Should they declare bankruptcy

Gwenig3

This is a question for my Dad. He is 76yrs old and has owed the tax office £6000 for years he has paid £20 a month for years. Although this is now not enough. He has sent a expenditure form, but they have disregarded this and sent his debt to debt collector. He lives with my mum and they both receive state pension and live in a council bungalow. Everything in the home is in my mums name. Can the debt collectors take items out the house the clear the debt. They are getting worried and don't need the stress. Would bankruptcy be the answer. Any advice greatly appreciated.

owlet

The best thing to do would be to ring Step Change or one of the other free debt charities. If you make the call, they could speak to you once your Dad has given permission. They are very good and are there to help.

The options depend on a range of circumstances, which they will go over with you. If bankruptcy is the best option, pop back and the very knowledgeable people on here can help with the SOA to ensure that nothing is forgotten.

The judge at a bankruptcy hearing will want to see that your Dad has sought proper advice anyway, it's a big decision to make - although for some people it's the only answer.

debt_doctor

Hi,


Dad needs to seek advice, perhaps from CAB or National Debt Line. If Dad owes less than £15000 (£20000 from October) than if dad has no assets a DRO would be a better option - less complicated than BR and much cheaper at £90.
Also debt collectors can't take anything from anyone's home- only a bailiff can do that (and you can deny a bailiff entry to the house) - if dad has not been taken to the county court then there are no bailiffs.
DD

banksshouldworry

If your Dad only owes £6,000, then bankruptcy is unlikely to be the right solution.

Call StepChange on (0800) 138 1111 for free impartial advice on the best way forward.

Also, tell your Mum and Dad to NEVER answer the door to a debt collector and never let the !!!!!!s into the house. Ignore their idle threats.

A court will look at your Dad's willingness to pay as well as his ability to pay back what he owes. Creditors need to be reasonable and can only push so far.

- banksshouldworry

alastairq

As Debt Doctor advises....the best solution all round for Dad is a DRO.

But ensure all creditors are included, not just a select few.

At his age, a DRO would settle things once and for all....no payments hanging around, and so on. Also, at his age, worrying about one's creditworthiness isn't a very high priority.

With A DRO, he has nothing to lose.....everything to gain [peace of mind, the most important aspect, eh?]

DorisTrousers

Did they (including Mum by the way) ever go through with the debt help spoken about in your previous thread https://forums.moneysavingexpert.com/discussion/5122042

Sometimes calls of this nature can be daunting, especially for the older generation, so I can only encourage you to get them to engage with that process as soon as they can. At least one DRO would have been paid for by now had the £20 per month payment been diverted towards the DRO process.