Need some debt advice

Debt_PostingID

Hi,

I am using a different posting ID for this particular thread because I dont want people to know who I am, due to the whole embarrasment of this situation I am in now.

At the beginning of this year, I moved in with my partner (now wife). Approx around February, a letter was received from the council stating that an eviction order had been placed on our property. I was told the story of how the possesion order was put into place etc, and a long story cut short its my wife's ex partner who was supposed to pay the bills, he got her pregnant and did a bunk. This possesion order was granted in 2007.

Anyways, fast forward to 2010 and the ex partner hadnt kept up the agreed payment plan. He agreed he would pay the debts, which stood at aprox £2000 on the rent, £1100 on the council tax and various other bits and pieces. Then thats when the eviction order was sent.

I dont know why on earth I took on this blokes debt, maybe it was the fact I didnt want to see my step-son and partner on the streets. He's a good lad, he's only 5, and doesnt deserve to be evicted from his house. So I paid the lot. The housing arrears, the council tax arrears (so my wife could avoid prison) and all the other stuff.
This was all paid for using my overdraft from Halifax, which is limited to £5000. Pretty much the whole lot got used, I used the remainder of it to pay the car insurance for the year and the road tax, so after paying the arrears there really wasnt much left.

And, a month later, work just dried up. I was self-employed, and the money just stopped.

Halifax now want their money back, which is understandable. I took the money from them in good faith that I could pay it back, and then the work just slowly started to dry up. Got to the point where I was spending money to work.

I am now in a bit of a bind. I was being charged the £2 per day rate, which has now put me over my overdraft limit, so now am being charged £5 per day. Last months charges were £135, this month is £155 + £50 (not sure what the £50 is for, but thats what I'm being told over the phone)

I phoned them up today and they understood my story, but refused any suggestions I made at reducing the charges etc. I stated that I am in 'hardship' as they call it, we are currently claiming JSA at the moment - although I hate it, its the only way that I can still feed my family.

Things are on the up though. I am soon to be training to be a coach driver, that starts in 2-3 weeks time, just waiting for DVLA to send my license back. Although for 4-6 weeks I am on a 'training rate', when I pass my tests (which they say everyone passes on their second try) it goes up to £21K per year. They seem quite confident that I will succeed in the tests, so hopefully I will!

I explained all this to Halifax, from start to finish. Theres alot more to the story than what I have posted, but I made sure they understood the whole story.
All I got was a lecture. "Why havent you called us", "Where did £5000 go", she really laid into me. I explained that I havent called them straight away, because I didnt want to make a fuss - the hope was that I could get a job quicker than I have and start making some pretty big cash deposits back into the account. Unfortunately, it hasnt quite gone to plan, hence why I phoned them. Then the lady started a lecture again, saying although my intentions were honourable, Halifax wont stand for "misused accounts".

So my account has been cancelled and they have accepted a £10 per week payment, for now. But they want that to increase as soon as I have money coming back in again. They also stated they want me to instruct a debt management company.

Anyone had any similar experiences or can anyone give me some advice? The lady said that my offer was not very good and she was very judgemental, but what would she have done if she had an eviction order placed against her home? Although yes it wasnt mine, I just couldnt let it happen to my family.

Tixy

Hi

In future you'll be best off not calling the bank by phone, as you have found they will be rude and unhelpful.
Best to keep all future communication in writing.

Have you a new account set up away from halifax for your benefits to go in?
Are you and partner claiming all you can in the way of benefits? www.entitledto.co.uk
Do you have any other debts or just this overdraft?

With regards to a debt management company - don't ever go to one who charge fees, you could seek advice from one of the charity organisations or you could look at national debtline website. (you don't have to use any company/charity at all if you don't want to - no matter what halifax say). National debtline has template letters for sending reduced payments or pro-rata payments which you might find useful (they also ask for interest & charges to be frozen, and its always worth asking at least). If halifax keep hassling you for more you might want to send an income & expenditure which shows you are paying all that you can afford.

You need to be aware that they will probably default you and place a default on your credit file. In truth there is not much you can do about this if you cannot pay the overdraft in full, but just so as you are aware for future.

Is OH getting any maintenance for her son? Has she tried to claim some, at least that might be a way of getting something back from ex.

Debt_PostingID

Tixy wrote: »

Hi

In future you'll be best off not calling the bank by phone, as you have found they will be rude and unhelpful.
Best to keep all future communication in writing.

Have you a new account set up away from halifax for your benefits to go in?
Are you and partner claiming all you can in the way of benefits?
Do you have any other debts or just this overdraft?

With regards to a debt management company - don't ever go to one who charge fees, you could seek advice from one of the charity organisations or you could look at national debtline website. (you don't have to use any company/charity at all if you don't want to - no matter what halifax say). National debtline has template letters for sending reduced payments or pro-rata payments which you might find useful (they also ask for interest & charges to be frozen, and its always worth asking at least). If halifax keep hassling you for more you might want to send an income & expenditure which shows you are paying all that you can afford.

You need to be aware that they will probably default you and place a default on your credit file. In truth there is not much you can do about this if you cannot pay the overdraft in full, but just so as you are aware for future.

Is OH getting any maintenance for her son? Has she tried to claim some, at least that might be a way of getting something back from ex.

With regards to benefits, we are getting all we can. I dont like claiming, but I've contributed all my working life by way of taxes so I suppose its just claiming money back that I have put in over the years.

No maintenance is coming in, ex isnt even listed on birth certificate, he couldnt be bothered to show up so he wasnt put on it. The rare £5 comes in, but that hasnt shown for months and when it did it was every 3 weeks. Why do CSA bother? £5 every 3 weeks nowhere near contributes to how much it actually costs. But, we dont need his money. CSA payments means he will want contact. And contact should not be granted, due to him being the most violent sexually abusive man I have ever come across.

Spoke to PayPlan this morning, who are going to send out some income and outgoing sheets for me to forward to Halifax. I was quite surprised that I can actually pay £1 per week if thats all I can afford, the PayPlan lady was very helpful and informative to what can and cant happen. Its likely though that we will keep at £10 per week until I start my new job though, then I will increase it.