Advice please help

devona

I am seeking advice regarding my mums BR.Here is a short backround on her case.My mum is 67yrs and after some serious ill health issues she was no longer to keep up her loan repayments.My family were unaware of the loan she had taken out when she was 64, until she became ill.I looked at the loan details and felt she was mis sold this,she was paying £478 pm on a £15,000 loan.I decided to try and reclaim the ppi back way back in June.Due to mums ill health and not being able to return to work we decided to petition for BR,the total amount of debt she had was £14,000.She became BR in september.Today I have received a letter from Lloyds saying that the ppi claim has been successful and after looking over her past loans she is now entitiled to a settlement of £19,000.I am in total shock but how will this stand now that she is BR? Will £14,000 so to her creditors and what happens to the remaining amount.
Please can anyone give advice I really am shocked,its ironic really.If mums settlement had come sooner she wouldnt have had to go BR .

tigerfeet2006

I would hazzard a guess that fairly much all that will go to the OR to pay his fees and then to pay the creditors. Any left at all will then be given to her but I doubt it will be much.

Not 100% sure but I am sure someone will comment on it, but I think if she pays off the OR and the creditors in full then she may be able to get the BR annulled.

EDA: may I just ask who she took BR advice from? Does she own her own home?

devona

BR advice was taken from CCCS and national debtline.We had looked into Debt releif order but were advised to not take that root.I had already written to lloyds tsb regarding the PPI before she petitioned for BR.

tigerfeet2006

Thanks Devona, good to see you covered your bases. May I be nosy and ask why a DRO was not advised?

dojoman

When was your mothers BR?

tigerfeet2006

dojoman wrote: »

When was your mothers BR?

She say's September, which I assumed was this year, though I know it is dangerous to assume

Applied for PPI in June.

dojoman

tigerfeet2006 wrote: »

She say's September, which I assumed was this year, though I know it is dangerous to assume

Applied for PPI in June.

Oooooopps:o:o:o missed that TF

debtinfo

One would assume that a dro was not applicable because there was this large asset waiting to be resolved.

An interesting question is this, is the sent debt with the original creditor or has it been sold on

devona

The BR was September this year,the only debts mum had were Lloyds loan and a m&S credit card.We only petitiond fro BR becaue of her illness she would not be able to pay the debt because she is unable to return to work.Lloyds have offered the settlement due to me complaining about the misold loan and ppi claim.I presume that most of the settlement will go back to Lloyds because £6000 was left owing to them on Br.
I will call her official receiver to find out more but if you guys have any info regarding this I would welcome the advice.

sundays

Im not a expert , but its the fees the OR has that increases the actual BR figure , so whether you would get it annuled i have no idea, however the money belongs to the OR not your mum, to me its a situation where pretty fast legal advise needs to be taken.

Can i ask did you mum miss any payments or become defaulted.
Im finding that to many debt orgs are saying go BR with little detail or further research into the facts and i have experienced those same problems.