daughters debts

Karonher

What will they do if the car is repossessed? They cant tell the company they cant have it as it is needed for work if the courts say they must give it back?

Have they paid back more than a third?

fatbelly

Karonher wrote: »

Have they paid back more than a third?

Relevant question.

If they've paid more than a third the finance company need to go to court to get a return of goods order.

If they have paid more than a half, they can hand the car back (in theory) without further payment.

Fibromacc

.es your daughters partner may have to walk a way to get to public transport or change buses but it can be done. Failing that they may have to move nearer his work or get a job closer to home

Several points. There is no bus to get him home and no buses on a Sunday full stop.
Moving is not an option where are they supposed to find the money to start a new private tenancy? You need getting on for £2000 by the time you have paid the deposit and the month rent up front and admin fees. We suffer from being 20 mins away from Manchester by train so rents around here are quite expensive. We pay £550 a month for a 2 up 2 down with shared yard. His job is as secure as any job is these days and it's full time and above minimum wage. Which in the care industry is quite unusual. And having been out of work or taken temporary zero hours jobs he needs to stay in his current position unless an absolute dream job comes up closer to home.

Karonher

That still does not explain what they will do if the car is repossessed. I understand they don't want to lose it but need to face the facts that they might. What will they do then?

Tempus01

Your daughter and her partner are very lucky to have you! It's obviously going to be a big stress on you to see what they are going through and not being able to help thema s much as you can. You cna only give them so much advice, the rest is up to them. Is there no one at work that he could share a lift with? I imagine if he's a carer he is on different shifts quite a bit? There will come a point when somethings got to give. Hopefully they realise that before the situation gets worse.


Good luck with your journey!x

enthusiasticsaver

The thing they and you need to consider is the implications of not paying essential suppliers. If council tax is not paid, worst case scenario is prison (unlikely but it does happen). Bailiffs can come round as obviously they have got to this stage. If they have very little for them to take and they do not let them in there is very little they can do except go back to court for attachment of earnings so the fines come out of their wages direct. They cannot take the car though if finance is outstanding on it. Only the car HP company can do that if payments are not met.

If energy suppliers are not paid it is unlikely they would cut them off with a young child in the house but they may make them have a prepayment meter which is the most expensive way of paying.

Hopefully when your daughter returns to work things will improve. You have done as much as you can by suggesting they come and ask for advice here from people who have been in the same position as them and managed to get out of it. If they are in the ostrich mentality though it may have to get very much worse first.

Potbellypig

Fibromacc wrote: »

They are not keeping the car just for the sake of the child! He needs it to get to work as there is no public transport that would get him there or back.
And moving house is not exactly a sensible option. Where are they supposed to find a couplevels of thousand to start a new tenancy? And if they move closer to his job they will be further from her job and again no suitable public transport to get her to work which is in the oposit direction. And only having been in the job a few months after a period of unemployment and a spate of temporary jobs he really needs to stay where he is unless a dream job comes up closer to home which is unlikely. The job is full time and above minimum wage and such jobs especially in the care industry are hard to come by.
It is not an easy situation. Also if they move out of town there would then be higher transport costs. Anyone who has a small child knows that they don't get sick at a convenient time to catch a bus to the drs and if I'm not around it would be the cost of a taxi.

As an idea, it might be worth your daughters partner speaking to his HR and/or Manager and advising them that his financial situation is precarious and he might be losing his form of transport soon. Some companies can be very accomodating in this respect and could look to offer alternatives. Depends on how commited to sorting their situation out they are, and with all due respect, you seem more worried than them (and rightly so, as a parent).

For the record though, I got rid of my car for 7 years, bought a scooter and brought my 2 kids up without the convenience of a car throughout that time. Inconvenient, but a neccesity. Sounds like their current situation is similar.

Fireflyaway

I'm replying because I was in the same situation as your daughter. I kept it secret because of embarrassment and not wanting to upset my parents. We were behind on mortgage, council tax, service charge ( leasehold flat) all utilities, car and had maxed out credit cards and payday loans at one point. I'm pleased to say we got past it and now have no debts and everything is up to date. So take some comfort that this will pass.
The main advice is to be upfront with all creditors. They will have heard it before and most are happy to help by coming to an arrangement.
Above anything get the housing paid for before anything else. You can borrow food and sit in the dark but end up homeless and that's the next level. Same with council tax, its not negotiable.
Your daughter should write down what's coming in and what's going out then adjust everything to get the payments down as much as possible. Its also important to know what are essentials and what are wants. A TV package is not an essential, neither is a gym membership, hair cuts, etc.
Many young people expect to carry on living as they see their parents living and forget that they have a 20-40 year headstart!
Our car nearly got repossessed. I used to hear noises outside and worry it was a tow truck. I even considered hiding it round the shop car park! To avoid this I spoke to the car company who allowed the arrears to be spread over a few months. Have they paid over 50% ? Could returning the car be an option? Then help them get a very cheap run around bought
with cash? Or is public transport an option?
As I said before, things can improve. I'm proof.
Do remember to be assertive when negotiating smaller payments. Most creditors want the maximum and its easy to agree to something that's not sustainable just to get them off your back! Then when you miss a payment they won't trust you and won't then negotiate again..... Write the budget and stick to your guns.
Good luck.

laurenh1

I really feel for your family especially having a baby. Unfortunately I think a lot of people could find themselves in a bad financial situation fairly quickly with a bit of bad luck, especially so young as few young families have the money to manage long term when the sh*t hits the fan unexpectedly. The gpod news is she isn't the first snd wont be the last and its certainly fixable. I would start by asking your daughter to do a budget, firstly of monthly expenses like council tax car etc then look at things like food nappies etc. Then see if anything can be cut back on. At least then when you contact companies she has a realistic budget to give the advisors!! Can she sell anything on ebay or anything to try and bridge any gaps? Go reduced shopping to keep grocery bills down eyc etc xx