What happens if

PM22

...you cannot pay a DMP as you have no surplus 
Do not own your own property but you do have a declaration of trust that says you will get all the equity (My ex husband owns/mortage in his name but the proceeds will come to me) Long story....
You have a long term health condition but can work, in my case, bipolar 
Can they apply for a charging order?

PM22

PS - I do pay him the quivalent of the mortgage payments as rent
It's all signed up with solicitors and a legal declaration of trust is in place 
It's not dodgy
I ended up paying a lot of capital gains tax when we moved from the house to this flat 

sourcrates

Its not your property till the fat lady sings basically, so if its currently in someone else`s name, it can`t be touched.

Aside from that, most creditors with consumer credit act debts don`t tend to go down the legal path anyway if your budget shows you cannot pay anything.

Can you go into a bit more detail about the actual debts, how much is owed in total, who too etc etc.

PM22

Thank you for your helpful reply.

It's roughly 14 to credit cards, one loan (unsecured 118 money)

Thank you 

PM22

So will they just hand on until I get more money?

My budget will improve by £200 in January so could enter into a DMP then 
Paying token payments from this month atm

PM22

Household Information

Number of adults in household........... 2

Number of children in household......... 

Number of cars owned....................  ( My son is 18, studies full time and pays for his own car including insurance , haircuts, clothes, transport, college costs, social life as he is studying for A levels and working at McDonald's. I literally pay his food, utilities and that's it)

Monthly Income Details

Monthly income after tax................ 1807

Partners monthly income after tax....... 0

Benefits................................ 91.65

Other income............................ 0[b]

Total monthly income.................... 1898.65

Monthly Expense Details[/b]

Mortgage................................ 650

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 35

Council tax............................. 111

Electricity............................. 89

Gas..................................... 79

Oil..................................... 0

Water rates............................. 36

Telephone (land line)................... 0

Mobile phone............................ 80 - cannot be changed according to O2...recent shiny new Bipolar high driven purchase...includes monthly usage which also cannot be changed. I tried...believe me 

TV Licence.............................. 13.08

Satellite/Cable TV...................... 0

Internet Services....................... 33

Groceries etc. ......................... 350.....I know but the cat won't eat Aldi food so adds 

Clothing................................ 10

Petrol/diesel........................... 255.... I commute to work 

Road tax................................ 3

Car Insurance........................... 40.... includes breakdown I hope 

Car maintenance (including MOT)......... 25.... very old car 

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 15.....only recently taken out 

Buildings insurance..................... 0....I don't know if the council made me pay this earlier this year.....ex LA flat,
cheapest flat in Crawley when bought 

Contents insurance...................... 5

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 10

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 10.... I get so depressed about this so I buy loads of dental hygiene products...at least I'll die with my teeth 

Total monthly expenses.................. 1849.08

Assets

Cash.................................... 235,000

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0

Total Assets............................ 233000

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 85000....(650)......very low as ex husband is rich and owns multiple properties....assured it cannot be lower... he earns more than the PM so I trust him

Total secured & HP debts...... 85000.....-.........-   

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

NatWest Overdraft .............250.......0.........I think 29.99

118 Money Loan unsecu..........4700......0.........I think 39.99

Zopa ..........................200.......0.........I don't know 

Capital One ...................750.......0.........I think 39%

Ocean Finance .................200.......0.........I think 39.99%

Aqua ..........................1300......0.........I think 39.99%

118 Credit Card ...............1300......0.........I think 39%

Total unsecured debts..........8700......0.........

1. PLUS:
2. I owe someone £500
3. I owe someone else £1550
4. I owe payday loans maybe 1500
5. I am contracted to do a course with ILM payments are 201.25 per month and I have deferred my place as I am currently suicidal with Bipolar episode 
6. ILM charged me an extra £60 to defer and said I cannot get out of paying the fees until December 2022 - no matter what, absolutely nothing they can do even if I quit the course I have to pay for it

Monthly Budget Summary - This is not a true reflection - see above 

Total monthly income.................... 1,898.65

Expenses (including HP & secured debts). 1,849.08

Available for debt repayments........... 49.57..... StepChange calculated £13.00 for token repayments 

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 49.57[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 233,000

Total HP & Secured debt................. -85,000

Total Unsecured debt.................... -8,700[b]

Net Assets.............................. 139,300[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

PM22

P.S My flat was valued at 235k early last year 

sourcrates

There is a collection process that kicks into gear when you can`t afford to pay your credit debts.

Creditors may accept your token payments for a while, then they will either engage a collector to manage the account on their behalf, or they will wash there hands of the whole thing and sell the debts on, or a combination of both.

Looks like you might be in it for the long haul here, basically its just a case of telling whoever writes to you your financial situation, and if you can, pay what you can afford.

If you can`t pay anything, ask for write off`s, its important they know your circumstances in order to avoid any court action.

That would be my strategy for the time being.

PM22

Thank you. I am listening to all the good advice.

MovingForwards

I'd also say £25 per month is not enough for maintaining an old car, my bills were upto £500 each year just to get it through MOTs.

SaverRate

Can I just ask, what phone did you buy for £80 a month!!