Fathers credit card crisis old and infirm

rebel2

My father is 80 years old, has had 3 strokes, cancer and isn't really of sound mind anymore. The problem is he has 3 credit cards and a loan that are being paid out of his pension with help from myself. A few years ago I aquired the right of attorney for him as his judgement for financial matters was getting really scary!. At the moment I am living at home with him as his carerer and using his and my money to pay the bills, and of course the visa payments which take everything every month. The question is how would the credit companies react to me approaching them and asking for reduced payments etc?. I really don't know what options I have, and is now causing me great concern. My father or myself have no savings to negotiate a settlement and we are just treading water at the moment. These visa totals are from over 5 years ago now, and total around £18,000,what would happen if my father should die?, would they want payment from myself?. It is a real worry as my dad won't be around forever,and I feel as if the wolves are near just waiting:eek:

fermi

You are not liable for his debts.

If he passed away, they would be paid out of any money left in his estate. If there is not enough to do that then the credit card companies would have to write it off.

Does he own any property/equity etc?

CLAPTON

you need to tells us more about his financail afairs

his income
his outgoings

does he have any assets... house?

Rafter

rebel,

As Clapton says, you need to fill out a statement of affairs (link below) and post back on here for more advice or even better arrange to speak to a debt charity (cccs, national debtline or citizens advice) about your options.

The credit card companies can only ask for payments that your dad can reasonably afford and the debts will die with him if there are insufficient assets in his estate (house?) to pay them off.

Good luck

R.

http://www.makesenseofcards.com/soacalc.html

rebel2

Hi, His incomings are £200 per week. That includes pension credits etc. Both myself and my father are tenants in common since about 2004 both sharing 50/50. Payments to visas and the loan are £500 a month,and the house bills take the rest with my money too.

fermi

Ok then.

Get in touch with one or more of the organisations in this link:

---

> Non-profit Debt Counsellors' List

They should be able to help him (or you) at the very least reduce monthly payments, and maybe get some interest/charges frozen.

They would want to know an SOA, so the link from Rafter can help you make a start on that.

[STRIKE]As he has no assets the may also discuss the possibility of bankruptcy (or a DRO if the debt is under £15,000). Depends on disposable income without the debt payments. But that is something that only a professional advisor can recommend. I mention it so that you know it might be possible.[/STRIKE]

You may also like to post on the MSE Debt-Free Wannabe board, where there are plenty of people also trying to deal with problem debts.

ILW

fermi wrote: »

Ok then.

Get in touch with one or more of the organisations in this link:

---

> Non-profit Debt Counsellors' List

They should be able to help him (or you) at the very least reduce monthly payments, and maybe get some interest/charges frozen.

They would want to know an SOA, so the link from Rafter can help you make a start on that.

As he has no assets the may also discuss the possibility of bankruptcy (or a DRO if the debt is under £15,000). Depends on disposable income without the debt payments. But that is something that only a professional advisor can recommend. I mention it so that you know it might be possible.

You may also like to post on the MSE Debt-Free Wannabe board, where there are plenty of people also trying to deal with problem debts.

It appears he own 50% of the house.

fermi

ILW wrote: »

It appears he own 50% of the house.

Yep. Mis-read the "tenants in common" part.

Thanks ILW.

rebel2

Hi, I'm having difficulty finding anyone who knows the law of 'Tenants in common'. I just don't know what would happen to my fathers half of the house,or mine for the same reason?.

esmerelda98

You really need to contact a legal professional for advice, but in brief, you and your father own seperate shares of the property, I assume 50% each, but it could be in any proportion (e.g. 70/30). Your father's debts, on his death, would come out of his share only. So if the house is worth £100,000, his share would be £50,000 (assuming 50/50 shares). Assuming he has debts (on death) of £75,000, his creditors would only be able to recover £50,000 from his share of the house. £25,000 would have to be written off. I presume you would have to sell the house to give them the £50,000. However, if your (you and you father's) financial affairs are more entwined, it may not be this straightforward.

rebel2

I was thinking if we can have any percentage split, then could I have it changed lets say 95/5 in my favour?.