where to start so many problems

[rory32]

First of all hi and welcome to CAG.

 

Can I ask do you have any assets e.g. are you a homeowner?

 

Have you considered granting power of attorney to someone else (possibly your dad) so that you do not have to directly deal with this?

 

As far as self bankruptcy is concerned it need to necessarily cost you any money. There are various charities and trusts which may give you the fee to go bankrupt. A lot of these trusts are actually set up by utility companies. Who is your energy supplier?

however recently they have charged me 105.00 for going 5.00 over my limit i spoke to them and they won't take the charges off because i had a claim paid to me

Have you considered a basic bank account with another bank? This type of account pays out DD's and SO's but doesn't give you an overdraft facility or a switch card. I know that Lloyds basic bank account don't charge for DD's that there are not enough funds in the account to pay. They just don't pay the DD. The downside is if it happens 3 times they ask you to close the account, but at least you don't receive any charges.

[rory32]

Okay what I would suggest is that you grant someone power of attorney over your affairs. This means that you don't have to deal with sorting this all out and someone can do it on your behalf. There are two main types of power of attorney, these are a last one and an ordinary one. A lasting power of attorney will give someone permanaent ability to act over your affairs. An ordinary one allows someone to act on your behalf for a period of time. The CAB will be able to help you with this. Someone can attend on your behalf - you don't need to go yourself. Alternatively you can buy power of attorney standard forms from such places as WH Smith.

[rory32]

sorry meant to add what would handing over power of attorny mean exactly long term?

An ordinary power of attorney would only be for a set period of time. You and only you are liable for the debts, not your dad. Your dad is simply acting on your behalf with your permission to sort your financial affairs out. He has no personal liability for the debts.

[rory32]

A charity that I would suggest you get in touch with, to give you some support as well as advice, is National Debtline:

 

FREEPHONE: 0808 808 4000

Monday to Friday 9am to 9pm

Saturday 9.30am to 1pm

24-hour voicemail.

 

Your dad may wish to do this on your behalf if you don't feel able to cope with it.

[rory32]

first my benifit is going into an account with a £700 overdraft with the abbey, that I have never signed for and always been done over the phone is this legal ?

 

Yes perfectly legal. As honey has suggested you need to open another bank account. Either a basic bank account (all the banks do these now) or a post office account. All you need to open one of these are forms of i.d. such as a utility bill. You also need to get in touch with the benefits agency while you are setting up this new account and ask them if they can send you out a giro as a temporary measure until this new account is set up.

 

As to reclaiming the charges, it's unlikely that the bank will just hand them back to you without a bit of a fight - although you should get them back eventually. The overdraft is going to just become another of your debts as really you don't want to be using an account with an overdraft facility.

[rory32]

I tried to go out today to open a lloyds account so i can have d/d and s/o on the account and i could not even get passed my front door

It's just an application form that you fill in and post off. Could you possibly get someone to pick up one from a branch of Lloyds? Another alternative is a Nationwide basic bank account which you can apply for on-line. The link is here Please note both these accounts offer only cash cards, so you cant use the card over the net.

 

Another alternative is a Bank of Scotland Easycash account which offers a Visa Electron card which you can use for shopping on-line. Again you can apply online. Link for further info is here

 

Please note that while there is no overdraft on these accounts Nationwide and Bank of Scotland will charge you if there are not sufficient funds in your account to pay a DD or SO.

 

Another alternative for on-line shopping is a prepaid credit card which costs about £5 per month.

[rory32]

Regarding bankruptcy I would speak to National Debtline. They employ qualified advisors. While the CAB also do, you may not be able to speak to one over the phone and end up speaking to a volunteer. County Courts often deal with bankruptcy and if you phone your local one they will be able to tell you whether they deal with bankruptcy petitions. Some information for you from the insolvency.gov.uk Publications and Guidance Material Issued by The Insolvency Service

[rory32]

what happens to my council home, will i lose it ?

No.

Will i have to re apply and move ?

No.

I am a little behind on rent and council tax

The rent and the council tax will go in the pot with your other debts. Although the council can write off rent arrears due to bankruptcy it is better to keep up to date.

what happens to my utilities bills ? I am not in debt with this at the moment

These will be paid as normal.

will ALL MY DEBTS BE WRITTEN OFF ?

Effectively yes as you don't have any disposable income if you are on benefits.

will they take my car ? home possesions ?

No and again no. If the car is worth more than £2,000/£3,000 then it would need to be sold and replaced with a car of around the £2,000/£3,000 mark.

 

Regarding possessions:

a) You will be allowed to keep such tools, books, vehicles and equipment as you require for your personal use in any employment, business or vocation.

b) In addition you are allowed to keep such clothing, bedding, furniture, household equipment and provisions as are necessary to satisfy the basic domestic needs of yourself and your family.

What this means in practise is, that unless you have exceptionally valuable items of furniture, jewellery or excess equipment in whatever your trade or profession is, you will be allowed to keep most things.