Help me help my neighbour - debt solutions sought.

fenceposttortoise

Help!
I need some pointers to assist an elderly neighbour TODAY on how to deal with a debt mess.....
Long story short, pensioner, asset rich (owns home outright etc.), cash extremely poor... (not enough to meet outgoings)
She has turned to me for help as she has been quietly accruing debts and they have now overwhelmed her - I am due at the house in 3 hours to start trying to sift through the paperwork and see how bad it really is, but I have already seen solicitors letters from at least two creditors, one of which was a final demand before pursuing CCJ..... this is the one I will be starting with.
My plan is to call all these creditors and offer them a small initial payment, say £10 to try to stave off imminent proceedings to give us a little time to establish how big the debt hole is and go from there.
Does anyone have any useful, structural advice to help me keep the creditors at bay, structure a plan or proposal they are likely to be happy with for moving forward or just anything that may assist? All suggestions welcome.
For clarity, she isn't trying to default on the debts, recognises they are all hers and wants to pay them off.... there just hasn't been enough money from her pension to pay for basic needs like food and clothing and meet one-off exceptional demands and she has just buried her head in the sand...... I have stepped in to try to dig her out.

Vkz

I would call national debt helpline whilst you are with her, quickly go through figures because offering £10 maybe too high and she may only be able to offer £1 a month if her income is low.

Grumpelstiltskin

Whatever you do don't panic. DON'T phone any creditors and contact either National Debtline or Stepchange straight away.

iolanthe07

As she owns her house outright, she may want to look into equity release. But take independent professional advice - there are sharks out there.

missbiggles1

Make sure she's claiming any benefits she's eligible for - if she has only a low pension she should be claiming pension credit.

Longer term, downsizing or equity release are likely to be the best ways to go.

fenceposttortoise

Onto National Debtline now.

We had been exploring equity release prior to this... she has had numerous (3+) reputable companies visit to assess - they have all done their property visits, surveyed etc. and then turned her down. So far the capital in the property remains un-accessible. Downsizing is the very very last option - her over-riding wish is to remain in her (family) home until death. I am trying to help her fulfil that wish.

To my knowledge there are no benefits being claimed. I will explore eligibility in due course.
What I would really like to do today is stave off the imminent CCJ as that will only compound the existing debt - any thoughts on a logical way of achieving that?

Grumpelstiltskin

Has she actually received a CCJ or is it just a threat?


If it is just a threat then there is no panic today.

fenceposttortoise

Solicitors letter with a number of options for resolution presented and a deadline for action (3 days ago :doh:), beyond which Solicitors pass to County Court for judgement. So, no, no CCJ as yet.... that's why I am trying to prevent it.

Grumpelstiltskin

The problem is the creditor will have probably done their research and they will realize that there is equity in the house.

Muttipops

What is(are) reason(s) given for the refusal of equity release?

Grumpelstiltskin

Muttipops wrote: »

What is(are) reason(s) given for the refusal of equity release?

I wondered that too.


Is the house in poor condition?


If so how does she intend to maintain it?