I'd really appreciate some advice!

quantumleap

Hi there,

I'd really appreicate some advice. It is for my Mum/Stepfather. First some information. They live together but they are no longer together, she owns the house, he has never contributed to the mortgage, only pays rent. He has been unemployed now for 9 months, he is 57.

He has 6k on an MBNA credit card. In October last year I drafted a letter to MBNA asking if they would accept token payments of £10 per month and freeze interest until his circumstances improved, they refused.

Since then, despite my offers of assistance, he has buried his head in the sand. My Mum has found 11 letters from MBNA under the mattress in his room, concerned she opened the most recent which says that unless he pays in full by 16th March his debt will be sold to a DCA.

I now need to step in, and I will. However, I could be doing with some advice as to what his/my next step is and what we can expect if the debt is passed on, which I assume it will be at this stage.

Thank you in advance.

debrag

Isn't him paying rent contribution to the mortgage? i.e. your mum pays the mortgage and your step dad pays her rent to cover mortgage or bills etc

contact Payplan or CCCS for advice on a DMP or other help

quantumleap

I suppose you are right regarding the mortgage. With regard CCCS etc. he has no income, his jobseekers has now been stopped.

quantumleap

Also, I appreciate CCCS would be a good idea and I will encourage him to make an appointment. However this is unlikely to happen before the 16th. As such are there any practical steps that can be taken to deal with MBNA before this date.

debrag

can he go bankrupt?

why has his JSA been stopped, is it due to his age? If so there is a state pension.

GeorgeUK

Even though they may not accept the £10 payments, they're not going to just throw the money back at him. It will also look better to a court that he is making an effort to pay instead of ignoring the debt.

There is not much you can do before the 16th, but i would look into possibly reclaiming charges for the past 6 years incase this can make a dent in the size of the debt.

quantumleap

Thanks for the advice. His jobseekers was only for 26 weeks, after which it was stopped, even thought he has applied for numerous jobs. With regard pension, can you expand please?

quantumleap

Also, if he was to go bankrupt, how would this affect my Mum's house? It is in her name only and she has no debt to speak of. There is some equity in the property as it was my grandfathers beforehand. My Mum works 30 hours a week and whilst she can afford the mortgage, has little left afterwards.

There finances have always been quite seperate, although I appreciate that his contribution to the household means that we couldn't argue that he didn't contribute at all.

debrag

he has no assets so I don't think it would affect the house.

he needs to re apply for JSA as he isn't working or find a job.

Pensions is from whenever the retirement age is now so he has a way to go till he can get that

quantumleap

Thanks Defrag. He has reapplied for JSA but no word as yet. Finding a job for someone who is 57 and has worked in factories all his life is not easy at any time, never mind in the current circumstances!!