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Debt due to illness, please help


NoPoet
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Hi all. I have a number of conditions which have led to excessive debt that I cannot possibly repay in full. I am now receiving the treatment and some of the support I need for my conditions; however the vast debt is preventing me from moving forward with my life, and my credit rating is in ruins.

 

My total debt: £20,000

My total income: Disability benefits (which I'm having to fight for in court)

 

Part of my ADHD is reckless and impulsive behaviour which cannot be controlled. This has led to me accruing ridiculous debt without having anything apart from an eight year old computer to show for it.

 

My conditions were only diagnosed aged 35. Their impact has been so devastating that I am simply incapable of taking on a job at this time. My doctors and therapists have also warned me to avoid jobs, relationships etc while I heal.

 

I *may* be awarded a large backpayment of PIP on Monday. If this happens, I was planning to write to my creditors offering them a one-off lump sum. They are all aware of my conditions and have generally treated me extremely well (although I am now in pre-default status on my loans).

 

Can anyone suggest the wording for this? How can I word it to show that they either accept the reduced offer, or I pay it anyway then declare myself bankrupt?

 

Thanks to anyone who actually read all this!

Edited by fkofilee
Removed Info On Ilnesses
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Hi NoPoet

 

Welcome back to CAG.

 

Sorry to hear of your issues. Would like to help.

First of all, give me a breakdown of your creditors and how much you owe to each one.

What you are paying and whether it has been to court for a CCJ.

 

Ive removed part of your post as its unrequired. Your info that you put before is your own personal info that should be yours and yours alone if you understand me :)

 

FKO

 

We could do with some help from you.

 

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

**Fko-Filee**

Receptaculum Ignis

 

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Hi, ok, thank you.

 

I owe:

£7900 to Tesco Finance. They have been absolutely amazing with me.

£3900 to Hitachi Finance. They claim I missed 3 months token payments (to my knowledge this is not true) and have passed me onto cabot Financial. Cabot have also been brilliant.

£6500 to my parents for bailing me out of debt, helping me to pay for treatment etc.

£1500 to HSBC Bank for overdraft, fees, charges etc.

 

My debts to Tesco and Hitachi have entered pre-default despite me making minimum payments.

 

EDIT: My debts accrued over years of untreated illness. I have various complaints against the NHS as I and my parents begged them for help over the course of my life. These complaints have gone to the Health Ombudsman and my MP.

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I was advised to create a new bank account and I am currently with Co-Operative Bank. My HSBC account is still live though. HSBC have frozen interest/overdraft charges.

 

EDIT: No CCJS. I am considering bankruptcy though. If my creditors won't accept the settlement offers I am considering paying them anyway and declaring bankruptcy.

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Good Man :) - As long as your funds are safe :)

Personally I like the Coop but their lack of branches doesnt help so Im with Nationwide .

Basic account is really good :) So if you need a change...

 

Right so while Cabot etc are being paid. Have you attempted to request a CCA?

 

We could do with some help from you.

 

Have we helped you ...?         Please Donate button to the Consumer Action Group

 

**Fko-Filee**

Receptaculum Ignis

 

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They've sent me some paperwork confirming the total balance and that I have increased my minimum monthly payments to £25/m. Originally I was paying Hitachi £97/m and Tesco £185/m.

 

My intention has always been to repay the debt. However my conditions are extremely prevalent, and the stress of dealing with my debt on top of the conditions has been too much. So I just cannot envisage a way of paying it all back short of winning the lottery.

 

One good thing: receiving treatment for my conditions has definitely helped me to bring my spending under control. Without treatment, I am no more capable of stopping it than I am of stopping blinking or breathing.

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As your on benefits. forget the possibility of a lump sum of PIP, the lump sum is simply a back payment for them taking the time to award you, I would simply drop the payments to £1 per calender month to each creditor, you answered your own question in post #7

I just cannot envisage a way of paying it all back short of winning the lottery

 

Stigman

NEVER telephone a DCA

If a DCA rings you, refuse to go through the security questions & hang up!

 

If I have helped you, click on the star & say thank you

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