threatening court action

[pul]

My daughter is a single prent and on benefits she has approx 6000 debt from various creditors from when she was with her partner she is at her wits end and desperate but does not have enough debt to qualify for an IVA can someone please advise what she should do next its beyond the point of the creditors talking to her and they are threatening court action and baliffs she is very worried and depressed

[freelili]

Hello

Its a very horrible place to be and I feel for your daughter. She really needs to contact the CAB for advice on a DMP or could consider bankruptcy. I know that this sounds really scary but she has nothing to lose and it would bring a swift end to her problem. There will be info on this on the sister bankruptcy site. I wish you and your daughter the very best with this. I am not an expert just another person in debt. I was going BR myself, it was my only way out also.

take care and keep posting

LILY

I asked God for a solution and have to live with his reply.

[MelanieGiles]

Hi pul

Does your daughter have any disposable income to enable her to make ongoing payments to her creditors? If so, she should take advice with regard to a debt management plan. There are various charities who will assist her with this free of charge - and as Lily says, the CAB are also useful.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Hi
You have done well to post on this site and seek advice.
Your daughters problem will not go away so she needs to take advice through the CAB or a debt advisory charity..There are several solutions for her and as Melanie states if she has some disposible income,her income less living expenses[not including debt repayments] then she may well be able to come to an arrangement with her creditors via a debt management plan.
Good Luck

[go_4_broke]

Hi pul,

Your daughter might like to know that they will threaten a lot more than they will actually do, especially in the early stages of a problem.

The best way to keep them at bay while she seeks further advice is to make small token payments, even a pound a month will do for starters.

See my Blog for more on this.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[jamesfalla]

Pul

My view on this is if your daughter is a single parent living on benefits, she will have absolutely no spare money each week / month to give to her creditors. I would think that even if she had no debt in her position, she would still be struggling to make ends meet.

As such, I think she will really struggle to make a Debt Management plan work. She just won't be able to afford to pay enough each month to get the debt down. Trying to pay her creditors token payments (ie a pound of two a month) will never resolve the problem.

Given this, my recomendation is that she should declare bankruptcy. It sounds like a sledge hammer to crack a nut but assuming she lives in rented property, she will loose absolutely nothing and will not have to make any monthly payments. She will also probably be discharged in less than a year.

The only down side would be the cost. As she is on benefits, this would be a one off payment of c£300 to the court. However, better to try and beg and borrow this together and have done with it than have a £6000 debt over her head for years to come.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[go_4_broke]

I'd have to agree with James and Lily that bankruptcy is very likely to be the best way to ultimately end the debt, however this is not going to happen 'tomorrow' - as James says at least £325 will need to be raised and this may take some time.

Token payments will never end a debt and are not designed to, but simply demonstrate goodwill to creditors, and can be very effective in preventing further action whilst other arrangements are made.

If your daughter really cannot afford them she should certainly not pay them, but may well consider that the few pounds a month it would cost is well worth it.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'