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Unsecured Debts, no assets and in a DMP but can't pay - solutions anyone?


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I have a chum who has approximately 15ks worth of debts, mostly credit cards spread over 6 companies.


I put him into a DMP back in April following the death of his wife. His business had collapsed, he was practically in negative equity, he has since sold his house and cleared his Mtg and secured loans with that money, but now finds himself with only enough from Pension credits and a small personal pension (just over £1000 a month) to survive.


He can't.


He is paying £120 a month into the DMP and tells me he cannot manage it anymore.


He has no fixed abode and has already overstayed his family's ability to put him up so has asked me what I thought would happen if he stopped paying these cards.


Can anyone tell me what attitude these cards may have given he has no assets, no money, no fixed abode and at 68 yrs of age no liklihood of getting any further full time income?


I don't want to say stop paying without knowing exactly what the reactions are. Might they just write them off if he asked or what can they do?


I am good at negotiating, but haven't come up against this one before so anyone with any experience of this contributing would be a great help.



Also, what might the DMP people say if we go back with a budget which made the picture clear he could only afford £1 each card a month rather than what he's paying?


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Hi Andrew


phone National debtline with your I&E ready.


They told me that a DMP would require a min of £100 per month but my I&E indicates that I can't afford anything.


They told me to write to creditors to that effect - which I did a few months ago; am still battling away as creditors don't like it They said it doesn't matter whether I offer £1 per month or nothing (I guess at £1 creitors will sell the debt on anyway.


Best wishes



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If he has no assets now & if the debt is under £15K has he looked into a DRO?

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If he has no assets now & if the debt is under £15K has he looked into a DRO?


Well he's got a Directors Guarantee from an old business of well over that of more than double that figure, but it's unsecured . I'm hoping to kill that off for him in one fell swoop, the cards are the difficult one, but you could be right, once I get the DG cleared that may well be the route to take, thanks I hadn't thought of that.


Bankruptcy is no opition for anyone to take as he has no asset anyway, I was thinking of just telling these creditors he's effectively penniless and homeless which he is for all tense and purposes so write them off. Be better doing that than having them hanging over his head forever.


In the situation you said Victoria, and thanks for that, leaving them ongoing is not something I would like to do, he's 67 already in a DMP and I haven't yet told them he's sold his house or changed his circumstances as it'll all come to a halt anyway given the negative balance in the I & E, rather keep in control than the other way around although as he's moved out of his home and has no forwarding address they'll have trouble keeping up with him. Not a clean break though and I want to tidy this up and kill it off. It can be done I'm sure. That DRO may be just the ticket.


I'll look into the DRO, but I'd still be interested if anyone has any experience of this particular set of circumstances of dealing with the card companies and getting them to write off the debts. First reading the DRO has a few drawbacks so I'd like to keep exploring. Thanks.

Edited by andrew1
Added last sentence after looking at DRO details
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