Shocked by the advice my mum got at the CAB...

4littleone

Why can't your mum put the house you are renting on the market and use that to pay off the debts then? She could make very small token payments until the property is sold.
If you are aready paying the market rate then you could afford to rent somewhere else.

rog2

purplemoon wrote: »

In particular the statement about my mum 'having her cake and eating it' by RAS.... I found that totally bizzare given that she is the one wanting to make payments within her limited means and the CAB are the ones saying just forget it.

I'm really sorry that you took offence at RAS's comment. RAS is a well respected DFW poster and known for her informed and well researched information and advice. I'm more than certain that she did not make that comment with the intention of causing you any offence.

However - to move on - I accept what you are saying in that your mum is not trying to avoid her responsibility, just that she can not afford to make the normal payments. This happens and there are ways of dealing with it.

If you look at the National Debtline link, that I posted earlier, you will find reference to 'Token Payments', and a template letter that she can use to send to her creditors. These 'Token Payment' can be as little as £1 per week until her situation improves. Creditors don't 'like' them, but if it came to a Court case, a judge would see that she is trying to address her debt situation and this would go in her favour - particularily if one of those creditors/dcas is applying for a 'charge' on the house.

It probably isn't a good idea for her to transfer title of the house to you at this time (she could have done this five years ago, but, then again, who can predict the future). If she did this, and one of her creditors got wind of it, then that creditor might initiate bankruptcy proceedings against your mum (in her absence). If successful, the Official Receiver could view any recent change of title as an attempt to 'move' assetts in order to protect them from her bankruptcy. In cases like this, the Official Receiver has the power to 'reverse' such transactions and also to impose serious sanctions against the bankrupt - if there is the slightest suggestion that such a move had been made 'fraudulently' these sanctions could include imprisonment.

I think she might be best to go for the 'Token Payments' option - this will, at least, buy her a bit of time whilst she seeks, and receives, further professional advice.

purplemoon

Right, that 'token payments' thing does sound potentially useful, I will get her to look into that.

rachaelfleur

purplemoon wrote: »

Today she is re-arranging her stuff in storage (moving it to somewhere cheaper) and has no more 'working days' here. She hopes to continue business stuff from Turkey as she now has the internet and landline there.

Can your mother not sell the stuff in storage? it's seems pointless paying to store things that's she's obviously not using. She could the money towards her debts.

GeorgeUK

As your mother is moving abroad, the UK debts will only affect her credit worthiness in the UK. It would be a different story if she were going to Europe as the rules have recently changed, but they cannot enforce the debts outside of the UK.

As she has property in the UK however, as already pointed out, this could be used against her UK debts. A charging order could be made against the property if she were unable to pay any CCJ amount that the courts decided on and as she will be out of the country, it would be difficult for her to attend any such hearing.

Personally i would write to all her creditors explaining that she will be moving from the UK but also that she will make taken payments until such time as she can pay more towards the debts. She should ask that interest and charges be stopped and if she has paid charges previously, she should try to reclaim these. The debts will probably be passed on to a DCA or similar but they will be in the same situation as the banks. It may be possible for her to offer reduced "full and final" settlement offers to the banks so they are at least getting something out of it. If they are sure there is no other way for them to get thier money, this may be the best option - if she can afford to do this - perhaps 50%.

FraudBuster

Why do folks challenge the advice from CAB without the benefit of a full and frank SOA?

purplemoon

FraudBuster wrote: »

Why do folks challenge the advice from CAB without the benefit of a full and frank SOA?

Cos its bonkers!?

She has little time here and is starting to panic so I said I would post here for her initially. She has not ever used a forum before. I have suggested she give it a go sometime so perhaps if people stop sniping you will get to see her SOA.

GeorgeUK, this is useful too, I will definately get her to look into this sort of thing.

She is looking to sell a few bits from storage but mostly is hanging onto it incase she moves back. It is not like there is a wide screen telly in there or anything. She is hanging onto too much, though, IMO. :rolleyes:

beanielou

Legal aid is most certainly not used to pay for debt advice in Scotland.
If at the end of the day your mum has no disposable income the CAB adviser had no option but to tell your mum not to pay.

sugarpants_2

hugs to your mum..hope shes ok.

patchwork_cat

I am afraid that I find it hard to understand what the CAB meant and why she got legal aid?? However I will say that the atmosphere on here has changed dramatically in the last 3 years or so. However having said that - shrug off the unhelpful comments and the advice by others is usually very sound. Sort the wheat from the chaff and realise that even apparently non contentious threads can be critical.

Your mum appears asset rich and cash poor. Contact another debt advice line and see if they will negotiate very limited payments until some of the asset cash is liquidised.