Credit card maxed and cannot repay

sourcrates

Nothing is dishonest, you are under no obligation to disclose anything to a creditor, if they can’t afford payment, they can’t afford payment.

Ask for advice on the debt board, we don’t judge you for asking questions, or contact stepchange and see what solution would be best for him given his circumstances.

MattMattMattUK

sourcrates said:

Nothing is dishonest, you are under no obligation to disclose anything to a creditor, if they can’t afford payment, they can’t afford payment.

You are not required to disclose anything, but there are two things to keep in mind on that basis:
a) if you do not disclose the information requested then they are not obliged to help, they will take the nuclear option and go legal.
b) if you do disclose anything then you are asked to sign a legal declaration stating that the information provided is correct, it is unwise to lie in legal declarations. 

If everything is as it sounds, you are going to declare a low income and most of that is used on living costs then it is likely that they will at least freeze the interest, if nothing else, which would be helpful, it also may well mean that they are unlikely to commence legal action or instruct debt collectors, at least in the short term, which is far better than the alternative.

You are a joint household, that has a bearing on things, you are financially linked. If his business has folded then the sooner he gets a job the better, but that is obvious.

It would be useful to do a statement of affairs on the Debt Free Wannabee board as recommended above, a statement of affairs would be a good place to start. You should also make sure that you claim any benefits or reductions you are able to (use the calculator on the link below) and a call to a debt charity might also help.
https://www.entitledto.co.uk/

whitesmith

Is it true you are financially linked if you are one household? 

Yahoo_Mail

whitesmith said:

Is it true you are financially linked if you are one household? 

No.
The only thing that financially links you to another person is having a joint financial product with that person.

whitesmith

Thanks, that's what I thought too...

[Deleted User]

I have lived with my partner for around 15 years, we are not married and have no financial association at all, as above, only if there is a joint product e.g. a mortgage, 2 people on same credit account (main and additional card holder) etc

ManyWays

He could talk to Stepchange about a debt relief order I think if his only income is benefits he will be eligible. That will wreck his credit rating for 6 years but clear the debt.

sourcrates

ManyWays said:

He could talk to Stepchange about a debt relief order I think if his only income is benefits he will be eligible. That will wreck his credit rating for 6 years but clear the debt.

The criteria to qualify for a DRO is quite rigid -

Must not be a homeowner-

Debts less than 20k-

No assets over £1000-

No car worth more than £1000-

No more than £50 disposable income left at month end (not including any debt repayments)-