering with bipolar disorder (manic depression) since I was nineteen. I am going through the process of claiming DLA, and getting registered disabled. I am pretty good with money but I have debts of £3000, £2000 overdraft in barcleys and £1000 to my parents. All of this debt was ran up when I was 18-19 years old when I was undiagnosed and unmedicated, due to manic spending sprees and bipolar related drug addiction. When I left uni I set up a new joint account with my husband in the Halifax, in this we are always in credit (even if only by a few pence!), but with me being pretty much permanently unable to work these debts are really hard to pay off.

I was basically wondering if I was successful in my DLA claim and getting registered disabled, I would have any negotiating power to reduce/write off my overdraft with Barclay's?? I know my amount of debt is not substantial compared to many people on here, and it seems to me that maybe you have more chance of a negotiation if you are 30,000 in debt rather than 2 grand? However, it has taken me a long time and much scrimping and saving to just pay back the interest that has accrued over the years and it seems to me I will never pay this back

All I wanted to know if anyone has had their debts reduced due to disability issues. If so, was your credit rating ruined? How did you go about it? Have I left this too late?

Any help would be massively appreciated.

Many thanks

Jen

dmg24

To get debt written off for this type of reason you would need to prove that you did not have the mental capacity to enter into a contractual relationship, and a bipolar diagnosis would not be sufficient proof of this. I don't know this area of the law in depth, but my understanding is that you would need to be near enough insane to establish such a lack of mental capacity.

Also a DLA award would not have any impact, because that is about your condition now, not when you accrued the debts.

It can be possible for anybody to negotiate a reduced figure to pay off your debts, but you will ruin your credit record in doing so. Also they will look at what income you do have available, and if there is sufficient to still make regular payments, they may be unwilling to accept any offer anyway.

I would say that you are best just to pay off the debts. If you need help budgeting, the Debt Free Wanabee is a very helpful place to start x

Zenjen_2

Thanks for your speedy and efficient reply dmg,

I really suspected that this was the case, its just that one thing I've learnt from this site was the importance of looking at every angle.

I think the advice you give is sound, I certainly don't want to shoot my credit rating in the foot for the sake of a couple of grand, esp. as me and hubbie will want a place of our own sometimes.

I guess its back to gathering money from the back of the sofa, and ebaying everything in sight that we can live without ....I am determined to get debt free one way or another. I will check out the DFW board for inspiration!

Thanks so much for your advice and help, now I won't have to waste a lot of time and effort chasing something thats not too likely and would be a bad idea.

Jen x

JoeyEmma

First of all, have you got a Community Psychiatric Nurse or a mental health social worker? They may be able to give you some advice, or give you a supporting letter to help negotiate with your debtors.

Alternatively you could see if your council has a welfare rights advisor or debt counsellor that could help you.

Finally, failing that you could speak to the Citizens Advice Bureau.