financial abuse debt 4 credit cards 1 energy bill

somuchdebtimdrowning

Hi all,

I have accumulated about £33K of debt which consists of 4 credit cards and 1 heating bill.
Bristol energy who were taken over by BG and went bust in the end of 2021 are asking for £1500 in money owed to them. 
HSBC -£7 K
Halifax £12 K
Barclaycard - £7
Natwest (2 cards ) £6900

Some of the debt is my own (the energy bill) and the ret is as a result of being in a abusive relationship where my cards where used as a form of financial abuse. i was really scared to say anything while the perpetrator lived with me but now im drowning in interest and charges.

i reached out to step change who said my options are a DPM , IVA or bankrupcy as i own a house.

the experience has left me with alot of mental health issues ( CPTSD, Anxiety and depression) but i also have autism and need some support around the communication with creditors, step change said they couldn't speak on my behalf. So i have asked citizens advice for support.

CAB have asked for a write of under charitable and health grounds as my situation is unlikely to change due to the health and circumstances above. All credit card companies refused. Bristol Energy wrote off the bebt after i applied for the BG grant explaining i had had a bereavement and wasnt in the space to deal with any of this.

I have asked them to reconsider, based on a personal statement of the abuse. HSBC came back to me the quickest to say no. does anyone have any experience with debt, write off request under mental health or DV grounds so i can know what my options/ next steps are?

It doesnt 

MattMattMattUK

Most lenders are unlikely to consider anything unless there has been a successful prosecution against the perpetrator of the abuse and even then the chances are not great, otherwise it would be too easy to get out of debts by claiming a current/ex partner was an abuser. 

Do you own the house outright or is it mortgaged? Do you have a job? Is the alleged abuser now out of your life?

sourcrates

@fatbelly will be able to explain the process in more detail for you.

We have had a lot of success recently in obtaining debt write offs due to fraud/financial abuse etc.

I`m sure he will be along to comment soon.

somuchdebtimdrowning

MattMattMattUK looking at my research that's true for a lot of people if you have a house you can pay for the debt. The house is mortgaged , i have a job but the abuse has affected my ability to do it (i have been told i may be redundant by 15.1.24). The alleged abuser is in prison now for something else.

CAB mentioned it will be hard to get a write off , but we can try submitting an Economic abuse form, however when i ask the banks for this they say they don't have it as its in its pilot stage. I'm not sure banks are clear on their processes for dealing with situations like this, I have been referred to the specialist support team for each bank. 

Each bank has issued final demand notice as well as putting a hold on each card while they consider the write off.

@sourcrates Thank you!

sourcrates

Final demand is just a prelude to sale or write off (if successful) don`t worry about that.

Floss

Write-offs are not quick - I managed to get Natwest, First Direct/ HSBC and Tesco to write off my debts due to ill-health but it took several months of patient waiting & sending documents.

fatbelly

It sounds like CAB are dealing with this correctly. I expect they will suggest a DMHEF form

https://moneyadvicetrust.org/advice-services/dmhef/

somuchdebtimdrowning

@fatbelly CAB have sent a DMHEF form with the first write off request with the coressponding evidence as well as a statement from myself. 

@socrates i was scared when i got the notice but now realise all of the banks have issued one.

@Floss thats amazing well done! if im honest im ovewhelmed and barely getting by , not leaving the house becuase im scared theyll send baylifs

somuchdebtimdrowning

For those who asked for the details of my process update on process & results:
I went to step change 4.22 after working 3 jobs to cover my debts wasn't working. they suggested a DMP, this was rejected by the banks as it was too low of an amount, but i realised i couldn't continue produce extra income while being unwell.
Around 5.22 CAB complete debt assessment; income, outgoing, debts, assets, & credit report , they completed a report with options and suggestions
(6.22) I was asked to sign a agreement not to borrow anymore ect, apply for benefits and give the banks the same letter with evidence including doctors letters, mental health team letters, DMHEF.
Spent hours (1-2) on the phone with 4 creditors to explain situation - was refered to specialist support team.
CAB gave all creditors; the above evidence forms and income and expenditure forms and asked for a write off. They all declined.
This took between 6-10 months be prepared for a marathon....
Applied for breathing space as Mental health deteriorated and asked DV charities for support , they suggested giving a statement of abuse to explain why that would impact the ability to pay the debt off in the future. 
Asked all banks for Financial abuse form so i dont have to relive everything with each creditor.
Halifax wrote off the balance with a note on my credit profile about it being partially settled...
2nd write off requested after breathing space ended (banks cannot consider write off while in breathing space according to creditors).
HSBC said they would reject the 2nd write off request. I raised a complaint, after they said they couldnt confirm they would not write off the balance as i felt this to be inconsistent with thier previous correspondence. After raising the complaint they have written off the balance.
Such a relief ! 2 out 4 creditors sorted in 6-8 months. felt like it took years, but that was the stress, advice for anyone going through this , you will be okay, just because it takes time doesnt mean you wont find a solution. Lets see what happens with the other 2 

somuchdebtimdrowning

Natwest and barclaycard have said no to the write off requests, they will start asking for payments in july which i wont be able to make - im not sure what to do going from here. my health has deteriorated and im struggling to keep my job any advice or guidance?

sourcrates

Stick to your strategy, keep providing budgets that show you can`t afford payments, keep asking for write offs at 6 month intervals, eventually they will have no choice but to do it.