Can anyone help me help my brother?

cjmpom

long story short(ish), my brother has had mental health issues his whole life, usually manages to live with them but currently struggling.  His wife ended their marriage just before lockdown, and he's an alcoholic - currently living with our grandad - this can't continue as they're rowing regularly and it's bad for grandads dementia and my brother's depression.

Found out on Sunday that he owes 35k in credit cards and overdraft, and he is frankly overwhelmed by it.  He is off sick from work, on part time hours anyway so take home is low, lower than the minimum repayments.  

However, light at the end of the tunnel, his ex wife is buying him out of the house and he is due to receive about 150k around November.  I want to write to his creditors and ask if they can hold off the repayments on the basis the entire debt will be repaid in November.

Can i do that?  Is there a template I can use for that sort of thing?

Thanks in advance guys.  I've not used this forum in about a decade, but you were always lovely x

[Deleted User]

He can simply stop paying for a couple of months and then settle up.  By the time you've (or rather he's) written to his creditors, he'll have the money.

Obviously it will impact his credit files, but that doesn't sound like a priority.

cjmpom

Sadly he had already been doing this for a few months, so I'm worried their patience will wear thin.  How long can he ignore them for?

[Deleted User]

Until he gets notice of a CCJ would be the ultimate backstop.

cjmpom

Thanks, that's helpful 

MasterG83

Maybe have a plan B in case he doesnt receive the cash in time from said house buyout. Good luck to your brother I know how it feels to be in this type of situation, happened to me in 2010. 

Jude57

If your brother has a solicitor acting for him in the divorce/property matters, he could ask them to write to his creditors giving an undertaking that all debts will be settled out of the proceeds of sale. A solicitors undertaking is effectively a binding promise, so creditors should take it seriously. This assumes your brother intends to clear his debts in full, rather than negotiate lower 'full and final' settlement amounts with the individual creditors.

elsien

If he hasn't mentioned to them that he's a vulnerable adult due to his MH issues, then he may want to consider doing so if he needs a bit more leeway. Is he getting any support with his MH at present - he could mention that if he is. However it is a touchy subject and some people would prefer to keep that information to themselves.

If you are writing to them, you need his consent to do so; partly for confidentiality reasons, and his decision about how much information he wishes to share; but also because they cannot correspond with you without his consent. So unless he's given them written consent to do so, you won't get any direct response to any letter that you do send. 

sourcrates

Debt collection goes through various lengthy stages, from stopping payment to court action can take many years, as defaulted debts just get sold on, and on, and on.

Action through the courts is usually a last resort, and initiated by a debt purchasing company, rather than an original creditor.

He has really nothing to worry about on that score.

fatbelly

You could print off a load of these and get him to sign them

https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-(sole-name).aspx

It may delay them defaulting his debts. Obviously if he wants defaults (perhaps  looking for settlement deals) then just ignore them and let them get on with it.

It sounds like his personal issues are a higher priority than his debts. I hope you can support him.

Further thought - make sure he has a bank account not connected to him debts and that he is putting the income he has into the new account