DMP mutual support thread part 13 !!

porcupine121

Hi everyone, 

My partner has sadly become chronically ill and is now registered disabled, over time credit cards and catalogue debts have built up and we ended up going around in circles taking from one to pay another etc, we are now trying to sort our situation out head on.
All credit is in his name. 3 cards and 2 catalogue accounts  - total £13.6k

We spoke to Barclaycard the other day as we knew the direct debit wasn't going to go so spoke to them before that happened, they were lovely have frozen the account for 30 days while we talk to the other companies and recommended we spoke to step change. This morning we have filled out all of our details on the step change website and they've worked out a figure for us which we can use for a dmp (their recommended option)... however, when we spoke to Barclaycard the other day although the lady recommended it she said not to go through them to make payment but to deal with creditors directly... Does anyone have any idea why this would be? Would we be better off doing this ourselves? 

Am considering us ringing all the companies and telling them we have gone to step change for advice and see what they say? 

Any advice gratefully received. Although relieved we are finally dealing with this I feel sick through worry.

Thanks 

S

sourcrates

porcupine121 said:

Hi everyone, 

My partner has sadly become chronically ill and is now registered disabled, over time credit cards and catalogue debts have built up and we ended up going around in circles taking from one to pay another etc, we are now trying to sort our situation out head on.
All credit is in his name. 3 cards and 2 catalogue accounts  - total £13.6k

We spoke to Barclaycard the other day as we knew the direct debit wasn't going to go so spoke to them before that happened, they were lovely have frozen the account for 30 days while we talk to the other companies and recommended we spoke to step change. This morning we have filled out all of our details on the step change website and they've worked out a figure for us which we can use for a dmp (their recommended option)... however, when we spoke to Barclaycard the other day although the lady recommended it she said not to go through them to make payment but to deal with creditors directly... Does anyone have any idea why this would be? Would we be better off doing this ourselves? 

Am considering us ringing all the companies and telling them we have gone to step change for advice and see what they say? 

Any advice gratefully received. Although relieved we are finally dealing with this I feel sick through worry.

Thanks 

S

Hi, 

Yes, in this instance Barclaycard have given you sound advice, I assume your partner will not be working, or have limited availability for work, due to his health issues, so on that basis you should inform all his creditors of this, in writing, asking for accounts to be put on hold until further notice, and explain the reasons why, your partners health issues/not working etc.

The Barclaycard lady was particularly well switched on to tell you that, normally you see, as debt does not transfer between people, and only the named debtor is ever liable, if for any reason you cannot work due to ill health, and it`s going to be a long term thing, then you would be looking at getting creditors to make a commercial decision and write off debts under those circumstances, and not be looking at any kind of payment plan.

Stepchange`s mantra is to get debtors repaying what they can afford, but in cases such as this, if it`s going to be a struggle, then obtaining write off`s is the way you should be approaching this, 10 out of 10 to the Barclaycard call handler for putting you on the right track.

porcupine121

Thank you for your reply. We hadn't considered trying to get it written off and tbh that isn't what we wanted to do, it is a debt we have and hoped to fully repay it. If the debt was written off by them would that impact my partners credit worse than a dmp would? Like I said we intend to pay it back but if they choose to write it off I just wondered if that would be worse for him in the future? 

sourcrates

porcupine121 said:

Thank you for your reply. We hadn't considered trying to get it written off and tbh that isn't what we wanted to do, it is a debt we have and hoped to fully repay it. If the debt was written off by them would that impact my partners credit worse than a dmp would? Like I said we intend to pay it back but if they choose to write it off I just wondered if that would be worse for him in the future? 

You haven`t confirmed whether he still works or not, if he doesn't then the strategy, I outlined should be your preferred route, if he does, and you can afford payments, then fair enough, but usually when a write off happens, the credit file entry is completely removed as well, not always, but in most cases.

porcupine121

sourcrates said:

porcupine121 said:

Thank you for your reply. We hadn't considered trying to get it written off and tbh that isn't what we wanted to do, it is a debt we have and hoped to fully repay it. If the debt was written off by them would that impact my partners credit worse than a dmp would? Like I said we intend to pay it back but if they choose to write it off I just wondered if that would be worse for him in the future? 

You haven`t confirmed whether he still works or not, if he doesn't then the strategy, I outlined should be your preferred route, if he does, and you can afford payments, then fair enough, but usually when a write off happens, the credit file entry is completely removed as well, not always, but in most cases.

Hi, sorry I meant to add that, no he doesn't and is unlikely to ever be able to again. Thank you for your replies, I have been reading the forums and keep seeing your name pop up, you are an amazing help to lots so thank you  

sourcrates

porcupine121 said:

sourcrates said:

porcupine121 said:

Thank you for your reply. We hadn't considered trying to get it written off and tbh that isn't what we wanted to do, it is a debt we have and hoped to fully repay it. If the debt was written off by them would that impact my partners credit worse than a dmp would? Like I said we intend to pay it back but if they choose to write it off I just wondered if that would be worse for him in the future? 

You haven`t confirmed whether he still works or not, if he doesn't then the strategy, I outlined should be your preferred route, if he does, and you can afford payments, then fair enough, but usually when a write off happens, the credit file entry is completely removed as well, not always, but in most cases.

Hi, sorry I meant to add that, no he doesn't and is unlikely to ever be able to again. Thank you for your replies, I have been reading the forums and keep seeing your name pop up, you are an amazing help to lots so thank you  

Thanks, you really should consider what I have said as a way forward, his debts are his debts, and his liability does not stretch to you, in fact if you tell creditors it`s your money you are paying with, some may even refuse to take it, don`t think about this from any mis-guided moral point of view.

Unfortunately, things happen in life, and his creditors are much more able to take the hit then you or he is.

Good luck whatever you decide on.

porcupine121

Hi, after reading your replies last night it dawned on me that part of the universal claim is actually carers allowance to me, contacted step change this morning and they confirmed that the carers allowance amount should not be included in his income as the debts are all in his name. This has decreased his options through them, now a dmp is not advised, but am IVA or DRO is. It is looking more like your suggestion may be his only route. Would anyone here have any advice on writing to his creditors? Do we write asking them to freeze his account for 30days outlining the circumstances including an income and expenditure form and see what they come up with? 
Any advice very much appreciated, thank you  

sourcrates

porcupine121 said:

Hi, after reading your replies last night it dawned on me that part of the universal claim is actually carers allowance to me, contacted step change this morning and they confirmed that the carers allowance amount should not be included in his income as the debts are all in his name. This has decreased his options through them, now a dmp is not advised, but am IVA or DRO is. It is looking more like your suggestion may be his only route. Would anyone here have any advice on writing to his creditors? Do we write asking them to freeze his account for 30days outlining the circumstances including an income and expenditure form and see what they come up with? 
Any advice very much appreciated, thank you  

I actually have quite recent and personal experience of this, my brother had a stroke and ended up in a care home in 2019, he also had personal debt, not as much as your partner, it amounted to around 6k in total, spread over a loan and various credit cards.

You should not consider an IVA, but a DRO may be useful as a back-up plan.

Hopefully you won`t need either, I wrote to all his creditors informing them of his medical condition, he was initially in hospital for around 3 months, then moved to a care home, his accounts were all put on hold for a period of 3 months, after which they wrote back asking for an update, nothing had changed, so another 3 month hold was initiated, however not long after that, I received letters from all of them saying that due to his medical condition, and with no prospect of ever being paid, they had taken a commercial decision and written off the debts.

It was that quick, no fuss, no bother, he was never going to work again, and had limited capacity now anyway, so no way were they ever going to get any money from him.

Don`t bother with income/expenditure or ask them to come up with anything, go straight in with the write off requests, no point dancing around the issue, it may take a while longer than it did with me, but really it`s the only realistic option.

porcupine121

Thank you very much for your help  

bamgbost

Firstly, I have 2 lenders that have defaulted me with regards to an overdraft.

When i entered a DMP, they wrote to me with a default notice. saying i had X days to make full payment or they default me. And they proceeded to default me.
Im confused as  I thought i had to be 3 months in arrears.

I get the bank has the right to remove overdraft at their discretion, but i  had always paid my overdraft and fees with no issues. So for them to instantly demand it paid within 14days or default i thought was a bit extreme. DO I have any right to challenge the default as being unreasonable?

Secondly, I am in arrears with a credit union. They too are part of my DMP. They are unhappy with the amount being given to them by stepchange. approx a 1/4 of the contracted payment. They have said (by phone) that unless I make the contracted payment they will do an "attachment of earnings" via court to get their money. Are they allowed to make such threats? And will the courts action such when I have an income/expenditure via stepchange saying i cant afford to do more. Are they just trying their luck?