www.iva.co.uk

Is there a template letter that I could send on my mothers behalf to a debt collector to inform them that my parents are about to start bankruptcy.

They have only a pension both in their 70's live in sheltered accomodation. Have no assets no savings and a car worth about £200.

Pretty sad really but they have debts of about £12k each and cant afford to pay them. These debts have built up over the years. They cant afford an IVA. Well they only have about £40 a month left between them as surplus. They just want to go bankrupt and stop the threatening letters and banging on the door.

Credit Cards !!!

If they go bankrupt they feel they will be free. But is there a chance the Bank of Ireland Credit Card for £12k would write it off as they are insolvent and have no prospect of paying.

If there is a template letter I could send for them to let the creditors know of their intentions for Bankruptcy. They might even pay for the Bankruptcy for them.

Hi Steve,

So sorry that your parents are finding themselves in this position, it shouldn't be happening at their time of life should it?

If they need to write to them, I would just put it as it is. Otherwise I would ignore it and just get on with petitioning for themselves. They don't need to keep the creditors informed.

Court fees are £510 each and they (or you) can fill the forms in online.

Hi Steve,

There maybe a template letter on the BR forum? If not, I'm sure between us we can whip one up.

Firstly though, why don't you ask an IP to look at your parents circumstances, just to make sure BR is the best route, I'm sure it is, bu the advice will be free and will put their minds at rest. Also, they may qualify for help with BR fees.

Thanks.

I think a letter just to tell them whats happening. I agree it makes little difference. But they feel it with stop people banging on the door while the petition is put in.

The truth is they have nothing. Had a good life though but they are both looking forward to Bankruptcy.

Also they are worried that they will not have a bank account to have their pension paid into.

A person with debts of less than £15k and less than £50 per month in rented accomodation and with no assets to speak should also be looking at a Debt Relief Order (DRO)
through the CAB perhaps or through Payplan.

I have told them about payment plans and they just want it over and done with with Bankruptcy.

They dont want credit and want to move on. They feel a payment plan carrying on into their eighties is not how they want to live

There are 6 providers of DROs and plenty of posts on here about them. One of the key features is a fee of just £90 and another is that you don't have to appear in court.

A DRO is not a payment plan, quite the opposite - its like a mini bankruptcy.

They may have their own house, or more than £50 per month DI.

They can find all the info needed for BR via this site:

http://www.insolvency.gov.uk/

If they are on any benefits they may be able to get a reduction on the court fees. Otherwise, there are some utility companies who are happy to help, but I think you might have to contact CAB for those details.

Any problems with forms, then we can always help on here.

Steve, I have read your post to my husband (he cannot use the computer at present) he said to tell you that he dealt with a similar case as your parents at a charity he does work for; he wrote to the three ceditors and explained everything - age etc etc- the creditors did write the debts off. It is worth a try before they petition for b/r.J

They seem certain of their decision Steve and thats good for them.

With the account, they'll be able to open a post office/co-op for their pension.

If you need help with the BR process just ask.

They live in sheltered accomadation Council Flat.

No savings they get disability benefit etc and pension. A DRO sounds good.

If admin don't want the link posted look at www insolvency gov uk and there is plenty of information on DROs and the approved intermediaries.

Thankyou all for your kind help. It good to know that there are others willing to offer advice and help without Judgement.

A DRO might be ok, depends on whether the debts are joint or seperate.

Once again, it depends on DI once priority payments have been made.

Perhaps a chat with an IP might help them.