What happens when I cant pay?

Iwanttobefree · 12 February 2018 at 10:19PM

pmlindyloo wrote: »

I have read all of your posts and have 'migrated' from the Benefits forum to here.

I have to agree with the last poster (January2015) that you should concentrate on getting your finances sorted - i.e to increase your income and cut down on your expenditure and the best advice will come from this forum.

You have to accept that you are not entitled to any Universal Credit because of your wife working and, at the moment, you are not fit for work.

From a benefits point of view you could investigate PIP and I would recommend getting some help from CAB or a welfare specialist to make an application. If this is impossible then there is a good guide here:

https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/help-with-your-claim/fill-in-form/

Personally having read about your outgoings I would think it would be helpful to post a SOA (others will tell you how)

You could then focus on reducing your expenditure (if this is possible)

I have every sympathy for you but as you have said many times we do not know you and how your illnesses affect you. We cannot really help you with applying for jobs because of this and, to be honest, it only makes you angrier when people offer suggestions because, as you say, 'they do not know you'.

By posting on these other forums you are becoming increasingly stressed so please take a rest from those forums and concentrate on your finances.

Thanks. I will sort out an up to date statement of affairs (and expect to be told off

)

fatbelly · 12 February 2018 at 11:35PM

Iwanttobefree wrote: »

Thanks. I will sort out an up to date statement of affairs (and expect to be told off )

Constructive comments, surely!

Also, I agree with you re Brandon Lewis. He'll probably be pm someday.

Iwanttobefree · 21 March 2018 at 11:43PM

Well it's taken me until today to finally get my statement of affairs sorted out, have been too stressed and depressed before.

Debts:
Creation Finance (me): £5,436
Creation Finance (wife): £5,882
Creation Finance (wife): £4,326
Vanquish CC (me): £2,262.15
Vanquish CC (wife): 2,320
Fredrikson (Capital One) (me): £2,559
Barclaycard (wife) : £3,761
NCO Shop Direct (wife) : £947.62
1st Credit (J D Williams) (me) : £441.15
Argos Card Services (wife) : £442.18

Total: £28, 377.40

Income Monthly
Wife: £1,576 ****
Me, unable to work due to health and not currently entitled to any benefits.

**** that's my wife's last years income divided by 12. She's a self employed mobile hairdresser and some months like Easter and Christmas are a lot busier than say January.

2 adults no children

Monthly Outgoings
Housing
Mortgage: £484.42
Water: £38.95
Council Tax: £133
Electricity £124 (all electric house, economy 7 storage heaters)

Household Services
Building and contents Insurance : £26.08
Landline, two mobiles, internet: £79.10
TV License : £12.37
Life Insurance: £36.05 (needed for mortgage)
Repairs : £0 Cant afford anything for this at the moment

Motoring
Spares/Servicing: £0 Cant afford anything for this at the moment
Road Tax: £13.12
Insurance: £45.07
Petrol and Parking: £190

Food and Housekeeping
Foot, Toiletries, Cleaning : £430 (I have to follow special diet)
Meals at work: £0 Cant afford anything for this at the moment
Pet food and insurance: £59 (dog on meds for life so cant change)
Clothing and Footware : £0 Cant afford anything for this at the moment

MISC Goods and Services
Dentist: £5
Prescriptions: £0 (I now get free prescriptions due to illness

Personal and Leisure
Hobbies and Entertainment: £0 Cant afford anything for this at the moment
Emergencies : £0 Cant afford anything for this at the moment

Other Costs
Loan from family: £0 They don't need the money at present but we want to pay it back at some point, owe about £5000

Total monthly outgoings = £1,676.16
Total monthly income = £1,576.00
Leaves us with minus £100.16

That is the outgoings we are sending the creditors, it's 100% true (not put on it amount owed to family) except I've missed one thing off, my Gym membership that costs £35 a month as I don't think they would understand

I need it for health reasons, I have to go swimming two to three times a week for my back problems on physos advice, and it's cheaper belonging to my local gym in a holiday resort than paying to use the local council pool two or three times a week. Local pool is £4.60 a time which if I used three times a week would come to £59.80 a month and if I used just twice a week would come to £39.80 a month. Whereas the local holiday resort has two pools, sauna, steam room , gym etc all included in the £35 price, plus there's certain times kids aren't allowed in one of the pools.

Our dog insurance, we actually get paid by Petplan in that the amount we pay them every month is far less than they pay out every month, and it's a for life plan (where as cheaper plans only cover a condition for up to say 12 months) . As my dog is on meds and injections for life, we cant even consider changing to any other company as they wouldn't cover him for existing conditions.

Car insurance is with Direct line, ours covers both of us to drive, my wife is listed as the main driver even though the insurance policy and car is mine, and we both earn no claim bonuses on it, meaning that if it came to a point I could no longer drive (or I died) my wife has the policy with full no claims. We also need a good policy due to her work, this one guarantees us a loan car etc. I know there are cheaper policies, but they simply don't provide the cover we require.

So that's where we are at.

Last week my wife didn't feel well, went to the GP and had very high blood pressure.

Yesterday she felt worse so went again and her blood pressure was 200/115

Today against my advice, she stupidly tried to go to work saying we need the money and her first client sent her home after she had been sick twice.

I 100% know that it's money problems that is causing her stress,

The only reason we are above water at the moment is that I got a £1300 PPI refund a couple of months ago, that's the only way we are currently paying everything.

When that runs out (end of July) we will be around £100 short a month depending on wifes earnings. Or possibly sooner as she wont be able to go to work tomorrow either.

My wife would simply not consider selling the house, 7 years and we are free from the mortgage (well we will have a tiny 2nd mortgage left for another few years)

I said to my GP last week that I will have to try and find a job for about 15 hrs a week. She said "well it's going to be very difficult for you to manage it "

and we have the worry of our debts.

If we stop paying, will they send bailiffs round to take our few possessions away?

What happens if they take us to court and we cant afford any money to pay a CCJ

Could they force us into bankruptcy

etc etc etc all worries that are not helping either of us get any better and is likely to lead to my wife having serious health problems and neither of us being able to work, then we will be in trouble.

And what if the car goes wrong, the water heater etc etc etc

Sorry for my tone, feeling a little down now I've typed all this.

Fedupofdebt · 26 March 2018 at 1:13PM

I'm sure no court would force you into bankruptcy or force you to sell your house. Communication is still key and keeping every bit of correspondence. A lady I knew got taken to court over debts and the judge stated to the creditors "she has offered what she can pay. Why have you not accepted?". Your situation is not one out of reckless living this is a situation out of your control. And some of these programmes on TV make the jump from missing payments to sheriffs of the court seem like a matter of days. I can't offer any real financial advice. But please you and your wife look after each other and talk to your doctor if these stress symptoms get worse. No financial situation is more important than your health xx

sourcrates · 26 March 2018 at 1:54PM

Hi,

Your income only just covers your essential, and non essential monthly bills, there is nothing left in your budget to pay any of the debts with.

Stark choice unfortunately, either trim some fat from your outgoings, enough to offer each creditor something on a debt management plan per month, or you will have to consider bankruptcy.

Are all your debts non essential unsecured debts ? if so then you should just be paying £1 per month each to them.

If any are secured debts, you simply do not have the money in your budget to pay them.
The Debt collection process takes time, no one can just send a bailiff, court action has to happen first, you must then default on the CCJ only then can a bailiff be considered, and they can easily be countered by not allowing them access, they cannot break in.

All that is a long way off at present, but you do need to take urgent, decisive action to stem this right now.

enthusiasticsaver · 26 March 2018 at 2:42PM

I think there is no leeway to pay your debtors so contact your DMP providers and tell them. Presumably none are secured? Are you doing the DMP through stepchange?

Your wife's blood pressure is very high and being on her feet will not help. This may be one instance where you might have to investigate if you were better off on benefits given both of your health and your wife's erratic income. Can you restructure your mortgage? How old are you both?

enthusiasticsaver · 26 March 2018 at 2:44PM

I think it is unlikely a Court would force a judgement on you in your circumstances. Your food bill is higher than expected for 2 people.

fatbelly · 26 March 2018 at 7:34PM

Iwanttobefree wrote: »

If we stop paying, will they send bailiffs round to take our few possessions away?

What happens if they take us to court and we cant afford any money to pay a CCJ

Could they force us into bankruptcy

You clearly don't have the money to pay them so stop. They are non-priority debts. If you get a court claim post here for advice, which if we can't defend it will be to offer £1. If you get a statutory demand (rare as hen's teeth), post here. They won't be able to force a sale of a jointly owned property because of a solely owned debt.

I have a client in the same situation as you. He stopped paying 5.5 years ago. He has one ccj which he pays. He could have let it go to a charging order. Unless all the others (maybe 8 of them) start a court claim soon, they will be out of time (6 years since last acknowledgement or payment). It's difficult enough to pay the mortgage and all the priority bills.

Iwanttobefree · 27 March 2018 at 2:11PM

Many thanks all.

So who is right? sourcrates who implies I need to offer something or consider bankruptcy, or enthusiasticsaver and fatbelly who imply I'm unlikely to be declared bankrupt and to stop paying them?

My main concern is, while they might not be able to force a sale on a jointly held house, what about if Creation tried to when my wife has two debts with them and I also have one debt?

All debts are unsecured, I always presumed if a debt wasn't secured on your house, your house isn't in danger?

My food bill is due to my diet. Unfortunately for health reasons I cant eat chicken (but can eat turkey), and I cant eat things like dried pasta, only fresh pasta.

For example, 2 pints of normal milk is 80p, 4 pints £1.10, but my milk is £1.10 for 2 pints (well 1lt)

Dried pasta is 61p for a 500g bag, fresh pasta £1.50 for the same amount etc etc etc and that pushes the food bill up loads.

I was with Stepchange a few years ago, but when I had loads of problems with Creation and Step-change couldn't help me, hence I had to sort it out myself, on the advice of this forum, I started doing the DMP myself.

I'm 54 and my wife is 52. We have our mortgage with the Halifax.

We owe £45,453 (as of our statement in May 2017, based on that statement, it should be £41,456 in May 2018 statement)

This consists of two mortgages
£26,644 (£23,415 in May) £358.99 a month for another 6yrs 3 months from now.

£18,808 (£18,041 in May) £125.43 a month for another 17 years from now.

The original plan was to pay more into the second mortgage or carry on paying the same we are paying now when the first mortgage clears to pay it off quickly.

6 years from now we will have £358 a month less outgoings. We do NOT want to loose our house (I think that would push my wife over the edge).

So, what do I do now, do I write to all our creditors explaining me not being able to work, with the income/outcome in my earlier post and inform them that unfortunately until further notice, we cant pay them a penny, and take it from there?

many thanks for all your help

System · 27 March 2018 at 4:54PM

OK so in earlier posts you say you can't work but would there be something you can do from home which you can use to generate income? I have a spinal injury, in 2008 it got so bad I was forced to stop working. 3 weeks in and I'm going mental from doing nothing so I took a look at what I was capable of, what skills I had and started to refurbish laptops and sell them on Ebay as a small business.

At the time the government had the Return To Work Credit available to those on ESA to help support them going back to work or starting a small business which was £40 a week tax free for a year, I was able to apply for working tax credit and your income doesn't affect a DLA/PIP claim. Whilst I didn't make a lot my turnover was well into five figures and it gave me an income of a couple of hundred quid a week but it also gave me the flexibility to be able to work as and when I was able to. I did that for 5 years before being well enough to return to my normal job.

What happens when I cant pay?

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