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Alleykat

Snowed under with debt, question about assets

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Hello,

 

I owe roughly 15k, on credit cards and a catalogue.

I've missed no payments so far and am managing to make all minimum payments with a little on top.

 

The problem I'm about to have is that my financial situation will change in 8 months.

I have a disabled daughter who will be turning 20, and the extra money we get at present will stop.

 

I had hoped to get it all paid off before then, but that's not going to be possible.

I'll still get carers allowance for her, but income support & housing benefit will be drastically reduced. I'm a single mother, so no partner to help me out.

 

I'm worrying myself sick about it, and it's looking increasingly likely that I'll have to go bankrupt

- from what I've read, you can't do a DRO if you're on benefits

- and my daughters condition means that I'll be her carer for the rest of her life, so benefits will be all I have.

 

We live in a council home, and I have no savings.

We have a car, worth roughly 1.5k and a 15yr old but much loved campervan worth about 3k. Both are registered as used for disability, with the van being the main vehicle. Both are registered under the blue badge scheme.

 

I know that I have bigger things to worry about, but that campervan is the only way we get to have some respite

. My daughter is severely autistic and we use the van 2/3 times per year for weekends at quiet beaches.

 

We can't travel by train or airplane, and the van allows us to make multiple stops along the way, should we need. Having the campervan also means being able to afford to even get away. The van is our only asset, so I know that we will have to sell to put toward debts.

 

I'm just hoping there may be other options open to us that I might not know about, that will enable us to keep hold of it.

 

My daughter loves that van and we've got so many happy memories from it. I just don't know how I could make her understand that the van has to go.

 

If anyone can offer some advice, that'd be great.

I'm struggling to sleep and eat with the worry of this debt.

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Hello and Welcome Alleykat,

 

Sorry to read about your situation, your thread would be best placed in another forum for you to get the correct advice, I'll see about moving it shortly.


 
 

Any advice I give is honest and in good faith.:)

If in doubt, you should seek the opinion of a Qualified Professional.

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Hello and Welcome Alleykat,

 

Sorry to read about your situation, your thread would be best placed in another forum for you to get the correct advice, I'll see about moving it shortly.

 

Thanks, I hoped it was in the right place but wasn't sure.

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Maybe you can register the van in your daughter's name... I'm not sure, but I think it would work. TB

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Maybe you can register the van in your daughter's name... I'm not sure, but I think it would work. TB

 

I'm not sure that's an option - she doesn't even have a provisional and will never be able to drive. Thanks for the thought though.

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There are clubs you can join or start a club to register all your vehicles to or find a friend for a mutual?

 

After defaulting on the unsecured debt which it sounds likely you will anyway soon without some good fortune I would say perhaps now is the time to consider making a reduced min offer of payment to them all till your able to afford more so offer them creditors all a £1 a month deal or whatever you can afford pro rata till your fortune improves?

 

Obv your credit rating could suffer blah blah blah thats prob what I would do in your situation once those essential family assets are safe.

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You don't have to sell the van at all

And I'd not go down any bk or dro or iva route yet

 

Why are you losing her money?

 

Can you list your debts please

Who was the original credit or

Who you pay now

Debt amount

Date of take out

Type of credit

 

Reduced payment is as hinted by WL is the best way

 

Dx


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Why are you losing her money?

 

Can you list your debts please

Who was the original credit or

Who you pay now

Debt amount

Date of take out

Type of credit

 

 

 

Dx

 

Thanks for taking the time to respond

- as she turns 20,

she will no longer be classed as my child. I

will have to apply for ESA or similar for her.

Child benefit will stop,

Income support decreases as she will no longer be a dependent,

I lose the severe disablement premium for a child and my carers allowance will also drop £30.

She will still reeceive her PIP but that goes towards her needs.

 

Debt is:

 

£4.5k mbna (2 cards) 3yrs old

£4.5k barclaycard 3yrs old

£3.5k catalogue 6yrs old

£2.5k argos card 5yrs old

 

I had considered offering a reduced amount, and that's great at the moment while we still have disposable income, but eventually, I'll be struggling to find £30/£40 per month and if I pay all of that every month,

 

 

I'll be repaying for years and years with no money for anything other than food & bills.

I know I got myself in this situation, but the thought of being penniless for decades is pretty depressing.

 

 

We moved into a property that was more suitable for my daughter (bedroom and bathroom on same level, to avoid falls during the night), but it was an absolute shell - I thought I could make the house a home and still have time to pay it all off before my situation changed.

 

I had debated selling the van to a friend but I read that any sale of assets during the last 2 years would be investigated, so I just don't know.

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Might be an idea to start a thread in the benefit forum

But ESA should be easy and needs to be gotten going now

If you have all the statements from her education etc should be a walk in the park

Why have you waited this long

You should have gotten this years ago.. Sorry puzzled???

 

Anyway

Not my best subject...

 

Are all you debts still with the original creditors?

If not time for a CCA request on each bar the CCJ s


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She attends a local college with additional support, so for that reason she is still classed as a child - applying for ESA before then would have put us in the same reduced finances situation, just earlier.

 

She'll be continuing at college even after her 20th birthday, just as an adult rather than a child. Yes, we have evidence, statement etc, but the amount of money paid by ESA will still be a lot less than we get at present.

 

Yes, debts are with original creditors, and no payments late or missed.

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Is she getting EMA too?

 

Were any of these debts taken out before Apr 2007?


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EMA ended in England if I recall. As she's still classed as a child, with child benefit still being paid for her, I receive extra money for her by way of income support. As far as I'm aware, we get everything we/she is entitled to.

 

All debts were taken out after 2010.

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I'm not sure that's an option - she doesn't even have a provisional and will never be able to drive. Thanks for the thought though.

 

You don't need to have a driving license to own a car... as far as I am aware. Someone correct me if I'm wrong. TB

 

This is what the police & DVLA say;

 

You don't need a driving licence to own a vehicle.

 

So your daughter can be the owner, and you will be the registered keeper. The vehicle is necessary for the job you do as your daughter's carer. I doubt any bailiff can take away goods which don't belong to the debtor. I guess you can make it more official by 'selling' the car to your daughter for a nominal fee. Don't forget to get a bill of sale!. TB

 

A registration document (V5) is not proof of ownership. The registered keeper should be the person who is actually using / keeping the vehicle and this is not necessarily the owner of the vehicle or the person who is paying for it.

 

He is the person responsible for the vehicle so far as official communications from the police/DVLA etc., but the owner is the person who put up the cash (or was given it as a gift).

 

The DVLA make a point of saying that the person named on the registration document is not necessarily the owner.

 

This is particularly true with a company car which is owned by the company, however the registration document should show the registered keeper, i.e. the day to day user (this may be an employee who has it as a permanent perk with his/her job).

 

In the case of a car used by a married couple, ownership of any property is usually classed as joint and if the husband was stopped driving the vehicle without insurance the police would probably accept that he was joint owner and not look to the wife for additional offences, such as owner permitting no insurance.

 

A registered keeper will usually be regarded as responsible for parking tickets etc so it would be wise to have the registration document changed if you are the owner, but not the user/keeper. There might also be some circumstances where you would be deemed as being the owner of the vehicle for an insurance offence, e.g. if you are permitting someone to use the vehicle knowing full well it is not insured or roadworthy.

 

Most insurance companies insist that the person who they insure is the primary user of the vehicle and can specify that the person is the registered keeper. It is up to them who they will or will not insure

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If that's the case, then that would be fantastic. I guess you could say that she did pay for the van, as it was only possible to buy it due to her disability benefit. It might seem an extravagant purchase, but the benefits of having it have more than made it worth it.

 

I suppose I should look into this some more, but in the meantime I've still got to work out what to do with regard the debt. I'm loathe to offer drastically reduced payments while I can still afford to clear at least some of the debt. Once my finances change next year, I'd end up paying whatever small amount I can for who knows how many years.

 

If someone could tell me what different types of debt relief I'd have available, that'd be great.

 

Thanks for all the input so far,

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This is what the police & DVLA say;

 

You don't need a driving licence to own a vehicle.

 

So your daughter can be the owner, and you will be the registered keeper. The vehicle is necessary for the job you do as your daughter's carer. I doubt any bailiff can take away goods which don't belong to the debtor. I guess you can make it more official by 'selling' the car to your daughter for a nominal fee. Don't forget to get a bill of sale!. TB

 

A registration document (V5) is not proof of ownership. The registered keeper should be the person who is actually using / keeping the vehicle and this is not necessarily the owner of the vehicle or the person who is paying for it.

 

He is the person responsible for the vehicle so far as official communications from the police/DVLA etc., but the owner is the person who put up the cash (or was given it as a gift).

 

The DVLA make a point of saying that the person named on the registration document is not necessarily the owner.

 

This is particularly true with a company car which is owned by the company, however the registration document should show the registered keeper, i.e. the day to day user (this may be an employee who has it as a permanent perk with his/her job).

 

In the case of a car used by a married couple, ownership of any property is usually classed as joint and if the husband was stopped driving the vehicle without insurance the police would probably accept that he was joint owner and not look to the wife for additional offences, such as owner permitting no insurance.

 

A registered keeper will usually be regarded as responsible for parking tickets etc so it would be wise to have the registration document changed if you are the owner, but not the user/keeper. There might also be some circumstances where you would be deemed as being the owner of the vehicle for an insurance offence, e.g. if you are permitting someone to use the vehicle knowing full well it is not insured or roadworthy.

 

Most insurance companies insist that the person who they insure is the primary user of the vehicle and can specify that the person is the registered keeper. It is up to them who they will or will not insure

 

That is a very worrying post and any bailiffs, if any get involved would easily see straight through it.


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

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I think it would be worth you contacting charities that help those with disabilities. They often have people or contacts that can offer assistance in these situations. Because they deal with people in this situation on a daily basis, they can often provide rounded advice on all of the issues being faced and might even know of things which an internet forum might not be aware of. E.g. There might be local help available to you, where they can assist with benefit changes, local council, housing issues etc etc.


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That is a very worrying post and any bailiffs, if any get involved would easily see straight through it.

 

Oh :( I was hoping that was a loophole rather than dishonest. I guess we'll just have to resign ourselves to having to sell it.

 

I think it would be worth you contacting charities that help those with disabilities. They often have people or contacts that can offer assistance in these situations. Because they deal with people in this situation on a daily basis, they can often provide rounded advice on all of the issues being faced and might even know of things which an internet forum might not be aware of. E.g. There might be local help available to you, where they can assist with benefit changes, local council, housing issues etc etc.

 

I'll look into the charities over the next week, although I'm sure getting her benefits won't pose a problem.

 

I'd still like to know what debt relief there may be that could help me. I know I'm worrying 8 months in advance, but it feels like it's right around the corner. Also, if going bankrupt is my best option, I have to save for the £700+ fee.

 

Thanks again.

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ITs not a loophole at all. Bailiffs and courts ( you are a LONG way from those) Can see right through it as people regularly try that method to avoid fees or their debts.

 

First thing to do though is contact your creditors and negotiate a reduced payment . Dont tell them about the future just yet, just say youre experiencing difficulties and need to lower the amount youre repaying. Then when they ask in a few months for increased payments, you tell them no cos your situation hasnt changed.

 

Can i ask if these debts are still with all the original creditors, and they havent passed on or sold the debts to a dca?


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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Yep, the debts are all still with the original creditors

- as I said, I haven't even made so much as a late payment yet and they're all accounts I've opened since 2010.

 

I understand what you're saying about arranging smaller payments, but I would really like to clear as much as possible while I'm still able. I don't feel comfortable telling them I can't afford it when I actually can. Is this absolutely necessary right away?

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My advice from experience is get a reduced payment, pay it.

 

Keep the extra cash you'd have from what you'd normally pay and use it when your reduced payment gets too much. I

 

t isn't ideal but it would give you some breathing space to arrange plans


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

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£15k is nothing

go talk to payplan or stepchange

they'll sort it out for you.

 

 

no need to worry about anything.

 

 

dx


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Yep, the debts are all still with the original creditors - as I said, I haven't even made so much as a late payment yet and they're all accounts I've opened since 2010.

 

I understand what you're saying about arranging smaller payments, but I would really like to clear as much as possible while I'm still able. I don't feel comfortable telling them I can't afford it when I actually can. Is this absolutely necessary right away?

 

If you are facing hardship with no siginicant assets, then it might be worth asking the question to these creditors, as to what help they can provide. It sounds like you are not in this position yet, but it is possibly on the horizon and therefore they may not believe you need any help at this moment. They will want you to continue making minimum payments and advise them when you can't. They might freeze these accounts and not allow any more use of them to make payments or obtain cash withdrawals.

 

You need to start working out your finances going forward with a monthly planner. You can then work out roughly when you won't be able to pay minimum payments required. Also write down all of your other household spending and start to look at any savings you can make e.g switch utility companies, TV/broadband etc. See what you can reduce or do without,

 

Do you receive tax credits or other income that need to be reassessed soon ? Write a list of everything you need to look at and work through it. There are different sections on CAG where people with knowledge might be able to advise.


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Ok, Renegade - thank you.

 

If you are facing hardship with no siginicant assets, then it might be worth asking the question to these creditors, as to what help they can provide. It sounds like you are not in this position yet, but it is possibly on the horizon and therefore they may not believe you need any help at this moment. They will want you to continue making minimum payments and advise them when you can't. They might freeze these accounts and not allow any more use of them to make payments or obtain cash withdrawals.

 

I agree

- I thought paying until I can't, or rather just before, was the way forward.

I'll start keeping tabs on our expenditure.

 

 

With regards cutting back,

apart from the debt direct debits,

I only have phone and broadband,

council tax,

water (watersure tariff for disabled customers),

gas/electric (recently switched supplier after paying through the nose with British Gas for 20 years),

3 sim card plans for myself & kids at £5.50 per month,

and a life insurance policy (£11p/m). I

 

 

tend to pay car insurance annually to save money.

We don't watch live TV,

so no license or TV bill to pay for

, but we do have netflix.

 

I don't receive any tax credits at all,

my income is purely made up of carers allowance,

child benefit and income support

 

 

. I'll sit tight for a few months and go from there.

 

£15k is nothing

go talk to payplan or stepchange

they'll sort it out for you.

 

no need to worry about anything.

 

dx

 

Really? It doesn't feel like that :-D I'l try and stop worrying so much, but it's hard to let go and relax.

 

Thanks again, really appreciate the input.

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There is nothing illegal or dishonest about my post. The daughter is perfectly entitled to be given the van as a gift or can lawfully purchase it from her mother. Please say why that is wrong? There are no bailiffs or enforcement yet. The OP is not a bankrupt or in default yet.

The registered keeper and the owner do not have to be the same person. I got the information from DVLA/Police sources online. TB

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ok can we stop arguing please guys not helping the OP

 

alleykat

in our debt collection section of the library

there are numerous letters you can send

about the debts

try the one to freeze interest/charges first

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?387436-Letter-for-consideration-regarding-Hardship-or-Financial-Difficulty

 

your godsend at present is these are still with the original creditors

they are duty bound to help you.

 

 

dx


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