Dro help please

joycedixon

I am in a mess, 5 children , poor mental health diagnosed with borderline personality disorder. Gotten into a lot of debt and considering a Dro . whats stopping me is last year my mum paid for a new car on the understanding I pay her back over the next 6 years. It was 6k for the car and I need it because I live in a remote area and use it for all the school runs shopping and hospital appointments. I have read that a car needs to be sold if its Worth more than 2k if you get a dro . even if i sold it and got 6k which i know I wont I owe my mam it back and i would have no car at all. Are there any exceptions to this rule . thank you

sourcrates

Not unless its an adapted mobility car unfortunately.

Is the car, yours or your mums ?

If its in her name and you have use of it, there`s no problem.

What is your current debt level ?

joycedixon

she gave me the cash its in my name . my debt is about 19k. I am so ashamed about it and have just had a baliff letter about a ccj for water rates I can't sleep because of the letters n wont answer my phone if I dont know the number

joycedixon

can I give her it . I can prove she lent me the money for it.

sourcrates

joycedixon said:

can I give her it . I can prove she lent me the money for it.

Err, not really, that would be disposing of assets, something else you cannot do in insolvency.

The name on the logbook is not necessarily the owner of the vehicle, if it was her money that bought the car, then there is an argument that the car belongs to her, until you repay the debt.

I`d be interested to know how fatbelly would assess this.

fatbelly

sourcrates said:

I`d be interested to know how fatbelly would assess this.

Exactly the same as you. It's a problem.

Even if the op went for bankruptcy, it's a problem if it's genuinely worth 6k

Op - check the value on 

Parkers guide

and let us know the lowest figure it gives.

Does the water authority know about your mental health? It may be worth a chat with them as I suspect that's a High Court Enforcement letter you've had and they should not be doing this in a vulnerable situation. You should be aware that they have no rights to force entry. How much is the water debt now?

joycedixon

No they dont know my situation and yes its a enforcement letter. I owe them 1620 without the bailiff letter. who do I call the water board or the bailiff or someone else. the car shows a value more than I paid but its a cat s  which is why it was cheaper and i got 400 from my old car in trade in. I only had a 5 seater and was trying to squash us all in. it wasnt safe and wouldnt have passed another mot. I know I have been stupid ignoring things 

joycedixon

checked parkers its valued at 5k but if i sell it for that I still owe it all back to my mum n wouldnt have a car at all and live in a village with no bus service at all

fatbelly

OK, the car is blocking bankruptcy and DRO as options then.

I would have a chat to the water board and calmly explain your position (you may have to send evidence). Ask if you can go on their priority services register and ask if they have any schemes to help people pay their bill.

Re the situation as a whole, it's difficult to advise what might work, while protecting an asset, without knowing more detail.

Do you think you could complete a statement of affairs and post it here?

This is a link to a calculator. Please format for mse

https://www.lemonfool.co.uk/financecalculators/soa.php

MalMonroe

joycedixon said:

I am in a mess, 5 children , poor mental health diagnosed with borderline personality disorder. Gotten into a lot of debt and considering a Dro . whats stopping me is last year my mum paid for a new car on the understanding I pay her back over the next 6 years. It was 6k for the car and I need it because I live in a remote area and use it for all the school runs shopping and hospital appointments. I have read that a car needs to be sold if its Worth more than 2k if you get a dro . even if i sold it and got 6k which i know I wont I owe my mam it back and i would have no car at all. Are there any exceptions to this rule . thank you

Hello, please don't feel embarrassed or ashamed, you have five children to raise and to complicate matters you also have an illness.

I've also been in dire financial straits and I spoke to a StepChange advisor - link here - https://www.stepchange.org/
She helped me so much. They do not judge you in any way and you should not feel embarrassed or ashamed. You are trying to keep a home going for five children and you definitely need some good, sensible help. 

StepChange is a free debt help agency and they helped me to get a DRO when I didn't know which way to turn. 

I understand that there seems to be a barrier to a DRO or bankruptcy because of the car but they can advise you about all aspects of debt. 

It's always a good idea to produce a 'statement of affairs' (incomings and outgoings) anyway but I'd do it so you can speak to someone at StepChange - Citizens Advice and National Debtline also offer free advice - and explain everything.

Are you in receipt of all the benefits you are entitled to? People at debt help agencies will be able to advise and guide you anyway, please do give them a chance.

And are you also in receipt of the help that social services can offer people who have a long term mental illness? Your local council can help with that.

As for the water bill - £1620 seems an awful lot. Yes, I'd definitely contact them because they are the ones who set all the action going for collection of the debt. Baliffs don't care, they just follow instructions. 

But I'd also contact StepChange soon because they really do help. I slept well for the first time in years after I'd had a discussion with the advisor there. 

Please don't feel bad, I think you're doing really well in extremely difficult circumstances.