Is this wishful thinking... chances of getting debts written off.

Suseka97

I have posted a few times on the BR board about my relative who I have been trying to help resolve his financial situation which hasn't much changed since late 2019.  Basically he has two main creditors, who still hold the accounts and who I have been in contact with on my relative's behalf on a regular basis to keep them updated.  To be fair they have been really helpful given the circumstances - but at some point they are, naturally, going to want to see some sort of return - regardless of the type (DMP, BR, DRO?).

His total debts amount to just under £30k so a DRO might be a consideration, as might BR, as his income is variable due to ill-health (he has a bad sickness record due to mental health issues) and he recently suffered from Covid-19 and wasn't paid for the 2 1/2 weeks he was off!  He recently changed jobs and so wasn't eligible for any other than SSP.  I do wonder how much longer his employer will accept these absences and he could well lose his job.

Every time I think we are almost there with putting something in place, he experiences a bad mental health episode and he is currently signed off sick (again) for depression having suffered a number of bereavements in his family and social circle.  Three deaths in as many weeks and just recently another member of his family has passed.  All this is just too much for him and I am extremely worried on a personal level as to his state of mind.

So, my thoughts are whether I could write to his two main creditors (each debt totals around the £12k mark) once again but this time explain that I simply cannot see a way forward - or would that be foolish and likely prompt them to move towards a CCJ?   

If truth be told I really don't know where to go with this and, sadly, I cannot get him to talk to a debt counsellor - it's hard enough getting him to talk, full stop!

sourcrates

Most, if not all financial companies have set procedures for dealing with customers with mental health issues.

Fatbelly may be better suited to reply to your concerns on this one, as he will know the current situation with regard to write offs under these circumstances.

Myself I would say just go ahead and do it, assuming you have the necessary permission in place to act on your relatives behalf, as they will require evidence of this beforehand.

Taking such customers to court under these circumstances would not be in anyone's best interest, and would certainly be contrary to most mental health policies that are currently in place, so I don`t think that will be an issue here.

Having said that, writing off 30k of debt is a big ask, but if you don`t ask, you don`t get, do you, however, in the circumstances you describe, I can see a possible trade off in the offing, which, due to the customers overall general situation, with work and sickness issues, might mean they will agree to stop collection activity, and not to chase the debts any longer, and they will eventually go statute barred.

Make certain you make them aware that the only alternative to this will be an insolvency solution, either Bankruptcy or a DRO, it may serve to focus their minds somewhat, as you need to make a compelling argument in your relatives favour here, citing as much evidence as possible.

Suseka97

Thank you @sourcrates - this is very helpful and I appreciate your guidance.

Basically he hasn't directly acknowledged his debt since early 2020 when I managed to get him to write to his creditors asking them to allow me to handle his financial affairs.  Of course it wasn't anything legal as such, but since then his creditors contact me at my address and he hasn't mentioned receiving anything at his since then.  They have continually put his account on hold and simply ask me to keep them updated, so by doing so I guess I'm not allowing the statute barred clock to start ticking.  However, I'm mindful that the amounts involved are worth the OC or a DCA pursuing via the courts - unless I can head that off.

As I mentioned he has two main ones, each with balances iro £12k and the remainder is a £3k bank overdraft and just over a £2k bank loan, with the same bank.  I have to say I cannot fathom why his bank would have allowed him to get into an overdraft of that amount because it would have been abundantly clear he was not in a good financial position.  They have refunded some of the interest and charges levied, after I raised a complaint - but never responded as to how, or why, they agreed to such a large overdraft when he was clearly in financial difficulty.

I know much of what he has been dealing with over the last few years and certainly his mental health issues, covid, being furloughed and a number of personal issues have led him to where he is now.  When he is being more communicative he talks about needing to sort his debts out and is certainly aware that they won't just go away, but the reality is I simply can't see that happening anytime soon and its already been close to 2 1/2 years since he last made a payment towards them.

All of his debts have been defaulted and, as you say, if I don't ask I won't know although I'd appreciate any advice from @fatbelly who has experience in these matters also.