Debt and redundancy

new_glov

Hi , I hope someone can help me. I have been off work for 8 weeks with depression and other problems following a heart attack a couple of years ago. I have had to take redundancy because of the above but have personal debts of about 32K due to my stupidity. I will have no income as I will be off sick and my husband doesn't know. My mortgage is safe and so far I have never missed a payment on anything but I have been robbing peter to pay paul. The only money I will have is 6k redundancy.

never-in-doubt

new_glov wrote: »

Hi , I hope someone can help me. I have been off work for 8 weeks with depression and other problems following a heart attack a couple of years ago. I have had to take redundancy because of the above but have personal debts of about 32K due to my stupidity. I will have no income as I will be off sick and my husband doesn't know. My mortgage is safe and so far I have never missed a payment on anything but I have been robbing peter to pay paul. The only money I will have is 6k redundancy.

do you need credit, i.e. could you live without it for 6 years? If so then obvious option is to not repay, legally! However it may affect you getting a remortgage etc or swapping providers for at least 6 years....

Look at this post for details: http://www.consumeractiongroup.co.uk/forum/general-debt-issues/162851-consumer-credit-agreements-guide.html

earplugs

Hi new glov

I'd recommend making a claim for contribution based employment and support allowance (the new name for Incapacity Benefit) - you can claim that even though you've had a redundancy payment. The claim line telephone number is 0800 055 6688. I'd make a claim right away as getting ESA can in some circumstances help you with making interest payments on your mortgage.

Also, you might want to think about making a claim for Disability Living Allowance due to your heart attack and/or depression. If the heart attack has left you with feeling out of breath when you do things or if the depression makes you feel like you need help from time to time, then its worth making a claim. The benefits enquiry line number is the number you ring to request a Disability Living Allowance claim form. the telephone number is 0800 88 22 00 and if you need help with filling it in you can go to your local citizens advice bureau and they will help you fill it in.

With regards to your debt I think it would be worth you doing an income and expenditure form. But you will need to do your whole household, including your husbands income and expenditure. Its completely up to you but I think it would be such a massive weight of your shoulders if you told him about what you are going through.

You can get an income and expenditure form from the national debt line website (google national debt line). And if you wanted to post it on here along with your debts then there are loads of us on here who will help you out with what offers, if any, you can make to your creditors.

Good luck, everyone is right behind you.

new_glov

Hi

Many thanks for that advice. I am really worried about my house being taken from me. None of my debts are tied to the house but as I will have virtually no income coming in I am worried they will take it from me.
I have a bank loan for 14k
A flexible loan for 5K
A credit card with 2.5k and another with 9K
The bank loan is also linked in with a 1500 overdraught and the 2.5K credit card.

iolanthe07

If none of your debts are secured on your house then they cannot take it from you. They might apply for a charging order, but even if granted by the court, that would only come into effect if and when you sell the house.

earplugs

as iolan says don't worry about your house being taken.

you might want to think about getting a basic bank account to have wages/benefits paid into, as you have the bank loan with the o/d at the same bank and a credit card with them too.

if you got a basic bank account with someone else then you could treat the loan, cc and o'd as other non priority debts, whereas if you stay with them then they may want to take the money in your account to pay the loan and cc leaving you with no other money to pay the flexible loan and the 2 other cc's.

You can go to any bank for a basic bank acount (you just don't get an O/D) - heres a link to a factsheet with the Financial Services Authority about basic bank accounts:

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

never-in-doubt

new_glov wrote: »

Hi

Many thanks for that advice. I am really worried about my house being taken from me. None of my debts are tied to the house but as I will have virtually no income coming in I am worried they will take it from me.
I have a bank loan for 14k
A flexible loan for 5K
A credit card with 2.5k and another with 9K
The bank loan is also linked in with a 1500 overdraught and the 2.5K credit card.

I really think you need to seek professional advice. This is not a clear cut case and to be honest the answers you'll get on here (credit card thread) will not help you one iota i'm afraid, as you've seen from a couple of replies you've already had!

Sorry to be the bearer of bad news but I am telling you the way it is which does sometimes hurt. Personally, i'd look to write debts off (use the 6k and do an IVA or similar) or even just refuse to repay and let them issue you a default. Its not an easy decision whatever you do.

Edinburghlass_2

new_glov wrote: »

Hi , I hope someone can help me. I have been off work for 8 weeks with depression and other problems following a heart attack a couple of years ago. I have had to take redundancy because of the above but have personal debts of about 32K due to my stupidity. I will have no income as I will be off sick and my husband doesn't know. My mortgage is safe and so far I have never missed a payment on anything but I have been robbing peter to pay paul. The only money I will have is 6k redundancy.

Have a look at the Work & Benefits boards for some help regarding what benefits you can claim..

http://forums.moneysavingexpert.com/forumdisplay.html?f=167

and the Debt Free Wanna board for further help especially regarding the fact that you haven't told your partner...

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

debtdestroyer007

hi
sorry to hear about ur situation.
defaulting on ur debts is not going to resolve the problem as increasingly creditors having obtained a final charge can in some instances force sale through the courts....

in my opinion, waiting for 6 years is not an option as most lenders already know ur financial situation...
if i may suggest, speak to ur partner.
there is only 1 solution that will protect the property - an IVA but its quite an important decision to make.

even if u go to CAB or some charity, i can assure you that in most cases eventually creditors will apply for a charge on the property to secure their interests post a judgement.

hope this helps, any questions pls ask
thanks

earplugs

i didnt say claim contribution based JSA, but contribution based Employment and Support Allowance which is the new name for Incapacity Benefit, and yes you would qualify to make a claim for it, despite what never in doubt has said.

As for DLA, it is your right to claim this if you have a medical condition, please don't let people put you off claiming what is your right to claim - doesn't mean you will get it, but you shouldn't be put off making a claim for it.

Swans1912

Do not place the £6k in an account linked with one of your creditors.. otherwise they have the right to help themselves to it!