Options for mentally ill sister

MaxD1976

Hi there - hoping someone can help or point me in the right direction relating to my sister.
She is 37 years old and is suffering from severe mental health issues relating to several stress-induced issues including but not limited to loss of earnings and subsequent debt.
Her condition both physically and mentally have resulted in her being totally incapable of working and thus providing for herself so much that she has had to move into my parents house where they are trying their best to care for her.
Financially, from what I can gather she owes collectively around £12,000 to Natwest, M&S credit card and another institution whose name escapes me.
She has no savings, no career income and neither myself nor my parents have the money to help her clear the debt.
Is bankruptcy her most viable option bearing in mind it will be several years yet before she is in a position to even be able to earn enough to get a mortgage or anything of similar financial foundation?

A friend of mine suggested she/we apply t the courts for it because there is literally no way the debt can be cleared quickly enough to enable her to make any kind of a rapid recovery while this is hanging over her head...

Any help would be very helpful.

Thank you,

Max

utterly_ashamed

As her debts are under £20,000 a DRO might be more suitable? The bankruptcy application costs £680 but the DRO fees are around £90 I believe. More knowledgable people on here than me will be able to advise!

TheGardener

Get further advice from one of the free debt charities StepChange, CAB or National Debtline.
A DRO (Debt Relief Order) is more appropriate if your sis has no assets and no or low income and her debts are less than £20K.
Its a sort of 'Bankruptcy Lite' version of insolvency designed to deal specifically with people like your sis who have nothing but whose debts are relatively small.

WhenIam64

Have any of the debts gone to a CCJ? Is there medical evidence of her condition?

A DRO is possible or token payments of £1/month to keep the debt ticking over. The difference between the two options (DRO/token) depends on whether the condition is temporary (some are) and the sort of employment that could be foreseen in the future. Some jobs require a clean credit record.

Some quick debt solutions (bankruptcy in it various forms) may not be best long term. You'll be in a position to judge.

Lastly, pop along to your local benefits advisors to see if she can claim for Personal Independence Payment. If you go to a debt charity when considering a DRO, they will point to income maximisation through such benefits.

fatbelly

You could ask for write-offs. But it sounds like she is solidly in DRO territory. I don't understand your friend's advice at all. Anyway here's a checklist of the entry criteria for a dro:

•Must not be a homeowner,

• Debts less than £20,000,

• Can have a car worth up to £1000,

• No other assets of more than £1000,

• Must have £50 or less left at month end, after all essential payments have been made (not inc debt repayments),

• Cannot have had a DRO in last 6 years.

Stepchange and CAB do most of them.

kazwookie

In addition:-

Check to see if she can claim any benefits
Check to see if who ever is looking after her can claim carers allowance
Has she been to a doctor, to see if they can refer her / offer her help / tablets etc

elsien

Is she well enough to make the phone calls herself with support?
Stepchange have a phone line for people with mental health issues, but I think she may need to start with the usual number then they give you the dedicated line once you've explained about the mental health.

lisyloo

elsien wrote: »

Is she well enough to make the phone calls herself with support?
Stepchange have a phone line for people with mental health issues, but I think she may need to start with the usual number then they give you the dedicated line once you've explained about the mental health.

most organisations allow someone else to speak on your behalf if they have you permission.

elsien

This is true, but speaking to people who understand MH issues and their impact can be more helpful than the general advice line, however good that is, particularly where people want to start taking back some control.

MaxD1976

To all who have taken the time to advise thank you so much!!! You've been tremendously helpful during what has been a difficult period for my family and I will be discussing all of your comments with my parents and then moving forward.
Once again a very heart felt thank you
Xxxx