Mental Health and debt

chriskloof

Hi there! I wonder if anyone could help? I suffer from mental illness which has totally destroyed my life over the last 10 years and left me quite badly in debt due to being unable to work in recent years.

Most of the debt was incurred during manic episodes and I have been paying voluntary payments for several years from my benefits. However the payments don't even seem to cover the interest levied on them and my credit history is trashed. Several banks wouldn't let me open any kind of account even with my mother as joint holder.

So Im thinking with me still being ill is it worth just lending some money from my parents and having myself declared bankrupt? Surely it couldnt be worse than this?
The banks have been absolutely awful to myself and my family. Despite explaining the situation from the very begining they have been unhelpful,aggressive and literaly forced me out of the family home to escape the 8.30am to 9pm barrage of calls! Despite the humiliating process of revealing pretty personal information to a stranger on a daily basis they wouldnt stop till finaly the voluntary agreement was set up
So Im thinking screw them anyway :P

Other Idea was to claim back my bank charges and try to levee some sort of deal with the bank to settle on the original amount of debt minus interest. Maybe even threaten to make a harrasment claim after the damage they caused my health with their collection techniques

I am concerned however at the lengthy process and stages. While Im flying high today trying to get a grip on my affairs, I have no idea how I will be in a few weeks. Has anyone used one of the 'agencies' who do it for you on commision?
Is it maybe worth trying to find a solicitor to take the whole thing on?

I just want to get rid of all this baggage because it seems like Im just sinking deeper by doing nothing..

Sorry this is so long! Thankyou for reading this far

chris

scooby1001

Chris. Hi. I am in the same position as you. My debts also have been run up while manic. How much do you owe? Do you get dla?

I thought about going bankrupt myself by have managed to increase my income with dla so am slowly cutting away at the debt(£7,000) I found thinking about going bankrupt made my mental health worse so have put that on the back burner.

Because my moods are very up and done my mum has taken out a lasting power of attorney over me which means i can't do ANYTHING without her consent and i also added comments to the credit reference files stating that i suffer with scitzo-affective disorder and i am not to be given credit. I also got a letter from my Psdoc stating the same thing which i sent to all my creditors.

If i can help in any way let me know as it sounds like we have the same problem. It is always good to talk to others in the same boat

xJannax

Hello Chris,

Sorry to hear your problem. I am in the same situation as you, today I was told that I need to live in the real world by a barclaycard employee, well that didn't go down to well with me and I got out my tree. I offered an amount I can afford but no that wasn't good enough.
What is the voluntary agreement you made? I was told to ring CCCS Debt place.

Don't know what I should do.

xJannax

Hello Scooby,

Three of us in same position, I'm at wits end today

chriskloof

Yes I finaly managed to get DLA sorted to the point where I can afford to live and use electricity etc. Now they want to review how much I pay which would probably mean goodbye most of my DLA frankly Im not willing to go back to living off 10p noodles and being harrased by bailiffs while TRYING to remain sane :P

You both have my sympathy the banks really dont give a damn and I doubt their collection staff are particulary aware of mental health issues. Fortunatly my parents sorted out getting them temporarily off my back after I ended up having a complete breakdown from the stress. I even lost a big patch of hair that thankfully grew back.
Ive lost count how many times we faxed them Psdoc letters,mental health team letters, they still would ring again the next day. Yeah Scooby I had to give my parents authority (that was another nightmare) Just so they would stop harrasing me.

ahh well Im enjoying feeling ok today. Its empowering to actualy be able to get somthing done haha.

my debts wernt that high to be honest. Initialy anyway I reckon probably 4-5 grand now.

Janna you need to get some help with that before it crushes you. I think mine was through the csss place. Ill have to check. Go see someone at the CAB as soon as you can. Its nice just to be reasured its not the end of the world by someone in the know. I think the banks are much more likely to co operate with support agencies than ourselves.

xJannax

I too today felt like I could manage the phone calls to try and sort out the mess, but soon as you get onto them they crush you straight back down again. I feel bad most days and am on seroxat, I find it hard to go out at the best of times, hence looking online for some help.

lolababy

Have you spoken to mind . They are really helpfull. Banks can write off money owed if you have a mental health problem.They are not allowed to harass you. Never give them a phone number and if you have change it.
Banks will go for a final settlement usually a fraction of the amount owed.Get you mp involved and tell the banks you will go public with the way they have treated you.
Always ask for the most senior person in the bank as they are the ones with the power to sort out payments.Dont let them bully you into paying more than you can afford.
Get in touch with watchdog . Banks dont like things in the public eye.

chriskloof

Yeah I was thinking along those lines. Im gonna start the ball rolling over the weekend. Maybe we could all team up and send our letters together.

Empowerment of the bonkers

MissKJ

I feel a little like an intruder here, as I don't have the same problems with mental health as you, however, the advice is surely the same as most other debt problems - taking contol, maximise income, reduce innecesary waste and seek profesional help form a free service such as payplan and CCCS? Would the reduction in stress and pressure not help the mental health issue to stabilise? It is a wonderful feeling for every one to be in control.

chriskloof

I cant speak for anyone else but having that debt gone would help me wonders!
The problem being its often harder for people with mental health problems to access the help you mentioned or take control of situations. Often due to social phobia, anxiety problems or as I find just the inability to think rationaly while ill. If it wasnt for my parents help Id have been out on the streets and god knows what else by now.

But your right! I think the same rules apply here as with any other debt situation. Ive spent the afternoon reading through the forum and I think I have my plan of attack.

I just dont see the point of the banks destroying people for debts they are unlikely to be able to ever pay back while they remain ill. Im not saying write off debts but atleast freeze them until your condition improves enough for you to work. I didnt really find the voluntary agreement to be that great. Its just pumping money into the banks without actualy reducing the debt at all. Im really looking for someone who will mediate somthing with the bank to clear the debt totally.