Small Claims Track - mediate or not

[andyhuk]

Hi, I'm currently going through County Court process with Lowell Solicitors.

Just some background. I have over £70,000 (spread over 8 creditors) unsecure debt, I'm received housing benefit (which covers the rent) and Jobseekers allowance of £74 minus £8.92 a week for a budgeting loan from the DWP, so I have £65/wk to live on. I have no assets, I've sold all my possessions that were worth anything a while ago, apart from a £80 laptop, clothes and a £50 phone.

I’'ve been ignoring my debts up until now, my mental health is terrible, I've dropped to as low as someone could go I think, I have no family or any close friends for support, I haven't really had a conversation with anyone for about 2 years.

I have no money to pay any debts, I would struggle to find £1 some months as I literally have a couple of pence in my account or have to visit a food bank or go hungry. I'm regularly late with my rent but have no arrears at the moment.

I had a mental breakdown 3 years ago after a business failure and haven’t worked since, living on debt and savings.

I have no money to apply for bankruptcy and don't qualify for any grant, trying to save enough money each month to put towards the bankruptcy fee is impossible at the moment.

Currently Lowell Solicitors are the first to apply and try to get a CCJ of just over £7.5k.

This week I received 'Notice of Proposed Allocation to the Small Claims Track' with a 'Directions Questionnaire' to fill in.

My question is should I go through the 'Small Claims Mediation Service' or wait until it goes to court to explain my circumstances to the County Court Judge so I can get some sort of variance/debt relief payment of say £1/month.

Personally I think Lowell Solicitors are spending good money after bad as I don't have the money and if I ever get myself well again and start working the first thing I'll do is apply for bankruptcy - I've already discussed this with my local Citizens Advice when they looked at my circumstances a couple of months ago who advised bankruptcy.

[ostell]

Fill in the DQ otherwise it could be judgement by default.

When you got the letter before claim did they include an income and expenditure form? did you fill it in and return it?

It might be advantageous to write to Lowell now listing your income and expenditure to show that continuing would be pointless and fruitless and would they like to reconsider. If you get a CCJ against you it will only add to your problems.

[Scot22]

Have you sought help from any of the mental health charities ?. Getting yourself well must be a priority.

[andyhuk]

Fill in the DQ otherwise it could be judgement by default.

When you got the letter before claim did they include an income and expenditure form? did you fill it in and return it?

It might be advantageous to write to Lowell now listing your income and expenditure to show that continuing would be pointless and fruitless and would they like to reconsider. If you get a CCJ against you it will only add to your problems.

Yes but I didn't fill that in, I submitted a defence asking them to produce the credit agreement from Tesco Bank (the original creditor), they've yet to produce this, perhaps they'd drop it if they didn't have the paperwork.

I guess if I enter mediation. I'll be able to put my case to the mediator.

[andyhuk]

Have you sought help from any of the mental health charities ?. Getting yourself well must be a priority.

I'm speaking to my GP but I don't see how anyone can help so haven't accepted any talking therapies, so I'm just on anti-depressants at the moment.

[ostell]

So send the income/expenditure to Lowells as soon as you can. The mediator doesn't make a decision and if Lowell don't have the info they can't make a decision. If they know how broke you really are then they might just give up before they expend even more money.

[Scot22]

I'm speaking to my GP but I don't see how anyone can help so haven't accepted any talking therapies, so I'm just on anti-depressants at the moment.

Drugs do not deal with causes. When things are bad it is hard to see any way ahead. Until you try you won't how how talking can help.
My thoughts are with you and it's good you have been given practical help to resolve the debt problem.