Help DMP not DRO or IVA-should this be in benefits?

Mar59

63 year old lady 

Please don’t judge me being on benefits since my health massively deteriorated over past 5 yrs plus and work issues etc 

Debt credit cards £9k

Car asset paid for - Parkers estimate private £4740 - £5920 (needed as long term Ill health and severe mental health,live out in country very little transport, many hospital appts would be isolated)

Only benefits as income for last 4 -5 plus years of Ill health and getting worse . Been struggling with work, health and life for a long time. 

Still waiting on waiting list 2 yrs for mental health tertiary care. Diagnosed Depression, anxiety and on ADHD pathway/borderline pers disorder? eating disorder (binge eater). The CMHT assessed me for ADHD and other evaluation, tertiary evaluation suggested it not me.  I just asked for help and had loads of assessments. 

Rheumatoid arthritis-awaiting rheumatology consultation for 2nd time

Polyarthritis, general arthritis hands, feet, knees, lower spine and cervical spine, spondylolithesis grade 2, also just diagnosed with RH moderate to severe shoulder arthritis. 

Bile Acid Malabsorption - totally incontinent- under bladder and bowel team and colorectal team have prolapse also gynae

Chronic GOUT can’t walk some days can’t take the meds I react to them badly, hence waiting for rheumatology but also have tarsalnavicular arthritis midfoot and have injections right mid foot every 6 months 

Now obese after not being helped by NHS

left thumb amputation a year ago got ripped off in boot of car

broke tibial plateau this year due to falling 

just had assessment OT for wetroom and Closomat self washing and drying toilet as I need help daily with this. Referred to housing association recommended urgent due to accidents. long waiting time but at least referred. 

Don’t want to go for DRO as I need transport for medical and many other reasons . I would lose my car and have no way of getting a new one. Please don’t say get rid of car MH can’t cope as it is. 

I get Uc, esa new style, LCWRA and PIP (only daily living). When I applied I never got the mobility. And didn’t push for it as I had paid for my car and had my own. 

I need my pip for carers and cleaners and other mobility needs (incontinence items, etc) & other costs more than ever now, (taxis when I can’t drive) I have been struggling and getting further into debt over the years. I can’t do without caring now and it takes up all my PIP.  

After caring and disabled costs I have no PIP left infact I could do with more for caring.

I can no longer pay the debts. 

Can the creditors (3 credit cards, 2 credit lines small) use my PIP? And how will I manage if they do use it for my debts it’s for my care, how will I pay for care? Waiting for a social worker from MIND to help me and assess me but I’m going downhill mentally. Been feeling dark times over Xmas and on and off for a long time now. Social worker I’m in waiting list should’ve started before Xmas but they said it might take longer . 

it’s taking a lot to come on here and admit failure. 

I tried to sell my car on we buy .com they offered me 3.8k it had no servicing history  but Parkers valued it more.  4.7k to 5.9k.

My mental health just can’t deal with it all I feel overwhelmed all the time. If I sell it il get less than the value and be isolated DRO is no good, DMP I want to try even if I can pay them each £5 a month

been trying for months to do something all I’ve done is stop paying the cards this Xmas. First time in years.  

I want to try and save my DAscia 

Mar59

Should this be in the benefits forum 

ManyWays

Well done on stopping paying the cards.  

One thing you could look at is asking the lenders to write off the balances. I suggest you go to your local Citizens Advice and ask for their help with asking for write offs.

And if Citizens Advice say you arent eligible for a DRo because of the car value, you could pay £1 a month to each card until the value of your car drops below 4k, which may only be 6 months or a year

fatbelly

3 credit cards, 2 credit lines. These are nonpriority debts so nothing will happen if you stop paying.

OK, you will get letters, plus emails/phone calls if they have those details. Nothing important

The car sounds sensible for someone who needs transport. Put thoughts of selling it to one side for now

Your creditors cannot access your PIP. Could you have another go at getting the mobility part of PIP? Perhaps with CAB help?

9k is not a lot of debt. Do you have a mental health professional who could help you complete a DMHEF? Then look for write-offs.


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

Mar59

fatbelly said:

3 credit cards, 2 credit lines. These are nonpriority debts so nothing will happen if you stop paying.

OK, you will get letters, plus emails/phone calls if they have those details. Nothing important

The car sounds sensible for someone who needs transport. Put thoughts of selling it to one side for now

Your creditors cannot access your PIP. Could you have another go at getting the mobility part of PIP? Perhaps with CAB help?

9k is not a lot of debt. Do you have a mental health professional who could help you complete a DMHEF? Then look for write-offs.


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

Yes I have a mental health nurse have had one for over a year now. I will look at that link now. 

I am hoping my social worker from mIND that is due soon will help me with PIP and as I have deteriorated and have an occupational therapy assessment just done for adaptations I am hoping they can help me. 

I have also asked for help off mobility company to adapt the car with push pull fixing so I can drive more as my right foot gets stuck if driving too long . But there’s only a small bus service here so I need to drive with adaptations . 

Thank you 

sourcrates

I would echo the advice already given, non priority debts are just that, non priority, and affordability is king these days, lenders have no claim on your benefits either, informing them of your situation and trying for write offs is the way forward, once they know your circumstances they will simply put all accounts on hold whilst your situation is assessed.

Even if they don`t write the debts off, they may agree not to chase them, which is as good as a write off, letting them know your circumstance also prevents them from taking further action against you, which would be one less thing for you to worry about.

Mar59

Not sure what to do as I and a friend read lots of posts and they said not to contact and leave until defaulted on credit file.   . I am confused a little and not sure what to do. Do I contact them and do £1 offers for all, do I let them default , do I do the mental health forms . Either way credit file doesn’t matter what happens won’t ever need a mortgage and my pension will be on my doorstep in 3-4 yrs. 
If I let them know my circumstances will they badger me and push me over the edge I don’t want to lose the roof over my head at my age . Will it prolong things I will never work again or be in a better position

sourcrates

How you deal with problem debt is nearly always circumstance specific.

Normally we recommend just stopping paying, allowing everything to default, and then paying off either by debt management or other methods, but that is unsuitable for you for the following reasons.

You have many health and mental health issues to contend with, so it makes sense for you to use that to your advantage when dealing with your lenders, you also have very little disposable income with which to make payments with, so debt management isn`t going to work for you, and token payments are not a good long term strategy.

FCA regulations mean that they are duty bound to treat customers fairly, so as your health situation affects your ability to service your debts, they must take that into account, you will also be transferred to the lenders "sensitive care team" who will take over running of your account, and will look at either holding your accounts for a period of time, agreeing very low payments with you, or writing the debt off entirely.

Your house is not at risk, forget that for a start, its not going to happen.

You should look at getting write offs as the first part of this process, and see how that develops.

Mar59

hi all

I keep getting people tell me they will send bailiffs out to take my car no matter what I do

fatbelly

https://forums.moneysavingexpert.com/discussion/comment/81910067#Comment_81910067

Are you phoning these firms and allowing them to threaten you? If so, stop.

You own your car outright. No-one is going to take it

Bailiffs can only be appointed on a defaulted court order. Do you actually have any court orders against you because you didn't mention them in earlier posts

Mar59

no court orders not even defaulted yet just threats. Just getting a letter drafted with help regarding my health . And meanwhile waiting for my health professional to do a DHMEF form if they ask for it. I will send medical evidence if requested