Bankruptcy for one debt in Scotland........

sweedart1

Hi Everyone,

I am writing this on behalf of my mum who lives in Dundee Scotland. My mum has recently retired. She had a loan and still owes £12,000 to Lloyds TSB. At present she is paying £310 a mth.

However as she is not working anymore she has asked the bank to reduce the payments as she will only get her pension now. She has worked out her cost of living and after paying her rent, council tax etc she will have around £150 a mth left.

My mum has offered to give £100 a mth, meaning the loan will not be paid up until she is 72, but the bank has refused on 3 occasions.

My mum did get some money on her retirement, around £8000, but does not want to use this for the loan.

Can anyone give me any advice for her? Is it worth her going bankrupt? This is the only debt she has. Or does anyone else know who else could help if she doesnt go bankrupt.

I would be grateful for your help.:):)

Thank You

Herbie_Hancock_I_wish

Bumping up but wouldn`t ya Mum get some help re rent and council tax?

broxiebear1

first thing to do is make an appointment with cab ,citizens advice regarding loan. with your mum having 8grand if she tried to go b r then they would be interested in it.
im no expert but cab are or someone with more imput will be along soon
broxie

Herbie_Hancock_I_wish

I do think it might be better to use the 8k to pay off a big chunk of the loan and then have a look at this.

https://www.turn2us.entitledto.co.uk/entitlementcalculator.aspx?AspxAutoDetectCookieSupport=1

UnderPressure

I agree with the others as well it is going to be very difficult to conserve this 8k if she goes down the bankruptcy route, the only other thing I can think of doing which is risky as hell and not that sensible really but thought worth mentioning, if she is not bothered about her credit rating she could simply open a bank account elsewhere then stop paying for the loan, ultimately this will completely kill her credit files but it would put her in a position to "negotiate" with Lloyds on lower payments, if the account is in default they should be a bit more open minded to an arrangement, but this is not guaranteed especially with her age and if she owns any property could result in all sorts of complications, I mention it because creditors are not that willing generally to negotiate such things until an account drops into default they are then more concerned with getting something back as opposed to nothing.

As said though she needs to seek professional advice before going down this route, if she owns property there could be big repurcussions and it may well prove easier to just hand over the 8k then go from there, or they may do a deal with say £3600 reducing the payment months for £100 a month by 3 years.

HTH