Debt write off due to serious mental health - any success stories?

Tesha1

Hi.

I'll start by saying, I'm not looking for any medical advice, as I have a full psychiatric team assisting me…

Six years ago my mental health deteriorated, ending in me getting divorced and eventually being signed off work. After the divorce, I was left with the family unsecured debts (which were all in my name) of around £50k; which were affordable when I was working.

I had a 5 year income protection policy, that gave me a reduced income and helped me to continue to pay off some of the bills, but I eventually entered into a debt management plan with Payplan.

My mental health got worse and I have been diagnosed with a number of permanent disorders. These have resulted in me being sectioned on a number of occasions and attempting suicide. The debt is a big contributor to my severe depression, and my income protection policy is ending soon. I do not know if I will be made redundant or if I'll get medical retirement when it finishes (my company kept me on as an employee in the hope I'd get better). So I can't plan ahead on how I can repay what I still owe.

My debt management company have advised I should ask the creditors for debt write off and my consultant psychiatrist has written a supporting letter detailing my diagnosis, suicidal ideation and how the debt is severely impacting me.

Does anyone have any experience of this being successful for such a large debt (they are spread over several banks as loans ranging from 2k - 12k).

Thanks.

Brie

Yes I've seen substantial amounts written off based on submission of a mental health and debt form. Sounds like your consultant has taken a further step in giving more details than a MH&DF would include which may help your case. Some companies will be more sympathetic than others but I would suggest that with this having been sent off to them that you stop paying anything to anyone other than your priority debts (rent/mortgage, council tax etc, not loans, credit cards, catalogues).

Once you hear back about write offs the ones that are left could be tackled with a request for the credit agreement and after that get them to do an affordability review. Hopefully most will disappear with these.

RAS

There've been several posters here who gave had substantial debts written off or reduced substantially. It might be worth getting your GP to fill in the MH&DF form as well, just because creditors are accustomed to receiving that and it would cover other health issues. It's no cost and has to be completed. Be interested on others thoughts on this?

I'd also look at getting affordability claims in on any debts over 5 years old as a priority. Claims cover the last 6 years only.

Once you know the outcomes of the MH claims, and old affordability ones, you can work through affordability for the others and then CCA.

RhiBi

I’ve had 1 debt written off so far, awaiting news on others. My circumstances are different, but based on my circumstances and what my GP wrote on the debt and mental health form it’s certainly helped me. You’ve nothing to lose by submitting the form, so definitely worth doing.

Tesha1

Thank you everyone for your advice. I'll speak with Payplan again and get them to help me progress the debt write off…. It seems I've got nothing to lose by trying and much to lose by not trying. Thanks again.

LateStageCrapitalism

Hi Tesha1, I've had a number of debts written off for mental health reasons, including one of 12K+. I found the high street banks were straightforward to deal with, but if this is the type of debt you have I recomend that you get your accounts transfered to the specialist support team (it may have a different name) within each bank-they're much more sympathetic. Often they will say that a write-off is highly unlikely, but then agree to it once they've seen the details of your case. Based on my limited experience, I would be surprised if high street banks didn't write your debt off. I have also had a debt written off by a debt collector, but had to take them to the Financial Ombudsman Service to force them to agree.

Hope this helps.

Tesha1

Well, I'd thought I'd give a quick update to anyone that's interested.

I am still awaiting a few responses, but so far I have just over £29k of my debt written off due to my ongoing severe mental health. I am absolutely astounded and so grateful that the companies have helped me so much.

It's given me a lot of hope, which I really needed.

Thanks again for everyone that commented.

RAS

Let's hope the good news continues.