RTA caused me great Debt! – Advice Please

Legacy_user

Long Post, Sorry.

Here’s a rough story to why I’m in debt and I’m doing everything possible to sort my debts out, but who knows, there maybe someone out there that can offer me just a little more advice.

In April 2004 and I was doing well for myself being a self-employed engineer working in the HGV industry. The only debt I had was a £10k loan with the Halifax, which wasn’t a debt at this time. As I was on good money, I was paying back as much as I could per month around the £200 mark to try and pay this off early.

In May 2004 I suffered a no fault road traffic accident while riding my motorcycle. No fault being a taxi driver jumped a red light and I ploughed into the side, sending me flying through the air and down the motorway. I was extremely unwell and ill after this accident with head, neck and back injuries and suffering memory loss.

Over the next few months I was unable to do nothing until at least August / September 2004. I had Halifax threatening legal action as there was several months of payments out standing. First things first, let’s phone up and get the insurance rolling I have on my loan. Halifax was rude to me and told me I did not have insurance even though I had the paperwork in front of me. After many phone calls I was told I had insurance on the loan. In the process of getting these forms filled out and the doctor taking 7 weeks to fill out his part the loan was passed to a debt collection agency. Halifax Ireland Ltd (Insurance) said they are ready to pay the monthly instalments for me and the out standing balance. But how could they after Halifax had passed on the debt to someone else! After numerous phone calls to Halifax and the Debt collection agency the debt was passed back and it was being covered by the insurance. There is a lot more to this story with the amount of messing around but this caused me a great deal of extra stress at this time for me. And at the end of the day, how can Halifax pass on a debt that is covered by insurance onto a debt collection agency. I have been told that I can claim damages for stress and anxiety? Does anyone have any advice on this?

In the meantime, I was trying to survive on hardly any money at all. And I was juggling around two credit cards running up the debt as in my mind I will soon be back to work to pay this off. Well the crunch came and I was still ill. I had wrapped up £10k of debt on the two cards. The Cahoot card was covered by insurance and the Halifax Visa card wasn’t!

Halifax Visa was the easiest to discuss a repayment plan with them and after talks and budget plans I am now repaying back a £5k debt at £20 a month and interest was frozen until I’m fit to return to work. What a bargain! I managed to get the insurance running on the Cahoot credit card and this was soon paid off at £500 a month! Another bonus.

In the meantime I had no choice but to claim state benefit. As much as I hated it, I had no choice. After much hassle I was not able to claim Incapacity Benefit due to not paying Voluntary National Insurance contributions while I had half a gap year (6 months) time out travelling around in 2000. In the end I was entitled to Income Support.

And being self employed there was still the Inland Revenue to deal with!
After catching up and submitting 2 years worth of books online I had a tax bill of £2.6k added to the debt. Yet again discussions with the Inland Revenue to try and sort out a repayment plan. In the end with help from my Solicitor dealing with my accident I was able to pay £20 a month. But they would not freeze interest. If there is anyone that can offer any advice about my tax or help I am entitled to please let me know.

With debts rising I had no choice but to move back home with one of my parents. As I could not afford to live on my own.

2005 was here and I was hoping this would be a better year.

¼ way through the year all was steady but times were hard and so was cash.
I started to use the Cahoot credit card to help me live. But to my surprise Cahoot only offer 12 months cover. July was here and the cover ceased. I was left yet again with a £4k debt; how I ran this debt up I really do not know. I was just trying to survive.

While still trying to recover from my injuries I was able to ride my second motorcycle as this is my only form of transport. But to my dismay the night of 19th August 2005 I suffered yet another bad no fault road traffic accident. Thanks to a young boy that had just passed his test and cut me on a roundabout as he tried to go around the roundabout in the wrong lane! More time spent in hospital and I was severely shocked as I did not know who I was and where I was. 2 days latter all settled while I was trying to get myself back together.

Well back to my debts, Cahoot was still outstanding so I tried to make another insurance claim as this was a separate accident. I was turned down and I made several complaints. Because I did not return back to work for one month minimum I was denied further financial help. How could I return back to work when I have injuries on top of further injuries. If anyone can offer advice on this I would appreciate it. And being self employed in a heavy industry I could not go back to work as I have been signed off till at least April 2006. Then again I had lost my work contract and I had already declared to the Inland Revenue that my self employment had ceased.

To this day I’m still trying to have talks with Cahoot and come up with some sort of repayment plan. I’m also in the process of claiming back silly bank charges on two bank accounts and i'm just about surviving.

At the moment I have the following debts:
Halifax Loan – £6.7k – being paid by insurance.
Halifax Visa - £5.3k – paying back £20 a month.
Halifax Current Account - £820 overdrawn.
Orange Mobile Phones - £184 – paying back £20 a month.
Cahoot - £4.6k – still in talks about repayments.
Inland Revenue - £2.6k – Paying back £20 a month.

Obviously there are other minor small debts but I’ve done my best to keep on top of this a lot. Have thought about it many of times making myself bankrupt but why should I, this all seems like a full time job being off ill. And only thanks to the first accident I’m in this mess and debt. My solicitor understands this but they are not offering me any support on this matter apart from writing the odd letter to my creditors.

Stress is at boiling point and I’m seeing a counsellor but I’m trying to keep my cool.

Hopefully when I do return back to work I will review my loan and space it out over as many years as I can. And I will be on the hunt for 0% transfer balances for my credit cards.

If there is any advice at all anyone can offer on the above I would appreciate it. Especially regarding the Halifax Loan case, Cahoot declining me any further financial help and the Inland Revenue. I’m sure I can write something off or very little.

All the above is a rough story and lengthy but thank you for listening and I hope to hear your views and comments, but I didn’t know who else to turn to or talk to. I have managed everything my self but I am proud that I have done well.

Please excuse me if i have left parts out, still cant remember all when it comes to remembering.

Conor_3

Firstly, glad to hear you're on the mend. I had 10 months off with a spinal injury a few years ago so I can sympathise. Having lots of free time gives you alot of time to think about things.

OK, so lets start


There's little you can do about the Inland Revenue.

For the rest it's CCCS and Payplan time I think. Solicitors are a waste of time when it comes to debts. Loan and CC companies WILL listen to CCCS though. You'll need to prepare a full statement of affairs showing your income and all outgoings so might as well start doing one now.

Post it on here, someone may be able to see a way of saving a few quid.

frosty

Hi there ,are you sueing anyone for compensation,when my husband had a bad accident (RTA)we claimed several interim payments while the case was being sorted out.

southernscouser

As Conor suggest, Payplan and the CCCS might be a port of call but I would also try the citizens advice bearau (sp, can never spell that sodding word :rotfl: ).

Not only will they have financial advice but legal advice to!

What about your motor insurance? Have they coughed anything up?

And lastly, have you ever thought about giving up the motorbikes?

System

Thanks for the replies, appreciated.

Hi Conor, sorry to hear about your injury and hope all is well.
Having plenty of free time is an advantage, but sorting out two accidents and debts feels like a full time job.
Its true there is not alot i can do about the Inland Revenue and its a priority debt. I have worked out a temporary payment plan with them but it's reviewed every 3 months. I'm sure i need to recheck my tax return records as it maybe wrong and i have never ever made a tax rebate.
Thank you for mentioning CCCS & Payplan, i am now checking out their websites and they seem to have some useful information, more reading.

Hi frosty, yes i'm claiming compensation and i have been trying for a intermin payment but all is failing and my Solicitor has said the other party involved will not pay out a intermin payment until i have had further medical assessment. I have had plenty expecially with ongoing treatment. It's all giving me a headache to be honest. So just sitting and holding tight.

Hi southernscouser, i have visited the CAB on several occasions for little advice, but yes its about time i took all my paperwork with me and lay all the cards on the table and sort this out once and for all. Looks like i will have to make an appointment. My motor insurance has not coughed up a single penny and still waiting even though the other party has admitted liability verbally.
And lastly, i love my motorbikes too much to give up.

Once again, thanks for the replies.

Little_Miss_Winner

Hi Jay,

Just wanted to offer you some support, and well done for being so focused, and not just jacking it all in and going down the bankrupt route.

I think you need to get a little more assertive with your solicitor. Don't forget you are hiring him, and if he isn't working as you like, then i would let him know that you're not happy, and considering taking you're business elswhere!

Keep going, I know it's tough for you, but if you stick at it you will get there in the end.

Regards
pot

System

Thanks for the reply pot'o'gold.
Your right, will let my solicitor know my thoughts in my next letter.

donnalove

also if you go bankrupt you would lose all your compensation as or would want it.
better to try a dmp then try settle some debts yourself when you recieve it.

Biffa

Hi Jay,

Just a quick thought, if you've ever been in the Armed forces you could ask the Royal British Legion for some help.

(I've only just got up, hence the short post)

System

donnalove thanks for letting me know, i wasnt aware of this.

Biffa thanks for the info, only served for a year as reserve. I will check with them.

davek1

Jay

I'm not a 100% on this but i'm reasonably confident that The British Legion is for ALL servicemen regardless of service. Also you could try SSAFA (Soldier, sailor air force association) or something like that might find some help there possibly.