We're very confused!

Ajworth

Hi everyone. Is there anyone out there that can offer some advice please?

My folks have just had to go to the CAB to get some help with their debts. Things have been against them for a while and now they need some help. The CAB have put them in touch with a debt management company who have calculated a repayment plan. Our question is do all debt management companies leave so little to live on or do some allow more for living expences? The CAB lead them to believe although they wouldn't have a lavish lifestyle, as you would expect, they would be ok. This doesn't seem to be the case. Although only 3 of us live in our house my disabled sister and her 2 children are here every evening for a meal and support. Any advice would be hugely appreciated! I have more questions if anyone fancies a challenge!

Thanks in advance. Aimee

downnotout

Firstly I am not saying the CAB have done anything wrong, but can you check to see that they have used a Debt Management charity to administer the what sounds like a Debt Management Plan (DMP) and not a debt management company (who will charge a fee)

RAS

Hi

It is most unlikely that creditors will accept that your parents are funding your sister and her children; they would expect her to contribute to the cost of a meal if it was more than very occasionally.

Ajworth

Hiya

Yes it does seem to be a charity one that they've used. The CAB said they would be best off to go bankrupt but they have a house and don't really won't to loose it if it can be avoided.
I'm really sorry I don't have all the information but I'm just trying to help them and make sure this is right. Thanks

pure_dead_dopey

Hi Aj

I think the debt charities differ a wee bit in their allowable amounts, so it wouldn't be a bad idea to get a "quote" from Payplan and CCCS to see which one suits you better. It would also be a good idea if you put up a SOA which would let us have a wee look and point out anything that is sticking out as too much. We're with CCCS and the budget is very reasonable, just different from our previous lifestyle.......... Remember, no one will judge and if they are feeling a bit isolated, it might help them to know they are not alone and certainly not the only ones in a bit of a pickle!

whatatwit

If your sister is receiving benefits or tax credits for herself and the children, then could she look to pay for the food and your mum cook it.

concerned43

Did the CAB do an Income/Expenditure sheet for your parents? If they did, they (the CAB) have the amounts that they know the creditor will accept for living expenses - back to the CAB if they have not done this.

fatbelly

I'd be a bit concerned if it wasn't CCCS or Payplan that they referred your folks to.

Payplan lay on a lot of training for CAB debt advisers so they tend to get referrred to a fair bit.

I slightly prefer CCCS meself...

If it was Payplan I hope they resisted any sales pitch on insurance.

JCS1

Ajworth wrote: »

Hiya

Yes it does seem to be a charity one that they've used. The CAB said they would be best off to go bankrupt but they have a house and don't really won't to loose it if it can be avoided.
I'm really sorry I don't have all the information but I'm just trying to help them and make sure this is right. Thanks

Is there any equity in the property? If none or very little, then they might not lose the house if they decided to go Bankrupt.

Ajworth

mum has told me they've been left with approx £600, which is for food and cleaning materials for 3 of us(as I live at home and contribute as much as I can to the household budget which Payplan have been told about..thankfully none of us smoke and drink (although mum does love a diet coke)and we all take packed lunches and drinks from home for during work. So from that £600 they also have to deduct mum's car expenses (dad has a company car) their clothes and shoes, grooming expenses and hair (but mum hasn't had her hair done since 15th December last year because she hasn't been able to afford it) dentist and optician expenses. They allowed dad £120 per yr for his gardening hobby but nothing for anything else - which they haven't got now anyway because they can't afford anything. They never go out because they haven't got anything left When they saw the CAB they were told that although they wouldn't have a great deal they would at least be able to afford to have 'a life' which they don't have now. I know they realise that this problem has to be dealt with and its been so hard for them to admit they have to had to ask for help. I know at the moment they're up to date with all their payments and have never missed one mortgage payment but this month is the month they've run out options and have now been forced to ask for help. I'm hoping someone can tell me if it has to be this bad for them.

fatbelly

Yes, it sounds like it's in the right ball park, Aimee.

Thought it would be Payplan...