Can anyone advise? Trying desperately to save my mental health

Trying2Rebuild

Hi, does anyone have any suggestions?
I’m in debt to the tune of £8000 to a property management company after my ex partner abused and tried to kill me and failed to pay any rent for an extended period of time. The flat was rented via a large property company. Following the abuse and assaults, I had a mental breakdown and had to be taken under the care of the Community Mental Health Team. During this period I was unable to work or cover the rent and I was unable to function at all. Unsurprisingly, I got told to leave that flat. I managed to get a restraining order and rent a new flat eventually. Very slowly I have started to make progress. I am having psychotherapy every week and under the care of a psychiatrist too. I am still not in a good place mentally but I am managing now to work part-time and will eventually be back to my normal full time working life.

Anyway, the property management co were informed about what was going on and in fact the police had to liaise with them previously to make sure my flat had secure locks etc due to my ex’s violence. But the property management co said all they care about is getting their rent paid, and they wouldn’t allow the police to beef up the locks or anything. They are now threatening to bankrupt me because I’ve failed to be able to clear this debt.

After my basic bills, food etc are paid I have just £20 a month left. It may sound to you like bankruptcy would be a good idea for me financially speaking — however I work in the legal field and being bankrupt would SERIOUSLY harm my chances of future work. Secondly, I rent in the private sector and will have to do so for the foreseeable future. All rental applications involve a credit check and here in London where I live and my support network is getting a flat is difficult in itself, landlords can pick and choose, they are simply not going to rent to someone with bankruptcy on their credit file. Council housing is extremely unlikely to be available for me as a single person with no children. So I really do need to avoid bankruptcy.

I contacted Stepchange who assessed that I can afford to pay the debt at £20 a month until my circumstances improve. I began paying that. The property management company hounded and threatened me, saying the £20 a month is not enough and that they’re going to bankrupt me unless I pay at least £200 a month. They are fully aware of my situation and I’ve provided bank statements, police documents proving the abuse, medical details proving I’m mentally unwell at present and income and expenditure forms. In the end I was so frightened that I decided to stop having psychotherapy which I was having to partially pay for myself due to government cuts, so that I could send more money to the property company. I am now paying them £100 a month in total.

However, the psychotherapy had been the only thing improving my health and was my lifeline. My mental health is plummeting now that I am no longer in therapy. The NHS are unable to provide ongoing therapy. They can provide medication and a check-in with a psychiatrist about once every 3 months but it’s not enough. My symptoms (diagnosed with an illness called Complex-PTSD plus Dissociative Identity Disorder) are spiralling out of control.

I contacted Stepchange again and also the Citizens Advice Bureau. They were appalled that I’ve stopped the psychotherapy and advised me to get back into therapy and reduce the payments to the property management company back down to something I can afford that will allow me to simultaneously continue with my therapy.

Is that a reasonable thing to do?
My anxiety is spiralling out of control. I am so terrified that I can no longer sleep or eat.
Stepchange even said it’s just not in the property co’s interests to bankrupt me because I don’t own anything or have any cash. They believe they’ll just accept the £20 in the end as it’s actually more than any insolvency judge would grant them.

sourcrates

Trying2Rebuild wrote: »

I contacted Stepchange again and also the Citizens Advice Bureau. They were appalled that I’ve stopped the psychotherapy and advised me to get back into therapy and reduce the payments to the property management company back down to something I can afford that will allow me to simultaneously continue with my therapy.

Is that a reasonable thing to do?
My anxiety is spiralling out of control. I am so terrified that I can no longer sleep or eat.
Stepchange even said it’s just not in the property co’s interests to bankrupt me because I don’t own anything or have any cash. They believe they’ll just accept the £20 in the end as it’s actually more than any insolvency judge would grant them.

Hi,

I agree 100% with stepchange on this, you have no money or assets, why would anyone spend a further £680 (bankrupcy fee) on making you bankrupt, for absolutely no return whatsoever ?
Its an old debt collection trick to get you to pay more than you can afford, its unfair, and its against fair debt collection procedures, and you should take them to the cleaners, i would.

In bankrupcy, if your disposable income is £20 or more, then an IPA would be granted (income payment arrangement) in your case that £20 could be whittled down so no IPA, they would get diddly squat from making you bankrupt.

I would make an official written complaint over their conduct in this matter, you tell them what they are going to get in payment, forget bankrupcy, all they can do is take you to court, and you will be able to put your case before the judge, so its not a forgon conclusion, they know this, which is why they keep up the stupid threats of bankrupcy, to anyone remotely familiar with the justice system, their stance is ridiculas, and quite laughable really.

You should re-start the psychotherapy too, your mental health and wellbeing are more important than any outstanding debt, don`t let them dictate the terms here, stand your ground.
As regards legal action, do not be worried about your ability to rent, many, many people rent these days and have active county court judgements, so its not imposible, should that happen.

Moneywhizz

What a shocking way for you to be treated. Completely agree with the advice you have been given. This company are just trying to bully you and frighten you into paying more. You should restart your psychotherapy and pay a token amount to this company until you are in a better position. I'm sorry you have had such a difficult time and that this company are causing you all this stress. I hope things improve for you soon.

enthusiasticsaver

They are not going to bankrupt you. You have no assets and there would be no point in them doing that. Your mental health is important so yes I would reduce the payments to the property company and sign back up to psychotherapy. Write to the property management company telling them you can only afford £20 and they are to only deal with you in writing. You are no longer living in the flat anyway. Are they chasing your ex?

Trying2Rebuild

Thanks Sourcrates and Moneywhizz -- you've already put my mind at rest quite a bit.

I had been doing so well with the psychotherapy and making fantastic progress.

The £100 was due today. I've actually put through a payment of £20 instead (even that is a struggle in my presence circumstances) and I've emailed the person they've appointed to hound me for this debt to explain to her exactly what I am doing and why.

The Stepchange person did say that if this ever went to court they wouldn't even get £20 a month because the budget I've put myself on is not even allowing for things he regards as basics and is unrealistically austere.

What happens if these guys send a Statutory DEmand which is what they keep threatening to do. Does a Statutory Demand mean they will definitely go for bankruptcy?

enthusiasticsaver

Trying2Rebuild wrote: »

What happens if these guys send a Statutory DEmand which is what they keep threatening to do. Does a Statutory Demand mean they will definitely go for bankruptcy?

It is a warning and no it does not mean they will necessarily go for bankruptcy. As others have said if you have no assets financially it does not make sense for them to proceed. There is a process they have to go through but realistically they will not proceed unless they think there is a chance to get some money off you which obviously there isn't. Any court will take your income/outgoings into consideration should it get that far and they would probably get even less so try not to worry. The likely outcome will be they may sell the debt on.

cattie

After reading your post I really feel for you & only wish there was a way to help you. All I can suggest if you're still under the CMHT & have a key worker, speak to them about the possibility of being nominated for a council or HA property due to your mental issues. I know a couple of people who were rehoused this way when I was under the CMHT (both single with no children living with them) but this was a few years ago now, so it may not be as straight forward as it once was.

If there's a branch of MIND near you, do contact them as they sometimes can offer services such as counselling & advocates & also advise on benefits & could even help you apply for any disability benefits you might be eligible for. PIP for example can still be claimed even if you're working. It's purpose it to help with the extra costs that can often occur due to having a disability.

Good luck anyway.

sourcrates

Trying2Rebuild wrote: »

What happens if these guys send a Statutory Demand which is what they keep threatening to do. Does a Statutory Demand mean they will definitely go for bankruptcy?

Threats to send out statutory demands used to be common place amongst certain debt collectors, even though they never had the slightest intention of making anyone bankrupt, these companies were severly reprimanded and fined for their actions by the FCA a few years ago, I really don`t think they will send you one, for the reasons stated earlier, there is no benefit to them whatsoever.

How much do you currently owe them ?

There are a few ways to play this, depends on how it unfolds, to be perfectly honest, if you cannot pay the debt, and they follow through, then you will just have to deal with the fall out, let me just add, i very much doubt they will follow through with it, but been aware of your options is better than staying in the dark worrying.

After some investiagtion, it appears there is a trade body and an ombudsman for property mangement companies, you could try complaining via them, if they are a member, you can check here :

https://arma.org.uk/


Another option, if you want them off your back permanently, is a Debt Relief Order, however you do say this may have some effect on your employment, but its something to look at nonetheless.

D_M_E

What an unfortunate set of circumstances.

Was the flat rented in your name or your ex's, or was it a joint tenancy?

If your ex's name was on the tenancy then try giving the manco his details and tell them to chase him for the debt.

If, however the tenancy was in your name only then Sourcrates particularly has given you some good advice.

At the end of the day, your health takes priority and debts and pushy mancoes come far far down in the pecking order, look after your own health, not that of any manco.