My daughter

[Shining]

Some may recall I posted about my daughter admitting to being 3k in debt. Well 3k turns out to be more like 6k. CCCS phoned her today and basically there is nothing they can do to help as her expenditure for basics is more than her incoming. Any ideas? I feel such a failure one as a parent and two as I'm in the same situation (although she doesn't know). I am going to have to tell her and point her to this forum as I am sure she is expecting me to help and I just can't not even with a penny. Bankcruptcy springs to my mind initially as she lives in rented (council) accomodation and owns basically nothing. Any advice gratefully taken. I know nothing about bankruptcy and would leave her to make her own mind up but wondered if this was an option? She is coming to see me tomorrow lunch time as she called into my workplace today so wasn't really convenient to talk but she was in tears bless her.

[Lisa2009]

Hi, i can't give you the answers you are looking for. I just wanted to say you are not a failure. You give your daughter love and understanding and that means more.
I'm sure theres a solution for her so try not to beat yourself up over it.

mrs skint

[kandh]

Isthereanend, I am really sorry to hear this update. Like Mrs Skint has said, you are by no means a failure. The fact that she felt she could come to you with her problems shows that you are not a failure. You are there when she needs you most and thats a start on her road to sorting this out. I am sure an expert will be along soon to offer advice to you in readiness for when you see her tomorrow.

You know where I am.....
xx

[MelanieGiles]

What a shame to see someone facing bankruptcy with such low debts - and it is for these very type of cases that we urgently need the new Debt Relief Order procedure which is currently going through Parliament.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
Nevertheless your daughter can petition for bankruptcy if she wants to.The cost is £485 and this will clear her debts once and for all.As she has no disposible income she will not have to make any payments into her bankruptcy.She will also be discharges in twelve months and her normal household goods will be safe.
What did CCCS advise ?
If your daughter decides on bankruptcy she will receive all the support that she needs from this forum and can read several Blogs of forum members that have been through bankruptcy[Skippy,Scaredkez,Coco etc]
However as Melanie states it's a shame that someone has to go bankrupt for debts of 6k

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Shining]

Thank you all for your kind words and advice. Andy I've not mentioned Bankruptcy to her yet, it was my initial thought when she told me. CCCS advised her to send her car back, which is on HP, this is an option as she would not have the payments, the insurance or tax. However, she lives around 4 miles out of town and her daughter (3) goes to pre-school in town and will start main stream school next September in town. There is no school near to her house. It's so difficult. She drives her to school and as she only goes for 2.5 hrs she comes to mine until it's time to pick her up to save on fuel charges. I'm always at work but it's a free dog sitter! Seriously, I don't know what to advise as I'm sure in Bankruptcy she'd lose her car anyway? is this correct, as I say I know nothing about Bankruptcy so wouldn't even like to guess what happens. As so many people have said, I'm so glad this forum is here and I am glad to be part of it as to unburden my worry and get good advice is such a godsend to me. I just don't know how she can move forward right now. I'm working till 8 but when I get home will have a look at her situation and hopefully when I see her tomorrow as I don't start till 2.30pm we may come up with something. I've got my remortgage and creditors meeting looming and can do without this but she is my child and I will help her as much as I can although not financially.

[Adam Davies]

Hi
How much is her car worth and what is the outstanding finance?
Also does her 6k debt include the car ?
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Shining]

I'll find these out tomorrow Andy when I see her, no good on car values and I would think it is included in the 6k but again can't be 100%. I'm finishing work now so I may even ring her when I get home so I could maybe have more to tell her tomorrow. Thank you for your help.

[Adam Davies]

Hi
Also find out if the car is on HP or a personal loan,try to find the credit agreement for the exact wording
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[emma_t]

Hi isthereanend

So sorry to hear your update on your daughters situation, as a previous poster said it shows that she feels able to come to you with her problems and talk with you about it.
There is so much temptation to give people credit out there it is not hard to see why so many people are in debt.
I hope you are both ok and can work through this together.
Good luck
Emma

[ray_a]

It might be worth though writing to her creditors to see if they would accept a small token of payments over say a few years to avoid bankruptcy.

I think though getting your daughter to use basic bank accounts which we write about and a prepaid mastercard will start to help her with rebuilding her financial life!

[Martin2011]

Hi Isthereanend,

First up, to repeat the others, you must be a good parent, or your daughter wouldn't come to you when things have gone wrong - and se's very lucky to have someone who'll properly understand her situation and be able to offer sound advice with the help of everyone here. Good idea to point her at the forum, I can't hink of a better place for support and a real wealth of knowledge. I guess BR is an option, but share the view that to take that option for a debt of 6k would be a big step. I wonder whether there is any mileage in Ray's suggestion of talking to creditors to get a realistic agreement for repayment, getting the car situation resolved and maybe going for the disciline that comes with a basic acct and pre-paid m/c.

Hope it all works out for her, and be certain that she'll be so grateful to have you for a parent right now, not all would be understanding and supportive that's for sure...

Martin

[johnz]

Hi [:)]

The thing that worried me most about your post is you said her expediture for basics is more than her income. If this is the case, then how on earth is she going to stop getting into debt again if she does go bankrupt. I'm sure someone will correct me if I'm wrong, but isn't a condition of bankruptcy that she would not be able to get any further credit??

If it were me, my first step would be to write down every single outgoing I have (not including debts), then sort out a way to reduce that so that it was not more than my income. If this is not possible, then perhaps she needs to speak to the DHS about getting some sort if income supplement, or perhaps look at changing her job to earn more money. Perhaps the 2.5 hours she spends at your house could be spent in a part time job (some cleaning jobs are only for an hour or two each day). I know it's not the easiest thing to do to fit work around a young child, but if there's no way she can make her income more than her every day expenditure, then she'll just find herself back in the same situation.

Best of luck to both you and your daughter.

Johnz

[Shining]

Johnz my writing in haste (I'm at work!) often results in my posts being misconstrude, so bear with me here. If she got rid of her car she would have enough to live on. She's been to see me again today and although we talked I told her not to be hasty and to make an appointment at the local CAB and take their advice. Andy CCCS told her to write to all her creditors and offer them a pro-rata amount which as they recognise at the moment would probably equate to a pound each!

[Adam Davies]

Hi
I think the car is the key here and,with respect,is clearly unaffordable.
It is important to find out what sort of agreement that she has with it,as this will make giving advice much easier.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp