Debt collectors want proof of income - self employed 1st year

Solly

Hi all,

Hope you can help me - couldn't really decide which section to put this in, this seemed most appropriate to me as I do want to be debt free! sorry if I've got it wrong...

The situation is - I owe £200 to LLoyds. I do not dispute this and want to pay it back (well, not really but I realise I have to!). It's an old overdraft I couldn't pay back 2 years ago.

It's gone to debt collectors - great, I think, time for a payment plan. So I rang them today after their first letter to me and offered £20 a month, which they refused. I am self employed and this is my first year self employed and I earn VERY little, have no savings, and I cannot pay them the full amount now. The collectors say they need proof of my small income within the next 7 days or they will push for the full amount NOW.

I am not a homeowner, I recently moved in with my partner after a period of homelessness (I was not working and did not qualify for benefits) and literally, I only own my car plus a pile of junk, like bedding and books that would be worth nothing were they to be taken.

My question is - How can I prove my income when I am in my first year of self employment? within the next 7 days! I could do my self assessment for last year, but this will take longer than that to process. Other than that, I have my tax credits form but that is currently based on my estimate of last tax year's earnings and I doubt that will be acceptable as the collectors won't take my word on anything

what else can i do?

I'm a very craeful person moneywise but circumstances have been way out of my control and it's tough clawing your way out. I feel proud though that I only owe a £530 in total and my student debt as we stand today :beer: but this means nothing if these collectors won't play ball

Ames

I really don't think it's gone to bailiffs. Have you been to court, failed to keep up to the court set repayments, and been to court again? If not, then it's just debt collectors.

They have no right to see your proof of income at all.

Solly

Yes, sorry - I thought they were all the same people - no this is as faras it's got so far - Lloyds left me alone for 2 yrs or so and now this is the first contact I've had from the 'debt collectors'. They refused to discuss any kind of payment plan until they have proof of my low income. It was either that or payment in full NOW.

Solly

I've edited the original post to correct that, thanks

Ames

They can't have what you don't have. Make them an offer that you can afford, and pay them that. To be honest, from what you've said, £20 is too high. If you say an amount that you think'll make them happy and fail then that'll look bad on you. For £200 they're 99.99% certain not to take you to court, even if they do then the court will look favourably on you for paying something each month.

Never ever talk to them on the phone, they can bully you and say things that aren't true, which they can't do in a letter. Just write to them and send a Postal order for what you're prepared to pay.

Solly

wow - thankyou! :T

BeautyandtheBeast_3

very knowlegeable people on here!!