Pip and debts

mum2one

This is a new one to me, but I’d don’t know the answer...

Friend of mine is in debt, one of her creditors took him to court, ( he states he never received any paperwork), from there... they went for a ccj

He’s been told he had to pay £50 a month.

He’s on benefits (esa and pip), the solicitor acting fir th3 credit card company told him that pip gets taken into account and they want payments from that.

An6nhelp / advice would be very much appreciated so 8 can pass on, he’s bluffed them for time to Monday b4 he has to ring back

micky2phones

Hi, IMO you need to ask your friend to write down income and outgoing, that should show have much is left each month to put an offer to them.

Without that they dont know whats left each month, find out the right department and send it off recorded delivery, keep a copy yourself, put on a date say 14 days later you will make the 1st payment

Leave a few days phone up ask if they have your letter and your offer of payment, write time, day and who you spoke too, ask them to confirm in writing your offer.

You may have to do the same in 3 or 6 months, just to update them. Incase your income has changed.

Keep all records as should it go to court you can show the courts you are paying all you can,they will know that you have done all you can so going to court is pointless.

As i say its my opinion, but thats what i would do

National_Debtline

mum2one wrote: »

This is a new one to me, but I’d don’t know the answer...

Friend of mine is in debt, one of her creditors took him to court, ( he states he never received any paperwork), from there... they went for a ccj

He’s been told he had to pay £50 a month.

He’s on benefits (esa and pip), the solicitor acting fir th3 credit card company told him that pip gets taken into account and they want payments from that.

An6nhelp / advice would be very much appreciated so 8 can pass on, he’s bluffed them for time to Monday b4 he has to ring back

Hi mum2one


PIP should be declared on court forms, but it is not intended to pay back debts. That means your friend can show the outgoings it needs to be spent on. Some people choose to show the PIP as an outgoing under 'adult care costs' but it is possible he may be asked to provide more detail on what those costs are.


Your friend can try and negotiate a more affordable payment plan directly with the claimant of the CCJ, but if that doesn't work there is also an option to apply to the court to vary the payments. The application usually costs £50, but given your friend is on ESA it is unlikely he will have to pay the fee. The whole process is explained here https://www.nationaldebtline.org/EW/factsheets/Pages/varyingpaymentsonaccj/instalmentsonaccj.aspx


Bear in mind that once a CCJ is in default, the claimant can consider further action such as bailiffs. That means it's best to try and resolve the matter as quickly as possible. If your friend needs any further help he can contact one of the free debt advice agencies. I hope it all goes well.


Susie
@natdebtline

DorisTrousers

May be an idea to get further advice from one of the charities. Most on ESA and PIP will not have assets to worry about, such as property and it is likely that a true disposable income will be lower than £50.

In that instance, a DRO may be appropriate, which will wipe out all debt (as long as under £20k in total) for a £90 fee. Then the solicitor, who is quite frankly talking out of his backside, can go and do one.

fatbelly

mum2one wrote: »

This is a new one to me, but I’d don’t know the answer...

Friend of mine is in debt, one of her creditors took him to court, ( he states he never received any paperwork), from there... they went for a ccj

He’s been told he had to pay £50 a month.

He’s on benefits (esa and pip), the solicitor acting fir th3 credit card company told him that pip gets taken into account and they want payments from that.

An6nhelp / advice would be very much appreciated so 8 can pass on, he’s bluffed them for time to Monday b4 he has to ring back

In reverse order...

Conducting discussions by phone is not recommended.

It sounds (from the way you tell it) that he did not get any paperwork so no chance to defend the claim and has ended up with a judgement to pay in instalments of £50.

If the court did that on their own initiative then the debt would probably be around 2k.

Does he have any defence (statute barred, not his debt?) - if so, go for setaside.

Can he afford something less than £50 but can pay this regularly? Do that but have a N245 in reserve if they try bailiffs.

Can he afford nothing at all? Does he have other debts? Look at a DRO. In a DRO PIP/DLA is not counted as income and that's in the guidance.