Martin (and everyone else) - Help, Help, Help!!!!

Mandy27_2

Dear all

I'm at a complete loss!

I've been posting on another debt website for over a year now and the advice is fantastic and I've picked up real tips on how to manage my finances. Unfortunately, this current problem isn't mine but my parents and is way beyond what I feel capable/competant to deal with.

My parents sold up and moved to France in September 05 with a view to opening a B&B. I had a call from my mum on Thursday to say my dad had been hospitalised after a nervous breakdown. I got on the first flight out there on Saturday.

Basically, whilst over there with my mum trying to get to grips with the finances (which my dad has always dealt with) I discovered that when they sold up in England they hadn't payed off their English debts as was planned. I estimate they have £50,000 debt with loans and credit cards.

They have no income, the B&B is at least 6 months away from being ready, the house is still a building site and they have taken out a 67,000 Euro loan with a French bank to finish the work on the house.

The reason they have no income is because they had planned that the B&B would be up and running by July this year but there was a fire and they've had terrible trouble with contractors.

My father was retired early from his NHS management job over here due to ill health (both physical and psycological issues) part of the reason they decided to move to France. He had Income Protection Insurance with Norwich Union which was paying out until August this year, saying that he was fit to go back to work, despite the fact that doctors reports said that if he did go back to work he was likely to relapse. They were relying on that insurance money as income to keep them going until the B&B is up and running.

I've got several problems to try and help sort this out.

1. Power of Attorney from what I can make out can only be given over by someone of sound mind. He has signed a letter giving me authority to deal with his financial affairs but I'm coming up against opposition. I've tried to cancel his mobile phone contract with Vodafone and Nationwide have provided me with a list of standing orders and direct debits as well as their current balance but said they can't provide any more information without power of attorney.

2. The French loan has a clause in it which states they should have no other debts - I'm concerned this could be considered fraud.

3. I need to do a statement of affairs which I'm working on at the moment with my mum but its going to take time, if you can imagine the mind of someone having a breakdown, that's what the paperwork was like a complete muddle. The problem is their living expenses are in Euros but debts are in pounds, its really confusing. Should I do one in Euros and one in pounds.

4. I need to try and contact their creditors and offer £1 a month minimum payments, when I explain the situation I am worried their reaction will be that if dad is in hospital indefinitely they are unlikely to get anything back and file for bankruptcy. Then what will happen.

5. They don't have an NHS in France so at some point we are going to have to pay for dad's care. They didn't get round to sorting out any medical insurance over there, I don't know what to do about this.

6. I am a little overwhelmed by all this and I'm not sure where to start, I think I need some professional advice but I can't afford to pay for it and my parents certainly can't. My dad tried the CCCS before but they said that because he had no income they couldn't help.

I know some of these things may be outside the remit of this board but I really need some advice and to know I've got some support out there.

I've got two sisters but neither are really in a position to help me with all this, I feel completely alone and I'm so worried my parents are on the brink of going under, what would that do to my dad?!

Some preliminary advice if there is any would be really welcome right now.

Thanks

Mandy

duncans-mum_2

Mandy, sadly I am unable to offer any advice on what is a very worrying situation for you, but I wanted to post my virtual support. I personally think that you do need some professional advice though. I really hope you can get this worked out. Look after yourself as well, you'll be no good to anyone if you get burnt out over it. Do your sisters know of the situation? Although they may not be able to help financially, surely they can take some of the burden from you?

justruth

Perhaps get your sisters to organise some stuff in the UK and get your dad brought back over here to get better. How's you french? Find out where the land lies with the Euro loan, and then when you get the professional help you know what you are looking for, and what you need.

Don't take on too much yourself, as this is what made your dad sick. I would question the insurance payout though, if he was medically signed off, they surely cannot decide that he is fit enough?

Best wishes either way.

Snich

Hi,

Really sorry to hear about a very difficult situation. The only bit I know anything at all about is health issues... obviously it is important that he gets the treatment he needs, but investigate what he is entitled with from E111, the reciprocal agreement between Euro nations for health care.
Sending hugs,
Snich

lazza_w

Hi Mandy, really sorry to hear about your problems. My wife has ongoing mental health problems, so I understand how difficult that is to deal with, without all the additional money problems.
I just wanted to echo the E111 post by Snich, just what I ws thinking when I read your post. I am afraid the other stuff is out of my league. Professional help may be required.
Make sure you look after yourself. Talk to your friends and keep posting here - you are no good to anyone if you start suffering from the stress that you must be under. A big virtual hug to you!

dizzy_lizzie

Mandy I'm sure some solicitors still offer a first free consultation. It would be worth giving some a ring and finding out. Any advice they can give would hopefully be of some help.
Sorry that's all I can offer. Good luck x

evie451

Mandy so sorry to hear of all this trouble that has landed at your door and your parents must be so grateful to have such a caring daughter.
I am not much help on the power of attorney but the business property side... you should take expert advice on the French property and loan as soon as possible. How viable is the business? Will your mum be ok to finish the project and start the business up? Even though the house is a building site it is still an asset they have do you think you might have to sell it?

The "no other debts" thing sounds a bit like the standard security we have in Britain ie you are granting a first charge over the property and the bank want to make sure it is a first charge. Assuming the loan is secured against the property have you found out yet? As I said I give property advice here not other EU.

letitcomedown

There are some dedicated sites for expats in France: https://www.livingfrance.com and https://www.totalfrance.com have some really good info.

I think your parents need to get back to the UK ASAP, not least because mental health care in a different language isn't exactly ideal. I would contact the UK consulate in Paris to ask for advice about benefits and healthcare on their return.

Re: the house. It can be pretty hard to sell a part-renovated house in France. Depending on how close it is, maybe you could try to find an English-speaking project manager to finish off the work with a view to selling it when completed? Usually project managers can figure out the legal side as well as dealing with the contractors.

Re: healthcare. Usually in France 2/3 of the cost of healthcare is covered by the state and 1/3 by the recipient (or insurance) except for some very serious or life-threatening illnesses which are covered at 100%. E111 is unfortuantly only for emergency use for short trips, if they have emigrated then it's an E106 or E121 (retired) that they should have. It's a lot cheaper than the UK anyway.

Good luck in any case.

beanielou

Sorry to hear of your difficulties
Cant offer any help Im afraid but welcome to MSE!

tyllwyd

What a mess! I have loads of sympathy for you trying to sort this all out.

Like you said, I think you really need some professional advice - have you tried the Citizen's Advice Bureau at least?

I am I right in thinking that your parents have no income (or only your dad's pension), their only asset is a part renovated house in France and they have a loan in France and £50,000 debt in the UK? On the face of it, I would have thought that bankruptcy might be their only option - without an income, how are they going to convince creditors that they are going to repay? It sounds tough, but there are people on this board who have been through bankruptcy and if things really are that bad it might actually be a relief for your parents.

dancingfairy

I just wanted to say hi. You need to work out whether the france bb is viable or not still as said above can your mum finish it off or not.

You also need to figure out where the best place for treatment for your dad is- would he be better in england with english treatment and in familiar surroundings or would he be crushed by having to come back to england?

As said above perhaps the bankruptcy thread will give you some ideas about that as I agree with tyllwyd that with no income coming in and such hefty debts it may be their best option - although not sure how it would be different in france though.

Anyway that's just my thoughts on it. Just wanted to say I hope things start to get better for you as it sounds really tough.