What are hubby's choices?

ali2012

My husband has a credit card debt of just over £6000 ( its been brought about by years of job losses and redundancy, swapping from one credit card to another to gain advantage of the interest free credit periods so he could meet the minimum payments each month) Around 12 months ago the minimum payments increased from what he was already struggling to pay to what was nearly treble and impossible to pay. He contacted the credit card company (MBNA) and said he would not any longer be able to reach the minimum payments each month and sent them a breakdown of in and out goings. They seemed to drag their feet over this but while a minimum payments was trying to be reached my husband lost his job which he informed MBNA of straight away, we were waiting for correspondance from MBNA then my husband suffered 2 heart attacks and emergency heart surgery plus a shoulder injury so his claim for JSA went to a claim for ESA. On discharge from hospital he contacted MBNA again and stated what had happened. MBNA said they would freeze the interest and cancel his credit card and would still send my husband a monthly bill telling him to pay what he could ( which was a token payment of £5 per month) They did state in a letter that his debt may be sold onto a 3rd party and after 9 months they have done this ( without letting him know, he found out after contacting them because his monthly bill hadnt arrived) On contacting them he was told that his debt had been sold on to a company called Arrow Global he asked for this to be put in writing which he hasnt yet recieved but he has recieved a request from Arrow Global asking for a run down of in and out goings. My husbands ESA is £65 per week, my wage is £106 per week our rent is £42 per week and Council Tax is £15 per week along with food, gas, electric, water rates etc there is little to none left at the end of the week.
So what he would like to know is what can he expect from Arrow Global? he obviously cannot pay to clear his debt there are no assests, no savings, he does own a car worth from what we can gather £850 to £1000.
Is he entitled to apply for DRO? if he did apply for DRO would that affect me in any way? ie:- would my car be taken into account? even though the debt is not mine
Are there any other options available for this situation?
Awaiting your reply
Thank You

[Deleted User]

Didn't want to read and run, I am sure somebody will be allong to help, it's quiet on here at the moment.
The DRO would impact you due to being linked, but if it needs to be done it needs to be done. They can't ask or make you pay though of course.

You could agree a really small monthly payment, maybe try the £5 again...

Good Luck and hope everything works out well

rising_from_the_ashes

Hi Ali - sorry to hear things have been so tough for your DH and his illness - the last thing he needs is to be worrying about money.

I'd advise speaking to one of the debt charities (numbers in the sticky at the top of the thread) as to the best way forward - whether it's a DMP or DRO, they'll be best placed to advise but will also deal with the creditor which will take a lot of the stress away from you and your DH. Best of luck

fatbelly

ali2012 wrote: »

Is he entitled to apply for DRO? if he did apply for DRO would that affect me in any way? ie:- would my car be taken into account? even though the debt is not mine
Are there any other options available for this situation?
Awaiting your reply
Thank You

From what you say, a DRO is an option. Your car is not taken into account (his is, obviously, but if it is valued under £1000 on Parkers Guide, it is ignored).

If he goes for this now, then the credit card debt is dealt with. Alternatively he can hold this as one option in case more debts emerge. But the other options may not be realistic:

(1) pay what he can as a monthly instalment. This may take an unreasonably long time
(2) raise say 30% and offer in full & final settlement to Arrow, who have probably bought the debt for half that amount. May not be possible.
(3) ignore Arrow and see if they take court action in the next 6 years. They might.