advice needed for son's debts

sheiky

Hi
My son has got himself into a lot of debt which he is having managed by BAINES AND ERNST debt management company.
But another debt has just reared its ugly head and its for about £4500. It was for a TRAIN2GAME course which he only done for a year,costing him £135 a month. It seems rather unfair he has to pay that much back. This debt has put his debts up to about £10,000. He is only on minimum wage.
This is all very stressful for me as I have just been undergoing cancer treatment.
Does anyone else have any ideas what he can do about this company,I have even considered him going Bankrupt,does anyone think that is possible?
Regards Sheila

VitaK

He should seek professional advice if he is seriously considering Bankruptcy or similar options. This is not a quick and easy path.

quantic

Hi Sheila,

I know this is a very stressful time but please try to keep things in perspective. It is only money after all, it may cause a bit of inconvenience and annoyance but it can all be resolved in the end. Try not to get too worked up about it.

As suggested above, you may want to speak to a professional about this:

http://www.cccs.co.uk/Services/Debtadvice.aspx

Don't be to quick to jump to conclusions like Bankruptcy, I hope you get everything sorted and it doesn't cause you too much additional stress.

paulmapp8306

GET RID OF BAINES ANd URNST "!!!!!

They charge for managing his debts - a whopping 15% a month of his payments go to them. There are free agencies - CCCS and Payplan who do exactly the same for free.

Creditors are unlikely to stop charging interest on accounts managed by B&E (they may lower them) as they see money going to the management company that could be going to pay off the debts.

Change ASAP !! Both CCCS and Payplan will assess his income/outgoings and suggest payments he can actually afford - including this new debt. £10k is a lot and an IVA may be better than a DMP, however I cleared a £40k debt on a DMP - it took 11 years mind, its not quick.

sheiky

Thankyou all for your advice,I will talk it over with him and my husband.
I might be a bit dumb,but what is IVA and DMP?

DS4215

While it is worrying that he has run up so much debt, he has to be responsible and sort it out. You can advise him and point him in the right direction, but if he does not learn from his mistakes he will repeat them in future.

sheiky

I agree,we are hoping he has learnt by it,don't know what he done with the money,he won't tell us,it is mainly loans and bank overdrafts,he has nothing to show for the money,what a shame! He is nothing like us,we don't buy anything unless we have the cash.
Thankyou

sickasachip13

Hi there

If there's nothing at all to show for it, I'm sorry for being blunt but I think you need to be asking some serious questions - could he have a drink / drugs / gambling problem?

In relation to DMPs etc. Have a look at the National Debtline website, I've assumed you're in England/Wales, so this would be the link (have a look at the drop-down menu for fact sheets on them):

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php

If you're somewhere else go to their main site and select.

SAAC

sheiky

we did think it might be gambled,he did use to go to the casino sometimes. He does not drink and I know the signs of drugs,he is not doing them. Possibility he got scammed,he used to be in contact with an asian girl? think he used to send her money.
I will look into all options with him.
:T

AndyPanned

He may well qualify for a debt relief order, this depends on his assets/income etc. Talk that over with the CAB, it costs very little, around £50 I think. Think of it as bankruptcy lite.. not sure what Asian girls have to do with debt but hey ho

fatbelly

Did you get those TLAs (three-letter acronyms) explained?

IVA Individual Voluntary Arrangement. Probably not a good option here due to the fees

DMP Debt Management Plan. He's on one at the moment - how much is he paying and how much do B&E take for themselves?

DRO Debt Relief Order. May well suit him if he meets the criteria. £90 fee. B&E can do them but may be best to get a second opinion anyway from CAB, CCCS or similar.

If he intends to add the new debt to a DMP, he should ask how they've calculated the £4500 charge and see if it is justified by the terms and conditions. If he's bunging it in a DRO, it doesn't really matter.