Trying to help my Dad

GeorgeUK

Have you tried reclaiming bank charges or credit card charges yet?
There are a few other things he should check to see if he can reclaim - especially payment protection insurance (PPI) as alot of these are not suitable for the self employed.
http://www.moneysavingexpert.com/reclaim/

I would definately contact nationaldebtline as suggested - IVA's are really not for everyone and are one step away from bankrupcy. It doesn't sound like he's at this stage yet. Phone ND and see exactly what stage this has got to and what can be done to resolve the matter.

Have they paid anything else to the company other than that deposit?

Melmoneysaver

Hi again and thanks for all your really helpful replies,

I can't go into to much detail as I don't have it all yet, it's taking time to get all the information as I think he was trying to hold back a little so I don't worry, thats what i think anyway, but i'm slowly extracting everything. So far I have counted up 8 credit cards with anything from £3k to 8k on them O.O;; a loan for £24k
a fine for £4k work related, £9k mortgage arrears... I know I'm being vague and I'll have a full SOA posted up here in the next couple of days at the latest.

As for bank charges, I'm really only just starting that for him and it totals over £4k across 3 bank accounts and I haven't even started on cc's with the amount he has I'm really daunted.

Thanks for sharing Ifeelpossessed and for your warm wishes

I'll be back soon! thanks so much everyone


Oh and EDIT: he did call CCCS who are happy to look at his finances once again, he has to gather up all his paperwork and call them tomorrow morning, so we'll see what happens after that!

Edit no 2! Dancing fairy - Thats a realy good idea, I know Mom has started going to Iceland recently (she was a diehard Sainsbury's fan) but I'll certainly have a word with her about the other stuff she still goes to sainsbury's for.

Melmoneysaver

He has indeed only paid the deposit to the company that are trying to do the IVA for him

Gemmzie

Hi Mel,
I'm in a similar position as I do a DMP for my dad.

The mortgage arrears are the most important, followed by secured loans, council tax and any debts owed to HMRC.
Credit cards are way down the list. If they can only offer them a £1 a month for now, tough cookies. Once you have everything and a do-able budget, he should be able to go back into a DMP.

Melmoneysaver

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 844
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2044

Monthly Expense Details
Mortgage................................ 890
Secured loan repayments................. 100
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 93
Electricity............................. 100
Gas..................................... 40
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 40
Mobile phone............................ 40
TV Licence.............................. 10
Satellite/Cable TV...................... 60
Internet Services....................... 20
Groceries etc. ......................... 240
Clothing................................ 40
Petrol/diesel........................... 60
Road tax................................ 20
Car Insurance........................... 25
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 27
Contents insurance...................... 20
Life assurance ......................... 20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1938

Assets
Cash.................................... 0
House value (Gross)..................... 140
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 140

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 110......(890)......6.5
Secured Debt.................. 50.......(100)......100
Total secured debts........... 160.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital 1 cc...................3.........30........0
BarclayCard cc.................3.........30........0
Lloyds TSB cc..................6.........30........0
BarclayCard cc.................3.........30........0
Egg Credit card................7.5.......40........0
Capital 1 cc...................4.........30........0
Lloyds TSB cc..................6.........30........0
Total unsecured debts..........32.5......220.......-

Monthly Budget Summary
Total monthly income.................... 2,044
Expenses (including secured debts)....... 1,938
Available for debt repayments........... 106
Monthly UNsecured debt repayments....... 220
Surplus(deficit if negative)............ -114

Personal Balance Sheet Summary
Total assets (things you own)........... 140
Total Secured debt...................... -160
Total Unsecured debt.................... -32.5
Net Assets.............................. -52.5

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

The credit cards are on 0% interest at the moment as he took out a DMP with CCCS 2 years ago, still makes depressing viewing though, the reason some cc's are listed twice is because one is in moms name and one in dads. I'm also not sure where to put the mortgage areas as these in in addition to what we see here and they are £9k and asked dad to pay an additional £160 pcm which as you can see doesn't seem possible,

I've spoken to him about reducing bills like mobile and cable but after going through this extensively its just not possible due to contracts.

/sigh

you guys

GeorgeUK

Can i just clarify something? The APR for the secured debt - is it really 100% interest?

Council tax............................. 93
If paying over 10 months, can he ask to pay over 12?

Electricity............................. 100
Gas..................................... 40
Have a look at the comparison sites for a better deal. (uswitch, moneysupermarket)

Mobile phone............................ 40
PAYG?

Telephone (land line)................... 40
Satellite/Cable TV...................... 60
Internet Services....................... 20
Can he combine these in a package?

Groceries etc. ......................... 240
This can be reduced through mealplans or moving down a brand. Have a look at the oldstyle board for ideas.

dancingfairy

Great so far. I would contact CCCS or Natinal Debtline or the CAB. What I think is that he may have to not pay sky (as he can't afford to) and mobile and maybe get them added on to the dmp? Do check this though as I am not an expert.
The food shopping definitely needs to be reduced. I aim for £200 a month for 2 adults and that is considered quite high around here. Try meal planning, using up what's in cupboards/freezers, try value products, think if cheap meals to cook on the meal planner etc.

Electric does look rather high - have they ever switched supplier? -is this arrears? am sure they could do a bit better.

Um just wanted to clarify things - are the debts £3,200 or £32,00 - I'm feeling a bit dim today.

I am not sure whether he will be able to do a dmp because he won't have any spare income (even if he cuts everything to the bone) to pay to creditors unless he can get the mortgage company to agree to lower catch up on the arrears. I'm afraid I don't really know enough about it. Have you tried putting the figures into the online calculator thing at CCCS and see what they recommend? I would also ask on the bankrutpcy board and see if this is an option for him - they would know things like whether he could keep the house etc, etc.
Am I right in thinking the mortgage is 110k and the secured loan 50k and the house is worth 140k? so they are in effect in negative equity?
Having just reread the thread I notice you have put in for bank charge reclaiming - this is obviously a large amount and could make a huge difference to your family. I know that the reclaiming is on hold apart from those people in severe financial hardship - which you parents clearly are.
It might be worth posting this is a seperate thread on here as you may be able to prove he is desperate for the money and still get the charges back. I would also check out the board specifically for bank charges as well. When you get these charges back I think you should find out what the best way to use them is- it may be better to pay a lump sum off the mortgage or it may be better to agree to the £160 a month extra off the arrears which they want but i am personally not sure whether this would just prolong the agony. They may need to keep this money to go bankrupt. What I am saying is best get advice - and good luck.
Remind your parents that they have each other, they have you- etc. Whatever happens.
Good Luck with it all and keep us updated.
Wishing you all the best.
df x

TotallyBroke

How old is your brother? Does he not contribute to the house. If he is at school your parents should get some sort of tax credit payment.
Electricity is very high. You need to get them to cut this down.
You need to cut down the Sky or stop altogether.
Bt bill is high, £40per month is a lot of telephone calls.
Along with a £40 mobile bill! Is this contract or payg. If contract you could only use BT for 0870, 0800, 0845 numbers anything else send a text or a quick call on the mobile. You can bunch the internet cost in with either BT or Sky. Sky charge £10 per month so a saving.
Haircuts, clothes and entertainment have to stop for a while.
Your figures for secured and unsecured debt is confusing. Add the amount for the mortgage each month. Then list the arrears as a secured debt and show the amount.
Also you have missed 0s off debts. You are showing they £3 on Capital 1 but pay £30.

Melmoneysaver

Thanks for all the replies guys, I see what you mean about me confusing the debt issue, when I get back from work at 8pm this evening i'm going to re-do and re-post it

Good point about my brother (he's 28 and works), he must contribute but I forgot to ask about this to be totally honest, ill get these figures added to the income side of things on the new SAO

I'm going to have a stern talk with him over the non-essentials like cable/phone, i;ve tried many many times before but always insists that he needs everything he has, I've got to make him realise that soon he may not have a house to live in and needs to economise, I know he's mainly doing it for his family and trying to keep under wraps the debt problems the family has by maintaining (or trying to maintain) their current lifestyle, I'm pretty sure I'm the only one who knows about everything, even my Mom doesn't know as much about the debts as I do.

Switching supplier for gas and electric need to be looked I agree he's currently with the dreaded British Gas.

EDIT by the way what is reasonable to ask a 28 year old man that lives at home to pay? would it depend on how much they earn or how much the monthly bills for running the house are?

GeorgeUK

I think 25% would be a very generous amount on behalf of your folks. If that is with food and everything else supplied - slap him if he complains. Might be worth checking if he has any debts too - just incase. You may be able to advise him as well as allow him to help his folks.