Some input/advice would be much appreciated!

missylou_2

Hi,

I have been posting on the DFW thread for a while now, and have been advised that you guys would be more knowledgeable regarding the current situation.

http://forums.moneysavingexpert.com/showthread.html?p=5721051#post5721051

If you don't mind taking the time to read it I would be very greatful for any advice you may have to offer.

Thank You.

fermi

Hi missylou.

I've just read that thread and the help and support you have been giving your sister is fantastic.:T:T

The advice regarding dealing with DCA's has also been spot-on. While she is making monthly payments these must be affordable and in proportion to each debt. She must stick to her guns over the amounts, only deal in writing, and pay the amounts regardless of any silly games that the DCA's wish to play.

Assuming that you are here asking about the possibility of an IVA or bankruptcy in your sisters case, there is one thing I must say to start off with.

She must get professional advice regarding these options. Particularly for bankruptcy the court/judge will require that she has done so before a bankruptcy will be granted.

I read that she is in contact with CCCS. Have they suggested insolvency as a viable option in her circumstances? Have alternatives such as a formal debt management plan run by CCCS or Payplan been discussed?

Do you have any particular questions that everyone on this board can help you with?

missylou_2

Thank you for your reply,

When she spoke to CCCS they actually suggested insolvency as her most viable option as her income and expediture are almost level due to a big change in personal circumstances.

She was not dealing well with her situation to begin with and chose to pursue a self managed DMP instead. However her creditors are constantly harassing her about increasing her payments. She will be paying several of them for over 30 years at her current rate.

fermi

In that case it sounds as if it a case of her coming to terms with the reality that insolvency is the best way forward. Believe me that's not easy for the strongest of us.

However, it exists as an option for the very purpose of helping people out of such deep trouble. And it is survivable.

OK, credit records will be shot for 6 years, but they will be anyway in her case.
You are limited in the bank accounts you can get.
A future mortgage will be difficult, although apparently not impossible.
If asked have you ever been declared bankrupt she will have to answer yes.
Plus other effects.

But when needs must, and as said it is not the end of the world.

missylou_2

you are right her credit rating is non existent! But after the impact that this is having on her health and mental state, (haven't seen her smile in a long time!) I don't think credit will hold any appeal to her ever again!

She already has a basic bank account with no overdraft, debit card or cheque book that I made her open last month, and her previous bank has reposessed her account with them now.

As a teacher chances are that she will not be able to mortgage anything more than a static caravan at any point in the future anyway.

Does she go back to CCCS to make the next step, or will they not help as she told them before that she did not want bankruptcy?

fermi

If you want to read more about IVA's/Bankruptcy there is good info on:

http://www.insolvency.gov.uk/guidanc...bankruptcy.htm

Then check out many of the other factsheets at:

http://www.insolvency.gov.uk/guidanc...ets/Guides.htm

and perhaps: http://bankruptcysupportersclub.co.uk/default.aspx

Plus lots of info on the payplan site:

http://www.payplan.com/individual-voluntary-arrangements.php

http://www.payplan.com/bankruptcy.php

And on National Debtline:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=26_individual_voluntary_arrangements

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

Plus we can try and anwer any questions as well.

philnicandamy

missylou wrote: »

Does she go back to CCCS to make the next step, or will they not help as she told them before that she did not want bankruptcy?

she should go back to them & discuss the possibilities of BR if thats the path decided on..just because she's changed her mind they won't hold anything against her...if she's bothered about going back to cccs try somewhere else instead...they will help all they can...all she has to do then is fill out the paperwork & save money for the BR fee

fermi

missylou wrote: »

Does she go back to CCCS to make the next step, or will they not help as she told them before that she did not want bankruptcy?

I think CCCS are very used to people being indecisive and reluctant to go down that route. I'm sure they've seen people have to backtrack before, and I'm sure they will help again. As before, she just needs to bite the bullet and ring them.

EDIT: exactly as phil said. :D

In the end it is her decision and she should explore every option using all the professional advice she can get her hands on.

Links to the other charitable advice organisations are in my signature. Being told the same thing or being given the same options from different sources might help settle things in her mind.

missylou_2

Thank you to everyone who has posted, and also to those who have taken the time to read this thread!

I really appreciate the advice and can never fully express how greatful I am for it, and will use it when I see my sister at the weekend.

I have to admit though that I posted the thread because I felt so guilty for letting my baby sister sink so deep before I actually noticed that there was a problem.

If you all don't mind I will keep you updated and probably be frequently asking for advice as well!

wherediditallgo

fermi wrote: »

I think CCCS are very used to people being indecisive and reluctant to go down that route. I'm sure they've seen people have to backtrack before, and I'm sure they will help again. As before, she just needs to bite the bullet and ring them.

EDIT: exactly as phil said. :D

Exactly as phil & fermi said. I was told by CCCS that going BR was my best option - instead of paying attention, I put my head back in the very deep hole in the sand it had temporarily come out of. It stayed there for six months. When it finally dawned on me that I was getting nowhere like that, I went back to CCCS expecting a huge telling-off at the very least. That didn't happen - they explained that a lot of people do exactly what I did. They went through my finances with me again to get the updated info, which proved even more conclusively that going BR was my only choice & this time I went ahead.

When you're trying to mentally acknowledge a load of debt you can't pay each month, the last thing you need is an organisation that's supposed to offer help standing in judgement. CCCS didn't do that with me, & it's largely because of them that I'm in a much better position now. Your sister should definitely speak to them again - their only objective is to get people into a position where their debt problems are resolved.