Advice please

Bertboy7

Good Evening People! 

I don’t know how to start but here goes. I have always had debts but have always managed to stay on top of them until recently. I have 8.5K with Barclaycard these being multiple balance transfers paying £400 a month but due to be charged more interest as coming to the end of my 0% offer. I have 3.5k with Virgin paying £175 a month 2.5K with PayPal paying £100 a month and 1.8k with M&S with just paying the minimum which is between £50-60 a month. I lost my Mum Aug 2023 due to the dreaded c word, to cut a long story short after a while I found out she had racked up 3.5k debt in council tax debt all built up over 3 years but unbeknownst to myself and my Dad, we honestly don’t know how she was able to hide this for so long without repercussion from the local council? I.e bailiffs, We also found out she had rent arrears which after speaking to the landlord he accepted £200 a month to cover what has been missed and after talking to the council they would accept £200 per month on top of the normal rate as I can’t afford the total amount. I am concerned that this will take 18-24 months at the current rate and I am really getting restless especially about the council as I believe they have higher authority to take up court action and my interest rates on the Barclaycard are about to sore! I have been considering just stoping/ defaulting on my payments to my creditors and focus on getting these priority debt I have inherited payed off faster and off my back. After what I have read I would default and enter a DMP? Would I have to wait until all creditors have defaulted me before entering a payment plan? I don’t know what to do? 

sourcrates

Councils don`t go to court to recover CT debts, they can act under a liability order and pass your account to a bailiff to collect, they tend to be difficult to deal with, so much better to keep the debt with the council, most are amenable to a payment arrangement, I wouldn't worry too much.

If the unsecured debt is too much to manage at present, you can just stop paying it, your credit file will suffer, but at least the essential debts can be dealt with.

Ideally you should stop all non priority payments, and concentrate on the essential debts you have.

You don`t have to wait for defaults, that is becoming a much longer wait just now, but the collection process is quite long and drawn out, nothing happens quickly, just calls and letters etc.

So sort the essentials out, and when your ready, engage with whoever is writing to you about the cards etc.

kimwp

You can't inherit debt. Who lived in the house with your mum when she was supposed to pay the council tax and rent that she didn't pay?

fatbelly

Yes. I was a bit confused about that. Did your mum and Dad hold the tenancy jointly? And now it is just your Dad?

In that case it's not your debt and your Dad should be checking how much council tax support he can get. This might not be backdatable.

Rob5342

I'm a bit confused too. You can't inherit debt, you can only be liable for it now if you were jointly liable for to before she died. Who's name was the rent and council tax in?

Bertboy7

Apologies people I wasn’t very clear. We live in the same house. 

kimwp

Ah, ok, so your mum was sorting council tax and rent for your whole household (you, mum and dad) and got behind?

kimwp

I think your best method to get good help from here is to fill out a statement of affairs (see my signature) for you and your dad and post them here. They need to be an accurate picture of your spends and income.