Advice needed please.

Mrs_Bones

Asking on behalf of a family member. He split up from his wife 18 months ago and the divorced about 1 year ago. When they were married he had credit in his name, but he gave his then wife the money each month to pay it off from her bank account, or so it he thought. It now appears she never paid any of this money off and they are chasing him for the debts as his name was on the agreement.

This all came out a couple of weeks ago when he received a letter about some mobile phones she took out in his name after the divorced and didn't pay for. That bit has been sorted and they are now going after her for fraud on that matter. Now though all these other debts have come out into the open and the credit companies are now chasing him. He's no proof he's gave her the money to pay off these debts so he's in a bit of a mess.

They are threatening to make him bankrupt if he doesn't pay up but basically he can't, since the divorce he rents a room and has little spare money after paying bills etc. He does work full time at the moment but is in ill health himself, he's 61 and takes home £220 a week.

Does anyone have any advice please.

egrescrimp

How much does he actually owe? the majority of companies don't want to bankrupt people, they just want to scare people into paying. The limits for a DRO change soon along with the bankruptcy limit, he might qualify for a DRO which would write off his debts after 12 months and he can then relax going into his retirement.

How long realistically would it take for him to pay the debts off?

Mrs_Bones

egrescrimp wrote: »

How much does he actually owe? the majority of companies don't want to bankrupt people, they just want to scare people into paying. The limits for a DRO change soon along with the bankruptcy limit, he might qualify for a DRO which would write off his debts after 12 months and he can then relax going into his retirement.

How long realistically would it take for him to pay the debts off?

Thanks for the reply egrescrimp.

He doesn't actually know the full amount, he's got a figure of around £4000. but they keep talking about other figures but nobody is giving him a total. After his living expenses there is little left so it could take him years to pay off even the £4000 never mind a higher figure.

I've told him they are just threatening him with bankruptcy to try and get him to pay up quicker but as that's simply not possible he's trying to see what his other options are. He's talked about going bankrupt himself just to get rid of them but looking into it, it doesn't seem cheap to even go bankrupt. He rents a room, he's no intentions of getting another home, he never get a mortgage at his age and his wages anyway. He's got a car that's 15 years old but without it he wouldn't be able to get to work at all as his job is in a rural area with little to no public transport. Other than that he's got a few sticks of furniture and his clothes so he's hardly asset rich.

Sorry don't know what a DRO is. I just said I'd put his situation up here to see if anyone could offer any advice, he's got an appointment with CAB next week.

egrescrimp

If it's under £20,000 (the soon to be new limit), he's best going for a Debt Relief order and that costs £90. You can find more details about DRO's at https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/

They need to be quick if they want to make him bankrupt for £4,000 as it goes up to £5,000 soon: https://www.gov.uk/government/news/improved-help-for-people-struggling-with-problem-debt

alastairq

As an alternative source of information, try:

http://debtcamel.co.uk/debt-options/guide-to-debt-relief-orders/

regarding DRO's?

I agree with egrescrimp too...a DRO is likely to be the best bet all round. {it is a low-cost, easy-to manage form of bankruptcy]

LoveLifeAgain

I could be missing something but it would it not be best to sit and let them bankrupt him at no cost to himself. Chances are they won't as the cost will be too high but it sounds like he will not have to pay an IPA if they do.


So sad that he paid it and the money did not find its way to pay off the bills.


Good luck to him

TheGardener

Rather than sitting back and being passive and letting the creditors make him BR - there is a lot to be said for taking the initiative and taking back control of your life and finances. Once sorted - the OP can get on with building up his life a little before retirement.