My mother’s Debt

cheesypuff

Looking some advice my father died 6 wks ago and my elderly mother has early onset Alzheimer’s she has lost my fathers pensions and is now struggling. She has 3 cards adding up to 7,000 debt. I went through Payplam and went through her expenditure with them but as she only had £50 surplus every month they won’t represent her in a DMP. I am organising this for her and they said I would have to go through the creditors myself individually and do it ourselves . Does anyone know would Stepchange represent us with only a small amount to pay creditors or would they be the same as in wanting us to do it ourselves ? I find that idea a lot more stressful and would prefer going with a company that would represent us to the creditors.

Anyone able to help?

sourcrates

Hi,

If she only has 3 creditors, you only have to write 3 letters, cannot see your problem really.
All the debt charities do is post the letters, and make the offers on your behalf, it’s extremely easy to do this yourself.

But, there may be other options, it depends on various things.

Can you tell us a bit more about your mothers circumstances, for instance is she a homeowner or does she rent ?

Willing2Learn

Firstly, my condolences to you on the passing of your father.

In exceptional circumstance, creditors have the option of writing off a debt and may be a suitable option if your mother has no available income, savings or assets. You must be able to provide evidence to her creditors that her circumstances are unlikely to improve in future, due to her deteriorating health as a result of Alzheimer's.

tallyhoh

Are they all in your mums name? Do you have power of attorney?

kazwookie

Does she get all the benefits she can?

Has she applied to the council for a council tax reduction? now she is on her own.

Is she on the best rates for gas / electric/ water / phone? Have you checked she is NOT paying out for stuff she has forgotten about, check her bank statements for the last 3 or so months, ask her about all DD / Standing orders.

Ditto your late father's banks accounts.

WhenIam64

she only had £50 surplus every month

Have you looked at a Debt Relief Order? It may be possible if she has no assets and no property. See details here

https://www.gov.uk/options-for-paying-off-your-debts/debt-relief-orders

Stepchange can do a DRO or another debt charity if she meets the specification. Also has she had a benefits check to see if she is entitled to more financial support like Pension Credits?

poppy10_2

kazwookie wrote: »

Has she applied to the council for a council tax reduction? now she is on her own.

With the diagnosis of Alzheimer's she should be eligible for the Severe Mental Impairment council tax disregard so wouldn't have to pay any council tax

cheesypuff

She is in rented housing association apartment we have done the benefit checker and we can’t get anything as she has a small personal pension. We live in Northern Ireland we don’t pay council tax it’s rates they are included in her rent.

sourcrates

cheesypuff wrote: »

She is in rented housing association apartment we have done the benefit checker and we can’t get anything as she has a small personal pension. We live in Northern Ireland we don’t pay council tax it’s rates they are included in her rent.

You should look into her doing a debt relief order then, they are available in NI.

She should be a perfect candidate for one.

https://www.stepchange.org/how-we-help/debt-relief-order.aspx?WT.srch=1&WT.mc_id=288007&WT.seg_1=debt%20relief%20order&gclid=EAIaIQobChMItY7An9Hz4gIVAZ3tCh0JowMwEAAYAyAAEgKq-fD_BwE

cheesypuff

Thanks will ring Stepchange and see if we can do this

Thanks for helping

fatbelly

There might be an issue if she cannot understand the declarations involved in a DRO.

I wonder if a face-to face service might be better. If stepchange can't help try https://www.adviceni.net/advice/debt