I'm drowning and I need help!!!

erikerxon

Hi.

I owe 10k to HSBC CC and 5k to HALIFAX CC.
I am a freelance photographer and during COVID I had no work. Fall of 2021 things started waking up and I developed some kind of joints trauma (or genes kicked in) and I can't really do my job well anymore. My wife is disabled. We have applied for PIP a while ago but so far nothing. We are on Universal Credit.
All this time I tried somehow to cover debts, birthday money, money I borrowed from family members etc. It didnt help. Then I tried to get help with one of the companies I googled and they suggested me IVA, we went through all till the end, all I had to do is to sign and that day a friend of mine warned me not to rush and gave me contacts of one good pro-bono lawyer. After talking to him I found out that IVA would kill me and he suggested me DRO as the best option. While I was working on it Westminster Council was helping us with Council tax, PIP, etc, I asked about my debts and she referred me to one person in CAB. She told me that DRO is the way out but at the same time she has advised me to work with debt management team and actually do payments as little as 5GBP, in this case I won't be restricted as in DRO and I will be seen in a good light as I am willing to pay.
My end of month balance throughout the year is floating between -20GBP to 50GBP, hence CAB advised me to pay as little as 5GBP each bank.

And this is where I was lost. 3 companies, 3 advices I need help here. Banks are sending default letters already. I talk to all of them, update them each time, but they said that it is all automatic this is how it works and I will be receiving letters and process can't be stopped or something like that. Anyways, I need to sort this out so I can sleep better.

I have never been on benefits before and now bankruptcy on top of that... All of this is still weird and feels foreign.


Thank you for pitching in.

Coffeekup

You've come to the right place, we'll need numbers so post your SOA in this thread. There is a link at the top of the debt free wannabe forums.

erikerxon

PS. CAB has advised me to Payplan, StepChange and National Debtline.

MalMonroe

Hi, sorry to hear of your struggles. As a freelance worker, weren't you eligible to apply for SEISS grants when covid kicked in?

Anyhoo, when I was in financial difficulty I contacted StepChange, and their advice was excellent. I know that experience of not being able to sleep at night through worry about debt. And also the feeling that you are drowning and can't do anything. But you are not alone. Many of us on this forum have been in similar situations.

If you phone SC it is a free call and they will talk you through your options. They are not judgemental and they will not (certainly in my experience) force you to make a snap decision. But they will want to know your income and expenditure.

They advised me to apply for a DRO (which I had never heard of before) but in your case it does seem a bit drastic as it will affect your finances for 6 years, even though it's discharged after 12 months. 

I agree with those people you have already spoken to who have been telling you not to rush into things but to get advice from places such as StepChange and National Debtline. The good thing is that you have not ignored your creditors - that's a great point in your favour.

I am single so I don't know how your wife's benefits and income will affect your circumstances. StepChange will know though. 

Please do give them a try.   https://www.stepchange.org/   

Marsha2007

I had huge amounts of debt and made myself bankrupt in 2011. Whilst I can't give you any advice as to your questions now I just wanted to say it does honestly get better. I know if doesn’t feel like that now, but it will do. I went to CAB and had a wonderful lady who went through everything with me. My debts were too high for anything other that BR, but it's safe to say it was the best thing I ever did.  You're not alone 🙂

sourcrates

Don`t think this is a bankruptcy question, so I`ll move it to the DFW forum for you.

london21

Hopefully things get better for you soon.

Try not to worry and stress but take baby steps forward.

Try to reskill and get another career, in the meantime contact universal credit to find out what you and your household might be entitled to.

Keep your spending minimal on essentials until you get better control of things.