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Friend with bankruptcy - monthly payment?
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MrsShazbat wrote: »I'm still not really any wiser, but she is basically paying a DMP thru StepChange to creditors dating back to the early 90s when she had a house she bought with her partner and basically got into her initial debt borrowing money for him. This would have been around 1995 when I first met her, and shortly afterwards she left him, the house and everything in it apart from her clothes. For whatever reason, her bankruptcy did not pay these debts off because - she says as she understood it - she was in full-time employment and therefore had to contribute. So as far as I can tell, she went bankrupt to stop those debts getting worse and to rid herself of the subsequent debts she ran up during stressful periods of her life.
Anyhoo it seems to be correct. She's managed to get a new bank account thru the MSE weekly newsletter so that's good, so I'm just steering her in the ways of MSE now. Nothing much else I can do with this particular issue.
Sorry, this makes no sense whatsoever.
Bankruptcy writes off all consumer debt except what Fatbelly has highlighted, if she had an IPA the debts are still written off.
You need to clarify further.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Trust me I'm trying. I sat down with her last night and basically said she has got to start reading paperwork. She denies sticking her head in the sand, but how else do you get in this mess. Her sister who is a lot more savvy, sorted out the DMP, bankruptcy, whatever, because she admits she couldn't understand anything and probably her head wasn't in the right place. Sadly and without wishing to sound like a complete b*tch, she's not the brightest bulb but her heart is in the right place and if the boot was on the other foot she'd give you her last pound.SPCNo.18 #20 (17 £562.86 16 £678; 15 £1120.92; 14 £416.53; 13 £191.52; 12 £260.48; 11 £480.95; 10 £682.31; 9 £442.64)
1p Challenge 2025 #630 -
Hi something is deffinately wrong here, would she call up who she is paying this to while you are there and give authority for you to speak to them on her behalf?
This really does need sorting out, you are being a really good friend to her to help in this way.0 -
Hi MrsShazbat
This is setting off all manner of alarm bells for me. Somewhere along the line your friend appears to have either been very poorly advised, downright misled, or even a combination of the two.
The sooner you can come by that paperwork, the better. Once you've done that I think a call to one of the debt advice charities is in order - you/she need a directed conversation so that all of these question marks can be fully addressed.
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
I've had a good couple of years with the help of this site and these forums/challenges and I just want to help her. I can't keep bailing her out when this is hanging over her and the more I read up on the matter, the worse it sounds. All I keep thinking is she's paid/paying nearly £20k out and I can't see any reason why she should.
Thanks all for the pointers.SPCNo.18 #20 (17 £562.86 16 £678; 15 £1120.92; 14 £416.53; 13 £191.52; 12 £260.48; 11 £480.95; 10 £682.31; 9 £442.64)
1p Challenge 2025 #630 -
I'd say start by canceling the standing order that is paying the £150 from her account so at least no more money goes towards it0
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She's sent me a copy of her letter from The Insolvency Service dated 2007, which states that her IPA was reassessed at £120 p.m., saying that if she didn't agree to this figure they would proceed to court. I can only presume as this is the only letter she's found and she is now getting cheesed off with me nagging and asking questions, that this is what she is still paying. There are no dates on the letter stating how long she should/would be paying it for. I suspect I'm not going to get anything else out of her. Oh well, I tried.SPCNo.18 #20 (17 £562.86 16 £678; 15 £1120.92; 14 £416.53; 13 £191.52; 12 £260.48; 11 £480.95; 10 £682.31; 9 £442.64)
1p Challenge 2025 #630 -
She's also been trying to get a loan and asked me to be guarantor, which I've said no to not least because my husband would probably murder me in my sleep if he thought I was signing up for anything like that. She just said "don't tell him". Er no, he might not care how I choose to spend or commit my money but I think he'd object to something like that. Oh yeh, and we're married. So now I'm annoyed.SPCNo.18 #20 (17 £562.86 16 £678; 15 £1120.92; 14 £416.53; 13 £191.52; 12 £260.48; 11 £480.95; 10 £682.31; 9 £442.64)
1p Challenge 2025 #630 -
MrsShazbat wrote: »She's sent me a copy of her letter from The Insolvency Service dated 2007, which states that her IPA was reassessed at £120 p.m., saying that if she didn't agree to this figure they would proceed to court. I can only presume as this is the only letter she's found and she is now getting cheesed off with me nagging and asking questions, that this is what she is still paying. There are no dates on the letter stating how long she should/would be paying it for. I suspect I'm not going to get anything else out of her. Oh well, I tried.
An IPA (IPO if it goes to court) lasts 36 months, not 35 or 37 or any other figure.
Anything she has paid in excess of this must be returned to her.
We know she was bankrupt July 2006 - the IPA would have finished in mid 2009. It sound like she has overpaid 120 x 8 x 12 or around £11500.
If she gets that back does she still need the loan?0 -
This is what I'm trying to tell her but the other day I got a very curt text assuring me she knew what she was doing, she'd gone through it all with her sister and it was all correct. So....
She did tell me she was going to ring StepChange as they manage her debt (she showed me her account with them on their login so that is correct) but I don't know whether she has, or will. I'm seeing her on Friday so will have one last go. If we're in a public place she can't have a go at me LOL
Anyone want to bet that it's a standing order that she forgot to cancel (as opposed to a direct debit - trust me she won't know the difference!)SPCNo.18 #20 (17 £562.86 16 £678; 15 £1120.92; 14 £416.53; 13 £191.52; 12 £260.48; 11 £480.95; 10 £682.31; 9 £442.64)
1p Challenge 2025 #630
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