| T O P I C R E V I E W |
| jean.er |
Posted - 17 August 2010 : 11:30:13
hi looking for some advice my daughter has incurred some debts with catalouges which have now gone to debt recovery people it amounts to nearly £3000 she is on incapcity benefit at the moment she still lives at home l am paying two of them for her from my account could l get them transferred to my name as it confusing remembering what account bills are coming from and advice would be great
thank you |
| 8 L A T E S T R E P L I E S (Newest First) |
| charlie44 |
Posted - 18 August 2010 : 15:05:30
Have to agree with Melanie, a DRO would draw a line under debts and allow her to move on. I received advice from Melanie last year (all free) and it was the best advice I could have received. |
| Daniel Griffiths |
Posted - 17 August 2010 : 22:59:04
I think contacting the CAB is top of the list but not taking a debt relief order especially for debts below present level of £3000 just not worth a young person choosing this route long term even on benefits one of the debt charities may get an agreement at £5 per month which is affordable avoiding a debt relief order which is bankruptcy with a small b |
| integritydebthelp |
Posted - 17 August 2010 : 17:11:59
I agree a DRO may be your best bet, but it would be advisable to try and talk to the creditors first. You say that she did not want to talk to people about her debts but the CAB are trained to talk to people from all situations. Don't be pushed into something that you do not feel right with, at the end of the day it's your decision and the main thing is that you are happy with that.
“A compassionate person develops an eye for spotting the qualities that make each person special. Even when others are at their lowest ebb, it is possible to help them restore their self-belief by keeping a firm, clear vision of their goodness and specialities. Taking a gently encouraging approach, I must never give up on anyone.” |
| Melanie.n |
Posted - 17 August 2010 : 15:46:09
As client is in receipt of Incapacity Benefit it would be foolish for her to set up a DMP with a company and try to make reduced payments from her benefit (benefits are not meant to be used to pay debts) A DRO is a process administed by the CAB (citizens Advice Bureau) and others where your daughter would have an interview/chat with an advisor during which you could accompany her, they will go through her circumstances, list her debts (she will need paperwork) pay over the fee (£90) and that is basically it. Yes she will be wary of increasing her income for the duration of the DRO (12 months) as if she obtains work and her income increases to show a disposible income (that is what she receives less what she needs to 'live on') is over £50 this may cancel the DRO. But to be honest this is higjly unlikely. If the liklihood is that your daughter is going to remain on Incap for the next 12 months thena DRO is her best solution. This will draw a line under her debts as they will in effect be written off within the DRO. Your daughter will not have to attend court nor speak to the Official Receiver - it is all doen through the CAB, which contrary to some on here I can throughly recommend their debt advisors are highly trained and are not out to make money like most debt solution companies. If she did not wish to apply for a DRO then her alternative would be a non fee paying Debt management plan through the likes of the Consumer Credit Counselling Service of Payplan neither of which charge fees. But a DRo would be her best bet!
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
telephone 01792 899996
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| Daniel Griffiths |
Posted - 17 August 2010 : 14:25:44
Hi It will be worth a trip to the CAB as its free and if you come away not satisfied you have only wasted the bus fares,ask them about an administration order (debts under £5000) this is where you pay one monthly amount into the court and they distribute funds to the creditors I am of course presuming admin orders are still around have not advised on one for a long time, but in your daughters situation I think the CAB are the first call |
| integritydebthelp |
Posted - 17 August 2010 : 12:50:15
Can I suggest that you first have a look at other options as a dro restricts you and you have to have less than £50 per month disposable income for it to work. However if her situation changes and say for example she starts to work again and her income is greater then the dro will stop and she will still be liable for the debt.
Be wary of the CAB they will suggest a dro but will also try and sway you towards debt managament companies which is not always the best option. Many people i speak to have had this happen to them and it was not the right advice given to them and their problems only got worse or just never got solved, plus the fees involved are high.
You can talk directly to the creditor who has a duty to help if you are struggling to pay and there are different options that they can do. I suggest you speak to them first about changing the account details or getting them to help with a payment plan back to them.
“A compassionate person develops an eye for spotting the qualities that make each person special. Even when others are at their lowest ebb, it is possible to help them restore their self-belief by keeping a firm, clear vision of their goodness and specialities. Taking a gently encouraging approach, I must never give up on anyone.” |
| lissypie |
Posted - 17 August 2010 : 12:11:43
Hi and thanks for your quick reply could you tell me what a DOR entails as my daughter is a very anxioius person and is not keen to talk to anyone about this we are managing to pay monthly instalments it would just be better if they could come off same bank account (mine) if possible as my daugher is not very good with money hence the debt in first place
thanks again for your quick reply
Jean Bremner |
| Melanie.n |
Posted - 17 August 2010 : 11:34:38
Hello there and welcome to the forum, your daughters best option is to make an appointment with her lcoal Citizens Advice Bureau. They will go through her financial situation with her, it may be that her best option is a Debt Relief Order (DRO)(Similar to bankruptcy but for debts under £15k - the fee for this is £90 as opposed to the £600 for bankruptcy) The CAB can apply for a DRO for her, but whether this is the best option is only possible to advice with the full facts as to her situation, if she has no assets it may be the best thing for her to do to draw a line under the debt and move on.
Hope this helps
Melanie
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
telephone 01792 899996
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