Need Advice As Major Debt Problem

bigdec

A relative has major problems he is 42000 pounds in debt which is loans and credit cards and a 7000 pound over draft almost to its limit and he has just lost his job and he is seperated from his wife. He has no assets no income and he is with a company called all clear finance for a IVA.

What are his options in regarding to the debt as the other part if the Question is that he has had a breakdown due to the stress of everything thats going on in his mental state is he liable for the debt .


Any advice would be appricated as he is going to need every bit of it.

Emmzi

If he wasn't mentally incapacitated when he signed for them, yes, he's liable - subsequent stress has no effect.

His credit rating is shot anyway, if he has no income how is he paying rhe IVA?

If he is unlikely to get an income again soon, I'd suggest he speak to CCCS or Payplan and discuss if bankruptcy is his best option.

bigdec

Emmzi wrote:

If he wasn't mentally incapacitated when he signed for them, yes, he's liable - subsequent stress has no effect.

His credit rating is shot anyway, if he has no income how is he paying rhe IVA?

If he is unlikely to get an income again soon, I'd suggest he speak to CCCS or Payplan and discuss if bankruptcy is his best option.

He had a breakdown 20 years ago and has been trying to overcome it since then he has had his hi and lows but all the debt has been from the last 10 years approx . Up until last month he had a well paid job but he does not know that he has been dissmised, as at the moment he is in hospital being looked after . He was paying a IVA company called all clear finance to sort out his debt. He is getting seperated from his wife as well .

james32_uk

He needs to speak to his IP as soon as possible. It will be possible for them to suspend IVA payments for a short time but if he cant sort out an income in the next 6 months they're likely to have to make him bankrupt.

On the plus side this isnt necessarily a bad thing. He'll be able to make a clear start without debts hanging over his head and get on with his life.

Emmzi

bigdec wrote:

He had a breakdown 20 years ago and has been trying to overcome it since then he has had his hi and lows but all the debt has been from the last 10 years approx . Up until last month he had a well paid job but he does not know that he has been dissmised, as at the moment he is in hospital being looked after . He was paying a IVA company called all clear finance to sort out his debt. He is getting seperated from his wife as well .

The trouble with breakdowns is that the effects tend to come and go... it'd be near impossible to prove that
1) he was incapacitated on the days he signed the loans
2) the banks should reasonabley have known of his condition
3) he hasn't had a moment of clarity in the last 10 years which led him to query the loans

So realistically, a legal claim on mental health grounds against the lenders isn't an option.

Just didn't want to give a false hope there...

PS is his wife joint signatory on any loans? Can she help out here? Just a thought. She might be willing to help even though they are separating if she knows his condition.

bigdec

Emmzi wrote:

The trouble with breakdowns is that the effects tend to come and go... it'd be near impossible to prove that
1) he was incapacitated on the days he signed the loans
2) the banks should reasonabley have known of his condition
3) he hasn't had a moment of clarity in the last 10 years which led him to query the loans

So realistically, a legal claim on mental health grounds against the lenders isn't an option.

Just didn't want to give a false hope there...

PS is his wife joint signatory on any loans? Can she help out here? Just a thought. She might be willing to help even though they are separating if she knows his condition.

Since his breakdown approx 20 years ago he has always been under the supervision of a doctor and he has been on drugs to control his mental state .I dont think that the banks were ever aware that he had a breakdown.

His ex wife is not a signatory on any of the loans but she put all of the household bills in his name he has no assets as she did not let him put his name on the deeds of the house.

bigdec

james23_uk wrote:

He needs to speak to his IP as soon as possible. It will be possible for them to suspend IVA payments for a short time but if he cant sort out an income in the next 6 months they're likely to have to make him bankrupt.

On the plus side this isnt necessarily a bad thing. He'll be able to make a clear start without debts hanging over his head and get on with his life.

The IP are not aware of the fact that he has lost his job or that he is being looked after as we are not sure how long he will be cared for by the hospital.

sparkle84

bigdec wrote:

The IP are not aware of the fact that he has lost his job or that he is being looked after as we are not sure how long he will be cared for by the hospital.

Hi as James says he will need to speak to his IP asap or someone in the family will have to get power of attorney as the IP will bankrupt him if he misses any more payments.

Re his mental health he appears to have be able to hold down a job until recently so I agree he won't have a leg to stand re diminished responsibility for the debts.

Obviously letters from the hospital and his consultant to his creditors may help but without sounding unsympathic he or someone in his family needs to deal with this situation as it isn't going to go away.

john_kent

He needs to see a solicitior with regards the house , he maystill have a claim against her.

Continued debt even through an IVA may not be good for him. Bankruptcy , followed by a year of proper advise and help from doctors will see him making a fresh start.

No debt , no divorce worries , he will have two big worries out of his life. Unavailabel to get credit and he will not fall back into debt.

I would lokk at bankruptcy if he is too ill to work.

kar

I thought you said he was married and getting separated. If so and he has been paying all the household bills for the past 20 years he does have assests in the house whoevers name is on the deeds. The divorce courts should rule that he has been supporting his wife in the house by paying the bills and therefore has a share of the property that was their home even if she was paying the whole mortgage as they will argue that if she had paid half the bills then he would have been paying half the mortgage.

bigdec

sparkle84 wrote:

Hi as James says he will need to speak to his IP asap or someone in the family will have to get power of attorney as the IP will bankrupt him if he misses any more payments.

Re his mental health he appears to have be able to hold down a job until recently so I agree he won't have a leg to stand re diminished responsibility for the debts.

Obviously letters from the hospital and his consultant to his creditors may help but without sounding unsympathic he or someone in his family needs to deal with this situation as it isn't going to go away.

For what ever reasons that have caused him to have this breakdown when he was in the hospital we found out that he has lost his job due to a incident that happened at his work and that he was fired because of gross misconduct but the incident happened when he was suffering with the breakdown. He is not aware that he has lost his job.