A Morbid Tale of Debt

[fairbank]

A few weeks ago a close friend called me to tell me how serious his debt was, he had run out of money, hounded by the postman, dcas, behind with mortgage. Yes serious debt, but not uncommon it seems having read many of the threads on this site.

 

Within the hour he had hung himself. Committed suicide and left a wife and three young children. I was appointed executor and his debts were bad but on reflection could have been dealt with.

 

We were close in everything we did. Both entrepreneurs but he was far better. Both earning £50k salaries 10 years ago but we both have hit hard times. His has resulted in death but mine will not.

 

It's ironic having looked at his estate that we have made vitrually the same mistakes. His debts and mine are mainly secured, the unsecured in my case no more than £15,000. I am in a negative equity situation based on secured debts and mortgage.

 

It does make you think sometimes that walking under a bus would clear the financial headache but life is more important than money and I would never give up the wonderful wife and family that i have but I know that I NOW need to address the situation.

 

The past year has seen me with a seriously ill parent, a daughter with cancer and a lost grandchild. The whole series of events have placed a real strain on me and my wife

 

In August this year I was forced to give up a well paid kob and did so on the promise of much private consultancy that has never materialsed. Three months down the line, the money has run out and I face the next month being unable to make any payments to anybody.

 

Total monthly income of £900 does not cover £1800 of regular payments so I have to act fast, hence I really do need some advice please, I really do.

 

What should I do, should I opt for BR now. It seems an option it really does. With secured debts of around £210,000 and a house worth £180k tops, its going to take a long time to own the house. The unsecured stuff is a worry but not as big as the secured stuff. Yes dcas are calling and I am half way through paying the bailiff for my council tax, and he has walking possession as well (god I wish I had read the bailiff thread before)

 

NOT having worked for three months can I go back to the council and get a reduction in my council tax? I don't know.I haven't signed on or anything

 

I have millions of questions and I am sure that just as many will be thrown back to me which I will answer most willingly.

 

By next Friday I will have no money so I need to think quickly on my feet.

 

Some serious quick advice would be most welcome.....thanks.

[tomterm8]

NOT having worked for three months can I go back to the council and get a reduction in my council tax? I don't know.I haven't signed on or anything

.

 

Mate, that's the first thing you should do. go to entitledto, and find out what benefits you are entitled to.

 

Calling the national debt line would also be a good idea.

 

 

I've never seen a debt problem that couldn't be solved.

[fairbank]

Thanks, will have a look immediately

[fairbank]

Have been on the site that was recommended and answered everything as accurately as I could

 

I have some questions over some of the allowances

 

What does earned income net mean? It gives a figure of just over £6000 with £3000 for other income. I understand the child benefit element

 

Are these figures counted as money to me?

[Hopeful1]

Sorry, i can't answer your question re benefits. I thought you may find this link useful CCCS - Free Debt Advice from the UK's Leading Debt Charity

 

I haven't used them, but many others on this site have and find them really helpful.

 

Do you have any charges you can reclaim on cards, loans etc?

 

It will also be worth sending a CCA request to the DCAs. If you need moreinfo about this just ask

 

You will be given lots of support on here. You've come to the right place

[sequenci]

NOT having worked for three months can I go back to the council and get a reduction in my council tax? I don't know.I haven't signed on or anything

 

 

you need to sign on for job seeker's allowance ASAP.

 

you should also contact your local authority to claim council tax benefit

 

bankruptcy *could* be an option, you would to sign your beneficial interest in the property away (this costs £1+£211+vat admin fee), this would stop it ever being sold by the official receiver.

 

as folks have stated previously, give one of the debt help charities a ring in the morning, you have a complex query which they would be able to help get sorted.

 

NDL = 0808 808 4000

CCCS = 0800 138 1111

 

(both free)

[fairbank]

Slightly better start to the day and a glimmer of hope!

 

If all goes well next week I will have some consultancy work to the value of £3500 plus I have been asked to do some work in December at a value of £1500. This is a huge burden lifted in the short term and will put things in abeyance for a few weeks at least. Could have an okay Christmas, which my family really deserve after the past year.

 

I think that I need to revisit my strategy and be prepared for the next series of events that follow.

 

I have read much about ccas with the dcas. Is it that simple to go ahead and ask for the cca. IS the account in dispute during this phase whilst the cca is provided. Off the top of my head there is Littllewoods, Capital One and RBS Credit Card. All with dcas. There may be one or two more as well. There are loads of charges on them as well.

 

Thanks for the advice so far. I was extremely depressed after my post yesterday but a little more cheerful now (but not smiling!)

[shane5408]

Slightly better start to the day and a glimmer of hope!

 

If all goes well next week I will have some consultancy work to the value of £3500 plus I have been asked to do some work in December at a value of £1500. This is a huge burden lifted in the short term and will put things in abeyance for a few weeks at least. Could have an okay Christmas, which my family really deserve after the past year.

 

I think that I need to revisit my strategy and be prepared for the next series of events that follow.

 

I have read much about ccas with the dcas. Is it that simple to go ahead and ask for the cca. IS the account in dispute during this phase whilst the cca is provided. Off the top of my head there is Littllewoods, Capital One and RBS Credit Card. All with dcas. There may be one or two more as well. There are loads of charges on them as well.

 

Thanks for the advice so far. I was extremely depressed after my post yesterday but a little more cheerful now (but not smiling!)

 

Don't worry, you'll be smiling soon enough:)

 

Seding CCA requests is very simple and very useful, especially when accounts have been pased to DCA's. They have to prove they have a legal right to collect the debt, they do this by providing a credit agreement which must be signed by you and contain all prescribed terms.

 

With regard to charges you will need to send a SAR request to each original creditor to ascertain the full extent of charges, then you can start claiming them back.

 

kind regards,

shane

[fairbank]

Shane

 

Thanks. This will all be done next week. Now have to concentrate on getting some of this work to start with

[fairbank]

I finally got around to sorting out the huge pile of mail that has grown i recent weeks.

 

I was also greeted by notice to default by Paragon and capital One

 

Strange but I cannot find any statements from any of these guys which will no doubt have huge charges on them. Should I go for ccas and alsask for statements. Surely they have to send me regular statements.

 

Have also kicked off PPI claims against Paragon (£9100) and London Scottish (£830) plus interst of course. Now these two being successful would buy me enough time to get my act sorted out.

 

Kind of more positive at the moment, but a few beers, despite lack of cash are in order tonight!

 

I think that I am starting to get a better handle on how to deal with things. Just need the work to come off on Monday and then at least I can at least use some delaying tactics and try to get some order

[shane5408]

Hiya,

 

To find out all charges on the account you would need to send a S.A.R - (Subject Access Request)

 

With regard to Paragon and Capital one if you haven't already done so send a CCA request asap, this will put the accounts into dispute which means they cannot take further action (including registering defaults) until they remedy the dispute, ie by providing a legally complaint credit agreement

 

kind regards,

shane

[ODC]

You CCA request includes a request for an up to date statement of the account.

[fairbank]

Thanks for the advice. A job for tommorrow

[fairbank]

...also Paragon is over £25k will this matter. Assume its unregulated??

[Hopeful1]

Hi Fairbank. I'm glad you're feeling a little more positive. All the letter typing and sending is hard work, but worth it. Just the sense of control it gives you is a major boost.

 

I can't remember if it's already been said, but send all your letters by recorded delivery or special (if the budget allows). Keep all receipts - no-one can deny recieving anything then Don't sign any of your letters either - just type your name.

 

Good luck. Fingers crossed your work goes well.

[jansus]

Gosh really sorry about your friend- glad to see you are getting some help.

 

There was a case on here I was really worried about - its so hard when you see someone unravelling before your eyes.

 

Hope everything works out for you. As you say the most important thing is your family and if they stick with you - that I am sure will strengthen your resolve,

 

Hope everything works out

 

Jan

[fairbank]

Just got back from a few beers with friends. The typng may not be so good.

 

Jansus, the most important person is me in thsi situation to be farnk, I need the courage of my convictions to see this through. My loving wife and kids are the most important things in my life and I owe it to them to make sure that our lives continue to be most meaningful.

 

I know that with the family that exists on this site that the advice give will help steer me through and I am so happy that so many people care to listen

 

Off to bed and by the way I helped solve some problems for some really disadvantaged kids tonight who were in danger of never being listened to. Lie is a doble edgedsword sometimes

 

Onwrads and upwards

 

Written aftera a few beers sorry if have been less subtle

[saqqara]

Don't sign any of your letters either - just type your name.

.

 

Why are we not signing letters? Is this so the DCAs cannot forge our signatures on documents? I have been using a different signature for each DCA so that if that dummy signature appears on an agreement I can shout fraud!

[make them aktiv runners]

Have been on the site that was recommended and answered everything as accurately as I could

 

I have some questions over some of the allowances

 

What does earned income net mean? It gives a figure of just over £6000 with £3000 for other income. I understand the child benefit element

 

Are these figures counted as money to me?

 

Not sure what you have done. The calculator can be used by people who are working a few hours and are therefore eligible to top-up their income with benefits, as well as those not working.

 

I hope your consultancies continue into the new year. If not, then the calculator does not need you to enter your income to date, just what you are earning at that time.

 

Sometimes it is easier to start by just entering your family number, ages & council tax and leave everything else blank. The calcualtor will then tell you what your child benefit is, as well as the maximum income support, tax credits & council tax that could be paid. Once you have done that, do it again entering everything else.

[fairbank]

Jansus, apologies for the post i wrote in the early hours of this morning. I put it across the wrong way.

 

I will wait until the alcohol clears next time!

[Hopeful1]

Why are we not signing letters? Is this so the DCAs cannot forge our signatures on documents? I have been using a different signature for each DCA so that if that dummy signature appears on an agreement I can shout fraud!

 

Hi Saqqara - yep, i suggested not signing in case of any naughty behaviour! Signing in a different way than normal is just as good too. There's also this thread for a bit of high tec guidance!

 

http://www.consumeractiongroup.co.uk/forum/general-debt/110578-digital-signature-guide.html

 

[jansus]

Hi

 

reference your previous post --no problem

 

actually your thread prompted me to contact a poster on here i was worried about - so all good.

 

Hope I get a reply

 

jan

[fairbank]

Well I didn't get the second piece of work but at least the first one is still there although I won't see the cheque until late December.

 

Last night throughly depressed, no deeply depressed. Planning all kinds of things in my head of the most effective painless way of just ending it all. I can't do that but the thought never seems to leave me at the moment

 

So the situation goes from desperate to dire. I now have to start getting the ccas in etc.

 

Will keep you posted

[Lula]

fairbank, please dont think like that, you have a lovely family and with this wonderful sites help, you are going to be back on the straight and narrow in no time, perhaps you could chat to your GP, as I feel a course of anti depressants might help you. Do you talk to your wife of your concerns? I am sure that she would really want to help you.

[Slartibartfast]

Hope this all works out well, looks like you're in good hands here. I had a few shaky moments, still a long way to go but there is immense inspiration to be found here.

 

This is a typical example of the strength of will here.

I've never seen a debt problem that couldn't be solved.