dro or other options?

[ibis]

Hi guys, its been a while since i last posted but i really need some help.

Myself and my husband are both on disability, he has alot of mental health probs and i am house bound due to physical disability.

 

My husband has 3 children, from different relationships, who come to ours during the week and weekend. We both have debts accumulated before we were in a relationship, my debts are for credit cards totalling about 4000 split between 2 lenders, My husband has only one non priority debt which is paying for his car which was repossed in 2009. My husband has a 6000+ child maintance back payment bill and i have a student loan totalling 2300 which isnt due for repayment yet.

 

 

we are really struggling to meet our payments. I have negotiated with all companies involved. the csa and student loan have been ok and my husband is on nil award from the csa (this is for his eldest whom he has no contact with) but my credit and his finance company are always changing the goals, they freeze intrest then start it up again, I also got my overdraft paid within its agreed allowance but they then dropped the limit so now the bank wants that. I have a car (motability) but this is the only way i can leave the house, other than a wheelchair.

 

 

I currently pay my creditiors 29.00 and 20.00 a month my husbands finance company is paid 50 as they wouldnt accept less. Other than household costs we actively contribute towards the children, when ever asked, but rising costs, of everything are making life very hard. I budget for everything and by the chepest but anything that goes over the budget, ie kids birthday, vet bills, has a knock on effect.

 

 

I am considering applying for a DRO as my creditors are hard and at present i am on chemotherapy and not well enough to keep arguing the toss, they ring all hours of the day and night and im so fed up. I have heard that i could offer a £1 a week, but when i have tried to drop my payments they wont allow it, I havent been able to pay for the last 2 months, so am being threatened with court action and people coming round to talk to me.

 

So the big question is do i apply for an DRO and do i tell them that this is my intention or do i negotiate less payments, and will they have any legal rights to turn down my offer? Any help is really appreciated as i am struggling to deal with this alone.

Edited April 19, 2012 by citizenB
formatting for easier reading

[nohope]

A DRO is more of a last resort for most people as it has a knock on effect for getting any type of credit for the nect few years but if you do go for one then don't mention it to any of your creditors (they have no rite to no your taking one out) just try and emagine there faces when they get the paperwork through to say leave this person alone. If they wont play ball and try to help then a DRO does work a treat.

 

I would try one of the free advice places first that can deal with your creditors on your behalf like debt line (think thats what there called). They will be able to work things out for you and tell you your best option.

 

Others will be along soon who no alot more than i do about what you can do before a DRO so hang in there for a while till theres a few more answers to choose from..

[ibis]

Mainly i would like to renegotiate, but not to sure where i stand from my perspective. If i could pay less amounts that would help, as it stands nothing will get paid off for about the next 40 years anyway, so i dont want to cripple myself financially, when ive now got my prority debts under control. I also dont like that they never respond till my 4 or 5th letter and that they ring all hours of the night gone 8 sometimes. I now deal in writing but having had to speak on the phone to them in the past they have been intimidating, im quite resilliant but i can see how others may feel desperate.

What i would like to know is can i renegotiate?

do i have to fill in a income and expenditure form?

if they decline any lower payments, what do i do then?

If i get no response from them, do i assume they are going to court?

Can they send someone to my house to discuss the matter in person, and do i have to speak to them?

Cheers in advance

[nohope]

Who are the ones that will not play ball and how much is owed to each of them.

[citizenB]

You do have lots of choices

 

DRO is just one of them. If your debts are less than £15,000 and you have no assets eg a house, then to go this route you will be debt free within a year. The DRO info is the 5th option down the list and you would need to telephone National Debtline

 

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts

 

Alternatively you can contact one of the agencies below who will help you complete a proper budget form and provide template letters in order to negotiate realistic payments (and hopefully freezing interest) with your creditors.

 

 

If you are experiencing difficulty in repaying your debts, CASHflow is a way for you to negotiate affordable repayments with your creditors. Before you can use CASHflow, you must have spoken to one of the free advice agencies licensed to offer CASHflow to their clients. The advice agency will start by talking to you about all of the options available, and can help you to decide if CASHflow is the right one for you.

 

If you decide to use CASHflow, you will be provided with all of the tools you need to be able to complete your own financial statement and negotiate offers of repayment with creditors yourself. This will enable you to stay in control of your situation, but still have support from an adviser at any stage if you need it.

 

You can contact a local advice agency to check if they offer CASHflow. You can find a list of free advice agencies that are near to you by searching for a money adviser in England or Wales, Scotland, or Northern Ireland.

Alternatively, you can call National Debtline on 0808 808 4000

CASHflow: http://www.cashflow.uk.net/

National Debtline: http://www.nationaldebtline.co.u k/

https://www.mymoneysteps.org/

Also as highlighted in the CAG newsletter...

There is the new CAB system that might also be worth a look, this system saves all your details, has guidance allowance figures to work with if you wish and you do not need to be invited / signed off etc with this system, just log in and away you go (see below)

 

(Also, there are a number of other self help tools and systems around so might be worth a little exploration if this is what you eventually decide on.)

 

http://mymoney.nedcab.org.uk/moneyadvice/

 

http://mymoney.nedcab.org.uk/moneyadvice/ (example of completed dmp)

[ibis]

The ones who wont play ball are barclays, experto credite and advantage, . barclays are instructing mercers on there behalf according to the letter and they are sending someone to talk personally.

[citizenB]

The ones who wont play ball are barclays, experto credite and advantage, . barclays are instructing mercers on there behalf according to the letter and they are sending someone to talk personally.

 

 

Barclays are instructing NO ONE.. Barclays Bank t/as BarclayCard t/as Mercers t/as Calders..

 

No one will come to your home - but should they be so foolish as to do so, then just ask them to leave..

 

There is a DO NOT VISIT me letter in the CAG library, which you can print off and keep by your front door, just hand it to them and tell them to go away..

 

Can you scan that letter in please remove any personal information first and follow the instructions below.

 

 

Dx100 – Instructions on uploading pdfs

scan the required letters/agreements/sheets

as a picture file

remove all pers info inc barcodes etc using paint

but leave all figures and dates.

goto one of the many free online pdf converter websites

convert the image to pdf format.

or ir you have PDF as an installed printer drive use that

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

NB:you can set where it goes in the post by hitting insert inline.

the hit reply button

[ibis]

Hi I cant scan but i will copy the letter word for word. This is from MBNA not barclays (sorry my brain) MBNA passed the account to Experto credite and this is what was sent to me by them.

 

Credit Management Consultants

PO box 8132

Reading

RG30 9GH

 

0845 308 2299

 

11/4/12

 

Dear XXXXX

 

Your account has been escalated to Credit management consultants and we are writing to you to recover the balance outstanding on the above account.

 

As you have failed to respond to previous offers of assistance, we now demand immediate payment of the balance in full. If you do not send payment in full within 7 days of the date of this letter, we will assume you have no intention of dealing with this matter

 

You will leave us with no option but to consider passing your account to a licensed field agent, who will attempt to call at your property to discuss the matter further with you.

 

Alternatively we may pass your account to our solicitors who will consider an appropriate course of action to take to recover the outstanding balance from you.

 

To avoid this action, you must contact us within 7 days from the date of this letter on telephone number 08453082299 If we donot hear from you, we will continue action till contact is made.

yours faithfully

 

scribble

[National Debtline]

Hello ibis.

 

You'll often find that it's the non-priority creditors that seem to badger you the most for payment. Demanding payment via letters and telephone calls is really the main thing that they can do at this stage, They can get quite persistent! If you haven't already done so please consider completing a financial statement - as this will allow you to work out exactly what you need to cover your essential outgoings and then show you what you might have left for your credit debts. We have an online system, My Money Steps, which can help you work out a budget and also make suggestions as to the best route forwards. You can find the system here: http://www.mymoneysteps.org

 

Debt Relief Orders are a very popular option, we have a team of intemediaries that can help you set one up. You can also seek assistane via places such as the CAB and other debt advice charities. Here's our fact sheet:

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=37_debt_relief_orders

 

As far as Credit Management Consultants are concerned, they have no further powers to do anything than MBNA had originally.

 

Best wishes,

 

National Debtline.

[ibis]

Hi thanx for your help guys, I have been trying to get an appointment with my local cab but neither offices are answering and i have been ringing all week. The last guy i saw at the cab i think was having an off day as he wasnt able to help much. I have already made out financial statements. In the begining i sent them as requested to the banks and credit agencys. But due to the kids getting older and the rising costs of petrol, food etc money is tight, I have seen on here also that the debt collectors have no right to know my financial situation. We are only on disability benefits anyway.

Would it be worth writing to each with an offer i can afford?

thanx xxx

[citizenB]

Whilst it might not be face to face, why dont you telephone the National Debtline.. I am sure they will be very helpful

[ibis]

Hi guys quick update, sent details to national debt line and am awaiting call/email. Thanx for your help everyone xxx

[citizenB]

Hi guys quick update, sent details to national debt line and am awaiting call/email. Thanx for your help everyone xxx

 

Excellent - that is the first step taken - Please let us know how things progress

[ibis]

Hi got email back from NDL, very informative and helpfull. Am going to re-negotiate with my creditors, and see how that goes. 1 very quick question, do i have to send them details of my finances? (budget sheet or income and expenditure ) not that I got nothing to hide, but i dont really like giving them this as my income is joint with hubbys, they have asked before and i said no, but just checking im not under any legal obligation?

[citizenB]

Hi got email back from NDL, very informative and helpfull. Am going to re-negotiate with my creditors, and see how that goes. 1 very quick question, do i have to send them details of my finances? (budget sheet or income and expenditure ) not that I got nothing to hide, but i dont really like giving them this as my income is joint with hubbys, they have asked before and i said no, but just checking im not under any legal obligation?

 

 

It isnt necessary that you provide them with the I&E.. however, it is more than likely they will refuse to deal without it.

 

You can take steps to protect your information though.. amend the I&E to remove any actual details of any other creditor.. eg.. instead of putting B/card - Halifax - 1st credit.. Identify the amounts by Creditor 1 - Credit Card

Creditor 2 - Loan

Creditor 3 - catalogue.

 

If the debts are in one name only - you DO NOT have to provide them with any details of the other person's income.

 

The repayment plan should be based on the debtors income only.

 

They will however, expect to see a contribution to the household expenditure from the other person.. If that makes sense !

 

Example.. If it were just me who owed money and I had lots of debts. I would put all the priority debts for the Household, priority debts etc..

 

However, in the income section.. I would be putting all my Income + an amount from Hubby, because it is assumed that a dual income household will be sharing the expenditure/mortgage etc.