Requesting debt write-offs on medical grounds?

Nightingale_92

Good evening,

Both Citizens Advice and some on this forum have suggested I may be eligible for debt write-offs due to my health circumstances. I have a combination of physical mobility issues and mental health problems. I was made redundant in late 2024 and have been unable to work since because of my health. I currently rely on benefits and a small amount of irregular self-employed income, and it's unlikely that either my medical or financial situation will improve significantly.

I'm currently arranging token payments with my creditors, as that's all I can afford, but I'm not on a formal debt management plan.

I was hoping you could advise on the process of requesting debt write-offs. Is there anything specific that should be included in the letter beyond explaining that I cannot repay the debt in full and that my circumstances are unlikely to change?

I'm also unsure what evidence creditors typically require. I can provide evidence of my physical health conditions (rare genetic disorder that limits mobility), my PIP award, and diagnoses of ADHD and dyspraxia. My mental health history is more complicated, as I've previously been diagnosed with depression and anxiety and have experienced severe depressive episodes and psychosis, but when I did have a psychiatric assessment they were somewhat dismissive and did not provide a proper diagnosis. I'm concerned this may affect how my evidence is viewed.

Any advice would be greatly appreciated, as I'm feeling a bit overwhelmed and unsure where to start.

Many thanks - any advice or experience is appreciated.

sourcrates

Best way to do this is to not pay anything at all, and stick to that strategy.

The process in a nutshell, is this, you should write a good old fashioned letter, you need to include what is wrong with you, how it affects your day to day living, a mental health evidence form should also be completed and enclosed, also any letters from your Dr that can help.

If your income is mainly benefits based, you should proceed along the lines of it only been sufficient to meet your essential living costs, and leaves you nothing with which to pay the debts, you should stick to this position, and not offer token payments of any kind, as honestly, they are a waste of time, and cost more to process than their actual value.

Only share with them what you are comfortable sharing, if they ask for something, and you don`t want to send it, don`t be afraid to say no, or ignore the request.

Usually these things can take some time, as accounts get put on hold, in case your situation improves, you should stick to your story and not falter in any way, it will be a case of seeing how the dice rolls .

Some posters have had great success having debts written off using this method.

ManyWays

I would wait until after 6-12 months of token payments and at that point ask for a write off, pointing out that you situation has not improved in the last year and is unlikely to in the future

Brie

Well done for coming back to the board! Let's get this started perhaps with your statement of accounts (SOA) - the link is in my signature below.

Nightingale_92

Hi all,

Thank you for your comments and advice. My apologies, I’m currently in the middle of quite a bad mental health episode and things that would normally take me a short amount of time are taking days. Below is my SOA - I have already completed something similar for a few of my creditors. I realise that my entertainment budget is quite high - these are mostly subscriptions, with around 38.96 being used to help with accessibility. Mobile and internet I’m tied into contracts with, but will look at switching once the contracts end. I’ve put a D where credit has defaulted.

Statement of Affairs and Personal Balance Sheet

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0[b]

Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 1924.36
Other income............................ 0[b]
Total monthly income.................... 1924.36[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 24
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 233
Gas..................................... 0
Oil..................................... 0
Water rates............................. 47
Telephone (land line)................... 0
Mobile phone............................ 58
TV Licence.............................. 14.4
Satellite/Cable TV...................... 0
Internet Services....................... 44.5
Groceries etc. ......................... 300
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 175
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 5.84
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 10
Entertainment........................... 70
Holiday................................. 0
Emergency fund.......................... 10[b]
Total monthly expenses.................. 1831.74[/b]
[b]

Assets[/b]
Cash.................................... 360
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 360[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 143.82...(24).......0[b]
Total secured & HP debts...... 143.82....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Capital 1......................189.......10.61.....0
Capital 1 .....................289.22....16........30
DSantander CC..................2847......0.........0
Santander Overdraft ...........2269......0.........0
Vanquis CC ...................1095......0.........0
D Zable CC ....................989.......0.........0
D Onmo CC......................1299......0.........0
D Aqua CC......................2178......0.........0
D Monzo Flex ..................1085......0.........0
D Monzo Overdraft .............1702......0.........0
D Virgin CC....................3292......0.........0
D Barclays CC .................3957......5.........0
Tesco .........................795.56....25........10[b]
Total unsecured debts..........21986.78..56.61.....- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 1,924.36
Expenses (including HP & secured debts). 1,831.74
Available for debt repayments........... 92.62
Monthly UNsecured debt repayments....... 56.61[b]
Amount left after debt repayments....... 36.01[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 360
Total HP & Secured debt................. -143.82
Total Unsecured debt.................... -21,986.78[b]
Net Assets.............................. -21,770.6[/b]

Brie

Glad you're back!!

OK so do you need the TV licence? As in do you actually watch live TV or use BBC iPlayer? If you don't do either cancel the licence. The bonus on this is that you're paying 6 months into the future and they'll owe you a refund.

Why are you still paying Capital 1 and Tesco if they haven't defaulted. Stop until they do default. with Barclays I presume you've agreed to pay the token amount.

What's the HP for?

Is there a reason you don't want to have a debt relief order? Given that you rent and don't have a particularly high income it may be the best option. I think you might have said something about this before but the answer isn't springing into my brain at the moment.

Well done for knowing to change your mobile contract when you can. Presumably you'll own the phone at that point and can switch to a sim only plan. There are some that are under £10 if you look around for them.

Nightingale_92

Hi there,

Thanks for looking over the SOA and I’m glad it looks reasonable. For the TV licence, I do watch iPlayer, so I do need it. Plus, I’m on a simple payment plan where I pay twice monthly, so I’m not sure that would mean I get a refund?

The Tesco and Capital 1 card were lower interest, and in the case of Capital 1, lower amounts than the other debt. I’ve made some headway with paying them down, so was thinking they might actually eventually improve my credit score (a few years down the line), if I can pay them off. I also don’t want to reset the default clock, as some of my cards took over 8 months to default.

The HP is my washer/dryer - it should be fully paid off in about six months.

With regard to @socrates advice not to pay, my only slight concern is I’ve shared my SOA with a few of them already, so they can see that I can afford to make token payments (albeit, only just.) Is this likely to be a problem? My other worry about just not paying anything was if it will increase the likelihood of getting a CJJ. I will likely need to move to another rented properly at some point in the next few years, so that’s a concern.

This is also one of the reasons I didn’t go for a DRO. After speaking to someone at Citizens Advice debtline, they said that a DRO could be seen on a landlord check, whereas a default wouldn’t. They also said it could invalidate my current landlord’s insurance, so I’m a bit cautious.

One question I have regarding write-offs - I have two debts that I am no longer paying, but they haven’t defaulted (Santander overdraft and Vanquis CC). Is it possible to ask for medical write-offs even if it hasn’t defaulted? For Santander, I had been considering an affordability complaint. But I know these can take time, and I’m concerned that if I’m not paying, that it could drag out the default process even more, which obviously I’m keen to avoid.

Brie

You may be right about the TV licence not giving a refund. I assumed you were on direct debit where you're definitely paying 6 months in advance. I know because I am!

If you allow Tesco and Cap1 to default the interest will stop and then you'll be able to pay them off quicker.

I don't know how a DRO could invalidate your landlord's insurance. CA must have a reason to say this. I'll try to find out. But some landlords won't be happy to rent to someone with a DRO in their past so I understand your caution. I assume they would also be checking a credit report so would likely know about arrangements to pay as well as spotting defaults but this would be balanced if they can see an ongoing commitment to pay things off.

Re Santander & Vanquis - is there interest being charged? If not I suspect they will have defaulted but just not logged it as such. Maybe ask them to confirm that?

Stay strong!!!

sammyjammy

A DRO is made for situations like yours. Are you intending to move anytime soon? The rules have changed regarding renting and tenancies and you have more rights now.

ayupmeduck

https://forums.moneysavingexpert.com/discussion/comment/82038546#Comment_82038546

Tenant checks only see public information so don't see defaults of APs unless they ask to see your full report.

RAS

All forms of insolvency are listed in the public register. And CCJs are available.

Beyond that, estate agents and landlords only see what you share directly. Some have been known to ask for recent bank statements but you can redact information about spends. You don't have to share credit records.