I cannot carry on with the repayments

[sewsweetie]

I am 56 years old and have been diagnosed with depression . I last had a job in Jan 08 and I have been managing with little savings and family to repay my debts of 2 credit cards and 2 loans since then. From August I cannot carry on with the repayments. I am getting 63.00 a week in benefit. I have debts totalling just under £14000. Loans are unsecured. All debts under £5000.

A friend has offered me £2,500 to help. The suggestion is that I try and negotiate with creditors to accept small amounts in full and final settlement. Have you any experience of this type of negotiation?

I do have an apppointment with the CCCS but their 1st appointment is 31st July. As you can imagine this is compounding my depression.

Your advice would be much appreciated.

[chris.g]

Hiya and welcome. Have you contacted your creditors to explain the situation and/or asked if they can reduce the payments?
An IVA and DMP will rely on you having a regular disposable income and to be honest I don't think that is going to be possible when you start claiming benefits.
Do you have any assets that may be lost in bankruptcy? This may be your best option as you will not be in a position to offer the creditors any regular payments.

[MelanieGiles]

If your friend has offered you some money to help you, and you have no assets which would be affected under bankruptcy proceedings, I would suggest that you give this serious consideration. The cost of the Court fee is £495, and as you are unemployed it would be very unlikely that you would be required to make any form of ongoing repayments.

[Viki.W]

Hey sewsweetie, welcome to the forum. I just wanted to say hi, you're in a great place here for support and advice.[:)] X

[indebtforever]

hi sewsweetie welcome to the forum i would advise speaking to an ip on here all are human and will give you your options they are all recommended.BR would be an option without any assets and being on benefits

[Soulgrowth]

Just wanted to welcome you to the Forum and wish you luck in finding a solution.

Debbie

[Lisa2009]

I agree, if there are no assets then i would give bankruptcy some serious consideration and put the whole thing behind you.
Your own health is far more important than money right now.