Really need help!!! Debts turning into court summons!

Pandora_2

Hi
Have been reading posts on this forum for ages and trying out things to help my situation but this is my first post so please be nice to me!!

Mini life story - my debts come to approx £16,000 (3 credit cards, 1 loan and 1 overdraft, plus massive water and electricity bills) thanks to my b*****d ex-fiancee!! Am also behind on my rent and getting behind on council tax. Got signed off work in Feb 2005 and have been on Incapacity, Housing and Council Tax Benefits ever since. Have been to the C.A.B. and done an income/expenditure form which shows that if I don't eat, don't pay anything to my water bill and only pay my debts off at £1 a month each then I'm still spending approx £200 more than I have coming in each month :eek:

Now my boyfriend has moved in (also on Incap Ben) and like good little soldiers we told Housing and Council Tax Benefit people straight away - BIG mistake!!! They immediately took away my 25% single person discount and stopped my benefits. Fair enough I don't deserve the single person discount but stopping all benefits was slightly harsh! Especially as 6 weeks on they haven't restarted and have been told it will be at least another 5 weeks till they would restart :eek:

3 of my creditors have been good enough to freeze interest and charges for 6 months and accept the £1 per month payment offered. They will then review the situation. 1 creditor seems to be ignoring all correspondence and have even stopped sending me letters requesting payment (does this mean they don't want their money or are just waiting till they can take me to court?) The other creditor has now told me they won't accept £1 per month and if I don't pay just under £3,000 in the next few days I will be receiving a court summons :eek:

Council Tax and Water have sent me letters saying pay x amount in the next few days or will issue a court summons. Have managed to borrow a fairly substantial sum of money from my Grandma today (again!) which will bring those 2 bills up to date and stop court proceedings, but will be in the same situation again next time a payment is due i.e. unable to pay!

Am managing to eat as am getting food handouts from my Mum and Grandma (both amazing people who have been helping me so much) and boyfriend's Mum, plus as I used to go mad when food shopping have been doing the storecupboard challenge and only buying essentials to make complete meals out of the food I have. Managed to use my cousin's staff discount card today in Iceland which made the bill 10% cheaper and always look out for the food that is best value for money whenever I go shopping (Tesco, Iceland, Aldi, Quality Save, Pound Shops)

Problem is, I can't really see where I can cut back to save money to pay off creditors or even pay essential bills. Have changed to Talk Talk to cut my phone bill and just waiting for the free broadband to kick in so I can stop paying Tesco for it! I don't use the Tesco Clubcard deals as I haven't found any that pay for food, so I just use my vouchers to get food instead. I do ALL the surveys for money/vouchers and spend hours every day applying for free samples, I'm selling everything I can and nothing is helping.

ANY suggestions, help, advice or words of comfort would be appreciated!!!

Sorry for whinging for so long but feels good to get it off my chest!!

In_Search_Of_Me

welcome pandora...suggest that you post a full statement of affairs (known as SOA) which lists ALL you income/outgings so that people can give you handy hints where you may be able to save...also look at the old style board etc as there are sites where you can get hints on how to save on day to day things & also do the benefit chellenge...have you contacted CCS/payplan (links at top of page) who may be able to advise you further...one great thing about this site is people know what its like to be in debt so we dont see it as whinging! We're all trying to get debt free...welcome aboard & bug hugs!...great that you have supportive mum & granny! Couldnt have done without my mum in the last few months...sends me tesco cards!!

fatbelly

Hi Pandora

I think we need to see a full statement of affairs - that's a full breakdown of your income and expenditure and a list of just what you owe to who.

If you don't have kids, two lots of incapacity benefit may be all we have to work on, but I would expect Council tax benefit and housing benefit to cover most of the council tax and rent.

You need to be clear as to which debts are priority (rent and Council tax) and which aren't (all the rest) and that non-priority creditors will always issue threats of court action but rarely take it. The exception here is your water authority which can't disconnect supply but may go for a CCJ. So if we can pay their ongoing bill plus a bit towards the arrears, I'd make that sort of priority number three after rent and Ctax.

Please don't tell me that your benefit money is going into an overdrawn account! Open a new one and keep it in credit.

OK, let's see that SoA.

Sugar_Coated_Owl

Hello, welcome to MSE

could you post your SOA?

Now without trying to pry into your life is there any chance that you shall be returning to work in the near future?

Pandora_2

Hehehe you are all replying so fast I havent got time to post a SOA!!! :rotfl:

Will do it now, some will be estimated (like food as depends on how many handouts I get off Mummy and Grandma!!) but will do the best I can. Haven't managed to get another appointment with the CAB to do a new official one yet including my fella's money and as no council tax or housing benefit it's gonna look horrendous at the moment!!!
My doc is happy for me to return to work when I feel I am ready and actually have a job interview in the morning!! My fella also has one tomorrow so fingers crossed!!!!

SOA coming up shortly!!

lynzpower

good luck for your interviews xx

Just to say Hi, welcome, and glad youve found us

Lots of love
Lynz
x

MCBIRNIE25

Hi Pandora,
sorry to hear of your situation, and well done for asking for help. Always the hardest stage.
Posting an SOA is advisable.
Also, get on to your benefits office, tell them that you need them to process your benefits immediately, as you cannot live. They cannot leave families without money.
Next step, while that is being sorted, ring your local jobcentre, tell them you need a crisis loan to tide you over while you sort the mess out. It won't be much, and will be taken out of your benefits at a very very low repayment amount, even then, they can defer if you are in severe hardship.
My advice would be to ring the council tax people, make an arrangement with them, they will want to gelp.
With the water, you can have your water rates taken out of your benefit at a couple of quid a week, they may deny this, INSIST, my mum gets hers taken out of her income support at 2.40 a week, with arrears.
Let the other creditor summons you, no judge would make you pay more than you can afford.
What do you work as? Some work/professions have things like hardship funds, benevolent funds etc. My union has a hardship fund to help out members and their families in times of distress, there is also a Civil Service Benevolent fund, providing help for civil servants and their families,. maybe you have something similar?
If i can help with anything, please drop me a line.
MCBIRNIE25

Pandora_2

Hi
Thanks everyone already

SOA - worked out monthly

Just me (23) and my fella (22) - no kids

Income
Just mine and my fella's Incap Ben at the moment - £668.20

Outgoings
Rent - £350
Council Tax - £56
TV License - £10.99
Phone - Approx £22
Broadband £18 (but will disappear when get free Talk Talk broadband)
Electricity - £39
Water - £65.48
Mobile phones - £15
Boyfriend's college course - £65
Travel - £80
Food £100
TOTAL - £821.47 :eek: Much more than income

Debts
Halifax Loan - Approx £2,000 (frozen interest and charges - £1 per month agreed)
Halifax Overdraft - £1,866.87 (frozen interest and charges - £1 per month agreed)
Halifax Credit Card - £6,709.21 (frozen interest and charges - £1 per month agreed)
More Than/Lloyds TSB Credit Card - £1,949.24 (no correspondance whatsoever)
Capital One Credit Card - £2,616.89 (says will issue a court summons in the next 8 days if don't pay in full)
TOTAL - £15,142.21

Not looking good!!

Forgot to say I'm applying for a water grant to help with that bill, already try half the Old School stuff and opened a new bank account so no money going into the overdraft apart from the agreed £1 per month.

Spoke to Council Tax people and they said I still have to keep up to date with payments while waiting for benefits and if I don't they will take me to court. Water people said pretty much the same thing. Housing Benefit people said they will only jump my application ahead of others if my landlord is threatening to evict me.

Hope this helps you help me!!!

JayneC

Hi Pandora

Just looked at your SOA. I know you're awaiting housing benefit but when it comes through, presuming you get full amount (which you should). your outgoings will only be £415.47, so will be more managable. Keep ringing Housing Benefit for an'update' as the more you harrass them (nicely!!) the more likely they are to hurry your claim, every time you ring they will have to get your details up and you will be at the top of the pile!!!!

Re court Proceedings - its not the end of the world and once you've made an agreement (which can be £1 per month) your creditors have to accept that and cannot harrass you for more. Also it will not affect your credit rating forever and you probably won't be wanting more credit for a while anyway!

Send Council Tax people your SOA and get CAB to liaise, get proof you have an application pending for HB and have provided all information requested, as this may convince them to wait for claim to be processed.

Good Luck

Pandora_2

Thanks everyone so far.
Will go to the JobCentre tomorrow after my job interview to ask about the crisis loan.
Off to bed now so I'm wide awake and in a good mood for my job interview! Really hope I get it!!
Night all and thanks again
Hopefully some more advice will be here when I log on in the morning!!

Brassic

Good luck for the interview tomorrow!