advice please

spenderblender

The letters have started rolling in now from the companies since the IVA failed so it will definately be this year that we go b.r.
I have been writing to the companies saying that I am prepared to pay £5.00 per month to stall them until such time and they are agreeing.
However, I have had one this morning from fairfax solicitors who are acting for max recovery. I have sent them the usual letter of the £5.00 offer and now they have wrote back demanding that I send them a full questionaire they have sent for me to fill in stating personal details, employment details, income details and housekeeping. They have also asked for two most recent wage slips, two months bank statements and proof of any benefits. Failure to any part of this will result in action to recover the full amount by other means.
Do I have to send this to them or can I do something about it. I thought that if I made a token offer nothing could be done.
Thanking you in advance. Any advice greatly accepted.

IF

Hello SB, is a Debt charity helping you?

spenderblender

thanks for replying. No, trying to get help round my way is like finding the end of the rainbow. No one there when you ring and and when you finally get through they can,t see you for months.

Sunnylooloo

SB - I got all my letter templates and help from National Debtline - you can speak on the phone?


When I arrange my short term agreements I never sent any proof of my salary etc - i just sent and Income and Expenditure sheet from National Debtline along with their template letter

Personally like wishes has said I think that some advice from one of the debt charities.

spenderblender

thankyou, I will phone debtline now. Just tried citizens advice again to no avail.

Sunnylooloo

It may take a little while to get through - but please stick at it - I was on hold to them for a while but when I got through I felt like i got real one to one time and nothing was rushed

IF

SB, going through a debt charity will help.They give you a Ref No. you can quote on the token £1 payment letters and this will buy you more time to save for fees. Also these days you need this, as the judge will ask if you have been advised by a debt charity that BR was your only option.

Please click on Blue links below.

For ‘essential’ info this is Fermi’s sticky at top of the forum:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

These are the most used Debt charities:-

http://www.citizensadvice.org.uk/index/getadvice.htm

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/

More Debt charities also on Fermi’s link:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
If...x

shelley_and_mum

Hi im really really looking for some help!!!!!,i have just been made redudant and received a payout,however,i have an i.v.a. and they have said that if i get a job they want it all or will settle for a final payment of £9,000.I live in council accomodation and will have to claim housing benefit,but,if i pay the i.v.a. what they are asking then will housing benefit refuse my claim as i have "deprived myself of capitol"?.This is a really stressful time for me as losing my job was a huge shock,i dont have a partner so have to finance myself.I understand that i.v.a. take a redundancy as a "windfall",which is ridiculous as i dont feel that losing my job was "good luck",or an unexpected win!!.If anyone can help me i would be hugely grateful.I have spoken to my i.v.a. and they cannot help with the housing benefit issue,and really are mainly concerned about getting their money,(which i understand),but i dont want to lose my tenancy,nor do i want to make a settlement to later be told by housing benefit that i cannot claim!.There seems very little help out there for this issue,has anyone else experienced this? it is an extremely frustrating time in my life so ANY help or advice is greatly appreciated!!,
thankyou...xx

lino1977

hi there splenderblender

i too had a run in with fairfax solictiors and max recovery DO NOT SEND ANY INFORMATION LIKE THAT as they do not need it just stick to your guns and say thats all i can afford i did that they soon backed down.

daveyboy27

Okay, firstly you can get an DRO (Debt Relief order) to cover debts of £14,999 and under. Over and above this and bankruptcy is your only option or an IVA (Individual Voluntary Arrangement) which sees you pay your creditors a set agreed amount in the pound over 5 years in most cases. If you own a home you would be likely to lose it to pay creditors.

Deal with priority debts first. Council Tax is a priority debt. If you do not pay it you can go to prison for up to 90 days, or be made bankrupt or have a Charging Order secured against your own home. Mortgage payments are also classed as priortiy debts. Loans and unsecured debts like catalogues you cannot go to prison for not paying. They tend to be far more agressive in their approach, but have far less power. Do not pay a company to deal with your finances. They costs hundreds of pounds a month doing very little. All you need to do is pick up the phone to companies you owe money to or write to them.

How to do a financial statement
Write down all income coming into your household every month
Write down every single payment going out and every outstanding bill
If your outgoings are greater than your income you have a problem

How to address your debts
Do not bury your head in the sand. Tackle the debts head on. You can get help from Citizens Advice Bureau or the Community Legal Advice Centre for free.
You should make an offer of a small token payment per month on a short term basis to non priorty debts.
Make sure that Mortgage payments/rent payments and Council Tax are paid by agreeing a payment arrangement you can stick to and will not default on.
Make a budget to stick to afford essential goods. For example a strict budget of £50 a week on food, Cut back on non essentials. Cigerettes, alcohol and holidays are classed as luxeries. Basically if you can live without it, it isn't essential.

Priority Debts
Council Tax and Business Rates
Mortgages
Rent Payments
Court Fines
Utility Bills - Gas and Electricity
Child Support & Maintenance payments
Any Tax bills
Car loan- if essential for work ie self employed delivery driver

Non Priority Debts
Credit card debts
Car loans - if not for work
Satelite TV payments
Phone bills
Unsecured Loans
water bills
Money lent to any friends and family

It's always worth checking if you are entitled to any benefits. Contact your local Council's Housing Benefit Office. If you live on your own, you are entitled to a 25% Council Tax reduction. You must apply to your local Council's Council Tax section.

As rightfully mentioned below. You won't go to prison if you really cannot afford to pay, just if you can and choose not to.

debtinfo

Hi daveyboy, at the top i assume that you mean a DRO rather than an IVA

Although generally in the right direction i just wanted to point out (as to not scare everyone) that only people unwilling rather than unable to pay their council tax get sent to prison