How can I help??

wishing_well

Just had a conversation with my sister to clarify some details.

When she went to court, it was for 50% of a joint debt (about £45k in total). This was suspended by the judge for 6 months as she did not have any capital after essential payments (not sure of the official wording). Her husband has had his court case 'dismissed' due to my sister's case - unsure what they will now be doing to collect this debt. The judge suggested bankruptcy as he could not see a way of ever paying the debt back.

They have other creditors chasing them - I advised sending the standard letter to each of them offering £1 a month, not sure if this is the right thing to do.

She believes that once you are BR, all debts are written off. Surely they will need to pay something back from their income? Is this what an IPA or IPO is all about, or am I totally wrong?

Thanks all for your helpful comments x

debtinfo

Yes this is an IPA, Basically if you can afford to pay something then you do for as long as you can afford it up to a max of 3 years, Regardless of if you can afford to pay or not the debts are written off, so if you cant afford to pay something then you dont and the debts are still written off

wishing_well

debtinfo wrote: »

Yes this is an IPA, Basically if you can afford to pay something then you do for as long as you can afford it up to a max of 3 years, Regardless of if you can afford to pay or not the debts are written off, so if you cant afford to pay something then you dont and the debts are still written off

Thanks - she thought that she would not have to pay anything back at all. My understanding is that, for example, if your take home pay is £2000 per month, your bills and essential spending is £1500, then the OR can ask you to pay £500 towards your outstanding debt. Is that correct?

debtinfo

Almost, If you had £500 spare after all your bills that is what they call your surplus. The OR will take between 50 and 70% in this example 70% would be taken as the surplus is quite high. So the OR would take £350pm and they would keep £150 to do with as they wished

wishing_well

debtinfo wrote: »

Almost, If you had £500 spare after all your bills that is what they call your surplus. The OR will take between 50 and 70% in this example 70% would be taken as the surplus is quite high. So the OR would take £350pm and they would keep £150 to do with as they wished

Thank you for all your advice - it has helped me so much.

Is this a voluntary payment, or enforcable by the courts?

debtinfo

they always try to come to an agreement first but if they cant then it can be enforced by the court

wishing_well

Hi not been on here for a while, but could do with some more advice please.

I have spoken to my sister and asked her how she got on with sending the letters out with the £1 cheques, but she still 'has not got round to this'.

I am worried that she is not taking the situation seriously, she has about 9 or 10 creditors still after her, had her landline and sky tv cut off, and says she does not know if she wants to go BR yet.

I have serious concerns for her and her family, but dont know what to do to help as I am going to end up like a nagging cow, and that is the last thing I want to do.

I think she will only realise when the next lot of bailiffs actually get inside the house and take her belongings.

Any suggestions on what I can do, or do I just leave her to get on with it?

confused76

it's good that you're trying to help your sister, but sadly you can't really do any more. it's down to them to make the next move. you've done a lot for them but now they need to act and you can't do it for them...all you can do is be there for them x

wishing_well

confused76 wrote: »

it's good that you're trying to help your sister, but sadly you can't really do any more. it's down to them to make the next move. you've done a lot for them but now they need to act and you can't do it for them...all you can do is be there for them x

Thats what I thought too x

tigerfeet2006

She obviously hasn't had her lightbulb moment yet and as Confused says there is nothing more you can do but be there when the !!!!!! hits the fan and help her as much as possible.

You've started the research, you know what needs to be done so when she comes to you, you can sit her down with a cuppa and help make the call to National Debtline (or who ever she decides on) with her and support her.

Until that moment unfortunatly, no matter how frustrating it is, you will just have to wait. Remember the saying "You can lead a horse to water....."