Hi,
I am writing regarding my mother, my apologies if this is a bit long-winded, but it is a pretty long story.
My mother has early onset Alzheimers Disease. Until his death last April, my father held Power of Attorney over my mothers affairs. During this time he built up debt totalling around £120k in my mothers name (with an equivalent amount in his own - all to prop up a failing business and to look after my mother). Upon his death, and our first discovery of the debts, I wrote to all the creditors explaining the situation:
My parent s were living in rented accommodation (they do still own an abandoned property - my mothers stake is worth c£20k). The only income my mother had was here disability benefits and income support (and now bereavement benefit).
It was my initial hope that they creditors would be understanding and let the matter rest. To their credit, many did. However a few (totalling around £50k) are actively chasing and threatening.
What is the best solution for us to take in this situation.
I am currently going through the process of obtaining power of attorney for my mother, though this could take some months more to come through.
Is there any option that would leave my mum with any of the proceeds from the sale of her house? My mother requires care in excess of the levels of funding she receives (through direct payments) and so my strong argument would be that she needs some level of savings to support herself in the near future.
I am looking at both the IVA and bankruptcy options, though I understand bankruptcy would be more appropriate given her inability to repay monthly.
Any help or pointers in the right direction would be greatly appreciated.
Kind Regards,
John
