Ideas, please help. Running out of hope fast.

KirstyO

I've got myself into a bit of a pickle basically.

I know I am entirely responsible for this mess, and I am working to resolve it, but any extra help, support and ideas to make things easier are gratefully appreciated.

I have (today) cleared two months arrears on my rent, only to get a court summons when I got in from work for unpaid council tax. I have a missed payment on my utilities, and I have credit cards and an overdraft. I am in the process of setting up a DMP with the CCCS and have applied for a basic bank account to help deal with the overdraft.

As debts go, it's small fry stuff, we're not talking anything over 5k for the lot, but its causing me some stress, and sleepless nights and stuff. I have no savings and a basic monthly income of around 800 after tax. I'm keen to make money any way I can and am due a big sort out for ebay stuff next time i'm off work (w/c 27th feb).

Firstly is there any way to stop the court hearing and resulting liability order for the council tax by offering out of court settlement, secondly where do I start with the priority debts, and thirdly where do I go from here to get back on my financial feet?

Scared and alone

Kirsty

Angry_Bear

Are the council tax included in your DMP with CCCS? I would suggest calling them if not to arrange to add them.

I'd then call the council and explain that you're entering a DMP and intend to include them as a creditor. They may agree to this and stop the court proceedings to save themselves the cost, but they may go ahead with proceedings. I don't know what difference this would make to you in the long run, but I assume you would have to do something to make sure the bailiffs didn't end up hassling you.

Sorry I can't be more helpful, but I didn't want to read and run. CCCS should be able to give you more helpful advice .

KirstyO

I havent added the council tax to my DMP yet, but will request that it's added when I send the paperwork back beginning of next week, I'll also send them a copy of the summons and write the council a letter too Thanks for the input. Hope it will help!

kezlou

Hi Kirsty,

Regarding the letter off the council regarding a court date. Is there an actual date for attending court?
We had the same thing about two days ago, i phoned the council and fully explained our situation. The court date was cancelled immediately there and then on the phone with no extra admin costs added on top.

I was then given an extra two weeks to find half of the money needed to get me up to date. They were very reasonable and sympathetic.

So call them up on Monday and see what they say, have you applied for council tax benefit? You may be entitled to a discount.

Rent and Council Tax are your main priorities.

I would then speak to the utility comapanies and make arrangements to make future payments.But these are secondary, concentrate right now on your rent and council tax. Thats what i'm doing.

KirstyO

There is a date on the letter but it is towards the end of March. I do get paid within two weeks but i'm not sure I'd be able to give them half of the money. I will try calling them on Monday though, thanks for a success story to build on!

caeler

Focus your efforts on calling the county about your council tax arrears and setting up your DMP. Then once you've got that under your belt, consider posting your SOA, see link here: https://forums.moneysavingexpert.com/discussion/107280 then other users can help your find a way to make your income go further. Lots of helpful advice and will hopefully keep you feeling supported and none alone. (Ps. you are not alone!).

kezlou

Kirsty great news! thats means you'll have plenty of time to pay the bill and for them to give you leeway.

Like i say give them a call and see about arranging another set of payment dates and times. You never know the might even place a part of your bill on next years. Not great i know but it helps at the moment with stress.

Keep your chin up!!!

camuk81

Kirsty we had missed 4 payments and the council set up a payment plan running into next year, luckily mine were really nice i explained why I'd had a big change, keeping it short but sweet and they were lovely.

the best thing you can do is phone and have a chat.

DS4215

At a monthly income of £800 after tax, make sure you are getting any benefits that you are entitled to - especially single persons C.Tax discount if you are not already.

KirstyO

Thanks all,

I have written to all my creditors, and will, first thing tomorrow morning, be posting all my documents to cccs to set up DMP. I feel better having done this.

I am moving from a shared house to my own place in a few weeks, so I'll need to get the single person C Tax discount sorted. I read more fully the rest of the letter (that housemate so helpfully decided not to show me) and it said that an offer of payment could be accepted in place of full payment, so I've sent them my offer of payment, just hope they accept it. I'll also be looking into housing benefit with my new place, and working tax credits. I might not get much but anything helps.

Looking forward to keeping you all informed of my progress. Lets hope 2012 will be my financial turning point

KirstyO

Just had some great news from the council, they have accepted the monthly payment offer on the council tax, so no court appearance, i will however have to find another £30 a month for the next year...but thats only an extra day at work a week (every month) so hopefully pull in a few hours overtime each week, and sort stuff out for selling on ebay, and save like a demon to keep enough in the pot for them!